In today’s episode of A Drink With The Hurricane, we welcome a very special guest from Home Care Pulse. Founder and Chairman, Aaron Marcum, discusses industry statistics and understanding your key measurables.
I’m Aaron Marcum, founder and chairman of Home Care Pulse. I just wanted to talk about data for the Home Care industry.
I just got back not that long ago from the Home Care Association of America conference, they put on a great conference, wonderful speakers, wonderful event. And one thing that I came away from that, not only, it was just really, I was just happy to see so many of the speakers and the content being used. They were using a lot of Home Care Pulse data from our Home Care Benchmarking Study. And also from our Satisfaction Management program, which is really rewarding for me as the founder of Home Care Pulse. Sleeping in my sleeping bag 10 years ago, putting the data together and to see how far we’ve come and how far the Benchmarking Study has come.
I just wanna hit really quick on, is the importance of your five to 15 key measurables, company measurables, for your company. Those are really important. You know, found in the Home Care Benchmarking Study, you can find a lot of those ideas for those measurables. But, when I think about some of the most important measurables as far as for your business, you know, on the satisfaction side, the net promoter score. Understanding, are your clients going to recommend? Are they having a great experience? It really is an outcome-based measurement.
Same thing with the caregiver engagement score, which is another thing we measure when it comes to how likely caregivers are going to recommend employment to a family or friend. So, those kinds of measurements obviously really key to understanding the satisfaction of your business. Close ratios, your inquiry to admission ratio. That’s the percentage of inquiries that actually become clients, which measures the whole sales process from when they first call you, to the assessment, to when they actually become clients. How effective are you at those close ratios?
The industry, the real leaders of the industry on that one are around 40 percent according to our research. Other things, we talked about caregiver turnover and shortages a lot, which are really important to understand. But more important than that is what’s causing that? And what’s happening in that first 90 days of when a caregiver comes on board. Measuring that turnover in the first 90 days, because I think what you’ll find is that you may be losing quite a few early on because they don’t feel a connection perhaps, or maybe someone in your office staff is not doing a great job on onboarding. There’s a lot of things there.
A real takeaway from the conference is that whole key of onboarding, is that if you are experiencing higher turnover, work on your onboarding process to not only try to decrease turnover, but more importantly, to get them out on a shift fairly quickly so that they are doing exactly what you wanna do, following through on expectations so that no matter who the client receives as far as a caregiver, it’s the same type of care every time. That really helps you handle the turnover if that’s something that you’re dealing with. Then over time that onboarding process will actually help with your retention.
Other areas that are obvious to us as far as measurement and so forth, we had the sales per full time employee that really measures your effectiveness of your staffing. Obviously gross profit, really understanding your margins there as far how much you’re investing in direct expenses and so forth. There’s just a few high level data, metrics that you need to be measuring in your business so that you’re constantly keeping up points.
And I’m talking every week, understanding where some of these numbers are at. We have what we call our Level 10 meetings. It’s an EOS term that we’re talking about our score card numbers every week. Are they on track, or are they off track? And if you’re doing that every week you get so good a predicting and understanding what’s coming and what’s gonna be hitting you in the future.
I just wanted to say something about the importance of data measurement. Identify what are your five to 15 key measureables, contact Home Care Pulse to see how we can help you understand those measureables better and actually track and benchmark some of those measureables, especially on the satisfaction side of your business and understanding what kind of experience you’re providing both clients and caregivers.
Well anyway, that’s it for now. I appreciate you tuning in and appreciate all of our customers out there and your loyalty in trusting us to help bring that data, so you can help grow your business better. All right, take care everyone, thank you.
How To Work With Home Care Pulse
Register for The Upcoming Home Care Growth Summit – Feb 5th & 6th, 2020 (Featuring Steve “The Hurricane”)
Get The Home Care Pulse Benchmarking Study (Use the code HURRICANE19 for 20% OFF)