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Caregiver Retention: The Surging Importance in a Time of Shortages

Picture of a person with hands stretched out. In between their hands, they have a group of wooden people.

As the COVID-19 pandemic still lingers worldwide, many lines of business are facing unprecedented labor shortages. For the Personal Care industry, it has reflected most acutely in your caregivers. As caregivers are the backbone of our industry, the caregiver shortage has caused a ripple effect that reaches your clients, your administrators, and, of course, your agency’s bottom line. One way to help with this is caregiver retention.

Before the COVID-19 pandemic, many agencies’ largest hurdle was in their Sales and marketing arena. Attracting and growing a reputable client base was a hard task. Sadly, some agencies now have to make tough decisions on adding new clients without the number of caregivers to serve the clients. This makes it difficult for your agency to continue operating as before and profitably.

Caregiver Retention Rates

Caregiver turnover rates are a helpful metric to track. This is one your agency needs to keep an eye out for. Trends in caregiver turnover rates can be very insightful to your company.

One area that you want to make sure is being tracked is your caregiver turnover rate. While historically, the caregiver turnover rate in the Personal Care agency realm has always been high, the following statistics from will illustrate the point.

  • In 2020, 61% of agencies reported turning away a client because of a lack of a caregiver.
  • In August 2021, that number is up to 79%
  • Furthermore, 57% report declining increasing hours from existing clients for the same reason.

Source for this information:

For information on how to evaluate your caregiver retention program, please engage with us for a review of your practices. Thank you again for reading. As always, we’re in your corner. We offer a Free 30-minute consultation with all agencies!

Author: Tyler West

Tyler West is a founding partner of Senior Care Business Advisors with over 10 years of experience in personal care, home care, health care and technology. He is also a former Director of Operations for a Home Care Agency and worked in technology with ClearCare and other organizations. Additionally, he is a published author. Connect with him through Senior Care Business Advisors website,, or LinkedIn You can also reach him via email at