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 AM Timothy Thomas <tt@thekey.com> 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 PM Timothy Thomas <tt@thekey.com> 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 proportion of
>> price-fixed government business—a helpful adjustment that Derek aligned to
>> our mix.
>>
>> However, we’ve 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—despite no change in
>> operational practices.
>>
>> To ensure the incentive structure remains fair and performance-driven,
>> I’d 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’m 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] <https://www.thekey.com/>
>>
>