The True Cost of DSP Turnover in Developmental Disability Services

Author, Sam Brown, Vice President, Human Services Group, Rancho Mesa Insurance Services, Inc.

Non-profit organizations supporting adults with developmental disabilities fulfill their missions and promise to individuals and families by employing a dedicated group of people, Direct Support Professionals (DSP). The evergreen challenge to attract and retain DSPs adds hidden costs and increases an organization’s exposure to risk. Below we outline these challenges and questions to raise with a National Best Practices insurance agency.

DSP are aids who help intellectually disabled adults live in the community by teaching individual living skills and providing supported living services. While this role offers a rewarding contribution to one’s community, the DSP turnover in many states has hovered between 40% and 50% for many years due to low wages. Employers struggle to address the issue as Medicaid reimbursement rates have not kept pace with inflation or local wage markets, meaning agencies cannot simply raise pay to compete for talent. In addition, the vacancies force agencies to operate short-handed with heavier workloads for remaining employees.

There is a cost to the turnover that rarely makes it into public conversation. Every departure means another round of onboarding including background checks, training, and CPR/First aid certification. Industry estimates commonly put the full loaded cost of replacing a single DSP well into the thousands of dollars once recruiting, training hours, and lost productivity are factored in. One large service provider reported incurring $300,000 over a 12-month period on job board postings alone.

The inexperience gap can also cost the agency in the form of insurance claims. Without proper guidance and onboarding, new staff are statistically more likely to incur workplace injuries, driving up workers’ compensation insurance claim frequency as well as auto and professional liability exposures. A spike in claims frequency can mean higher premiums at renewal, compounding the very budget pressures faced in the first place.

Given how turnover directly feeds into claims exposure, an experienced business insurance agent can provide valuable guidance at the pre-renewal meeting and throughout the policy term. A few questions worth bringing to that conversation:

• How is our workers' compensation experience mod trending, and is turnover a visible driver? An agent can summarize and present data, so leadership sees the direct link between staffing churn and premium cost.

• Do our limits and coverage lines reflect current exposure,  particularly abuse/molestation coverage, professional liability, and auto/non-owned auto liability for client transport?

• What loss-control or risk-management resources do the carrier and insurance agency offer? Training modules, toolbox talks, safety app, HR compliance, and incident-reporting tools can help get new hires up to speed faster and reduce early-tenure incidents.

• Is our incident reporting uniform and strong enough to support aggressive underwriting at renewal? Agents can advise on claims reporting lag and best practices that help demonstrate leadership’s commitment to safety and partnership with the insurer.

• How do we get favorable pricing that considers our hiring practices, below average turnover rate, and safety training? Underwriters want to learn of an agency’s structured onboarding programs, defensive driving certification, or de-escalation training that could offset costs while also improving employee retention.

• How are we positioned for a hard market cycle in liability lines, given the sector's exposure to abuse/molestation and professional liability claims?

There is no easy solution to the DSP staffing crisis, but organizations that understand the connection between workforce stability, risk management, and insurance costs are better positioned to navigate the challenges ahead. Taking a proactive approach today can help protect both the population served and the long-term sustainability of the organization.

If you have questions about any of the topics discussed in this article or would like to talk through your organization's unique circumstances, please contact me at (619) 937-0175 or sbrown@ranchomesa.com.

Navigating Halloween Costumes and Celebrations in the Workplace

Author, Jadyn Brandt, Client Communications Coordinator, Rancho Mesa Insurance Services, Inc.

Halloween is right around the corner, and while workplace holiday celebrations offer a chance for creativity and fun, there are a few things to keep in mind to avoid any HR violations.

Companies are not required to have a costume policy in place, but employers should consider instituting one, if they believe costumes could cause an unsafe situation for employees or clients. Examples of items that could lead to safety issues include fake blood, weapons or oversized props. Setting clear guidelines can help employees navigate the dos and don’ts of dressing up, and address the use of items that an employer determines to be a safety hazard.

Employers should also remind team members that professionalism is still a priority, while allowing for festive self-expression. Offensive or inappropriate costumes should not be worn to work. Outfits that show too much skin or depict religious, cultural or gender-related stereotypes are best avoided while working. It’s also best to steer clear from political costumes in the workplace.

It’s always good to take a proactive approach and remind employees of these rules and policies early on, especially if Halloween falls on a workday. Employers should send out a company-wide reminder highlighting workplace policies and guidelines to be sure the holiday festivities don’t make others feel uncomfortable. It’s also important to establish a process for reporting and handling issues, if an incident does occur.

Although plenty of people will enjoy participating in office costume contests and parties, employers should allow these things to be optional. If an employee chooses not to take part in Halloween activities, it may be for cultural or religious reasons, and it’s best not to push them to participate.

Rancho Mesa’s RM365 HRAdvantage™ is a great resource for Rancho Mesa clients who have additional questions about Halloween costume guidelines, how to strike the right balance between festive spirit and appropriate attire, or how to respond to a potential issue.

Employers Enlist Assistance from HR Experts while Navigating Perils of COVID-19

The COVID-19 pandemic has brought a slew of unknowns to employers across the country, especially as it relates to human resources questions and Employment Practices Liability (EPLI). Rancho Mesa’s RM365 HRAdvantage™ Portal has been a favorite of our clients ever since its release in 2019. The portal continues to grow in popularity as employers face new challenges as workplace standards and employee interaction changes, almost daily.

The most popular tool in the portal gives clients access to live certified Senior Professionals in Human Resources (SPHR) and Professionals in Human Resources (PHR) advisors via phone or through the portal’s messaging tool. Not only will the HR experts answer human resources questions, they will also follow-up with written documentation of the advice so you can refer back to their recommendations.

If an effort to ensure compliance and reduce the chance of an EPLI claim, Rancho Mesa clients are reaching out to our experts for advice on how to navigate human resource issues before they turn into a legal nightmare.

A recent client inquiry included a question about: “required postings and notifications regarding COVID-19 and how to deliver them to remote employees.” The HR experts provided guidance on how to address the client’s specific situation like getting state notices to employees who are working from home.  

Another client asked “what to do if an employee refuses to come to work when restrictions are lifted.” The advice pointed to the federal Families First Coronavirus Response Act (FFCRA) and possible city ordinances or state law that may dictate how to handle the specific situation. In addition, other factors were highlighted that take into account the employee’s personal risk factors and the Occupational Safety and Health Administration (OSHA) rules for safe workplaces.

Additionally, our team is answering questions like “Can employers require employees to get tested for COVID?” or “What accommodations am I required to make for employees working from home?”

Getting reliable answers to important human resources questions quickly can mean the difference between a happy and healthy workforce, and a possible EPLI claim.

With so much uncertainty facing our clients, many have found comfort and confidence in knowing they have reliable human resources experts available to advise them as they navigate these uncharted waters. 

If you have any further questions about EPLI coverage, please contact Rancho Mesa Insurance Services at (619) 937-0164.