On average, caregiver turnover costs home care agencies $171,600 annually. And with the increasing turnover rate, many companies are turning to 90-day retention plans to combat these challenges.
A 90-day retention plan is a strategy for keeping new employees onboard for at least 90 days. It aims to help new employees feel welcome, engaged, and supported so they can stay with the company long-term.
A recent survey shows that 80% of caregiver turnover occurs within the first 90 days of employment, meaning 5 in 6 people leave their job within the first 90 days. So, the first 90 days of employment are crucial for the employer and employee.
The 90-day retention plan includes steps and activities designed to help new employees adjust to their roles and feel like they are part of the team. This article will provide a practical guide to creating and tracking a retention plan for your company!
The key to creating a successful retention plan is to start with a clear intention and a solid plan. One effective strategy for boosting retention is using meaningful check-in points.
These touchpoints allow employees to feel valued, acknowledged, and connected to something greater than themselves. When creating these check-ins, it's essential to consider the following:
What is the purpose of the check-in?
What specific objectives does it aim to achieve?
What kind of impact will it have on the employee?
To help companies create their own retention plan, we've developed a sample plan outlining the key tasks and touchpoints you can implement throughout the 90-day onboarding period.
These sample plans also provide a framework for delegating responsibilities and holding staff members accountable for engagement and consistency in their interactions with caregivers.
The four elements that we recommend including in a 90-day retention plan are:
Planned touches
Hours desired vs. hours worked
Paycheck review
And caregiver engagement.
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Note: This is just an example; you can adjust it to your business needs and processes.
Also, keep in mind that the key to a successful retention plan is regular check-ins, clear communication, and providing opportunities for growth and development.
If you are not tracking 90-day retention, or if your current system is inefficient, you can start by creating a simple spreadsheet or custom report that will help you export the necessary data when needed. This data should include the following information:
Caregivers hired
Their source
Hire date
Termination date
The reason for termination
Hours worked per week.
Measuring 90-day retention is crucial in understanding and improving your company's retention rate.
The process is relatively simple and can be done by pulling data from your applicant tracking system and payroll software and then performing some basic calculations. For added convenience, you can utilize creative report-making techniques and have your software do the calculations.
To calculate 90-day retention, you can follow these steps:
Compile a list of all caregivers hired during a specific calendar month.
Note the names of caregivers who terminated within the next 90 days.
Divide the number of caregivers who are still active by the total number of caregivers hired during the month.
We recommend conducting this analysis monthly to allow you to see trends and patterns over time. By tracking retention rates at various intervals, such as 30-day, 90-day, 180-day, and annual retention, you will have a more comprehensive understanding of the overall retention rate within your business.
You can use this information to set specific goals, develop strategies, and create accountability within your team to achieve these targets.
"Inspection is the best way to prevent bad work"
This quote highlights the importance of continuous monitoring and evaluation in any business process. And this principle applies to retention planning as well.
After a sufficient period, usually 6 months, it's crucial to evaluate the effectiveness of your 90-day retention plan by comparing the current retention rate to the rate when the plan was initially designed and implemented.
Take the time to analyze the data with your team and ask yourselves questions such as
Has retention improved?
Has it remained the same?
Has it worsened?
Based on the evaluation, make necessary adjustments to the plan. Consider adding or removing touchpoints or changing methods of contact.
The goal of a 90-day retention plan is to improve the retention rate and to support the company's efforts in providing consistent care to clients. It also helps to create a positive company culture, increase employee engagement and improve the business's bottom line.
The key is to evaluate and make adjustments as needed continuously. There is no one-size-fits-all solution, but you can improve overall retention by tracking and monitoring retention and making data-driven changes to the plan.
Improving 90-day retention is important for several reasons. Here are a few key reasons why it should be a priority for your business:
High turnover rates can be costly. Recruiting, training, and onboarding new caregivers is expensive, and these costs can add up quickly. By improving 90-day retention, you can reduce the number of new hires needed and save your organization money in the long run.
New employees require time to become fully productive. By improving 90-day retention, you can keep your employees longer, which allows them to become fully productive and make a greater impact on your business.
High turnover rates can create a negative company culture. When employees constantly leave, it can create a sense of instability and insecurity for those who remain. By improving 90-day retention, you can create a more positive and stable work environment for your caregivers.
High turnover rates can also negatively impact the service you provide to your clients. When employees constantly leave, it can lead to disruptions in service, and clients may have to adjust to working with multiple caregivers. By improving 90-day retention, you can provide more consistent service to your clients.
When employees feel valued and supported, they are more likely to be engaged in their work. A 90-day retention plan helps you create a sense of belonging and engagement among your employees, leading to better performance, productivity, and overall job satisfaction.
Creating a 90-day retention plan for caregivers is crucial in understanding and improving your organization's retention rate. By regularly tracking 90-day retention and evaluating the effectiveness of your plan, you can identify areas for improvement and make necessary adjustments.
It's important to remember that high turnover rates can be costly for your organization, and improving 90-day retention can save you money in the long run. By keeping your caregivers longer, you can increase productivity, provide better service to your clients, and create a more positive and stable work environment for your caregivers.
