CALCULATOR: Home Care Caregiver Bad Hire Calculator

Determine the Cost of losing a New Caregiver in the first 90 Days

The biggest barrier to effectively growing a home care company is the shortage of high-quality caregivers. The Home Care Benchmarking Study from Home Care Pulse shows that 80% of agencies listed Caregiver Shortages as one of the top three threats to their company, and 40% of respondents listed Caregiver Turnover in the top three threats.

Turnover of caregivers hovered around 65% for six years and then spiked to 77.1% in 2022 and 79.2% in 2023 according to the Home Care Benchmarking Report from Home Care Pulse. HCP also reports that 57% of turnover happens in the first 90 days.

Research from Leading Home Care and the Home Care CEO Forum shows that the number one reason that new caregivers quit in the first 90 days is a bad hire. They were not a good fit for the position of caregiver, or they were not a good fit for your company.

What does is cost you to lose a caregiver in the first 90 days?

This tool will help you use your own costs to accurately calculate the actual dollars out of pocket you lose when a caregiver quits.

For example, one Home Care company used this tool and calculated that it cost them $1,575.00 per bad hire.  They had 100 caregivers on their roster, and if 79 of them quite in a year, and 45 of them quit in the first 90 days, that’s $70,875 is lost money from making bad hires.

How would you use an extra $70,000 to improve recruiting and retention in your company?

How many more clients could you serve if you could eliminate your bad hires?