The home care industry is grappling with a significant employee retention crisis, with caregiver turnover reaching its highest level in five years. According to the 2024 Activated Insights Benchmarking Report, formerly known as Home Care Pulse, the turnover rate in home-based care has surged by over 14% in the past two years, now standing at 79.2%. This alarming trend highlights growing challenges in recruiting and retaining qualified caregivers.

The report also revealed inefficiencies in the recruitment process, with only 16.4% of home health care and hospice nurse applicants and 12.8% of home care applicants being hired. This shortage of new hires has led to a situation where 63.3% of providers had to turn down cases in 2023 due to insufficient staffing. The client turnover rate in home care is also concerning, currently at 26.8%.

Activated Insights emphasizes that retention efforts must begin as soon as a job is posted. To attract and retain the right candidates, the report suggests that providers should focus on building a strong employer brand, highlighting unique industry benefits, showcasing career growth opportunities, fostering a positive work culture, and offering continued training. Additionally, while compensation is not the only factor for frontline workers, the report found that providers paying above the 75th percentile experienced a 35.5% decrease in turnover.

Despite these challenges, there are some positive trends. Activated Insights recommends that home care providers proactively gather feedback from both clients and staff to identify strengths and areas for improvement, with an emphasis on building strong relationships. Clients rated their care professionals' abilities as the top satisfaction factor, while employees reported the highest satisfaction with the compatibility between clients and care professionals. This high level of client satisfaction may explain the 18% decrease in providers consistently declining cases due to staffing shortages.

The report also notes a financial silver lining: the median revenue per employee has reached its highest level in four years. Revenue per care employee increased by $1,000, resulting in $14,822 in revenue per hire, reflecting a positive trend despite the ongoing staffing challenges.

As the home care industry continues to navigate these issues, the focus on recruiting and retaining qualified caregivers remains critical to sustaining the sector's growth and ensuring high-quality care for clients.

• Related: Caregiver Turnover, Referral Rejections Continue to Increase in Home Care (Home Health Care News, 8/15/24)