By Stephen Tweed
What is the most significant difference between the companies that have grown their business in 2021 compared to the companies that have not been able to grow?
The answer: The ability to find and keep new caregivers.
We have reached a crisis point in the home care industry where nearly every company we talk with, whether it is in our Caregiver Quality Mastermind Group, or our Home Care CEO Mastermind Groups, is saying that they could grow their business if they could find more caregivers. The biggest barrier to growth is the caregiver shortage. There is no shortage of clients looking for in-home personal care.
In January of 2021, we did an informal poll of the members of the Home Care CEO Forum to see where they finished 2020 compared to 2019. Here is what we learned:
- 69% of our members showed a growth in annual revenue from 2019 to 2020.
- The average annual revenue increase was 14.55%
- 23% of our members showed a decrease in revenue, and the average decrease was 12.33%
- 8% of our members were flat in revenue from 2019 to 2020
When we looked at the companies that showed significant growth in 2020 over 2019, we found two key facts:
- The growing companies showed a net increase in the number of new caregivers hired.
- The growing companies have worked on crafting their company culture to create a great place to work.
How many “net new caregivers” are you bring into your company each month. “Net new caregivers” is the number of caregivers hired each month minus the number of caregivers who left during the month. To grow your business, you need to add net new caregivers every month.
Creating a Great Place to Work with Company Culture
We define company culture as … “The way we do things around here.”
And the way we do things around here is affected by four big elements:
- The Leadership Style of the CEO
- The Core Values that guide your actions and decisions
- The Behavior you expect
- The Behavior you permit
We have a mantra regarding culture – “The Behavior you Permit, you Promote.”
We have seen that the companies that are consciously crafting their culture are able to attract more high quality applicants. They can convert more applicants to new hires. They have fewer no-shows for interviews and orientation, and they have more new hires who stay with them past the first 90 days.
You will increase your number of net new hires, improve your 90-day retention, and be able to serve more clients if you focus on crafting your company culture, and creating a great place to work.
Seven Steps to Crafting Your Company Culture
In the Caregiver Quality Assurance program, we have built our Caregiver Quality Online Learning System, which consists of four courses and over 30 individual lessons. Course number one is Crafting Your Caregiver Quality Company Culture. The steps in this process are described in the seven lessons in this course:
- Define your core values
- Define the behaviors you expect
- Communicate your values and expected behaviors
- Train your leaders
- Engage your caregivers
- Promote your culture
- Reinforce your culture
Implementing this process is not a one-time event. It is an ongoing process. You never stop crafting your culture. Where are you now?
How would you describe the culture of your company?
What have you done to craft your company culture this year?
How does your company culture affect your ability to attract and retain top talent?
What will you do in the coming year to craft your company culture?
Join a Caregiver Quality Mastermind Group
For the opportunity to discuss strategic topics like this with other owners and CEOs of home care companies in the top tier of our industry, consider becoming a member of the Caregiver Quality Assurance Mastermind Group.