• People. Strategy. Partnership.

The Cost of Frontline Turnover in Long-Term Care

|| 30 minute read ||

A 2004 review of 8 previous studies (1992-2004) on the cost of staff turnover for frontline care roles in the USA.

The most commonly used, conservative rule-of-thumb for estimating the per worker cost of turnover in the overall U.S. economy puts the comprehensive cost of replacing a lost employee at 25% of his or her annual compensation amount. Applying this rule, the Employment Policy Foundation (December 2002) calculates that “[f]or the typical full-time employee who earns $38,481 and receives $50,025 in total compensation, the total cost of turnover would amount to $12,506 per employee.” The 25% rule-of-thumb applied to US Bureau of Labor Statistics estimates of the annual wages of direct-care workers suggests a total cost of turnover per employee in the range of $4,200 to $5,200.

Read the full report here

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