Running a home care agency for the past 14 years has been a blessing for me and my family. Entering the industry in the summer of 2008 I allowed my naivete to carry me through the initial doubts of running my own business. Since I opened doors, our company has grown through the Great Recession of 2008, a highly saturated market, high stake competitors, and four different U.S. Presidents. We grew right through an underperforming economy, hundreds of surrounding competitors, and policies deemed unfriendly to home care agency operators. It seemed we were insulated by most threats. Then the pandemic rattled our world like never before.
Businesses were forced to shut down, families huddled together inside their homes, and we isolated ourselves from each other. Home care and other essential businesses never stopped. After looking back at 2020 and most of 2021, it was business as usual. Besides offering protective gear to our employee base, it seemed like things were normal. However, as generous unemployment benefits started to be offered and the traditional labor force did not return to work immediately, we began to feel the repercussions of the pandemic starting to catch up with us. We’ve had to pivot in some ways to change with the new times but also remain faithful to tried and tested practices to continue. Here are a couple of ways we have adjusted to our new reality.
Quality Service
Families and clients still expect quality service and competent caregivers. Despite families being more flexible and understanding of the hiring challenges, they still expect that their loved ones are treated well with someone who is well trained. Reliability is still crucial and with a shrinking labor market to pool from, agencies must find innovative ways to still deliver in a tough market. The biggest contribution in our growth in 2022 has been the institution of Lead Caregivers. Our Lead Caregivers were some of our top performing caregivers. They get paid guaranteed 40 hours per week and are paid $1-$2 more than our highest paid caregiver. The main objective of the Lead Caregivers, besides filling in when a current caregiver calls off a shift, is to help the agency grow their billable hours.
The first function of the Leads is to be “under studies” on the most challenging cases. In this tight labor market, you might be lucky to staff some of the most challenging clients who face late-stage dementia, Parkinson’s, ALS, balance issues, or transfers that require adaptive transfer equipment such as a Hoyer lift. These are some of the most vulnerable clients that not only require a highly competent caregiver but reliable coverage. The reality is that caregivers still call out due to sickness, personal emergencies, or COVID exposure. When these circumstances occur, you cannot just place these cases with just any substitute in your caregiver pool. Especially if the routine is very specific and there are many nuances to learn. Here is where a Lead Caregiver is invited to do a shift or two so that when they are needed, they are ready.
The second function is to utilize them to start new clients. We explain to new clients (and referral partners!) that we can start “same day” or “next day” when we receive a call from a family in crisis. In these challenging times, most agencies panic when a family needs services ASAP. Their tone over the phone is not one of confidence that they can staff the case promptly. Imagine when they come across your office, and they hear an agency that can confidently say “We can start you now!”. They are more likely to sign up with you and willing to pay your higher bill rates. Having Leads in your team allows you to be one of the higher charging agencies in the area because you can deliver. Charging high allows you to pay high which is a nice segway to my next theme: hiring top talent.
Caregiver Hiring and Training
In 2021, hiring began to get very scary. Caregivers weren’t coming back in droves. It felt like we were trying all sorts of gimmicks to entice them to return. One of my least favorites was trying sign on bonuses but that didn’t move the needle at all. What did move the needle was higher wages. Every three months we kept increasing our pay rates almost .50 cents. Pre pandemic we were paying on average $14 per hour. Post pandemic we are offering an average of $16-$18 per hour.
Aside from higher wages we have also turned to automation to sort out desirable applicants faster and more efficiently. Services that can either screen caregivers for you or set up automated text messages to communicate with them is one of the greatest benefits that have come out of the pandemic. By outsourcing some of the mundane aspects of recruiting, it allows you to revisit the job description of your current staff bogged down by busy work. It frees their time to be more efficient and effective in hiring the right staff for your agency. We’ve been able to free our staff to focus solely on interviews and training. Moving in the direction of providing hands on training makes more sense in a job profession that requires hands on assistance.
Summary
The formula of operating in a post pandemic world is clear. The ripple effect of increasing pay rates allows you to hire in this tight, competitive market. The one-two punch of starting cases quickly with your Lead Caregivers and then handing them over to their long-term caregiver gives your office less anxiety, more confidence, and an increase in billable hours. Matching the increased pay rates with increased bill rates allows you to justify to potential clients and referral partners that you are worth the higher costs because you can deliver quality services to our Older Adult population. That has always been and will continue to be good business.
Michael Gonzalez
It all started in 2008 when my grandmother started declining rapidly from chronic diabetes and dementia. One of the most painful experiences in my life turned into motivation to assist others in keeping their loved ones at home safely. Since that summer we have become one of the most trusted and respected home care agencies in DuPage and Will counties. After 1,000 living room consultations and 800 clients later I am most proud that we have earned the trust from our communities. As the leader of my agency, I remain humble of the fact that no one client is the same and that everyone brings a unique challenge. One thing I will say about our team is that we care about the welfare of Older Adults and work hard to take the worry away from families when keeping their families at home safely.