Let Us Help You Determine the Direct Cost of Your Employee Turnover
Across the country, the high rate of turnover among frontline workers in long-term care is a serious workforce problem. Concern about high turnover rates has led to numerous initiatives to improve recruitment and retention of this critical workforce. Much less well explored have been the costs of turnover—their magnitude, their bottom line impact on provider finances, and their effect on the quality of the services provided to long-term care clients and consumers.
Careful documentation of the costs of replacing frontline workers in a single assisted living community in the US determined a total cost associated with each instance of turnover to be between $2,500-$5,000. The calculations included: recruitment costs (advertising, outreach, printing brochures, interviewing time, and time to check references); orientation expenses (staff, materials, and travel); training expenses (certification training, practicum, and competency evaluation) and termination costs (exit interview and evaluation time, paperwork processing, accrued vacation/holiday leave, and substitute aide salary and benefits). These calculations do no account for lost services to clients and lost revenue from funding sources.
This Turnover Cost Calculator will prove invaluable for all communities who have not already identified their annual losses to turnover. Please share this tool with your community and strike up a conversation to determine a strategy to combat these obscene costs.
Annual Employee Turnover Cost Calculator
With these factors in mind, it’s clear that reducing employee turnover is a smart management strategy. Need advice on how to do that? Contact Expert Senior Living today for a free consultation!