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HR Outsourcing for Assisted Living Facilities: The Transformations and ROI You Should Expect

HR Outsourcing for Assisted Living Facilities: The Transformations and ROI You Should Expect

According to CNBC, the US home healthcare system is facing a worsening labor shortage and assisted living facility turnover rate that is now hovering around 50%. One way to address this issue is to adopt HR outsourcing for assisted living homes. 

Despite the availability of numerous HR outsourcing choices, cost-benefit analyses show one option to be superior. Different HR outsourcing choices offer distinctive benefits; it's crucial to set realistic expectations for what your ideal outsourced HR solution should give. 

How HR Outsourcing Transforms Senior Care 

Assisted living staff are a vital asset to senior care. If the staff is handled with dignity and respect, senior living facilities have all the opportunity to soar to new heights. That means it is critical to have an HR specialist help manage staff, from talent acquisition and development to payroll services. On the other hand, a lack of HR support could put your nursing home at risk for subpar operation, higher turnover rates, and compliance issues. 

Streamline Hiring with an Applicant Tracking System 

With the increasing recruitment volume and the evolving labor market, nursing homes and assisted living facilities are also confronted with various daily activities that can become extremely time-consuming and tiresome. The manual handling of the hiring process prevents firms from developing their employer brand and interacting with top talent. 

Luckily, the employment process is becoming more efficient thanks to applicant tracking systems, which are also helpful for nursing homes. 

An applicant tracking system is a workflow and compliance technology that tracks applicant data and does away with pointless administrative tasks by giving you access to crucial functions like:  

  • Resume parsing 
  • Applicant search and filtering tools. 
  • Getting, storing, and organizing large amounts of candidate data. 
  • Job boards and email 

As a filtering tool, ATS benefits employers by:  

  • Hiring task automation. 
  • Streamlining the hiring process assists in time management. 
  • Improving cost-per-hire as well as candidate quality. 
  • Enhancing communication while lowering friction during recruitment. 

Attract Talent with Affordable Employee Benefits 

In today's market, you need all the advantages you can generate to attract top talents and skilled nursing staff. That means employee benefits. HR outsourcing will enable assisted living facilities to access affordable master benefit plans negotiated at scale experts. For instance, you can access more affordable medical insurance

Eliminate Scheduling Conflicts 

Without the proper assistance and technology, managing employee schedules for assisted living may be a headache. However, scheduling conflicts can be avoided or reduced by utilizing scheduling software that best-in-class HR outsourcing solutions provide free of charge. The flexibility to cooperate on a schedule and let your personnel determine their own availability will naturally reduce scheduling conflicts. 

By eliminating scheduling conflict, employee engagement will rise as a result of employees being able to modify the schedule to suit their needs. All changes have to be approved by a manager, ensuring centralized control. 

Reduce Administrative Costs 

According to a Deloitte survey, the primary aim of HR outsourcing is to reduce costs. But nursing homes and assisted living facilities could be misled to believe that managing their administrative responsibilities on their own is a tactic to cut expenses. The fact is that outsourcing HR is less costly than hiring an extra employee to manage payroll, benefits administration, worker compensation, compliance, and other time-consuming HR aspects. 

The goal is NOT to replace any existing in-house HR employees. Rather, HR outsourcing handles all the burdens that would otherwise require additional HR hires. 

Ensure Federal, State, and Local Compliance 

Maintaining compliance with federal, local, and state laws is a significant challenge facing businesses. Lack of adherence to employment laws can be costly to your nursing home. You should be able to follow these changing legislation, such as the Nursing Reform Act and the Fair Labor Standards Act, using outstanding HR outsourcing solutions. 

Your HR outsourcing solution will keep you informed whenever laws and rules change. Since they are experts in HR management, they can assist with reviewing, editing, or developing new employee manuals and policies.  

HR outsourcing for assisted living is also effective in handling workers' comp administration and unemployment claims. Beyond that, they can provide worker compensation insurance at a lower cost than would otherwise be possible. 

Payroll Tax Remittance 

Comprehensive HR outsourcing companies will not only process payroll; they also file payroll taxes. Employees will be able to print their own paystubs using the HR software that will be provided. As a result, your payroll and HR operations will be streamlined into a single system, allowing for increased flexibility and uniform tracking across all your nursing homes and assisted living facilities. 

Risk Management for Assisted Living 

HR outsourcing will ensure that your nursing homes and senior living facilities are free from risks by optimizing risk management through the following: 

  • Optimizing employee compensation. 
  • Improving on-site safety. 
  • Managing unemployment claims. 
  • Supporting during investigations. 
  • Managing employee relations. 
  • Maintaining error-free payroll. 
  • Ensuring HR compliance. 

Which type of HR Outsourcing Organization is Right for You? 

Since you now know what to anticipate from HR outsourcing for assisted living, the question remains: What type of HR outsourcing is best for assisted living and nursing homes? 

Administrative Services Organizations (ASOs) and Professional Employer Organizations (PEOs) are the two main types of HR outsourcing. That means weighing the difference between PEOs vs ASOs is essential. ASOS are competent at handling administrative duties, but cannot give you access to more affordable workers' compensation or employee benefits. Furthermore, they cannot file your payroll taxes on your behalf. PEOs are undoubtedly the winners in terms of advantages. Regarding HR outsourcing costs, you will be surprised to realize that a best-in-class PEO will cost as much as an ASO. 

Even better, the average ROI for PEO clients is 27.2%

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