Rising costs in care homes, care agencies, and care establishments is getting to near crisis point across the UK. From the introduction of the living wage to pension schemes and government cutbacks, this culmination of rising costs across the board is a pressing issue for care business owners, staff, agencies and residents nationwide. Here we look at the various factors of why costs are rising but will also outline one key way to reduce costs significantly to ensure a secure future for your care business. Read on to find out more.
The Living Wage and What This Means for Care Homes and Agencies.
The cost of implementing the living wage has had a massive impact on the care industry. As well as care home owners now paying more money per hour across the board, the introduction of mandatory pension schemes has also had a considerable impact on wage costs for those wishing to remain ‘opted in’. Adding to this, the government has stopped paying employers back for sick pay for staff while ensuring sick pay is still paid out resulting in another added cost. This was masked by the National insurance incentive given to employers of £2,000 a year. Check with your accountant if you can still claim this!
On top of the increased living wage, pension contribution and sick pay, local governments have either frozen the costs they are paying care homes for service users going into the home, or in some cases they have cut the costs completely. If government cuts continue to be made, combined with rising wage costs, care homes and care businesses are heading for a death curve where even basic overhead expenses will not be met. To be put simply, more and more care homes, care service providers and agencies will close which will inevitably lead to a serious care crisis for our aging population, on top of the pressures we all currently face.
One of our customers Elite Care for example, a leading Nursing and Care staff supplier on the South Coast, had to reluctantly lay off 8 office staff recently. This has had the inevitable result of immense stress put on the remaining team as more work is piled on to cope with the loss of people. They simply cannot put their prices up anymore to counteract this loss as they have already lost 30% of their customers due to care homes not being able to afford to pay for the care and nursing staff available. Simply put, the cost of running Elite Care has gone up 30% and the only way to save that 30% was to cut wages of office based staff, resulting in increased stress of the management and daily running of the business.
How To Cut The Costs Of Running A Business In The Care Industry
The day-to-day running of the accountancy and placement of care staff within a care business involves a lot of processes, which can be streamlined, made more efficient and effectively save time and money with the right resource management software. Here are just a few ways RMS software can help cut costs by saving time.
Auto setting rates on wages – not having to work out individual wages each month will save hours of time. AWR (agency worker regulations) pay and charge rates can be automatically applied for agencies with temporary workers also.
Stop spending money chasing money – one of our care agency customers has reported that they have reduced their invoicing time from 60 to 7 hours per week by using RMS software which is an impressive feat.
Candidate placement – save time searching through candidate notes for the perfect candidate by defining candidates by specific job requirements, qualifications and other relevant info including skill types and many custom searches within a searchable database.
Run real time reports – RMS Care Placer will allow you to bring up live reports on sales and can project sales allowing you to see real profit, LIVE! not at the end of a month or pay period, and not fixed margins that equate to nothing so you can better plan for the future.
Access from everywhere – we understand people can’t be tied to their desks which is why RMS Care Placer software is a solution that can be accessed from anywhere in the world with an internet connection.
Now has never been a better time to increase your efficiency with RMS Care Placer software as we are currently offering FREE set-up and customisation to your care business, which usually costs £1500. Talk to us today about how RMS can help save your business time and money on +44 203 411 2327 or online here.