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GM Incentive Plan Communication_ Field Presentation- 10_2024.pptx
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TheKey Incentive Plan
October 28, 2024
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TheKey Incentive Plan is Here!
TheKey Incentive Plan: We are excited to announce a fresh and exciting approach designed to recognize and reward our exceptional team members!
Built on experience & feedback: After a thoughtful period on our bridge plan, we’re ready to elevate our incentive program and embrace a culture built on high standards, accountability, and client care excellence.
What to Expect: Our new incentive plan isn’t just a change; it’s a commitment to rewarding you for the quality service you provide to our clients, while also driving profitable growth and long-term value for our company.
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Here’s How Our New Incentive Plan Works:
Performance Metrics: Each month, all incentive-eligible employees will be accountable to five key metrics critical to our profitability and growth. This means you’ll have clear targets to hit and exceed!
The Key based System: You can earn up to 10 Keys by excelling in your performance or potentially lose keys if expectations aren’t met. It’s straightforward and impactful—your efforts directly influence your rewards!
Monthly Payouts: Every month presents a new opportunity! Your payout will be based on the total number of Keys earned at the end of each month, ensuring you can see the immediate benefits of your hard work.
Win as a Team: Everyone at your site will earn or lose the same number of Keys based on overall site performance, fostering a spirit of collaboration and shared success. This also allows current progress to be shared easier, faster, and more transparently to help teams achieve.
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Monthly Keys System:
Kickoff with 5 Keys: Every site starts each month with 5 Keys in hand. It’s like starting with a winning hand in a game—you’re ready to play and score big!
Unlock more Keys: By performing exceptionally across our 5 Key Metrics, you can earn up to 5 additional Keys, bringing your total to a fantastic 10 Keys by the end of the month! The sky’s the limit when it comes to your potential rewards.
A Fresh start every month: Each new month begins with a clean slate—5 Keys to kick things off again! While the starting point resets, the targets remain consistent, encouraging continuous improvement and teamwork.
Consistent Metrics & Targets: Everyone wins for site growth in 5 key metrics
Tier 1 client growth
Billable hours growth
Caregiver margin
EBITDA margin
5 star reviews
Payouts That Reflect Your Success: At the end of each month, your payout will be directly linked to the total number of Keys earned. The more Keys you earn, the greater the reward!
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Unlock The Potential of TheKey:
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Greater Upside Potential: This plan offers far more opportunities for rewards than our previous bridge plan or earlier plans, empowering you to achieve and benefit from your performance!
Clear and Simple: The metrics are easy to remember and completely based on measurable outcomes, so you’ll always know where you stand once results are finalized.
Consistent Growth Path: We’re establishing a solid baseline for improvement, setting the stage for sustained success and growth for both you and the company.
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Why You Will Love It:
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How Will We Be Measured:
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Grow Billable Hours 1% sequentially each month
Increase Tier 1 Client Count +1 per month
Caregiver Margin %
Improve or Maintain High Caregiver Margin %
(Revenue – Cost of Care = Caregiver Margin)
Improve or Maintain site / regional Profitability
(Revenue – Cost of Care – Operating Expenses = Profit Margin)
Increase Five Star Client Google Review Count + 1 each month
Tier 1 Clients
Billable Hours
Profitability %
Google Reviews
1
2
3
4
5
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Earning Scenarios
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Scenario for Tier 1 Clients: Add 1 Tier-1 Client Each Month
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Earn a second Key: Increase your Tier 1 Client Census by 2 or more in a given month
Keep your initial Key: Increase your Tier 1 client by 1 to meet your target.
Lose your initial Key: Lose 1 or more Tier 1 clients in a month
October Earning Example
Starting Baseline September 5
October Tier 1 Target = 6 Clients…
IF Tier 1 client census INCREASES by 2 (7 total):
Earn the second key for this month
IF Tier 1 client census INCREASES by 1 (6 total):
Keep your initial Key for this month
IF Tier 1 census STAYS THE SAME (5 total):
Lose your initial Key for this month
November Earning Example
Staring Baseline September 5
November Tier Target = 7 Clients…
IF Tier 1 client census INCREASES by 2 from Oct (8 total):
Earn the second Key for this month
IF Tier 1 census STAYS THE SAME as target (7 total):
Keep your initial Key for this month
IF Tier 1 client census DECREASES by 1 (6 total):
Lose your initial Key for this month
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Scenario for Billable Hours: Increase Billable Hours 1% Sequentially Each Month
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Earn a second Key: Increase billable hours by 1% above the monthly target
Keep your initial Key: If your billable hours increase or decrease by less than 1% around the monthly target
Lose your initial Key: If your billable hours decline by more than 1% from the monthly target
November Earning Example
New Target = 10, 020 hrs
IF billable hours INCREASE to 10,120:
Earn the second Key as hours increased by 1% or more from Nov target baseline
IF billable hours DECREASE to 10,015:
Keep your initial Key as hours decreased less than 1% from the Nov target baseline
IF billable hours DECREASE to 9,800:
Lose your initial Key because hours decreased by more than 1% from Nov target baseline.
October Earning Example
Sept Billable Hours (Baseline) = 9893…Oct Target is 10492
IF billable hours INCREASE to 10,598:
Earn the second Key as hours increased by 1% above Oct target .
IF billable hours INCREASE to 10,495:
Keep your initial Key as hours increased less than 1% above Oct target baseline .
IF billable hours DECREASE to 9850:
Lose your initial Key because hours decreased by more than 1% from Oct target baseline.
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Scenario for Caregiver Margin Percentage: Baseline= Q3 2024 CG Margin %
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Earn a second Key: If CG margin = 50% or above
Earn ½ the second Key: If CG margin = 49.5%-49.9%
Keep your initial Key: If CG margin = 49.0%-49.4%
Lose ½ your initial Key: If CG margin = 48.5%-48.9%
Lose your initial Key: Anytime CG margin is less than 48.4% or a 2% or greater decrease with a starting baseline above 49.4%
Q4 Earning Example 1
If Q3 baseline CG margin = 48%...
IF October CG margin = 49.8%:
Earn half the second Key because margin is in the 49.5%-49.9% range.
IF November CG margin = 49.4%:
Keep your initial Key because the margin fell between 49.0%-49.4%
IF December CG margin = 48.3%:
Lose your initial Key because the performance dropped to 48.4% or lower.
Q4 Earning Example 2 (“high margin protection effect”)
If Q3 baseline CG margin =50%...
IF October CG margin = 49.8%
Earn the second Key because your baseline was 50%+ and you decreased less than .5%
IF November CG margin = 49.4%
Earn half the second key because your baseline was 50%+ and margin fell by .5% -.99%
IF December CG margin = 48.3%
Keep your initial Key because your baseline was 50%+ and margin fell by 1-2%
* Baseline Reset=Quarterly
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Scenario for Profitability Margin: Target = Improving Profitability (Q3 2024 Avg)
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Earn the second Key: If Profit margin = 30% or Above
Earn ½ the second Key: If Profit margin = 28%-29.99%
Keep your initial Key: If Profit margin = 27%-27.9%
Lose ½ your initial Key: If Profit margin = 25%- 26.9%
Lose your initial Key: Anytime the Profit margin is less than 24.9% or 3% or greater decrease with a starting baseline above 27.9%
* Baseline Reset=Quarterly
Q4 Earning Example 1
If Q3 average margin was 27%...
IF November margin is 29.2%...
Earn ½ the second Key because the margin is between 28.0%-29.9% range
IF October margin is 27.3%...
Keep your initial Key because the margin is between 27.0%-27.9%
IF December margin is 23.5%...
Lose your initial Key because the margin dropped to 24.9% or lower.
Q4 Earning Example 2 (“high margin protection effect”)
If Q3 average margin was 30%...
IF November margin is 29.2%...
Earn the second Key because baseline margin was 30%+ and your margin decreased less than 1%
IF October margin is 27.3%...
Keep your initial Key because your baseline was 30%+ and your margin decreased by over 2%
IF December margin is 23.5%...
Lose your initial Key because your baseline was 30%+ and your margin decreased by over 3%
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Scenario for Google Reviews: Tgt = Add 1 Five Star Client* Google Review MoM
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Earn the second Key: If your 5- Star review count increases by at least 1 above target
Keep your initial Key: If your 5-Star review count increase by target (+1)
Lose your initial Key: If your 5-Star Review count does not increase
*Or a review by a family member of a client
November Earning Example For All Sites
* All Sites baseline start at 0
December Earning Example For All Sites
December Google Review target = 2 new
IF Google 5-Star Review INCREASE in Dec by 3:
Earn the second key because reviews increased
IF Google 5-Star Reviews INCREASES in Dec by 2:
Keep your initial Key as you hit target
IF Google 5-Star Reviews INCREASES in Dec by 1:
Lose your initial Key
IF Google 5-Star Review INCREASE in Nov to 2:
Earn the second key because reviews increased above target
IF Google 5-Star Reviews INCREASES by 1 in Nov:
Keep your initial Key as you hit target
IF Google 5-Star Reviews STAYS THE SAME in Nov:
Lose your initial Key
All Site Targets
Nov + 1 review, Dec +2 reviews, Jan +3 reviews
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‹#›
Best Practices
80%+ Tier 1 Intention Accuracy
100% CG introductions
GM intro call to all new Tier 1 clients
Daily
Grow Tier 1 Census By
Weekly
Share thoughtful care plan with family member or POC to ensure it captures all of the client’s needs and goals
Follow all SOC touchpoints to identify and remediate any issues up front
Cross train CGs to fill in should there be a call off
Maintain Quarterly re-assessments (or more often if a change in condition) to identify opportunities for increased utilization
Daily
Weekly
Providing expert recommendations for the amount of care needed to successfully carry out the care plan
Identify replacement CG before calling client to inform them their regular CG is not available
CGM or CSM intro fill in CG at the client’s home to review care plan and make intro
Increase Billed Hours By
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Best Practices
Consistently evaluate client bill rates and apply increase where appropriate
Maintain 50%+ CG Margin
Manage workers comp expenses by offering CG training in person and via LMS for best practices in the areas your site sees increased claims
Partner with your HCL and RDBD to discuss events, the expected ROI of the event and set the right budget together
Daily
Manage Profit Margin By
Weekly
Limit Travel and Entertainment where possible
Bill all overtime to the client
Ensure you have the right volume of CGs on the bench to reduce/eliminate OT
Daily
Weekly
Set the right bill rate for the client based on the need, geography and acuity
Identify a quality CG that meets the client’s needs within the bill rate that was set
Do not offer CG OT without exhausting all other available CG availability
Optimize CG Margin By
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RDOs and GMs 10/28: Kick -Off to review and plan Team Member meeting date to game plan
GMs (with RDO support as desired) 10/30-31: Meet with team members answer any follow up questions and discuss team plan to WIN
Derek and Melissa: Will be available to attend/support meeting as requested to ensure understanding and assist with answering questions
Dashboard (Week of 10/28): All metrics will be available in the KPI Dashboard with the exception of Profit Margin
HR Comp Team (Week of 10/28): To distribute new plans for signing
New Plans Effective 11/1: October will be bridged
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What’s Next:
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How Much are Your Keys Worth?
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Keys Earned Monthly | General Manager | Supervisor y | CSM, CGM & Recruiter
10 | $5,000 | $4,000 | $3,000
9 - 9.5 | $4,000 | $3,500 | $2,500
8 - 8.5 | $3,500 | $3,000 | $2,000
7 - 7.5 | $3,000 | $2,500 | $1,500
6 - 6.5 | $2,500 | $2,000 | $1,250
5 - 5.5 | $2,000 | $1,500 | $1,000
4 - 4.5 | $500 | $500 | $400
3 - 3.5 | $400 | $400 | $300
2 - 2.5 | $300 | $300 | $200
1 - 1.5 | $100 | $100 | $100
0 - 0.5 | - | - | -
***The more Keys you have at the end of the month, the more each one is worth. Resets each month.***
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Appendix
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How to Earn Your Keys
‹#›
Metric | How is the Target Set? | We EARN a Key Monthly If: | We LOSE a Key Monthly If:
Tier 1 Client Count
(Sept-24 Baseline) | +1 Tier 1 Client census each month into the future | Increase Tier 1 Clients +1 above target = 1 Key
Increase Tier 1 client to meet target = 0 Key | Tier 1 Client Count Does Not Meet Monthly Target = -1 Key
Billable Hours
(Sept-24 Baseline adjusted for holidays &
calendar days) | 1% sequential growth in billable hours each month into the future | Increase Billable Hours 1% above target = 1 Key
Less than 1% above/ below target = 0 Key | Billable Hours Decline by more than 1% from target
= -1 Key
Caregiver Margin %
(Q3-24 Baseline) | Caregiver Margin Goals- adjusted for major lines of business (Live In, Government Fixed - Canada) | PRE-LINE OF BUSINESS ADJUSTMENT
50.0% or > = 1 Key
49.5%-49.9% = .5 Key
49.0%-49.4% = 0 Key
**AND** stability in performance
Maintaining stability: If Baseline >= 50.0%, Earn 0.5 Keys if decline 0.5%-0.9% vs. baseline;
Earn 0 Keys if decline 1.0% or more from baseline
If Baseline is 49.5%-49.9%, Earn 0 Keys if decline 0.5%-0.9% from baseline | PRE-LINE OF BUSINESS ADJUSTMENT
48.5%-48.9% (Lose 0.5 Keys)
48.4% or Lower (Lose 1 Key)
**AND** stability in performance
Maintaining stability: If Baseline is 49.5%-49.9%, Lose 0.5 Keys if decline 1.0-1.9% or more from baseline. Lose full initial key if decline 2% or more with baseline of 49.5% or more.
Profitability
Margin %
(Q3-24 Baseline w/o marketing) | EBITDA Margin Goals | 30.0% or > = 1 Key
28.0%-29.9% = .5 Keys
27.0%-27.9% = 0 Key
**AND** stability in performance
Maintaining stability: If Baseline >= 30.0%, Earn 0.5 Keys if decline 1.0%-1.9% vs. baseline;
Earn 0 Keys if decline 2.0% or more from baseline
If Baseline is 28.0%-29.9%, Earn 0 Keys if decline 1.0%-1.9% from baseline | 25.0%-26.9% (Lose 0.5 Keys)
24.9% or Lower (Lose 1 Key)
**AND** stability in performance
Maintaining stability: If Baseline is 28.0%-29.9%, Lose 0.5 Keys if decline 2.0% or more from baseline. Lose full initial key if decline 3% or more from baseline.
Five Star
Client Google Reviews | Sequentially One (1) more Five-Star Client (or family of client) Google Review, increasing monthly | Increases 5-Star Client Google Review count +1 above target = 1 Key
Increase 5-Star Client Google Review count by target = 0 Key | 5-Star Client Google Review Count does not increase +1 = -1 Key
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How to Earn Your Keys (targets based on Sept 2024 baseline unless stated)
‹#›
Metric | How is the
Target Set? | We Keep our Initial Key: | We Earn ½ Another Key If: | We Earn the full Second Key if:
Tier 1 Client Census | +1 Tier 1 Clients each month into
the future | Tier 1 Client Census
is below target | N/A | Increase Client Census to hit target (+1) | N/A | Increase Tier 1 above target
Billable Hours
(adjusted for holidays &
calendar days) | 1% sequential growth in billable hours each month into the future | Billable Hours decrease by more than 1% from growth target | N/A | Increase/ decrease billable Hours by less than 1% around growth target | N/A | Increase Billable Hrs by 1% or more above growth target
Caregiver Margin % | Target is Q3-24 Caregiver Margin % adjusted for major lines of business (LOB)
(Live In, Canadian Gov’t) | THREE WAYS TO ACHIEVE:
PRE-LOB ADJUSTMENT
48.4% or lower from a baseline of 48.9% or lower
-OR-
49.0%-49.4% starting baseline with a 1%+ decrease
- OR -
2% or greater decrease with a starting baseline above 49.4% | THREE WAYS TO ACHIEVE:
PRE-LOB ADJUSTMENT
48.5%-48.9%
with stable performance
- OR -
49.0-49.4% starting baseline with a 0.5% to .99% decrease
-OR-
49.5-49.9% starting baseline with a 1.0-1.99% decrease | THREE WAYS TO ACHIEVE:
PRE-LOB ADJUSTMENT
49.0%-49.4%
with stable performance
- OR -
49.5-49.9% starting baseline with a 0.5-.99% decrease
-OR-
50.0%+ starting baseline with a 1.0-1.99% decrease | TWO WAYS TO ACHIEVE:
PRE-LOB ADJUSTMENT
49.5%-49.9%
with stable performance
- OR -
50.0%+ starting baseline with a 0.5-.99% decrease | PRE-LOB ADJUSTMENT
50.0%+
with stable performance
Profitability
Margin %
(w/o Marketing) | Target is Q3-24 EBITDA Margin % | THREE WAYS TO ACHIEVE:
24.9% or Lower
- OR -
27.0-27.9% starting baseline with a 2%+ decrease
-OR-
3% or greater decrease with a starting baseline above 27.9% | THREE WAYS TO ACHIEVE:
25.0%-26.9%
with stable performance
- OR -
27.0-27.9% starting baseline with a 1.0-1.99% decrease
- OR-
28.0-29.9% starting baseline with a 2.0-2.99% decrease | THREE WAYS TO ACHIEVE:
27.0%-27.9%
with stable performance
- OR -
28.0-29.9% starting baseline with a 1.0-1.99% decrease
-OR-
30.0%+ starting baseline with a 2.0-2.99% decrease | TWO WAYS TO ACHIEVE
28.0%-29.9%
with stable performance
- OR -
30.0%+ starting baseline with a 1.0-1.99% decrease | 30.0%+
with stable performance
Five-Star
Google Reviews | Five-Star Client
(or client family) Google Reviews per month | Do not increase
Five-Star reviews | N/A | We hit growth target of Five-Star Google Reviews (+1) | N/A | Increase Five-Star reviews by more than target
We Lose our Initial Key if:
We Lose ½ our Initial Key If:
Stable performance means allowing for up to an 0.49% decrease in Caregiver Margin and up to 0.99% decrease in Profitability without penalization
1
2
3
4
5
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How Much are Your Keys Worth?
‹#›
Keys Earned Monthly | Supervisory Bonus | CSM, CGM & Recruiter
10 | $4,000 | $3,000
9 - 9.5 | $3,500 | $2,500
8 - 8.5 | $3,000 | $2,000
7 - 7.5 | $2,500 | $1,500
6 - 6.5 | $2,000 | $1,250
5 - 5.5 | $1,500 | $1,000
4 - 4.5 | $500 | $400
3 - 3.5 | $400 | $300
2 - 2.5 | $300 | $200
1 - 1.5 | $100 | $100
0 - 0.5 | - | -
***The more Keys you have at the end of the month, the more each one is worth. Resets each month.***
--- Slide 21 ---
‹#›
Keys Earned Monthly | CSM, CGM & Recruiter
10 | $3,000
9 - 9.5 | $2,500
8 - 8.5 | $2,000
7 - 7.5 | $1,500
6 - 6.5 | $1,250
5 - 5.5 | $1,000
4 - 4.5 | $400
3 - 3.5 | $300
2 - 2.5 | $200
1 - 1.5 | $100
0 - 0.5 | -
How Much are Your Keys Worth?
***The more Keys you have at the end of the month, the more each one is worth. Resets each month.***