Benchmarking Your Staffing Efficiency
As you go about filling your office staff team, it’s important to keep the balance between having enough staff to provide high-quality service, while remaining as lean as possible to maximize profits.
We suggest two metrics that are valuable in deciding this. The first is sales per full-time employee. This number is just what it sounds like: how much revenue is your home care agency generating for the number of staff you employ? By calculating it and benchmarking it against other agencies in the industry, you can get a good general idea of whether you are operating in the optimal range of staff or not.
To calculate sales per full-time employee, simply divide your annual (or 12-month trailing) revenue by the number of full-time employees you have, excluding caregivers. Include active owners in this calculation, and count part-time employees as .5.
If you’ve come this far, you’re ahead of the curve; in a poll we conducted during a webinar, less than 25% of agency owners surveyed knew their sales per full-time employee ratio.
Once you’ve calculated yours, compare it to this data from the Benchmarking Study see if you’re in the same ballpark as other agencies: