3 Reasons Home Care Needs HCM in 2019
A payroll is a payroll is a payroll. Or is it? We’ve all heard HCM providers profess to being flexible with any industry and payroll. I’m sure you’ve heard one – or all – of these claims before: “we customize payroll to meet your needs,” “simplify your payroll today,” “flexible payroll to suit your business.” But HHAs today know better than anyone that it’s just not that easy.
So, is a payroll really just a payroll? We think not. And here’s why…
- Multi-rate Overtime. Here’s a scenario for you. Karen Taker, a caregiver at Home Care Rocks LLC, is working on two unique cases. Karen is getting paid $13 an hour on the first case and $15 an hour on the second case. Karen is a hardworking employee and put in 5 hours of overtime this week. Overtime is 1.5 times the regular rate.
Which rate of pay should HHC Rocks use to determine Karen’s overtime pay? It would be the $15 rate, because you always get to choose what’s better for the employee, right?
In this case, a blend of the two rates should be used to determine her overtime pay. But don’t rush to use the $14. Depending on how many hours Karen worked on each job, the blended rate may not just be a straight average.
The HCM Fix: Automatic multi-rate overtime calculation. Software that analyzes the hours, blends the rates, and calculates overtime without you having to lift a finger.
- Retroactive Pay. Most of us can’t even remember what we ate for breakfast this morning, even if it was delicious. So, how are caregivers expected to recall all of their hours in a previous week? This is a recurring theme for HHAs, since work is not centralized in a single office and caregivers are frequently calling into payroll or HR to say, “Oh, I forgot to submit this timesheet, I actually worked from 9-12 and 5-10 last Monday – and I need to be paid.”
The HCM Fix: Automated retroactive pay. Software that can automatically determine what caregivers should be paid for previous hours – and cover you for retro overtime calculations, too.
- High Turnover. Unlike other industries in which you hire a set number of employees who tend to stay for years, HHAs manage a revolving door of staff. According to the 2017 Home Care Benchmarking Study, home care turnover was at an all-time high in 2017 with an average of 66%.
It takes the same amount of time and effort to onboard a caregiver who will stay for 10 years as it does a caregiver who will work for a week. And we all know how complex onboarding has become – from collecting W-4s and I-9s, to offer letters and company policies. And virtually any administrative function as it relates to employees leaves you wide open to fines, penalties, and lawsuits.
And on the flip side, where your bottom line can benefit from programs like WOTC, there isn’t enough time or manpower to reap the benefits.
The HCM Fix: Integrated onboarding solutions, automated WOTC service, and HR consulting. Software (and people) that will make sure you’re covered when on- and off-boarding employees, and that you’re benefiting from the programs you are eligible for.
These are just the three most obvious home care headaches. We know you still have to deal with all the other compliance and accuracy requirements facing companies your size, as well.
If you’re curious about how Viventium helps our home care clients, visit our home care page and check out a case study from a valued client.