The cost of employee turnover in healthcare is much more than an HR or operational challenge. It’s one of the most significant financial vulnerabilities facing the industry today. Every time a caregiver departs, it triggers a chain of recruiting, onboarding, and training costs that, when tallied, can easily exceed tens of thousands of dollars per employee. While the occasional departure is inevitable, the cumulative effect of constant turnover adds up fast, and failing to address the root cause can result in millions draining from the business annually.

The first step toward reclaiming those lost dollars and stabilizing your workforce is to focus on retention. Many factors go into maintaining high morale and a productive workforce, and one of the most important is a robust benefits package that directly addresses employees’ needs. With so many healthcare workers facing financial strain, a benefit that supports their financial wellness, like earned wage access (EWA), is crucial. In this article, we’ll take a look at the business impact of employee turnover, the reasons why caregivers leave, and how giving them early access to their earned wages can reduce turnover by 25%.

The Real Cost of Turnover

With an industry-wide staffing shortage and demand projected to increase significantly in the coming decades, healthcare organizations are already feeling the pain from churn. The financial ramifications only compound the issue. Here’s a quick look at the numbers plaguing the industry: 

• The average cost to replace a nurse is $61,100 per employee, according to NSI Nursing Solutions.
• Home care turnover in 2024 was nearly 75%, creating chronic gaps in care.
• The U.S. healthcare system loses $6.5 billion annually to nurse turnover alone.

Why Caregivers Leave

Most caregivers don’t leave because they dislike the work. It’s the nature of the role — low wages, long hours, inconsistent shifts, and delayed pay cycles — that causes stress and financial strain, making an already demanding job even harder. They may seek a new role with better pay or stronger benefits, or a more flexible schedule to accommodate a second job. The common thread is that they’re seeking ways to reduce financial stress. Therein lies the opportunity for their current employer to address this concern. 

How Earned Wage Access Fixes the Problem

The two-week pay cycle causes strain for a lot of people, namely those living paycheck to paycheck, which is the case for many hourly workers. Employers have the ability to address this issue without adding operational costs. Keeper’s earned wage access platform allows employees  to tap into their earned wages after they complete a shift instead of having to wait until payday, so they can cover day-to-day expenses, like groceries, or an unexpected bill or parking ticket. That instant flexibility builds loyalty, reduces stress, and directly cuts churn — all at zero direct or indirect cost to the employer.

For organizations that are assessing their current retention strategy, adding a low-risk, high-reward benefit like Keeper helps the business remain competitive while also having a positive effect on recruitment efforts.

Strengthen your employee retention plan today. Request a demo to see how Keeper can help your organization remain competitive and reduce turnover.