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Why (and why not) to employ an RM

When starting a homecare company, one key decision is whether to hire a Registered Manager (RM) from the outset or take on the role yourself.

Last time I talked about some of the factors you’ll be thinking about when deciding whether to employ a Registered Manager (RM) to attach to your CQC application.

In short, there are three options:

  1. Employ an RM from Day 1
  2. Apply to be the RM yourself if you can
  3. Use our Registration Service to de-risk your start-up (more on that later)  

The standard approach has been, and still is for many franchisors, for a franchisee to hire an RM and once that person has been recruited, to apply for CQC with that RM. There are some obvious and not so obvious pros and cons to the options above, so I thought it’d be helpful to give my take here.

Pros:

  • You get to know your Registered Manager before you get busy. You’ll have time to find out what makes them tick and build a good working relationship before the launch.
  • You both get the same training and start setting everything up together; they’ll get to join right from the very start, and can build good relationships with the franchisor’s Support Office. You’ll know what’s expected of them, and vice versa.
  • They can potentially add value to your start-up preparation. If they are experienced, have good contacts, know who to contact or where to advertise, your RM could potentially add value in the three or more months you’re waiting for the CQC.
  • Some insurers look at the management team of the care company and if there isn’t an experienced RM in post, the underwriters might not insure you. By employing an experienced RM you’ll be more attractive to insurers.

Cons:

Time – Recruiting the right RM isn’t a quick or easy process. It can take months of advertising, phone-calls, interviews, getting ghosted and false starts, before making an offer which is accepted. You’ve then got to do a CQC Countersigned DBS, which takes another 4-6 weeks.

Risk – If your company CQC registration application is tied to the RM’s application, what happens if they:

  • Have a change of heart
  • Get a better offer from a previous employer
  • Decide to retrain as a [insert surprising job role here]
  • Relocate
  • Etc

Pressure – Knowing the countdown clock won’t even start ticking until you’ve made a hiring decision can do funny things to your decision-making process. It’s such a crucial role that you can’t rush it or accept someone who you have a niggling doubt about.Cost – Assuming a salary of £45k for an experienced RM, that’ll cost your business £51k annually after National Insurance, pension etc. If you have a four month wait, that’s nearly £17k in wages if you pay the RM for the full time your application is in the system.

There you have it. You might be persuaded either way, or your plans, budget or background might dictate a certain approach when it comes to choosing when to hire a Registered Manager.

Best wishes, Ben.