Hiring Privately versus an Agency
At the end of the day hiring privately, where you become the employer of a caregiver, could expose you to more liability, risk and frustration than simply working with a great agency from the beginning.
Some of the reasons to use an agency:
|As an employer, you||At an Agency, we will|
|Benefits||are responsible for a variety of benefits such as paid sick days that will increase your costs.||manage these benefits as part of our operations|
|Hiring/Firing||spend time and money to find an appropriate caregiver and have to terminate them if it doesn’t work out. You might have a lapse in coverage.||provide adequate background checks and support you to ensure a great match for your client|
|Finding a replacement||be responsible for hiring a new caregiver||send an alternate and work to find the right match if the first caregiver was not the right fit|
|Unemployment Insurance claims||have to fight the claim or have your EDD account cover the fees. Over time this will have an impact on your client’s costs.||immediately offer that employee work with another family and find a replacement at no cost to your client|
Below is a simple calculation to highlight the true cost difference between hiring privately and using an agency.
|Pay rate to self-hire||(Approximate)||$17.50|
|Insurance, payroll and other agency fees – Possible placement fees could be as high as 20%||15.00%||$2.63|
|Your true costs||$22.20|
|Agency Costs||Costs to hire private|
All this to save less than $10!!
Read more about the cost comparison between hiring privately and working with a home care agency here, courtesy of the HCAOA. (Home Care Association of America)