Why We Resist Technology in the Workplace2018 MITC

Why We Resist Technology in the Workplace

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People have been resisting technological advances for hundreds of years. Nowadays, we wonder why people ever avoided mechanical farming equipment or doubted the usefulness of personal computers. But as far as we venture back into the history of technology, someone is always hesitant to adopt something new, even if it simplifies their work. The human services industry is no exception to this.

Here are a few common reasons agency staff resist technology and some considerations to ease any doubts you may have:

“It’s Not the Way We Do Things”

Many are wary to introduce technology into their workflow because it means change. Change is hard. Especially when it means moving away from familiar tools like pen and paper and Excel spreadsheets toward the unknown complexities of technology. But if an organization cannot adapt to anything new, it will not thrive.

Workforce management technology is designed to make things easier for an organization. After the initial shock of unfamiliarity passes, you will find that the new way of doing things is simpler and more streamlined. Instead of typing all your time and attendance data into the payroll system, you can import it in seconds.

“Implementation Takes Too Long”

Technology implementation can be a pain, especially in large agencies set in their ways. But the truth is, implementation does not have to take forever.

The biggest barrier to a successful implementation is poor staff compliance. This can occur when managers and executives do not clearly describe the benefits of the new technology or provide adequate training. Most implementation snafus are easily avoidable with a strong compliance plan. As an example, read the story of an agency in Pennsylvania that fully implemented a new time and attendance system in a few weeks.

“We Can’t Afford It”

If you look at the dollar expense of new technology, you may be tempted to write it off. Who needs another cost when resources are already strained? But the truth is that technology has high potential for return-on-investment.

If you have trouble visualizing the long-term savings of effective technology, consider the ways technology saves money:

  • Time – Technology reduces data entry and other manual tasks that eat time. The people who previously performed those tasks can focus their efforts on more meaningful work.
  • Productivity – Agencies can achieve higher goals with technology. Workforce management software can produce complex results and analyze them in minutes to tell you how to maximize the organization’s potential.
  • Employee retention – Technology gives employees more access to their work and more power over their benefits. This helps them stay engaged and happy in the organization.

When implemented correctly, technology can save your organization far more than it costs up front. For more tips, read this eBook and learn six best practices for introducing new technology in your organization.

Your Billing Integration Options with Agency Workforce Management2018 MITC

Your Billing Integration Options with Agency Workforce Management

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Could a typo cost you thousands of dollars? When it comes to Medicaid audits, yes. If your organization manually enters data into a billing system, it is not only wasting time but also making itself vulnerable to costly errors.

But data entry is not the only option. Billing integration software ensures billing accuracy and speeds up the billing process by importing time and attendance records directly to your billing software. The software automates calculations, tracks state requirements, and gives your billing system all the information it needs for compliance. It also lets you off the hook for hours of data entry.

Integrate with Your Billing Software

Providers have significantly more options to manage payroll and billing with Agency Workforce Management than with any other software vendor. Agency Workforce Management provides revenue cycle management for many billing systems, including:

  • Amber Clinic
  • Annkissam
  • EZClaim
  • Fund E-Z
  • HSys
  • Millin
  • OnTarget
  • PrecisionCare

Direct exports are also available to a number of state systems and EVV data aggregators.

Additionally, Agency Workforce Management can import data from EHR providers such as Therap and Foothold to reconcile billing with time and attendance. This works with attendance records from Agency Workforce Management or records imported from any other time and attendance system such as ADP or Kronos.

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Don’t Forget About Payroll Integration

Which payroll service do you use? No matter what it is, it will integrate with our software. Agency Workforce Management can speak to any existing payroll system, period. This means that the same advantages of billing integration – like time savings and error avoidance – can apply to your payroll process, too.

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Time Theft: An Agency's Secret Payroll Expense2018 MITC

Time Theft: An Agency’s Secret Payroll Expense

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When most people hear about company theft, they picture an employee smuggling monitors home or padding expense reports. Most people do not think about the often subtle act of time theft. Perpetrators may consider it a harmless way to maximize time off the clock, but it can severely hurt an organization in the long run.

What is Time Theft?

An employee commits time theft by accepting pay for time not worked. They can do this either by working the payroll rounding rules or by fudging timesheets. For example, if Elise is paid in 15-minute increments, she could clock in 7 minutes late and clock out 7 minutes early without receiving a penalty. Employees who fill out paper timesheets have even more opportunities to record false hours.

A little stolen time, which is not a big deal, turns into a big deal over time. If Elise continues her habit of stealing 7 minutes on both ends of the day for 5 days, she will have over an hour of stolen time. In the course of a year (assuming she works 5 days a week), that adds up to about 60 hours. With a $15/hour pay rate, the total value of her stolen time will hit approximately $900. If Elise is not the only employee to do this – if perhaps 30 employees do the same thing – the stolen time value skyrockets to $27,000.

Wondering if you need to worry about time theft in your organization? Well, time theft is more widespread than you may think. The American Society of Employers estimates 20% of every dollar earned by a US company is lost to employee time theft. Furthermore, the American Payroll Association says 75% of companies lose money from buddy punching, the most widespread form of time theft.

Factors that Encourage Time Theft

Agencies can inadvertently encourage time theft in several ways. These three factors are not the only causes of time theft, but they are the most prevalent.

Paper timesheets

Paper timesheets provide no security. It is incredibly easy for employees to write fraudulent times. Even if they do not intentionally steal time, they may not realize how much they round and how quickly it adds up.

Poor employee engagement

Unengaged employees are not interested in their work or the good of the company. If presented with the opportunity to work less without suffering wage loss, their disinterest in the company may fuel their temptation to take the opportunity.

Poor scheduling 

If an employee is overworked, has too little time between shifts to take a proper break, or is scheduled when unavailable, the employee is more likely to show up late for work or take extended breaks. This type of time theft is not always malicious – overtired employees may just have a hard time staying on schedule.

How to Prevent Time Theft

If you realize that your agency enables time theft, you can take several simple steps to reverse the error.

Biometrics

Biometric devices, such as fingerprint readers, eliminate all kinds of fraud. Buddy punching is impossible,  unless someone has detachable fingers, and so is lying since biometrics record the exact punch time. Fingerprint readers can also operate without an internet connection, so employees cannot make excuses about poor connectivity for missing an attendance record.

Management alerts

Automated alerts help managers detect time theft at the earliest signs. An effective time and attendance solution will notify managers when an employee clocks in late, clocks out early, or takes too long of a break. Since a few of these instances are permissible, an effective solution will also run reports on attendance records over time so managers can see whether certain employees have more offenses than others.

Engagement efforts

Re-engaging disinterested employees will do wonders for time and attendance compliance. If you suspect time theft in your agency, provide contexts to evaluate employee engagement. Maybe your employees don’t understand the larger purpose of their work, so they are looking for ways to get out early. Or maybe they don’t have enough paid time off, so they feel burnt out. The results of an employee engagement survey might reveal the underlying reasons for time theft at your agency.

Effective scheduling

schedules

A scheduling solution should have more functionality than pen and paper. It should filter available employees by availability, preferences, and hours so managers don’t overload one person while another begs for more work. Good scheduling software will also ensure employees have enough break time between shifts and sufficient travel time between locations.

Conclusion

Time theft is a nearly-invisible cost on your agency’s payroll that can hinder organizational growth and employee morale. But solutions do exist to help your agency spot time theft and stop it at the source. A productivity increase of 20% is worth the effort!

Infographic: The Workforce Crisis in Wisconsin2018 MITC

Infographic: The Workforce Crisis in Wisconsin

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Wisconsin has faced a caregiver shortage for years, but the crisis continues to grow in severity.  A group of Wisconsin health care organizations conducted a study this year to examine the current state of the workforce crisis.

These results were gathered by the Wisconsin Health Care Association, the Wisconsin Center for Assisted Living, the Wisconsin Assisted Living Association, LeadingAge Wisconsin, and the Disability Service Provider Network.

Infographic: The Long-Term Care Workforce Crisis in Wisconsin

mySeries

8 Standalone Solutions for Your Agency

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Every provider faces a unique set of workforce challenges; some suffer from high turnover, while others struggle to communicate with their employees, and still others can’t be sure their overnight workers are staying awake. Because providers have such a variety of needs, there is no one-size-fits-all solution. That is why Agency Workforce Management includes a set of standalone solutions called the mySeries.

mySeries solutions are all standalone systems, but they also integrate with each other. This allows providers to choose as many or as few solutions as they need. Just need a quick fix to a single problem? Great! Maybe you want two? No problem. Each solution in the mySeries targets a different area of workforce management.

myApplicants – Applicant Tracking System

Amidst this labor shortage, many providers are short-staffed. They are also facing tough competition for employees, resulting in high turnover rates, especially for direct service professionals. Turnover also leads to more overtime, as employees work long hours to cover shifts for those who quit.

myApplicants is a powerful applicant tracking system designed to raise staffing levels, reduce turnover, and slash overtime. It does this by expediting the recruiting process, expanding job description viewership, and helping agencies choose the best fit for each position.

More Information

 

myAttendance – Time & Attendance for EVV Compliance

By the end of the year, every provider of personal care services will be subject to an EVV mandate. The details vary by state, but some providers will have the freedom to use an EVV vendor of their choice. Many of those providers just want to become EVV-compliant without revamping everything; myAttendance is the simple solution for these providers.

myAttendance is an EVV-compliant timekeeping solution that supports telephone timekeeping with caller-ID and web clock with GPS geo-fencing and out of area alerts. It can also produce in-depth reports and integrate with billing and payroll. Providers in states that already have active EVV mandates, such as Louisiana and Missouri, have successfully adopted myAttendance for timekeeping and visit verification.

More Information

 

myCheckIn – Overnight Awake Safety

Staying awake during an overnight shift – especially if all the clients are asleep – is difficult. Almost as difficult, as a manager, is ensuring your employees are awake and onsite even when you are asleep at home. Providers may take precautions to keep overtired employees off the night shift, but they rarely have concrete assurance that this is enough. That is, unless they have myCheckIn.

myCheckIn requires overnight workers to, well, check in at regular intervals, such as every 30 minutes. This proves they are awake and in the right location throughout the night. Not only does myCheckIn give managers peace of mind about the clients’ safety, it also provides third-party verification that the provider meets staff-to-client ratios at night.

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myClients – Client Attendance and Billing

Medicaid providers manage a lot of client activities and requirements. Rather than tracking everything in disparate systems, providers can keep all their client information in one place with myClients. This is convenient and it reduces the probability of mistakes.

myClients is a provider’s hub for its clients’ activities, billing, and payroll. On top of client attendance in day programs, myClients can capture documentation, generate billing reports, integrate with a third-party billing system, and track client work activity in vocational programs. It is available in four tiers of functionality, so providers never have to buy more than they need.

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myCommunications – Employee Communication Portal

One of the top reasons employees leave their jobs is lack of communication. When agencies do not open a clear path of communication between employees and managers, workers start to lose focus. They may eventually disengage from their jobs if they lack consistent direction and insight.

myCommunications is a two-way messaging system designed for providers to replace email. Providers can use it to order supplies, report problems, report incidents, or send general notifications. Also, since email lists are difficult to maintain, especially in a high-turnover industry, myCommunications automatically adds employees upon hire and blocks them upon termination.

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myMaintenance – Safety and Inspection Tracking

Client safety is paramount in group homes, day programs, and service vehicles. But the most important factors of a safe environment – inspections and maintenance – are easily rushed or overlooked. Or, when providers capture inspections on paper, they are easily lost. Providers with poor or missing inspection records can inadvertently allow maintenance deadlines to lapse, thereby endangering their clients.

myMaintenance helps providers easily track inspections, service requests, scheduled maintenance, repairs, and more. It generates reminders if a service request is open for too long, automatically schedules recurring work orders, and ensures inspections are thoroughly tracked. Providers can easily access all these records in an online portal without fear of losing them.

More Information

 

mySchedules – Staff and Client Scheduling

Is overtime a constant problem for your agency? You are not alone. Many providers are struggling to fill all their positions due to the labor shortage, resulting in overtime for current employees. To make things worse, some still create employee schedules in Excel or even on paper; these providers have no visibility into overtime rates, schedule/timesheet variances, or employee availability without analyzing all their records manually.

mySchedules is an automated scheduling solution that gives managers the insight necessary to reduce overtime. With mySchedules, providers can post staff and client schedules immediately, update them from any web-enabled device, set reminders, and run powerful reports. The solution can also filter employees by hours, location, training status, schedule preference, and more; this allows managers to quickly choose the best employees for each shift without overloading anyone.

More Information

 

myTraining – Training and Certification Tracking

An agency is not audit-ready unless all its employees are up-to-date on required licenses and certifications. However, tracking this information is often time-consuming. And making sure employees complete their re-certs before the deadline is even more difficult.

myTraining is a solution that tracks training requirements and employees’ certification status. It sends reminders, automates training class enrollment, and provides a central web location to advertise classes and tests. With myTraining, managers can view the status of their employees in just a glance.

More Information
How to Survive Provider Audits

How to Avoid Getting Slammed with Medicaid Repayments

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Over a hundred providers in Ohio owe a combined $33.3 million for non-reimbursable Medicaid services.

The Ohio Auditor of State, Dave Yost, audited 121 Medicaid providers between 2011 and 2017. He found that home health providers are responsible for 62 percent of the overpayments. Independent personal care aides and HCBS services are responsible for 5 percent.

In February, Yost released a special report to address these overpayments. According to the report, the three primary causes of overpayment were: inadequate provider qualifications, incomplete documentation, and lack of service authorization.

Providers in all states can remain audit-ready by using targeted workforce management tools to avoid these common causes of overpayment. All providers are at risk; although some intentionally manipulate their processes to receive more money, others simply have disorganized or inefficient processes. Even honest organizations are susceptible to documentation mistakes or billing errors.

Training and certifications

“It takes an unparalleled level of trust to place your life or that of a family member into the hands of a stranger,” said Yost. To ensure agency employees are worthy of the trust they receive, auditors pay careful attention to their licenses and certifications.

If an employee delivers a service that he or she is unqualified to perform, that service is not reimbursable under Medicaid. Yost busted several agencies for this, including Personal Touch Home Care of Ohio, which employed almost 80 personal care aides who were not certified in first aid.

When agencies keep track of employee certifications on paper, the certifications can easily lapse without anyone noticing. An online training portal prevents unnoticed expirations by sending alerts to employees and managers when certifications are about to lapse. Employees can then take immediate action by signing up for re-cert classes directly from the training portal. Also, managers can always see the training and certification status of all employees at a glance.

Documentation

Providers must keep complete service records detailing the aid a client receives during every visit. If a provider cannot provide correct documentation, an auditor may determine that all or part of the reimbursements were overpayments. The same can happen if a provider’s documentation is incomplete.

In 2016, an Ohio provider had to pay back 98 percent of its reimbursements because of incomplete or incorrect documentation. Other agencies have been cited for billing multiple clients in different locations for the same service or billing for a service that was never delivered.

A documentation solution, in tandem with an automated time and attendance system, can solve these documentation problems in several ways. First, it can prompt employees to submit notes about services provided when they clock out. This ensures that staff document services immediately, since they cannot clock out without providing the notes. A paper-based time and attendance system, or one that does not generate documentation prompts, does not guard against forgetfulness.

Second, it can require employees to answer questions about the services provided, ensuring that the service documentation is complete. The system may ask how much progress a client made on an activity, whether the client was fed or bathed, what the client’s temperature or blood pressure was, or how many meals the client ate.

Automated time and attendance solutions also prevent agencies from double-billing. If a provider’s service records show overlapping services – such as multiple services billed at the same time for the same client, or one employee providing simultaneous services to clients in different locations – an automated system will highlight these discrepancies before they are processed for payroll and billing.

Service authorization

Providers cannot bill Medicaid for any services not covered in the plan of care, even if they are authorized in the future. For example, a home health care provider called Healing Touch Health Care Ltd. in Dayton billed for 430 tested services before a physician signed off on the plan of care. The provider must now repay Medicaid for these services.

Agencies can use the same software they use for documentation to compare service activities with each client’s plan of care. They can also track service hours by client to make sure they do not exceed the amount of budgeted hours for any given service.

 

While these capabilities help providers catch fraud and mistakes, they also help maximize the amount of authorized billing. Therefore, not only does a documentation solution prevent fraud, it also helps agencies get the most out of their funding.

Conclusion

The Ohio audits are just a few among waves of audits occurring around the country. Therefore, all providers need to prepare to withstand one. Providers with unqualified staff, missing or incomplete documentation, or poor service authorization can deploy workforce management solutions that specifically address these issues.

Retain employees during the labor shortage

How Agencies Can Reduce the Effects of the Labor Shortage

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The United States labor shortage is creating stress for employers across the country, but especially for providers serving the I/DD and behavioral health communities. Their work is crucial to the communities they care for, but they are struggling to fill positions. The situation appears more critical by the day. Fortunately, it is possible for an agency to hire and retain employees, even if it cannot raise wages.

What is Causing the Labor Shortage?

The labor shortage does not have one simple cause. The American Network of Community Options and Resources (ANCOR) released a report in 2017 to address some of the reasons for the shortage, and some of them are surprising.

For example, take a look at a United States Supreme Court case called Olmstead v. L.C. In this case, two women with mental illnesses received treatment at state-run institutions. Eventually, mental health professionals said the women were ready for community-based programs, where they could lead more “normal” lives. However, the women were kept institutionalized for years afterward. They sued, and in 1999, the Supreme Court decided that separating disabled persons from society longer than necessary violates the Americans with Disabilities Act.

Since that decision, the federal government has made policies that encourage more home and community-based care for people in the I/DD and behavioral health communities. The problem, however, is that these policies are not backed with an appropriate increase in funds. If more people want home-based care, more workers need to take jobs as care providers. But if the states are unable to expand their budgets proportionally, wages are stretched thin.

Another reason for the labor shortage is that the working population is shrinking. Too few people are entering the workforce to replace retiring baby boomers. Even worse, the primary direct support professional (DSP) demographic (working-age women) is getting smaller. This means that even if DSP wages increase, there will still be a shortage of workers from the typical DSP demographic.

At the same time, the need for DSPs is rising fast.  The Bureau of Labor Statistics predicts that the job outlook for home health aides and personal care aides will grow 40% between 2016 and 2026 – that is much faster than the 7% average growth rate for all jobs.

How is the labor shortage affecting human service agencies?

Providers are feeling the sting of the labor shortage most of all in their turnover rates. The DSP turnover rate is at 45%, according to the ANCOR report. A 2015 survey by National Core Indicators found that more than half of DSPs leave their jobs within a year, and about a third leave within six months. A rate this high means that clients don’t have time to get to know and trust their caregivers before they leave.

Turnover isn’t the only adverse effect. As noted earlier, job vacancies will rise in the coming years, causing extra agency expenses. The ANCOR report says that every unfilled position costs an agency between $4,200 and $5,200 in direct and indirect costs. Even worse, job vacancies could affect your agency’s DSP-to-client ratios and incite hefty fines.

As positions remain unfilled, employees need to work extra hours to fill shifts. This often leads to overtime. USA Today reported that worker shortages across the country have “quietly provided a financial boon to many full-time employees, who are notching lots of overtime, and part-timers, who are toiling more hours or shifting to full time.” This is nice for people eager to work more hours, but it is costly to their employers.

Most importantly, the labor shortage hurts the people within the I/DD and behavioral health communities. Many clients rely on provider services to live healthy lives. Without enough employees, agencies can’t take care of their clients properly. This is obviously disastrous for clients as well as providers.

How Can Human Service Agencies Cope With These Effects?

These stats are sobering for any business, but particularly for agencies that rely on state and federal funding. Even though most providers are at another’s mercy for funding issues, there are still ways for them to boost retention and cut costs.

Promote a work-life balance for employees

“Work-life balance” is a buzzword in most workplaces today, especially among younger generations. According to the 2017 State of the American Workforce report by Gallup, 53% of employees say that greater work-life balance and better personal well-being is “very important” when  considering a new job. This attribute ranks higher than job security, significant pay increase, and company reputation. The percentage may also increase in the coming decade, since millennials and Gen Xers assign more importance to this than baby boomers.

An excellent way to ensure your employees have a good work-life balance is to manage their schedules well. One of the biggest complaints employees have is lack of advance notice for their schedules. Poor scheduling or last-minute schedule changes can cause conflicts with employee’s home lives and cause them to seek alternative employment, even at a lower pay rate. It is important to track employee preferences and restrictions when creating the schedule. Doing so will maximize employee satisfaction and help you avoid a hassle. Allow enough time between shifts for employees to go home and rest, and avoid calling employees back in when they have just finished a shift.

Also, take advantage of the internet to simplify scheduling. Publish schedules online so employees can access them anytime, anywhere. Save time for everybody by letting employees see not just their own schedules, but also who they are working with, open shifts, their PTO balances, etc. Allow employees to request PTO online, avoiding telephone/email tag.

Empower employees

All employees need to feel respected in the workplace. One way managers can respect their employees is by giving them a certain amount of autonomy. Researchers from the University of Birmingham recently found that employee autonomy directly correlates to job satisfaction. For women, in particular, autonomy translates to scheduling and location flexibility.

One way to give employees a sense of autonomy is to allow self-service. Self-service means employees have some control over their schedules, PTO requests, training requirements, and benefits information. This can mean allowing them to change their schedule preferences online, giving them full-time access to their PTO balances, letting them receive notifications whenever extra shifts are available, and setting up automated alerts so they are always aware of their training deadlines. Self-service can also mean enabling employees to request corrections to their attendance records (like forgetting to clock out). When employees have some autonomy, they are more likely to feel respected—and it reduces the administrative burden on managers!

Improve time and attendance

A high turnover rate causes payroll costs from overtime and position vacancies. While overtime can never be eliminated, using an insecure time and

attendance system encourages poor attendance and low-level payroll fraud. Save your agency from additional costs by using a secure time and attendance system.

Biometric fingerprint readers, for example, eliminate the risks of buddy punching and fraud. These errors can add up to 1-3% of an agency’s payroll-related costs. That does not even take into account the lost productivity from payroll calculations and data entry. Since the cost of biometric fingerprint readers has dropped in recent years, they can give agencies a great return on investment.

For in-home programs, where fingerprint scanners are not feasible, telephone timekeeping is effective. Use voice authentication to inhibit buddy punching, and use location-based caller-ID to prevent fraud. Telephone timekeeping also allows for more advanced features, such as no-show alerts and employee HR alerts at clock-in.

Recruit creatively

Another way to cope with the labor shortage is to get creative with recruiting. Since the number of women in the workforce is shrinking, agencies need to expand their horizons when looking for employees.

Millennials are the up-and-coming group to dominate the workforce. According to LinkedIn’s 2015 Talent Trends Report, they will comprise 50% of the workforce by 2020, and 75% within a decade. Millennials like social media, so link to your job applications on Facebook and Twitter. Offer paid or unpaid internships, open houses, and career days to attract job seekers. Also, emphasize your mission – millennials, in particular, want to feel like they are contributing to the greater good at work.

Additionally, find ways to speed up your recruiting process. For example, try using a web-based system to track the entire applicant process. An online system can save you time by automatically notifying passive job seekers of new positions, parsing resumes, and tracking every step of the way, among other things. It can also make the process more intuitive for applicants, which makes a good first impression (millennials, especially, expect clean and user-friendly websites).

While the labor shortage continues, the employment outlook for your agency may appear grim. But even if your agency’s budget isn’t as flexible as you’d like it to be, you can take steps to rise above the competition by attracting and retaining valuable workers.

New Hires

Tips for Competing with Walmart and Others During the Hiring Process

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Walmart and other retailers or fast food outlets use aggressive marketing tactics to attract, hire, and retain employees. Agencies must compete with these industries in order to build and retain the best workforce they can.

One way to make your organization stand out among competing employers is to compile a checklist of advantages your agency offers. Communicate these benefits to all prospective new hires through your job listings, and feel free to share with existing employees as well!

Here is a sample list you can use to market your agency for new hires and existing employees:

  • We have a mission to help others
  • The average weekly pay for a direct support professional is ____
  • Minimum 40-hours a week
  • Overtime available
  • Any qualified employee can request extra hours from our website
  • Never miss a shift! We remind you by text of your next shift
  • 150% to 200% extra pay for working on any of the ___ holidays per year
  • Fixed schedule with the option to pick up more hours
  • View your schedule anytime, anywhere
  • See who you are working with
  • Earn paid time off
  • Receive unpaid time off with no penalties
  • Get 6-month reviews
  • Structured career path

Speed Up the Process with myApplicants

The labor shortage has a dramatic effect on human service agencies. Higher turnover and extra overtime make things even harder. In times like this, we know that applicant tracking and onboarding are more important than ever. That’s why MITC is pleased to announce the addition of myApplicants to Agency Workforce Management!

myApplicants is a robust, web-based, end-to-end hiring solution complete with applicant tracking, pre-employment assessments, background checks, and drug screens. It even has the ability to push your new hire data right into MITC Time & Attendance with just a click.

Contact info@mitcsoftware.com or read this free fact sheet for more information on myApplicants.

Fill out the form below to be emailed the download link.

Payroll Costs Rising from the Labor Shortage

Payroll Costs Rising from the Labor Shortage

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Services are increasingly getting more expensive to provide thanks in part to ongoing labor woes, according to the latest Cost of Care Survey from insurer Genworth Financial.

The national median cost of home care pay shot up 6.17% to $21.50 per hour, or $4,099 per month, from 2016 to 2017. Among other care settings, this is the most pronounced increase. The cost of home care services, including household tasks, reached a median of $21 per hour, or $3,994 per month. This is a 4.75% increase from last year.

Over five years, the median cost growth rate was 2.5% for home health aide services and 3.08% for homemaker services.

This year’s cost increase was particularly notable, says Gordon Saunders, senior brand marketing manager for Genworth’s U.S. Life Insurance division. Overall, the annual median cost of long-term care services climbed an average of 4.5% from 2016 to 2017. It marks the second-highest yearly increase for nursing homes and home care since the study began in 2004.

“We have become accustomed to seeing steady increases in the cost of long-term care services, but this year, we saw a marked acceleration in the cost of home care over previous years,” Saunders told Home Health Care News. “This is based on external factors in the marketplace related to supply and demand: increasing demand for long term care services as our population ages versus shortage of workers and rising labor costs.”

By comparison, the national median cost for a one-bedroom unit in a private-pay assisted living community reached $3,750 per month, or $45,000 a year. That’s an increase of 3.36% from 2016 to 2017.

National median rates for semi-private room nursing home care increased 4.44% and hit $7,148 per month. Also, private room nursing home care reached $8,121 per month, a 5.50% increase.

Labor Woes Crank Up Costs

The labor shortage isn’t the only factor driving up costs, but it has impacted all care settings, says Saunders.

“[U.S. Dept. of Labor] changes have resulted in minimum wage and overtime protections to more domestic service workers who enable individuals with disabilities and the elderly to continue to live independently in their homes,” Saunders said. “Also contributing to the increase in labor costs is the Affordable Care Act (ACA), which requires employers of a certain size to offer some type of health insurance, or pay a penalty.”

For nursing homes, higher labor expenses and tightening Medicare rules have resulted in shorter hospital stays. Instead, sicker patients are sent to rehab nursing homes for shorter stays, driving up costs, Genworth noted.

Room and board for assisted living communities has risen to accommodate residents who are sick, but not sick enough to require nursing home care. Luxurious amenities commonly found in private pay communities also increased costs of care.

What Agencies Can Do About It

This eBook explains the factors driving the labor shortage, and how a two-pronged approach can minimize the costs for agencies.

Download the new eBook and check out the complete library of ebooks for agencies here.

Millennials

Attracting and Retaining Millennials at Your Agency

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According to LinkedIn’s 2015 Talent Trends Report, millennials will comprise half the workforce by the time 2020 rolls around. In less than 10 years, they will make up 75 percent of the workforce. Yet many agencies, despite hiring and retention problems, have not considered the unique opportunities and problems of attracting and retaining this growing segment of the workforce. Who are millennials, and how do agencies make themselves more attractive places for millennials to work?

Who Are Millennials?

There are no precise dates for when the millennial cohort starts or ends, but demographers typically agree that millennials were born between the early 1980s and the mid-1990s or early 2000s.

In reality, there are strong similarities between millennials and the generations that have preceded them: they want security and variety in their career, they want to be stretched and challenged, they want to work for a company of which they can be proud, and they have every intention of being loyal.

But there are many ways in which this growing proportion of the workforce is different. They have strong beliefs and expectations that extend to the workplace.

Where Millennials Want to Work

Data suggests millennials are driving a shift towards the public service sector. In 2010, the Journal of Business and Psychology published a study showing that this age group’s volunteer activity increased almost three times more than the volunteer activity of the overall population between 2007 and 2008. More recently, a 2014 Millennial Impact Report by consulting firm Achieve shows this generation has a high level of interest in public service. Out of the 1,514 employed millennials who were surveyed, 47 percent volunteered for a cause or nonprofit in the past month. The same study shows that 87 percent donated to a nonprofit organization in 2013.

This interest in public service bleeds into choice of work. In a recent Capital One Survey of millennials, 93 percent of respondents think it’s important that their career path that aligns with their personal values. Additionally, a 2013 survey by the National Society of High School Scholars (NSHSS) and a 2011 survey by Universum both show that they prefer to work for companies engaged in the betterment of society.

Political Views

Millennials are the most highly educated and culturally diverse group of all generations. Surveys suggest that their political views are more liberal than previous generations, both socially and economically. According to the Pew Research Center, they are the most likely of any generation to self-identify as liberals, and they are the only generation with a liberal majority. A clear example of this is 2016 presidential election cycle, in which Bernie Sanders was the most popular candidate among 18 to 29-year-olds. In fact, one polling director said of Sanders: “He’s not moving a party to the left. He’s moving a generation to the left.”

Regarding religious beliefs, millennials are less likely to identify with a religion than older generations. A 2014 survey from the Pew Research Center reports that about three-in-ten are unaffiliated with a religion, which is possibly the most of any generation ever recorded.

Use of Technology

Millennials are using technology at unprecedented levels. According to a 2007 survey of students born between 1983-1992, almost all of them owned a computer and a mobile phone. In addition, 76 percent used instant messaging, 40 percent got most of their news from the TV, and 34 percent got most of their news from the internet. This means that, as a generation, millennials are comfortable with technology in all areas of life.

One of the most popular forms of media among millennials is social networking. In fact, a study published in the Elon Journal of Undergraduate Research in 2010 claimed that students who tried to quit social media showed the same withdrawal symptoms of a drug addict quitting a stimulant. Millennials are very active on social networking sites such as Facebook, Twitter, and Instagram. Social media can help them create a sense of belonging, make acquaintances, and remain connected with friends.

12 Tips to Attract Millennials to Your Agency

Employers can take steps to address the needs and preferences of millennials. Consider these 12 tips to ensure your agency is millennial-friendly:

  1. Emphasize your mission. Since many millennials are interested in giving back to the community, encourage them to see work at your agency as an opportunity to do this. Invite them to fundraisers and offer volunteering opportunities. Show them that they can have a positive impact on the world at your agency. This should give agencies a hiring and retention advantage with millennials over other competing employers.
  2. Focus job postings on the greater good. Putting your agency’s work in the context of the global good will help emphasize your mission. Focus your job postings on their importance to the organization and society.
  3. Keeping in touch with millennials is key, whether it’s during the recruiting process or while they’re employed with your organization. According to LinkedIn’s Talent Trends Report, 95 percent of millennials want to hear what you thought about them after the interview. Keep an open line of communication through email or text and provide post-interview feedback opportunities.
  4. Use technology. While older employees may be more comfortable with paper timesheets and schedules, millennials prefer to use technology whenever possible. To appeal to their preferences, post timesheets, schedules, documentation, benefits, and training online. Use automated digital alert systems like next shift reminders, review notifications, or birthday and anniversary greetings to connect with them. Agencies that appear unwilling to adopt technology will not be attractive places for millennials to work.
  5. Be a mentor. Offering guidance is a way to create trust with millennials. To court millennial workers, send regular updates from the hiring manager to people in the application process. If your agency has a mentorship program, call attention to that during the interview process.
  6. Document your procedures. For some, part of the learning process is to learn by doing — to figure out a process that others in the organization already know. But millennials have a different approach to problem solving. They don’t want to “go figure it out” if someone can tell them how to do it more quickly. Set aside the perception that 10 minutes of downloading information is laziness. Allowing them to take it forward will challenge and excite them.
  7. Make work fun and challenging. For millennials, work is supposed to be fun. Keep your employees engaged by giving them more responsibilities so they feel like they are moving somewhere. Millennials love change, so mix it up for them. Also keep in mind that a millennial’s time frame for completing goals is 18 months or less – anything beyond that may not motivate them.
  8. Provide frequent feedback. Millennials enjoy instant gratification, which means they’re always on point to deliver rapidly. As a manager, provide frequent feedback to fill this need.
  9. Promote collaboration and creativity. Both culture and space can contribute to collaboration. In a collaborative culture, managers may encourage staff members to propose new ways of doing things. A collaborative space may be smaller to make interaction easier (e.g. a cozy conference room versus a 20-person boardroom).
  10. Offer individual recognition. While teamwork is meaningful, millennials still want individual attribution. They will embrace the challenge of a single-person task that is part of a larger team project. When they are successful, call them out for a job well done.
  11. Create a work environment that allows a healthy work-life balance. This is one of the things this young generation desires most. Emphasize benefits like PTO. Improving the quality of life both in and out of the office — with social events, benefits, and flexible schedules — will appeal to people looking for more than just a salary.
  12. Avoid an excessively rigorous hiring process. Millennials are informal. Your agency may be weeding out high-potential employees on a regular basis. To avoid this, try to loosen things up a bit. In place of the usual two- or three-round interviews, you can hold professional development classes, host open days, conduct informational sessions, or show potential candidates around the facilities. That way you can let the candidates decide for themselves whether they fit your company’s culture or not.