Care givers are the lifeblood of the home care and home health agency. The single largest cost for home care recruiting is staffing. How we find, recruit and keep staff is not only an ongoing challenge, it represents a significant cost center that we have to include in our overall employment costs. With a variety of recruiting strategies, knowing which one is the most cost effective helps to keep the recruiting focus on the best methods.

Real Costs of Home Care Recruiting

Online recruiting is touted as the easiest method for employers, but the real costs of this approach for home care providers need to include not only the fees we incur, but also the retention rates of those recruited online. Recent studies provide some insights into these numbers. Reseach compiled by Bersin by Deloitte places the average per employee cost for recruiting from $3,000 to $5,000 – how does home care figure into this range?
cost of home care recruiting online

Benchmarking by Homecare Pulse shows the relative costs of various online recruiting sources.  At the top of the list for costs is recruiting using and the costs of employee referral programs.  Lower cost approaches include  But the cost of recruiting has to also include the impact of that recruiting – how does turnover impact those costs?

rates for home care recruting retention

The turnover statistics for the same recruiting methods paint a completely different picture.  With turnover from all internet based recruiting strategies ranging from 60 to 80% the actual cost calculation has to rise.  A single $400 recruiting cost for an online hire, now represents only 20% of the recruiting cost, without even factoring in costs for training, orientation and the impact on clients of changing caregivers.  Here’s how the math comes out:

A $350 recruiting cost actually requires $1750 when turnover is factored in.

When the costs for training and placement are included, the $3,000 range for recruitment costs is certainly on the low side of actual costs.  The retention rate for new employees is a primary multiplier when it comes to how much home care agencies need to plan for and focus their recruitment efforts.  With referral sources coming in as one of the lowest original costs and with the lowest turnover rates, it clearly produces the lowest cost recruitment strategy.

Successful agencies don’t like to share their recruiting methods, because they are hard won secrets.  But other methods, not illustrated here, are used by larger home care agencies.

Learn about the recruiting methods of large agencies on a free webinar.