Long-term care facilities face many cost-creating staffing challenges, including turnover, compliance requirements, ineffective workforce operations, and more. These challenges come with hidden costs that are like a series of dominoes – each one connected to the next, so that when one falls, it triggers a costly chain reaction. And what is the initial challenge that sets these dominoes tumbling? Ineffective scheduling. Without a solid foundation of optimized scheduling, post-acute facilities face compounding labor costs and a host of related staffing problems.
Why is effective scheduling so crucial? When scheduling isn’t optimized, the dominoes start to fall. With over 4,500 long-term care (LTC) facilities on our platform and 20 years in the industry, Smartlinx has the data on the hidden post-acute labor costs... and we want to share. Here are the common issues that drive hidden labor costs and how effective scheduling can help to remedy these challenges before the dominos start to fall.
1. Inefficient Scheduling: The First Domino
Poor scheduling is the initial trigger. It leads to understaffing in some areas, overstaffing in others, and persistent gaps in staff coverage. For example, according to Smartlinx data, the estimated annual cost of overstaffing by just one CNA is $7,068. This small inefficiency is the first domino in a costly chain reaction.
2. Inaccurate Time & Attendance: The Second Domino
The next domino to fall is inaccurate time and attendance tracking. Without proper scheduling that is synced to time and attendance systems, you can’t accurately compare who is supposed to be working with who actually worked. Tracking time becomes a manual nightmare for administrators, leading to errors in payroll. Smartlinx data suggests the estimated annual cost of just one daily hour spent reconciling time systems is $12,660. This administrative burden further strains resources and sets the stage for the next domino.
3. Inaccurate Time Capture: The Third Domino
The third domino to fall is inaccurate time capture. If you don’t have a proper time and attendance system with up-to-date tracking synced with effective scheduling it becomes easier for time theft, both intentional and unintentional, to go unnoticed. Buddy punching, early clock-ins, and late clock-outs compound over time, leading to significant unnecessary costs. Even seemingly small instances add up: Smartlinx data shows the estimated annual cost of just 10% of staff clocking in early is $15,300.
4. Uncontrolled Overtime: The Fourth Domino
Ineffective scheduling often leads to gaps in staff coverage, forcing existing staff to work overtime. This is not only expensive (Smartlinx data estimates the annual cost of just one CNA overtime shift at $18,660) but also unsustainable. Constant overtime contributes to employee disengagement and sets the stage for the next domino to fall.
5. Temporary Staff Dependence: The Fifth Domino
To fill the gaps created by ineffective scheduling, facilities often rely on expensive agency or temporary staff. This adds significantly to labor costs. Smartlinx data indicates the estimated annual cost of just one agency CNA versus a W2 staff member is $18,348. Furthermore, it results in inconsistent quality of care due to frequent staff changes.
6. Unmanageable Turnover: The Sixth Domino
Poor scheduling and excessive overtime contribute to staff burnout, which inevitably results in high turnover. Replacing staff is a costly endeavor. Smartlinx data suggests the estimated cost of replacing just one CNA per month is a staggering $36,000 annually. This creates a cycle of constant recruitment and training, further straining resources and impacting the next domino.
7. Struggling with HPRD Compliance: The Seventh Domino
Government minimum staffing compliance rules, such as Hours Per Resident Day (HPRD) requirements, are complex and can be challenging to meet. Ineffective scheduling that doesn’t factor in these requirements can lead to non-compliance and hefty fines.
8. Time-Intensive PBJ Reporting: The Eighth Domino
Even if scheduling meets compliance requirements, Payroll-Based Journal (PBJ) reporting may not accurately demonstrate that compliance. If PBJ reporting isn't correctly synced to scheduling and time tracking, it can be error-prone and a significant administrative burden. Smartlinx data suggests that inaccurate PBJ reporting can result in a 1-star reduction, costing a facility an estimated $25,920 annually.
9. Low CMS 5-Star Rating Leads to Low Occupancy: The Final Domino
Low staffing levels and high turnover directly impact resident care quality, often leading to lower CMS 5-star ratings and potential penalties. Negative online reviews and lower star ratings deter potential residents and their families, leading to lower occupancy rates and reduced revenue.
Breaking the Chain Reaction: The Power of Optimized Scheduling
The good news is that by addressing scheduling inefficiencies, you can stop the dominoes from falling. A robust and optimized scheduling system is the key to breaking this costly chain reaction. It's the foundation upon which effective long-term care workforce management is built. Investing in optimized scheduling isn't just about saving money; it's about investing in your staff, your residents, and the future of your facility.
Interested in learning more about Smartlinx’s workforce management solutions? Request a demo to see how we can help optimize your staffing and reduce labor costs.
