Re: Canadian Margin Target

From
Kevin Murray <kevin.murray@thekey.com>
To
Melissa Reyes <melissa.reyes@thekey.com>
CC
Timothy Thomas <tt@thekey.com>, Donny Deshotels <donny.deshotels@thekey.com>
Date
Thu, 5 Jun 2025 16:00:35 -0500
Folder
INBOX
--0000000000005bb84f0636d96872 Content-Type: text/plain; charset="UTF-8" Content-Transfer-Encoding: quoted-printable If we have visibility to the dollar amount of the statutory pay it would be =E2=80=9Ceasier=E2=80=9D to adjust the CG margin % calc offline and have th= at be the only adjustment we make. Kevin Murray Chief of Staff | TheKey Mobile: 225-368-6471 On Thu, Jun 5, 2025 at 3:30=E2=80=AFPM Melissa Reyes wrote: > Kevin and Donny - any update here? I want to make sure we are accounting > for the Canadian nuances fairly. Is it easier for us to just remove the > statutory pay from the equation and remove the discount we are allocating > or increase the discount we are applying? > > Melissa > > On Wed, May 28, 2025 at 9:02=E2=80=AFAM Timothy Thomas wr= ote: > >> Hi Kevin, >> >> We do bill time-and-a-half for all shifts that fall on statutory holiday= s >> in Canada. >> >> In accordance with employment standards, statutory holiday pay must be >> issued to all caregivers who have worked within the last four >> weeks=E2=80=94regardless of whether they are scheduled on the holiday it= self. As a >> result, the margin impact is significant, and unfortunately, we are unab= le >> to apply a sufficient surcharge to fully offset this cost. >> >> >> On Wed, May 28, 2025 at 11:59=E2=80=AFAM Kevin Murray >> wrote: >> >>> Are we missing an opportunity to bill for this holiday pay? Why should >>> we eat the cost and not be able to pass it through? >>> >>> >>> Kevin Murray >>> Chief of Staff | TheKey >>> Mobile: 225-368-6471 >>> >>> >>> On Wed, May 28, 2025 at 8:17=E2=80=AFAM Timothy Thomas = wrote: >>> >>>> Good morning, >>>> >>>> I'm following up on this topic as I never heard back. >>>> >>>> Thank you >>>> Tim >>>> >>>> On Mon, May 12, 2025 at 1:44=E2=80=AFPM Timothy Thomas = wrote: >>>> >>>>> Hi Kevin and Donny, >>>>> >>>>> I met with Melissa last week to discuss the caregiver margin target >>>>> within The Key Incentive Plan as it applies to our Canadian sites. As= you >>>>> know, we currently receive a 2.5% discount to account for the proport= ion of >>>>> price-fixed government business=E2=80=94a helpful adjustment that Der= ek aligned to >>>>> our mix. >>>>> >>>>> However, we=E2=80=99ve observed that statutory holiday pay, which is = a >>>>> legislated caregiver cost in Canada, is consistently the key factor >>>>> determining whether sites meet the caregiver margin target. In months >>>>> without a holiday (e.g., March), all sites achieved at least a portio= n of >>>>> the margin-related Keys. In contrast, when a holiday falls within the >>>>> month, the vast majority of sites fall short of the margin >>>>> threshold=E2=80=94despite no change in operational practices. >>>>> >>>>> To ensure the incentive structure remains fair and performance-driven= , >>>>> I=E2=80=99d like to suggest we either: >>>>> 1. Adjust the existing 2.5% discount to more fully reflect the >>>>> statutory holiday pay burden, or >>>>> 2. Exclude statutory holiday pay from the 

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