The True Cost of Care Staff Turnover in Ireland

Staff turnover in Irish care homes is a financial governance issue, not just an HR one — here's what it actually costs, sourced from sector data.

Learnsignal Education Team
6 min read
Updated

Staff turnover in Irish care settings usually lands on the HR agenda: another vacancy to fill, another induction to run. It rarely gets read as a finance and governance issue, even though it should. Every departure triggers a chain of costs that a finance manager can trace directly — agency cover, recruitment fees, overtime, and the productivity drag of a team that's perpetually re-training. For a sector already operating on thin margins, turnover isn't a people-management inconvenience. It's a line item, and a large one — and it's a recurring theme across healthcare compliance and CPD training in Ireland, because a stable, well-trained team is what keeps both cost and compliance risk down.

How big is the problem, in numbers?

The clearest recent figures come from BDO Ireland's 2023/24 survey of private and voluntary nursing homes, carried out with Nursing Homes Ireland. It found average staff turnover of 36.3% across respondent homes — an increase of 18.5 percentage points on the 2020/21 survey. Turnover wasn't evenly spread: it ranged from 27.5% in smaller homes (25–39 beds) up to 37.3% in larger homes (60+ beds), and varied regionally from 30.6% in the West to 38.8% in the Midwest.

For context, the HSE's own workforce reporting put staff turnover across the wider public health service at 8.9% in 2023, down from 10.2% in 2022 — the first fall in five years. The gap between that figure and the 36.3% seen in private and voluntary nursing homes is worth sitting with: it suggests the turnover pressure in residential care is structurally different from, and considerably heavier than, the health service average, and shouldn't be benchmarked against it.

Where the cost actually shows up

Agency cover

The BDO/NHI survey put agency staff costs at €1,543 per occupied bed in 2023 — up 48.6% from €1,038 in the 2020/21 survey. That's not a one-off spike; it's the direct, compounding cost of covering shifts a permanent hire would otherwise fill. Agency margins are built into that rate, and it's a cost that recurs every roster period a post stays vacant.

Recruitment

Average recruitment cost per registered bed came in at €681. That figure roughly doubles the picture when overseas recruitment is involved: the average cost of recruiting each non-EEA staff member was reported at €5,667. With roughly 43% of nursing home staff reported as non-EEA nationals in the same survey, and the minimum salary threshold for that route rising to €30,000 from January 2025, overseas recruitment is both a larger share of hiring and a costlier one than it was even two years ago.

Onboarding and lost productivity

This is the cost finance teams most often miss, because it doesn't arrive as an invoice. A new starter isn't operating at full capacity from day one — supervision time, slower documentation, and a learning curve on the home's specific procedures all cost something, even though none of it shows up as a distinct budget line. The higher the turnover rate, the more of the workforce is permanently sitting somewhere on that curve rather than working at full productivity.

Overtime and burnout on the remaining team

Every vacancy that isn't filled by agency staff tends to get covered by the existing team working extra hours. That's a direct payroll cost in overtime premiums, and an indirect one in the fatigue and disengagement that makes the next departure more likely — turnover that begets more turnover.

Why this belongs on a financial governance agenda, not just an HR one

Treating turnover purely as an HR metric means it gets reviewed against HR benchmarks and HR budgets — and stays invisible to the people who actually control spend. Reframed as a cost line — agency spend, recruitment spend, overtime spend, all trending against a turnover rate — it becomes something a finance director can forecast, budget against, and hold managers accountable for reducing. Nearly half (48%) of respondents to the BDO/NHI survey named recruitment and retention as a significant operating challenge; that's a governance-level risk statement, not an HR observation.

It also connects directly to inspection readiness. A home with high, unmanaged turnover struggles to keep training records current and staff consistently briefed on procedure — both of which surface in HIQA inspections. Turnover isn't just a cost problem; left unmanaged, it becomes a compliance problem too.

What actually moves the number

None of the levers here are exotic. Structured onboarding that gets new staff productive faster reduces the time spent on the expensive end of the learning curve. Manageable, well-documented training — including the mandatory modules staff are required to complete via HSeLanD and equivalent CPD tracking — reduces the early-tenure frustration that drives a lot of first-year departures. And clear, efficient recruitment and vetting processes (including Garda vetting, which is mandatory for healthcare roles in Ireland) shorten the vacancy window itself, which is where the agency cost accumulates.

None of this eliminates turnover — some level of movement is normal in any workforce. The goal for a finance manager isn't zero turnover; it's converting an unmanaged 36%+ figure into a forecastable, budgeted number with a clear line back to the interventions that are actually reducing it.

Frequently asked questions

Is 36.3% turnover typical across all care settings in Ireland, or specific to nursing homes?

The 36.3% figure is specific to private and voluntary nursing homes, from the BDO Ireland/Nursing Homes Ireland 2023/24 survey. Turnover in home care, disability services, or the HSE's own directly-employed workforce may differ — the HSE's broader workforce figure for 2023, for comparison, was 8.9%. Use sector-specific benchmarks rather than a single national figure.

What's the biggest single cost driver in the numbers above?

Agency cover, on the evidence available — €1,543 per occupied bed in 2023, up nearly 50% in two years. It's also the cost most directly reducible by shortening vacancy periods and improving retention, rather than something largely fixed like a statutory pay rate.

How should a finance manager start tracking this if it isn't tracked already?

Start with three numbers, reviewed monthly: agency spend, recruitment spend per hire, and the turnover rate itself, broken down by role and length of service. Even a basic version of this, built in a spreadsheet, gives a finance team enough to spot trends before they become a crisis — though at scale, manual tracking becomes its own source of error and delay.

Does investing more in training actually reduce turnover, or just cost more on top of it?

Training on its own won't fix a pay-driven or staffing-level-driven retention problem. But well-structured onboarding and CPD are among the few levers a training budget can directly influence, and they specifically target the early-tenure period where a large share of departures happen — which is also the period with the highest replacement cost per hire.

Care staff turnover in Ireland is expensive, measurable, and — treated as a financial governance issue rather than an HR one — manageable. The numbers are already sitting in most providers' payroll and agency invoices; the job is connecting them to a rate, and the rate to a plan.

Related reading: the true cost of care staff turnover in the UK and the financial cost of aged care staff turnover in Australia.

This page was last updated:

Learnsignal Education Team

Expert Tutor at Learnsignal

Qualified professional with years of experience in teaching and helping students achieve their accounting qualifications.

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