The real cost of high turnover in NDIS Services

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Why it is draining your budget and what you can do about it

Did you know it can cost up to 20% of a staff member's annual salary to replace them? That 20% is not factored into the NDIS Reasonable Cost Model.

Here’s what the data tells us:

• The NDIS workforce is expanding, but organisations are not retaining staff. The NDIS National Workforce Plan states demand for support workers has doubled, yet turnover remains at crisis levels.
• The NDS State of the Sector 2024 Report suggests average turnover for casual staff is 24%.
• The average cost of replacing a disability support worker is $8,000–$10,000, not including indirect costs like:

o Shift disruption o Participant anxiety o Lost knowledge o Quality and safeguarding exposure

Frontline disability workers report burnout, lack of support, and unclear career progression as top reasons for leaving (Source: Health Services Union & Per Capita 2023 report).

But turnover is more than just financial. High turnover means:

• More recruitment → More admin time and costs.
• More onboarding → More shadow shifts and double-handling.
• Lower morale → Remaining staff take on more, burn out faster
• More risk → Inconsistent support means greater risk to participant wellbeing.

But worst of all? It makes it impossible to build a culture of quality, because no one sticks around long enough to embed it.

In our sector, workforce shortages and participant safety go hand in hand. High staff turnover is not just an HR problem. It is a quality and safeguarding risk, and one of the biggest risks facing your business.

Because staff do not leave jobs. They leave bad leadership.

Start focusing on what you can control

Most support workers do not leave because of pay. They leave because:

a. They do not feel heard. b. They do not feel supported. c. They do not know what is expected. d. They do not have a pathway forward. e. They do not feel valued.

If your team is constantly turning over, you are not:

• Building capability in your team or the people being supported.
• Maintaining continuity of care.
• Audit-ready (even if your paperwork says otherwise).

Leadership needs to be seen at every level

You need to stop assuming:

• Because someone has great frontline skills, they can lead others to do the same and should therefore be promoted.
• All of your team understands quality looks like, why they contribute to it and how they rise to meet it.
• As the leader, you will be told if there is a problem you need to fix.

Positive workplace culture has to be built

Culture is what staff experience every day.

And the research shows organisations with the following have far better staff retention:

a. Recognition b. Psychological safety c. Supportive supervision

You need to start focusing on:

• Ensuring everyone understands why the organisation exists and how their role contributes to success.
• An environment that feels safe to speak up, question, and share ideas without fear of punishment.
• Ensuring all of your communication sends a consistent message. Culture lives in what leaders tolerate and what they reward. Consistency in message, boundaries, and behaviour builds trust.

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