Re: Canadian Margin Target

From
Melissa Reyes <melissa.reyes@thekey.com>
To
Timothy Thomas <tt@thekey.com>
CC
Kevin Murray <kevin.murray@thekey.com>, Donny Deshotels <donny.deshotels@thekey.com>
Date
Thu, 5 Jun 2025 13:29:51 -0700
Folder
INBOX
--00000000000087451a0636d8faa4 Content-Type: text/plain; charset="UTF-8" Content-Transfer-Encoding: quoted-printable 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 wrot= e: > Hi Kevin, > > We do bill time-and-a-half for all shifts that fall on statutory holidays > 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 its= elf. As a > result, the margin impact is significant, and unfortunately, we are unabl= e > 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 w= rote: >> >>> 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 proporti= on of >>>> price-fixed government business=E2=80=94a helpful adjustment that Dere= k 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 portion= 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 caregiver margin calculation= . >>>> >>>> Melissa is aligned in principle and is interested in your views on >>>> this. I=E2=80=99m happy to discuss it on a call if that's helpful. >>>> >>>> Best regards, >>>> Tim >>>> >>> >>>> >>>> -- >>>> >>>> *Tim Thomas* >>>> Head of Midwest & Canada Divisions | *TheKey* >>>> Mobile: 514.591.9387 >>>> [image: TheKey] >>>> >>> --=20 *Melissa Reyes

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