Despite a significant increase in wages for senior living employees over the past four years, operators are now facing slightly lower wage increases in 2024. Executives continue to grapple with staffing challenges, particularly in terms of the effectiveness of compensation in recruiting and retaining workers.
A recent survey conducted by Ziegler CFO Hotline, which included input from nearly 250 senior living and care organizations, highlighted the ongoing struggles faced by the industry. The report revealed that staffing issues remain a top challenge for operators in the early part of this year.
Wages for employees saw a 4.43% increase in the last year, compared to an expected 3.64% increase in 2024. Despite efforts to raise wages to competitive levels, operators are still experiencing high turnover rates and difficulties retaining staff.
As a result, many operators are reevaluating their employee benefits and compensation packages to find new ways to incentivize retention. Some organizations are even conducting compensation studies to identify areas for improvement.
Employee compensation remains a significant expense for operators, with an average of 55.7% of the total budget allocated to employees. While some operators have reduced attendance bonuses, many still offer other incentives such as resident-funded year-end bonuses, 401(k) matches, and various reimbursement programs.
Overall, senior living providers are facing ongoing labor challenges despite wage increases, highlighting the need for innovative solutions to attract and retain quality staff in this competitive industry.
