More than 6 million caregiving positions will need filling within the next decade. For home care agency owners, this number isn’t just staggering, it’s personal.
The home care industry faces an unprecedented staffing surge, with 6.1 million total job openings projected by 2034 (new roles plus replacements) and 900,000 new caregiver jobs needed by 2031 – hcaoa.org
These figures make home care the fastest-growing occupation in the country. In other words, demand is skyrocketing – but so are the challenges in keeping caregivers on board.
Here, we’ll break down why this workforce boom is happening, what’s driving caregivers away, & how agency owners can respond with a retention-first mindset. Let’s talk about the future of home care & how to thrive in it.
The latest data from PHI, a direct care workforce research organization, paints a dramatic picture of the road ahead. From 2024 to 2034, home care will have millions of job openings as the sector expands and current workers leave or retire. In fact, as per the HCAOA, home care is projected to add more new jobs than any other U.S. occupation during this period.
When you factor in turnover and retirements, the total openings climb even higher – a testament to how vital (and in-demand) home care has become. Why the explosive growth? Two big reasons are demographics and preference. America is aging rapidly: As per PHI, the 65+ population will nearly double from 58 million in 2022 to about 88 million by 2060.
As baby boomers reach their 80s, the need for assistance with daily living is surging. At the same time, most seniors want to age at home. Surveys show 77% of Americans over 40 would want to receive long-term care in their own homes instead of in facilities.
This combination of an aging populace and a clear preference for home-based care is fueling an unprecedented demand for home care services.
The takeaway: home care agencies are entering an era of opportunity & urgency. The market for services is expanding fast, but meeting that demand means hiring – and keeping – more caregivers than ever before. And right now, retention is a real battle being fought.
If you feel like you’re constantly refilling the same positions, you’re not alone.
Think about that: on average, three out of four caregivers may leave within a year. For agency owners, that churn is costly and exhausting.
What’s driving caregivers away? The reasons aren’t a mystery to those in the field.
Frontline home care workers often face a perfect storm of low wages, scant benefits, and unstable schedules, making it hard to stay in the job. Median pay in home care sits around $22,000 per year, which works out to roughly $14–$15 an hour. That’s less than fast food or retail jobs pay in many states, despite caregiving’s heavy responsibilities.
In fact, a 2023 analysis found direct care workers earn significantly lower wages than workers in comparable low-entry jobs across all 50 states. It’s not hard to see why a trained caregiver might opt to stock shelves or serve coffee if it means a bigger paycheck and health insurance.
Compensation isn’t the only issue, though – it’s also the work structure. Many caregivers can only get part-time/part-year hours, juggling unpredictable schedules that complicate their finances. Few receive employer-sponsored health coverage or paid time off.
Lack of benefits means many are one emergency away from crisis. It’s no wonder that nearly 60% of home care workers rely on some form of public assistance to get by, & about 40% live in low-income households near or below the poverty line. These are folks caring for our loved ones, yet often struggling to care for their own families due to financial instability.
Finally, the nature of the job itself can lead to burnout. Home care is physically and emotionally demanding: caregivers handle everything from heavy lifting to the emotional labor of supporting clients through difficult health challenges. Without adequate training, support, or opportunities for advancement, many leave for work that feels less taxing or more rewarding.
These numbers underscore a harsh truth: it’s hard to recruit and retain caregivers when the job leaves them financially vulnerable. Agency owners must tackle these root issues head-on to stabilize their workforce.
Given the challenges, the knee-jerk reaction might be to double down on recruiting. But the smarter (and more cost-effective) move is to focus on retention first. Every experienced caregiver you keep is one less you need to hire – & likely a better outcome for your clients, too.
Experts suggest a holistic approach that goes beyond basic pay raises. It starts with building a supportive company culture that truly values caregivers. Simple steps like recognizing achievements, soliciting feedback, and providing growth opportunities can make caregivers feel seen and appreciated. In fact, home care organizations with strong cultures of respect and recognition often report better staff loyalty.
Next, consider the “compensation culture” of your agency. This means not just the wages you offer, but the overall package of tangible and intangible benefits that come with working for you. Certainly, raising pay closer to a living wage is foundational – caregivers need to pay their bills, period.
States like Texas have found gaps of $5+ per hour between direct care and other jobs, highlighting how boosting wages could immediately make caregiving roles more competitive. – phinational.org
If budget is a constraint, even small increases or bonuses can signal goodwill. But compensation culture also includes things like offering full-time hours where possible, providing schedule flexibility, and adding perks like paid training or reimbursement for transportation costs.
These moves directly address common pain points (like erratic schedules and out-of-pocket expenses) that often drive workers away.
Don’t forget benefits. While a small agency can’t always afford lavish healthcare plans, explore creative ways to support your staff’s well-being. Can you negotiate discounted telehealth services, or provide stipends for child care? Some agencies partner with local clinics for low-cost medical services for employees.
Training and career advancement opportunities are another often-overlooked retention tool. Many home care aides quit because they see no career path. By providing mentorship, advanced aide roles, or pathways to become CNA/LPNs, you give ambitious caregivers a reason to grow with your company rather than leave it.
Even offering specialized caregiver training (e.g., in dementia care) can keep workers engaged and increase their sense of professional pride.
Above all, listen to your caregivers. Conduct “stay interviews” to learn what they like (or don’t) about the job. Often, relatively minor fixes – like adjusting a frustrating scheduling policy or improving communication – can boost morale. A retention-first mindset treats caregivers as your most valuable asset.
The goal is to make your agency the employer of choice for caregivers in your area. When word gets around that you treat staff right, recruitment gets easier too.
The road to 2034 will be challenging but it’s also full of opportunity. Agencies that succeed will be those that put caregivers at the center of their strategy. That means viewing every decision – scheduling, pay, benefits, technology, training – through the lens of “Will this help us attract and keep great caregivers?”
If the home care workforce is the engine driving your services, you must ensure that engine is well-tuned, appreciated, and fueled for the long haul.
Also, agency owners, tap into industry resources and communities (home care associations, forums, trainings) to share retention strategies and learn creative solutions. Advocate for systemic changes too – for example, higher Medicaid reimbursement rates that can fund better wages (since Medicaid is the largest payer for home care).
Most importantly, celebrate the caregivers you have. Let them know they matter, through words and actions. A human, empathetic approach – the kind that’s in CareSmartz360’s own ethos – goes a long way in a field built on compassion. When caregivers feel respected and heard, they pay it forward in the care they give and the loyalty they return.
Download Blog
AI Hub
