Page 4 - The Case for Better Cleaning Aged Care Management

DO YOU KNOW THE COST OF C
Do you know how much it will rise over the next 5
The first concept to understand is how much your cleaning will cost over the next 5 years
if you don’t change anything
• This is an example of a 20 site Aged Care group with 100 FTE (full time equivalent) cleaners
• With $400,000 in consumables approximately 95% of their costs are labour or labour related
• Based on a CPI of only 3% this site will incur an increase in cost of $4.3M over the next 5 years
CPI
INCREASE IN LABOUR COST 3% LABOUR
CONSUMABLES 5% TOTAL ANNUAL COSTS IF NO CHANGE INCREASE OVER LAST YEAR
ACC INCREASE IF WE DO NOTHING
An increase of over $4.3 million over the next 5 years
• It is highly likely that increases in labour costs will be much higher than this with many requiring to pay 10-15% more to attract staff
• The best way to give our cleaners a pay rise is to start measuring and improving productivity
• With these increases compounding it is essential that you start this year, allowing you to make much more headway over the years ahead.
2022
$4,816,040
FY23 FY24
$277,400 $286,122
$8,580,000 $8,837,400
$400,000 $420,000
$257,400
$8,980,000
$277,400
$9,102,522
$441,000
$9,257,400
$563,522
4
$265,122
L
NO CHANGE