Executive Summary & 10 Key Takeaways
The home care staffing industry faces significant challenges in 2026: high turnover, staffing shortages, and ongoing recruitment difficulties. With demand rising, agencies must strengthen recruitment and retention while leveraging modern staffing technology to improve efficiency and care delivery.
This 2026 Home Care Staffing Report offers actionable insights on staffing shortages, technology adoption, and predictive recruitment to help leaders close workforce gaps, enhance caregiver satisfaction, reduce costs, and future-proof their teams.
1) National Caregiver Turnover Remains High
Industry turnover is elevated, with only modest easing projected.
2) Agencies Turn Away Clients
Capacity constraints force agencies to decline inbound requests.
3) Recruitment Costs Are Rising
Per-hire spending for recruiting, onboarding, and ramp time continues to climb.
4) Demand for Caregivers Will Increase
Home health aide demand is expected to rise ~36% by 2030, driven by aging demographics and greater care needs.
5) Burnout Drives Early Turnover
High caseloads and long hours lead to emotional and physical burnout; ~80% of turnover occurs in the first 90 days.
6) Technology Adoption Can Improve Retention
AI scheduling and automated documentation correlate with lower turnover.
7) Telehealth Adoption Is Lagging
Adoption is meaningful but leaves substantial headroom for growth.
8) Technology Delivers Savings
Operational savings of 12–18% are achievable via automation and smarter scheduling; AI scheduling alone can save $50,000+ annually.
9) Training & Development Reduce Turnover
Investing in 8+ hours onboarding and 12+ hours ongoing training lowers turnover and can drive $350,000+ in annual revenue gains.
10) Regulatory Pressures Are Intensifying
Anticipated CMS payment cuts in 2026 heighten the need for cost-efficient, tech-enabled operating models.
Home Care Staffing in 2026: Recruitment and Retention Challenges
The Growing Staffing Shortage
Home care turnover remains a significant challenge with an industry average of 77% turnover, and projections suggest recruitment difficulties will worsen. The national caregiver shortage is expected to escalate due to the aging population and increasing healthcare demands.
Agencies report turning away up to 25% of clients because they lack sufficient staff to meet demand.
Recruitment costs for caregivers continue to rise, averaging between $2,600 and $5,000 per hire. These high costs, coupled with recruitment delays, make it even harder to meet the demand for quality home care services.
Root Causes of Recruitment and Retention Issues
Low wages and benefits: Home care wages are often lower than other healthcare jobs, which impacts recruitment.
Burnout: Caregivers experience emotional and physical burnout due to the demanding nature of the job and long working hours.
Limited career progression: Many caregivers leave due to the lack of clear career growth opportunities within the agency.
Administrative workload: Excessive documentation and inefficient scheduling can reduce caregiver job satisfaction and increase turnover.
Home Care Staffing in 2026: Recruitment and Retention Challenges
The Growing Staffing Shortage
Home care turnover remains a significant challenge with an industry average of 77% turnover, and projections suggest recruitment difficulties will worsen. The national caregiver shortage is expected to escalate due to the aging population and increasing healthcare demands.
Agencies report turning away up to 25% of clients because they lack sufficient staff to meet demand.
Recruitment costs for caregivers continue to rise, averaging between $2,600 and $5,000 per hire. These high costs, coupled with recruitment delays, make it even harder to meet the demand for quality home care services.
Root Causes of Recruitment and Retention Issues
Low wages and benefits: Home care wages are often lower than other healthcare jobs, which impacts recruitment.
Burnout: Caregivers experience emotional and physical burnout due to the demanding nature of the job and long working hours.
Limited career progression: Many caregivers leave due to the lack of clear career growth opportunities within the agency.
Administrative workload: Excessive documentation and inefficient scheduling can reduce caregiver job satisfaction and increase turnover.
Expected 77% Turnover with National Caregiver Shortage
Turnover pressures remain elevated; agencies face constrained supply amid rising demand for home care.
Recruitment Costs Rise between $2,600 to $5,000
Per-hire spending (recruiting, onboarding, and lost productivity) continues to climb, tightening margins.
Agencies are Turning Away up to 25% of Clients
Capacity constraints force agencies to decline a significant share of inbound requests amid persistent staffing gaps.
Technology as a Key Solution for Home Care Staffing
Leveraging Technology to Improve Recruitment and Retention
To address staffing challenges, agencies should embrace staffing technology solutions that streamline operations, reduce administrative burden, and enhance caregiver satisfaction. Here’s how home care agencies can use technology to improve recruitment and retention:
Telehealth and Remote Monitoring
Only 40% of agencies offer telehealth services, even though the demand for remote care is growing. Implementing telehealth solutions allows caregivers to deliver care remotely, alleviating the burden on in-home visits. learn more.
AI-powered remote monitoring helps caregivers manage patient care from a distance, reducing the need for physical visits and increasing operational efficiency.
Automated Scheduling and Caregiver Matching
AI-driven scheduling software can optimize caregiver shifts and match the right caregivers to clients based on their skills and availability. This reduces scheduling conflicts and ensures a better fit between caregivers and clients.
Predictive algorithms can help agencies forecast staffing needs and allocate resources more effectively, improving service delivery and reducing burnout.
Automated Onboarding and Administrative Tasks
EHR integration and automated documentation tools reduce the administrative burden, giving caregivers more time to focus on patient care. Agencies that adopt this technology report 20–30% lower turnover and improved caregiver satisfaction.
40% of Agencies Offer Telehealth
Adoption is meaningful but leaves considerable headroom for growth as remote care demand rises. Learn more
Automated EHR Tools Report 20–30% Lower Turnover
Streamlined documentation and smoother workflows correlate with reduced caregiver attrition. Learn more
Financial Impact of Adopting Technology
Agencies that adopt predictive staffing tools and AI-powered scheduling can realize significant financial savings and improve overall staffing efficiency:
Operational Savings: Automated systems can reduce overhead costs by up to 18% through efficient scheduling and reduced turnover.
Improved Care Outcomes: Agencies that implement telehealth and remote monitoring report 25% fewer hospital readmissions and improved client outcomes, leading to better client retention and satisfaction.
Cost Savings: Agencies that utilize AI for scheduling and recruitment can save $50,000+ annually by reducing turnover and operational inefficiencies.
25% Fewer Hospital Readmissions
Caregiver integration and coordinated follow-ups correlate with lower readmission rates. Learn more
AI for scheduling & recruitment can save $50,000+
Automation trims sourcing, screening, and turnover costs. Learn more
Reduce overhead costs up to 18%
Process improvements and smarter procurement lower operating expenses. Learn more
Actionable Solutions for Home Care Staffing
Optimizing Recruitment
Leverage recruitment technology: Use AI-powered platforms to streamline the hiring process, reducing time-to-hire and improving candidate quality.
Expand recruitment efforts: Collaborate with local schools, vocational programs, and professional organizations to create a steady pipeline of candidates.
Offer competitive wages and benefits: To attract qualified caregivers, agencies must ensure their compensation packages are competitive with industry standards.
Boosting Retention
Create a comprehensive retention plan: Focus on retention in the first 90 days of employment, as turnover rates are highest during this period.
Offer career development opportunities: Provide training programs, certifications, and advancement opportunities to help caregivers build long-term careers within the agency.
Enhance caregiver work-life balance: Implement flexible scheduling and provide mental health resources to help reduce burnout.
Technology Tools to Enhance Home Care Staffing
To effectively manage home care staffing, agencies should implement the following technologies:
Automated Reward Programs
Implement performance-based rewards to recognize and incentivize caregivers.
Branded Mobile App
A branded mobile app helps you keep job announcements, communications, and scheduling tools readily available to caregivers.
Automated Reference Checking
Simplify the reference-checking process to reduce administrative workload.
Reminder Notifications
Use automated reminders to keep candidates engaged throughout the hiring process, ensuring they stay on track.
Lead Capture and Abandoned Application Recovery
Implement a lead capture system to re-engage candidates who abandoned the application process and guide them through completion.
Future-Proofing Home Care Staffing in 2026
To thrive in 2026, home care agencies must embrace predictive staffing models, accelerate technology adoption, and double-down on employee retention. Teams that act now—aligning recruitment, scheduling, and caregiver experience—will overcome staffing volatility and deliver consistently high-quality care.
Your Next 90 Days
Audit the Staffing Funnel
Map drop-offs from application to first 90 days; instrument metrics for source quality, time-to-hire, and early attrition.
Pilot AI Scheduling
Run a 4–6 week pilot for automated shift matching and capacity alerts; compare fill-rate/OT versus baseline.
Launch a Retention Sprint
Stand up a 90-day onboarding playbook with coaching, peer buddies, and micro-credentials tied to incentives.
Horizon to 2026
Aim for stable coverage, lower turnover, and predictable cost per hire.
The agencies that measure early attrition, automate scheduling, and invest in the first 90 days will set the pace in 2026.