Issue # 111 - Improving Caregiver Value in 2008

Critical Caregiver Issues

February 13, 2008

In This Issue
Caregiver Issues Tops on 2007 Readers Poll
Improving Caregiver Value in 2008
An Interactive Tool for Private Duty Owners
Caregiver Selection Separates You from Your Competition
Private Duty Today
Jason Tweed, editor of Private Duty Today 
Welcome to Private Duty Today, the bi-weekly electronic newsletter for Private Duty Home Care Leaders from Leading Home Care ...a Tweed Jeffries company. In this issue, we bring you ideas, information, and insights to help you grow your Private Duty Home Care business.

Private Duty Today is a permission-based newsletter. It is only sent to our recent customers and those individuals who have requested it, or who have given permission for their address to be included on our list of subscribers.

I'm Jason Tweed, Director of Business Development for Leading Home Care, and Editor of Private Duty Today

Private Duty Today is published every other Wednesday, and currently goes to over 6000 subscribers.
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Caregiver Issues Tops on 2007 Readers Poll
 

Each year we do a  poll as it helps us identify topics critical to your businesses.

 

Our 2006 poll indicated that marketing was a topic you believed to be most critical to your success in 2007.  We responded by expanding our products and services to help you boost sales and strengthen your market position.

 

Our 2007 poll, launched in November, saw very different results.  We asked readers to choose from a list of 17 topics that they believed to be critical to the business in 2008.  Of the 17 topics, four of those topics were recruitment, retention, selection and training for caregivers.  These four topics ranked first through fourth!  Finding and keeping quality staff is going to be critical in 2008 for two out of every three Private Duty companies.

 

Recruitment -- Almost 72% identified recruitment as critical.  Today, you must compete against other home care agencies and healthcare facilities for quality caregivers.  Additionally, you compete against lots of other service careers.  When your caregivers can earn the same money in food service, in cleaning services, or working at The Gap, you have to recruit with something other than the bottom dollar.

 

Retention -- A core principle in marketing is that it's less expensive and easier to sell to an existing customer than it is to recruit a new customer.  The same thing is true with staff.  It's less expensive and easier to keep the quality caregiver than it is to recruit a new one.  Creating a strong retention program will lessen your burden on the recruitment portion of your HR budget.  Nearly 64% of you see retention as critical in 2008.

 

Selection -- Your business is only as good as your inventory.  In 2008 the economy is going to impact our industry.  We're somewhat lucky in that Private Duty home care is somewhat recession proof.  People don't stop needing care.  Where it impacts us is that people want more value for their money during a recession.  People buy a Ford rather than a Hummer.  They purchase clothing at the mall rather than the boutiques.  They vacation with family rather than touring Europe.  Value for their dollar becomes more important.

 

Selection of better quality caregivers directly correlates to value.  There are two important ways that value impacts your business.  One way is real value.  If you have better overall quality caregivers this year than last, your quality is improving, and so is your value.  The second way is perceived value.  Real value only impacts existing customers.  Perceived value impacts future customers as well.

 

Increasing your perceived value can be done in two ways.  It can be done by contrast, which simply stated is that "this year our product is better than last year."  This has been done successfully by many companies who have had image problems.  Contrasting past performance with current performance is relatively easy if your customers have an understanding of the problem.  In our business, however, new customers don't often know much about our previous reputation.

 

You can also influence your perceived value by comparison.  You compare the value a customer gets with your company to the value that the customer will get using another company.  This technique works very well in Private Duty by demonstrating the things that your company does differently to ensure quality.

 

For example, virtually all of you conduct background checks on new caregivers.  You can't use this as a way of comparing value, because the background checks are identical to all of your competitors.  If your company, however, uses an advanced selection system, specialized training, or unique motivation to ensure quality this is where you can compare value and win.

 

Over 59% of our respondents identified selection of better quality caregivers as critical.

 

Training and Orientation -- A new area that's been gathering focus lately is training and orientation.  Approximately 59% of respondents to a survey identified this as critical. 

 

To be frank, this is an area we've avoided in the past.  Our firm is excellent at helping you develop the strategies, leadership, and identify competitive advantages to make your companies strong.

 

I get asked frequently to recommend training DVDs or programs for caregivers.  I also get asked to create quality customer service programming.  I decline these requests because it's outside of our business focus.  That's going to change, however, in a unique way.

 

Now that we know where you need help, let's take a look at some of the ways Private Duty Today is planning on moving your business forward in 2008 in terms of recruitment, retention, selection and training of your caregivers.
Improving Caregiver Value in 2008
 

Caregiver value is a critical issue for two out of every three agencies.  However, why isn't it critical to 90% of you, or even 100%?  A simple matter of fact is that some of you are doing a terrific job.  It doesn't mean that things are perfect, or you couldn't improve, it's just that your staffing problems aren't keeping you up all night.

 

This is where a firm like ours comes into play.  Our expertise is in studying the industry, studying the trends, identifying and disseminating best practices, and to a degree, predicting the future.

 

Here are the things that Private Duty Today will be doing in 2008 to enhance your ability to improve your overall caregiver quality and value.

 

Recruitment Best Practices Survey

 

Starting within a week Leading Home Care, the publisher of Private Duty Today, will be launching a two phase Private Duty Recruitment Best Practices Survey.  We want to identify the recruitment methods, the effectiveness, and the return on investment Private Duty companies are seeing.

 

Should you buy minutes on radio?  Is the Sunday paper a good investment?  How much should we be paying our staff when they recruit a new caregiver?  Are job fairs or health fairs a better use of time?  How much should I be spending on recruitment?

 

These are just a couple of the questions we expect to be able to answer.  Stay tuned to your e-mail.  All Private Duty Today subscribers will be invited to participate.  If your human resources manager is not currently a Private Duty Today subscriber, sign them up on our website today.

 

Caregiver Retention

 

Later on this year we're going to take an in-depth look at Caregiver Retention.  Subscribers to Private Duty Today will be active participants in this exciting process.  I could tell you more, but then I'd have to kill you.

 

Caregiver Selection

 

As I mentioned in the first article, selection is becoming more critical.  Additionally, demonstrating perceived value is becoming more critical.  We launched our Caregiver Selection System in 2007.  In 2008 we're launching a program for users of the Caregiver Selection System that will make it easier for them to demonstrate to referral services and potential customers the value of selecting better caregivers.

 

Not only will you be able to use the Caregiver Selection System as a pre-employment assessment tool, you will also be able to use the Caregiver Selection System to establish competitive advantage in the marketplace.

 

Caregiver Training and Orientation

 

If I did a caregiver training program it would be AWESOME.  Your caregivers would end up with a Ph.D. and they would be able to meet the needs of every disabled person in America!  They would never, ever miss a day of work.  They would never get sick.  They would never have family problems.  Their cars would never break down.  And they would love their jobs so much, they'd want to work for free.  Unfortunately, as I've discussed in many other issues of Private Duty Today and in our teleseminars, "I am your toughest customer."  If I did your caregiver training, far too many caregivers would quit before they started.

 

On a more serious note, there are far better qualified people to develop caregiver training and orientation programs than anyone in our company.  But rather than ignore this critical issue, we are going to rely on you.  Caregiver training and orientation will be the first topic of discussion on our new Private Duty Today Blog.

 

Check out the full article on the new blog below.
An Interactive Tool for Private Duty Owners
 

The new Private Duty Today Blog, available at blog.Privatedutytoday.com launches today.  The first topic is going to be caregiver training and orientation videos and training systems.

 

In each issue of Private Duty Today we will introduce the topic for discussion and ask you to participate by reading the blog and offering feedback, suggestions, or comments.

 

Furthermore, between each issue of Private Duty Today, the blog will cover industry news, company press releases, and special events of interest to private duty owners.  If you'd like to have your press release published, send it to Jason Tweed, the editor, at Jason@leadinghomecare.com.

 

Check back on the blog daily, or subscribe to our news feed.

 

As I mentioned, this week's topic is caregiver training and orientation systems.  If you've purchased an off the shelf caregiver training system, give us your feedback about it.  If you loved it, let us know.  If you found it completely useless, give us fair warning.

Caregiver Selection Separates You from Your Competition

by Diane West

How can you separate yourself from your competitors?  Hire better quality caregivers.  And how do you do that?  Add another dimension to your screening process

 

Leigh Davis, President of EL Direct, and a valued assessment client, says it best.  "The Caregiver Assessment provides a new 'angle' of information on applicants.  The type of information that the Assessment provides would be very difficult, if not impossible, to gather during a standard interview.  The ability to gather information on applicants' positive or problematic tendencies has been a welcome addition.  Going into an interview with the knowledge that the applicant may have integrity or anger issues allows me to delve deeper into those areas.  It also allows me to delve into their positive traits as well.  Overall the Assessment allows me to make better hiring decisions.  It's been one of the key elements that has helped us reduce our turnover from around 35-40% to 19%."

 

What a great selling point to include in your marketing materials and on your website!  Your company cares enough to spend the money and take the time to implement a screening process that enables you to hire honest, dependable and compassionate caregivers.  What can you do to add this extra dimension to your screening process?

 

I'm so glad you asked.  You purchase our Private Duty Caregiver Pre-employment Assessment.  For a one time set up fee and the reasonable cost of an annual license you will be able to administer unlimited assessments over a one year period.  The assessment can be completed in 25-30 minutes and will give you a tremendous hiring advantage over your competitors.  This test can be administered either online or on paper.  You will have access to immediate feedback in key task areas.  If there are red flags, the assessment will also generate questions that will allow you to discuss these issues in more detail to learn more about the applicants and their skills.

 

But then promote that you use Leading Home Care's Caregiver Selection System in your marketing materials and on your website.  Demonstrate clearly your competitive advantage when it comes to giving your clients and referral sources maximum value for their dollar.

 

Set yourself apart from your competition... hire better quality caregivers.  To find out how, contact Diane West at 502/339-0653 or Diane@leadinghomecare.com to find out more about our pre-employment assessment.