We've brought together a team of educators and home care experts to answer the burning questions that you and every home care owner will ask at some point.
Ilya Vakhutinsky Careswitch CEO, home health aide's son, Forbes 30 Under 30, caregiver advocate
Connor Kunz VP @Careswitch, former head of education @ Home Care Pulse, scaled a service business 7 figures in 3 years
Connor Kunz VP @Careswitch, former head of education @ Home Care Pulse, scaled a service business 7 figures in 3 years
Mark Johnson EA specializing in home care agencies
Jennifer Ramos Managed and sold three different home care agencies; CEO of JR3 Consulting
Jennifer Ramos Managed and sold three different home care agencies; CEO of JR3 Consulting
Jennifer Ramos Managed and sold three different home care agencies; CEO of JR3 Consulting
Angelo Spinola Home health, home care and hospice chair at Polsinelli
Jennifer Ramos Managed and sold three different home care agencies; CEO of JR3 Consulting
Adam Corcoran Director of Business Development at Golden Care, owner of Home Care Flyers, helped build a multimillion dollar agency from the ground up
Connor Kunz VP @Careswitch, former head of education @ Home Care Pulse, scaled a service business 7 figures in 3 years
Connor Kunz VP @Careswitch, former head of education @ Home Care Pulse, scaled a service business 7 figures in 3 years
Connor Kunz VP @Careswitch, former head of education @ Home Care Pulse, scaled a service business 7 figures in 3 years
Connor Kunz VP @Careswitch, former head of education @ Home Care Pulse, scaled a service business 7 figures in 3 years
Julio Briones Home care consultant specializing in helping 7-figure home care agencies grow
First, let’s clarify a few things:
When we say performance-based compensation, we’re not referring to an occasional sporadic reward or a holiday bonus—we’re referring to a formal plan in which employees can earn extra pay based on hitting specific metrics or goals.
This is relatively new in home care; aside from marketers, less than 10% of agencies report paying their staff performance-based compensation. However, it’s beginning to take off and more industry leaders are calling for it to become a standard.
Why should agencies consider performance-based pay?
One way to think about is by considering the benefits we generally agree exist in paying marketers/sales reps based on performance.
It’s very common to pay marketers commission that accounts for a chunk of their income; agency owners readily see the value in this because it allows driven marketers to raise their earning potential while ensuring that the agency sees a return on its investment.
While other roles may produce results that don’t always map quite as obviously back to revenue, their results do drive business results. If they didn’t, you (hopefully) wouldn’t be paying money for people to do these jobs.
If nothing else, setting performance-based compensation is a good exercise in understanding your expectations for each role.
While it’ll take time to understand what levels of performance-based compensation might make sense given your agency’s financial position, the process of implementing these plans are relatively straightforward.
A few other things to keep in mind:
The best goals will vary depending on the breakdown of roles and responsibilities in your agency; however, from years of researching these topics these are the metrics that we generally recommend.
The metrics that make for good management goals are generally also conducive to being shared team goals.
If you’ve read this far, you’re clearly dedicated to keeping solid operations and continually learning how to run your agency more effective. Here are some additional resources that might be useful to you: