Operations
January 3, 2022

15 ways to cut costs in your care business

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cut costs in home care

15 Ways to Cut Costs in Your Care Business


Managing costs is one of the most challenging aspects of running a home care business. We know that balancing the budget without compromising on quality of care or staff wellbeing is an uphill struggle, but small savings here and there can really add up. 


Investing the time into reviewing your outgoings now will set you up well for the year ahead. To make life a little easier, here are our suggestions for 15 ways to cut costs in your care business.


  1. Ask for input from your team. 

You might think that you have efficient working processes, but does your team agree? Ask employees where they see possibilities for improvement. Time is money, so increasing efficiency has a direct impact on costs.


  1. Reduce the frequency of meetings.

Instead of holding a meeting, is there a better way to discuss an issue or plan a strategy? Create focused time for you and your office staff and only bring in carers if absolutely necessary. Perhaps you could update the team with a weekly written bulletin or newsletter or include a short update once a week in handover.


  1. Cut down on travel time and mileage.

Create an efficient rota and visiting schedule so carers can take logical routes to visits and reduce their travel time and mileage. That means more efficient use of time for them and lower travel costs for you. Birdie Rostering is a purpose-built digital solution that takes the headache out of rota management.  


  1. Use balanced & strategic hiring. 

Hire staff who share your company values but are new to the industry and happy to start on an entry-level salary. Choosing someone based on their outlook and approach to work can be much more successful than focusing on work history and experience. Read more about how values-based recruitment can benefit your business here


  1. Consider outsourcing recruitment.

Spending money on recruitment can seem counter-intuitive, but it could be an option if hiring is taking up too much of your time. A carer recruitment agency like Purpletribe can save you money with efficient hiring. You could even implement an employee referral scheme with Care Friends to incentivise your carers to recommend suitable friends to come and work with you.


  1. Choose the right accountant.

A good accountant will save you more money than they cost. Some accountants specialise in working with care providers, so they may be able to suggest new ways to reduce your home care company costs. For more advice on managing finances in your home care agency, view our Financial Planning webinar.


  1. Review staffing levels.

Employee costs tend to be the biggest outgoing by far for home care agencies. The care industry is experiencing a general shortage of staff right now, so you may need all the employees you have. However, caseloads can go up and down, so your staffing should be under constant review. If you have the capacity, you may decide to offer reduced hours to anyone interested. 


  1. Reduce stationery costs.

Digitise your care management systems to reduce or even eliminate the use of paper and stationery in some parts of your business. No more paper care plans, medication records or audit papers. Instead, all of these important documents can be stored and updated digitally, saving you time and money. Birdie provides a digital solution to help you reduce money spent on paper and stationery.

  1. Use your carers strategically.

Use staff expertise wisely by matching the most experienced and skilled carers who command a higher salary with higher needs clients. Birdie’s clever rostering tool considers continuity of care and availability to match carers with clients. You can see visit allocations at a glance, so you can make sure you’re using carers’ skillsets wisely. To learn more about carer matching and the importance of care continuity, read our blog post here.

  1. Contact your suppliers. 

Contact all of your suppliers to ask whether there is any possibility of a discount or reward for loyalty. Shop around to see whether it’s worth switching suppliers.

  1. Cut out company phones. 

Implement a BYOD policy (Bring Your Own Device) instead of paying for company phone contracts. BYOD means that carers use their own devices to access work emails, take work-related calls and access company digital tools, like the Birdie app. Many carers prefer this option, so they don’t need two separate devices. You can incentivise the scheme with a contribution to their personal phone bill. Paying a monthly contribution works out considerably cheaper than full contracts. 


  1. Optimise your business finances. 

See if you can refinance company credit cards and unsecured loans to free up funds to help cash flow. Check that you are getting the best deals available on business bank accounts.


  1. Carry out price comparisons.

Make a list of the services you use, including software subscriptions, telephone, internet and cleaners. Check that each one still offers value for money and that you can justify their use. Could you bring office cleaning in house to cut costs?


  1. Use staff management software.

If you currently pay to outsource HR and payroll services, consider introducing digital tools to do it yourself. You can manage payroll, absences and holidays all in one place on the Birdie platform.



  1. Review your software services.

Make sure you get good value for money from your digital products and services. Every software tool on the market has its own features, benefits and price point. Do your research to make sure you invest wisely. The right product will transform the way you run your business and cut operating costs for your home care agency.




Start this year on the right foot: take control of your budget and reduce your home care agency costs. Birdie provides a digital solution that saves home care businesses time and money. Book your free consultation to see how. 

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