Homecare Agency - Home Care Providers & Nurses
Call Us: 714-671-6877
Call Us: 714-671-6877
For more information call714-671-6877

Hiring Privately versus an Agency

At the end of the day hiring privately could expose you to more liability, risk and frustration than simply working with a great agency from the beginning.

Some of the reasons to use an agency:

  As an employer, you At an Agency, we will
Benefits be responsible for a variety of benefits such as paid sick days that will increase your costs. manage these benefits as part of our operations
Hiring/Firing spend time and money to find an appropriate caregiver and have to terminate them if it doesn’t work out. You might have a lapse in coverage. provide adequate background checks and support you to ensure a great match for your client
Finding a replacement be responsible for hiring a new caregiver send an alternate and work to find the right match if the first caregiver was not the right fit
Unemployment Insurance claims have to fight the claim or have your EDD account cover the fees. Over time this will have an impact on your client’s costs. immediately offer that employee work with another family and find a replacement at no cost to your client

Below is a simple calculation to highlight the true cost difference between hiring privately and using an agency.

Pay rate to self-hire (Approximate)  $17.50
FICA 7.65%  $1.34
SUIER 3.50%  $0.61
FUTA 0.60%  $0.11
ETT 0.10%  $0.02
Insurance, payroll and other agency fees – Possible placement fees could be as high as 20% 15.00%  $2.63
Your true costs  $22.20
Agency Fee $23.00
Agency Costs Costs to hire private
Five-hour shift $115.00 $110.99
Eight-hour shift $184.00 $177.59

All this to save a Buck!!!