Senior Care - America's Fastest-Growing Industry
America is experiencing a crisis in-home care industry. According to sources, there would be 75 million aged population in Amerca by 2030. And, therefore, the home care industry would face major problems and difficulty in recruiting and hiring workforce.
Demographic Shifts and a Struggling Workforce
According to a Homecare Benchmarking Survey of 2015, published by Home Care Pulse, the turnover rate at Home Care Agencies is more than 60 % nationally. Moreover, since 2009, it has been increasing at a rapid speed. The study also stated that in-home care agencies, the turnover rate exceeded 100% in the button 25% and exceeded 170 % in the bottom five percent. A National Consulting firm, ICA Group, has been committed to the estimation of fostering employees ownership that the home care industry will require to hire and train a staggering 13 million new caregivers by 2024 if in case the current turnover rates allow. That estimation is close to 4 % of the current U.S Population.
Staggering is the turnover costs. By using a conservative cost of 20% turnover of annual wages and a 60% turnover rate, the total cost of caregiver turnover exceeds more than $6.5 billion every year. This number is equal to 10% of the $61.8 billion in Medicaid dollar spend in 2016 on home care. When caregivers don’t enter and stay in the industry, the senior citizens in America will be left abandon.
Solving the Home Care Crisis
The issues related to recruitment and retention facing by the industry are related directly to the lack of quality jobs. In the U.S, in the direct care workforce, the hourly median wage is $10.70 per hour. It is just a cent more than the median wage of foodservice and retail workers. In fat caregivers including personal care aides, home care aides, and nursing assistants in eight states of the U.S. (Alabama, California, New Mexico, Virginia, Nevada, Virginia, Texas, and West Virginia) have their median hourly wage less than the same wage for foodservice and retail occupations. Even between 2005 and 2015, the wages of caregivers decreased slightly. 24% of home caregivers were below the Federal poverty line and more than half of home care workers depend on some form of public assistance to meet their needs.
Even the worse scenario is, hours are inconsistent and benefits are limited. While in other industries, employees are expected to start their career at an entry-level and then climb the ladder to get better jobs. Home Care industry offers no opportunities to grow in the career. Even at the end of a 40-year career, the majority of home care workers still make no more than $10-$12 per hour.
According to a recent survey of Homecare Plus, the turnover rate is associated with the
caregiver’s pay. There is a 13 percent turnover rate reduction for every $1 increase in hourly wages. However, due to low margins, it becomes difficult for home care agencies to increase salaries. Many companies are opting for strategies of tapping into the private pay market and here workers-owned agencies can get advantages over smart marketing, quality, and relationship building. But to affect any significant shift in-home care industry’s workers, more will be required to be done. Here Cooperatives play a major role.
Katrina Kazda and Nic Miragliuolo. Citing Sources in APA Format. Retrieved