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The Hidden Expenses of Healthcare Admin Hiring: True Cost Calculator

The true cost of having an administrative employee typically adds 100% to the employee’s hourly wage, and that’s not counting your time spent hiring, training and managing your practice’s new team member.

If your admin team member costs you $50,000 annually at face value, the top 5 hidden costs you must consider are below. Check out our True Cost Calculator Tool at the end of this post.

1. Recruitment costs.

Recruitment costs are a significant factor in the total cost of having an employee. Depending on your hiring methods, there are several expenses to consider that are often missed by practitioners. These include the cost of job postings, applicant tracking, performing interviews, and doing reference checks. These costs can add up quickly and be substantial, especially if you need to hire multiple administrative team members.

The costs can be even higher if practitioners outsource recruitment to a third-party agency. Typically, agencies charge a founding fee for their services, which can be a percentage of the employee’s annual salary.

Clinics and practices are expensive to run. In order to manage overhead effectively, it’s essential to have a well-thought-out recruitment strategy. This strategy should include creating a comprehensive job description for the admin role, selecting the proper hiring channels, and screening candidates effectively.

2. Onboarding and Training Costs.

New medical office assistants need to be trained and onboarded, which typically involves training directly from the health practitioner. You will typically train your new team member on your office procedures, medical terminology, your scope of practice, and how to become proficient in your EMR. It can typically take four weeks to two months of training to get a team member to the level of proficiency required in most health practices. This is all time that you have pulled away from patient care and building and scaling your practice.

3. Payroll taxes and benefits.

Payroll taxes and benefits are another significant cost associated with having an employee. Unlike independent contractors, employees are entitled to various benefits such as health packages, paid time off, and sometimes parental leave and retirement savings plans. Employers are responsible for contributing to these benefits, which can add considerable expense over time. Additionally, employers must pay payroll taxes, typically around 15-20% of an employee’s salary. These taxes fund pension plans, healthcare, and other government programs.

4. Management time.

Employees need connection, nurturing, clear and frequent communication, options for growth, and management. These are accomplished through daily meetings, weekly huddles, continuing education updates, and regular progress reviews. This is your time spent working with your team members, and in a clinical setting can be a substantial expense for health practices. This time is essential to factor it into your budget when hiring new team members. In general, employers should plan to devote at least 5-10 hours per week of their time per employee to management and communication.

5. Turnover.

It’s been coined the Great Resignation, and employee turnover will be at an all-time high in 2023. A survey from Willis Tower Watson found that one in three hires will leave a company within two years. Further, the cost of an employee leaving has been estimated by HR experts to cost 50% of an employee’s Annual salary. Suppose your medical office assistant is making $50,000 annually and leave. In that case, you’re on the hook for $25,000 to effectively replace them, deal with temporarily reduced productivity, lost knowledge, impacted team morale, and get the new team member up and running.

The direct and indirect costs of hiring and re-hiring employees can potentially sink a health practice. Practitioners struggle to keep up with the time and money it takes to find and train the help they need. Ginger Desk was designed with you in mind. We give you back your time so you can focus on what you love and what scales your practice. We are providing admin freedom to health practitioners. Ask us how.

Healthcare Hiring True Cost Calculator

Book a discovery call with Ginger Desk today to learn more about how our team can help you focus on what you love and what scales your practice. Our Virtual Healthcare Assistants are trained professionals who can provide various administrative support services, including appointment scheduling, insurance verification, billing and coding, and more.

Book Your Discovery Call Today

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