I won't discuss any political arguments and would also ask that the readers bear in mind that I am not an economist, but will share my observations on this subject based on my own experiences.
Back in 2012 a group of fast-food workers in New York City walked off the job to protest their meager wages. Their demands included union rights and a $15/hour pay rate. This event was covered by the national news and was the inception of a movement knows today as the "Fight for 15".
Big companies, such as Costco, Amazon, etc., were originally resisting the move, but then voluntarily increased the wages. This, along with a number of other factors, has created the general belief that there is a shortage of caregivers. There are a number of opinions on this, we tend to believe that it is mostly a myth, the issue isn't a shortage, the issue is one of retention.
Once again, I am not an economist, but I have worked with many Home Care Agency owners across North America, with the majority being in the United States and have seen many trends. One of these trends has been caregivers leaving the industry in pursuit of higher wages. They have gone into big box retail or warehouse work because they are being offered steadier, more predictable work schedules at higher pay rates.
This trend can create a major issue for agency owners because many don't want to raise prices out of fear of alienating clients. This fear will either will have 1 of 2 outcomes. the first is that they stop increasing pay for the caregivers or reduce (and sometimes stop) caregiver retention programs and the other is they will offer more pay, reducing their margins in the process.
So how do we avoid catastrophe, offer a decent wage and not lose our clients? Well, we move forward smartly. Learn about the trends and develop a solid pricing strategy that will allow us give the caregivers what they need without hurting our ability to take care of our other staff or grow our business. To successfully make these adjustments: