Staffing in Hard Times

You are an HME business owner, but what business are you really in?

You are in the “profit business,” a bit redundant given that every business must be profitable in order to deliver products and services consistently to their customers.

You are in the “government business.” Every time Washington or your state legislators sneeze, your profits can get the flu.

It may sound cliché, but more than anything you are in the “people business.” The very nature of your products and services provide the means for people in depressing, distressing, often debilitating circumstances, to cope. By helping them, you're helping their families. When your assistance helps people remain independent and self-sufficient, you're lessening the burden on government, health care and, ultimately, taxpayers. If your assistance helps people enter the work force, you're contributing to the economic strength of other businesses, charitable organizations and the entire community.

And because you are in the business of “people helping people,” every one of your employees counts.

Short-Term Savings versus Long-Term Consequences

As the government continues to “improve” its system, your operations, your profits and your business' very existence is under assault. Every reimbursement adjustment means you must review costs, and an HME payroll can easily represent 20 percent to 30 percent of your business' overall costs. Are layoffs the answer?

Layoffs are a screaming statement of management failure. It is a failure to staff properly, to gauge market demand, to be knowledgeable of industry trends, to plan for proper product, service and payer mix, to be involved in legislative advocacy and to be committed to customers and communities.

There are significant, negative financial costs, including hard and soft costs, people costs, emotional costs, relationship costs and more. These may include legal fees, severance packages, increased unemployment insurance, damaged customer, supplier and lender relationships, loss of knowledge and experience with departing employees, projects or work being put on hold and negative public relations, not to mention competitor enthusiasm.

The employees leave, but the work stays and productivity declines. Work may get done, but not with the enthusiasm and caliber of dedication as before. Hiring temporary staff, training them, getting them acclimated to your company's culture and customer service expectations is expensive.