Although workforce challenges in senior living abound — including the high cost of turnover — there are “bright spots illuminating a path forward,” according to the findings of a new workforce survey from Argentum.
Holleran Consulting worked with the association on a survey of current and emerging workforce trends, resulting in a publication titled “Navigating the Nexus: Addressing Workforce Challenges in Senior Living.” Argentum members — chief operating officers, human resource leaders, executive directors and operational leaders — answered questions from November 2023 to January 2024 about effective strategies to recruit and retain staff, the cost of turnover, recruitment methods and more.
“If we want to keep our employees here, and if we want to spend the money in the appropriate way, we need to then be working on professional growth for our employees,” Katelyn McCauley, director of senior living research at Holleran, said in a news release.
Most senior living organizations said they spend less than $200,000 annually on recruitment and training, but 28.5% of respondents said they spend more than $1 million every year to fight turnover. Turnover also has “soft” costs, according to McCauley, including dips in employee morale due to a disruption in workplace socialization and the temporary need to shoulder a larger workload. Residents also can feel inconvenienced.
“When you’re talking about residents, they create relationships with these employees, and these families create relationships with these employees,” McCauley said. “That starts making the community a home instead of a place where Mom lives.”
Putting your money where your goals are
Although 45.7% respondents reported that leadership development was an important practice for their organizations, 30% said that their organization’s investment in that area was not sufficient. This finding presents an opportunity for senior living providers, according to the report.
“We know what is going to keep our employees and make them happy, but we’re not spending our money that way,” Cauley said. “When you are talking about professional growth — executive coaching, internships, apprenticeships, whatever that may be — there’s not always a [return on investment] right away. It takes time to see it, but that’s an investment in your employees, which then will be a positive investment for the organization.”
To retain workers, survey respondents identified competitive wages and a range of professional development investments as effective strategies. Employee recognition, reasonable workloads, supervisory leadership development, career growth opportunities and staff empowerment also were deemed essential for retention and recruitment.
The most-cited reason that employee-respondents had for leaving an organization was a bad relationship with a supervisor, although noncompetitive wages, lack of professional–personal life balance, lack of growth or advancement on the job and a poor organizational culture also were noted.
Finding the right fit
The survey results also suggested that senior living recruitment increasingly is focused on finding the right candidates for positions. The COVID-19 pandemic, McCauley said, temporarily changed the focus of recruiting, with providers simply trying to meet staffing targets. But senior living, she added, is shifting back to a place of trying to find the best candidate to fit an organization’s culture, evidenced by the use of training and education programs to help companies connect with quality candidates.
“When you hire people that aren’t right for your community, that’s where you’re going to see turnover, when they work there for less than three years,” McCauley said.
Policy advocates
Policy plays a significant role in shaping the senior living landscape, influencing everything from quality standards to funding to regulatory frameworks, according to the report. Regulatory compliance (38%) topped the list of policy concerns for survey participants, followed by workforce issues (24%) and Medicaid reimbursement levels (8%). The report authors noted that those findings highlight the need for “proactive engagement and advocacy to address evolving needs effectively.”
“Opportunities lie in cultivating talent, emphasizing organizational values, and fostering a culture rooted in purpose and empowerment,” the report authors concluded. “By embracing these opportunities and navigating challenges collaboratively, we can realize a future where senior living communities thrive, providing compassionate care and enriching the lives of our residents.”
