Working with more than 20 care businesses over the last year, Level FT has seen providers halve turnover and reduce agency spend by as much as 87%. What would that save your organisation?
We all know that hiring and retaining high quality staff are persistent challenges for care home providers.
If a staff member leaves and their shift has to be filled via an agency, it can cost an extra £250–£500 per week for each full-time carer. For a business operating with thin margins and high turnover, this can be very challenging and has left many care operators wondering what they can do…
At Level, we have seen the impact of giving employees better access to their income.
Earned Wage Access, also known as On-Demand Pay, enables employees to access a portion of their income between paydays, without affecting employer cash flow.
Instead of turning to high-interest credit when faced with an unexpected cost, employees can access their own hard-earned money, debt-free.
Typically, employees can access up to half of what they have earned so far in the pay cycle.
Employers offering the service report turnover reductions of up to 50%.
For a 50-bed care home, this can translate into annual savings of up to £20,000.
The impact is so significant because many employees want greater pay flexibility. One report found that more than half of employees would prefer Earned Wage Access to additional paid holiday, while one third would prefer to move from monthly to weekly pay.
In care, this preference can be even stronger. Weekly pay is often highlighted as a key benefit of agency work and a major reason some staff choose agency roles over permanent ones.
As a result, many sector leaders now describe Earned Wage Access as “a must-have benefit for attracting and retaining staff”.
As well as reducing the chance someone will leave, closing the gap between work and pay increases shift uptake, further reducing agency spend.
When employees can access part of their earnings soon after completing an overtime shift, they are often more motivated and more likely to take on additional work. As a result, more shifts can be filled at the standard pay rate.
Care operators have reported agency spend reductions of up to 87% in the months after introducing Level FT’s Earned Wage Access.
For employees: Reduced reliance on expensive short-term debt and improved financial wellbeing.
For care home operators: Reduced turnover, fewer unfilled shifts, and significant cost savings.
More info:
www.levelft.com
