The True Cost of Turnover and Recruitment in Senior Care
Posted On March 29, 2019
Have you ever done the math of how much money you’re losing with your current turnover rates? How much do you actually spend on recruitment? Do you even know where to start?
A very conservative estimate is that the cost to replace someone is 25% of their salary. So, if you pay a full-time CNA $11.50/hour, they have an annual salary of $23,920. When you subtract 25% of $23,920, you’re left with $5,980. Every time you have a CNA opening, it is going to cost you about $6,000. If you have about two openings each month, you could be spending close to $144,000 on CNA turnover and recruitment each year.
$144,000 to recruit CNAs in order to keep your facility appropriately staffed.
What about nurses?
Let’s estimate that you pay your registered nurses an annual salary of $52,000. It costs you $13,000 to recruit a new RN. If you have two RN openings each month, you’re losing about $312,000 each year on nurse recruitment.
That’s a total of $456,000/year to recruit two CNAs and two RNs each month, and it doesn’t even consider departments outside of nursing.
Of course, this number could be more or less for your organization based on a variety of factors, including:
- Sign-on bonuses you may be offering
- Referral bonuses you may be offering
- Agency staff you may be utilizing
- Loss of revenue from not being able to admit new residents
- Overtime costs to fill your openings
- Onboarding, orientation, and training costs
- And more…
Want to dive into the numbers a little deeper? Use this Turnover and Recruitment Cost Calculator to get a better picture of the true cost of turnover and recruitment for your organization.
Let me know what you find out in the comments below!