A new Argentum report to be released at the Senior Living Executive Conference in Phoenix, Arizona, sheds light on the workforce challenges impacting the senior living industry today and points to meaningful solutions for addressing them during what is proving to be a critical and rapidly evolving era for the industry.
The report, “Navigating the Nexus: Addressing Workforce Challenges in Senior Living,” examines the multifaceted landscape of senior living workforce challenges and seeks to explore the myriad factors that influence recruitment, retention, leadership development, diversity and policy. The workforce perceptions survey at the heart of the report was conducted by Holleran Consulting for Argentum and provides benchmarking information for senior living firms. Distributed between November 2023 and January 2024, the survey features responses from chief operating officers, human resources leaders, executive directors and operations leaders.
“From demographic shifts to evolving care expectations, from regulatory complexities to the transformative power of fostering strong leadership skills, our exploration aims to illuminate the path forward for stakeholders in senior living communities,” according to the report.
In the report’s introduction, its authors note that addressing workforce challenges in the senior living field is “not merely a matter of operational efficiency.”
“It is a moral imperative, a testament to our commitment to honor and dignity of the lives of our elders,” according to the report. “Through collaborative dialogue, innovative strategies and a steadfast dedication to excellence, we aspire to foster a workforce ecosystem that not only meets the present needs but also paves the way for a sustainable and compassionate future in senior living.”
Here’s a look at key findings from the report in five critical areas.
Retention
The report highlights retention’s vital role to the senior living workforce, calling it “the cornerstone of continuity, consistency and, above all, quality of care.”
“In an industry where building meaningful relationships with residents is paramount, retaining experienced and compassionate staff members fosters a sense of familiarity, trust and emotional support essential for the well-being of seniors,” the report said. “High turnover not only disrupts the delicate balance of care continuity but also incurs substantial costs in recruitment, training and diminished productivity. Moreover, a stable and satisfied workforce is more likely to exhibit greater dedication, empathy, and commitment, resulting in enhanced resident satisfaction and overall community reputation.”
Survey respondents said the most effective ways to retain staff are competitive wages, followed by employee recognition. Tied for third among respondents were supervisor leadership development and reasonable workload.
The report said while many working in senior living may be drawn to the industry’s “noble mission, fierce wage competition in other sectors is a factor on retention.” Recognition, meanwhile, can take on many forms, but a culture of recognition starts with proactive supervisors, according to the report.
The current workforce environment necessitates that employers train their focus on these and other crucial retention factors. The survey highlighted the high cost of turnover with 28.5% of respondents saying they spend $1 million or more on turnover annually.
“The cost of backfilling the workload of the lost employee, advertising, interviewing, and hiring the new employee and the onboarding process can be daunting and time consuming,” the report said. “Employee turnover can also have a negative impact on an organization’s morale, as employees may lose close work friends and feel less engaged at work. Losing employees can also lead to decreased productivity, as the remaining employees may become overwhelmed with additional work.”
Recruitment strategies
The report underlined the profound role that effective recruiting strategies can have in senior living communities, touching on overall quality of care, staff satisfaction and resident experience.
“Effective recruitment strategies in senior living communities have a profound impact on the overall quality of care, staff satisfaction, and resident experience,” according to the report. “By attracting skilled and dedicated professionals who align with the organization’s values and mission, these strategies lay the foundation for a competent and compassionate workforce.”
Survey participants pointed to three employee recruitment strategies as being the most effective:
- Indeed and other online platforms.
- Word-of-mouth referrals.
- Training, development and apprenticeship programs.
“Identifying a strategy that brings you qualified talent can be incredibly beneficial,” the report said. “It may take experimenting a bit with different sources for you to determine if the pool of talent matches your needs or not. But once you identify those sources, it can result in not only a time-saving initiative but one that effectively allows you to interview and fill positions successfully.”
When considering the important role of word-of-mouth referrals, the report trained its focus on the value that existing employees can bring, particularly since they already know your company’s culture and understand who might be a great fit for it.
“Establishing an employee referral program can support this kind of recruitment initiative and be a win for everyone,” the report said. “It also has been demonstrated that the retention of a referred employee is higher than by other recruitment sources.”
In response to the question, “What federal and/or state workforce resources are you aware of?” respondents most frequently cited community colleges, community-based workforce organizations and Job Corps – with American Job Centers trailing closely in fourth. The report emphasized the potential benefits of partnering with local community colleges, four-year colleges and other training institutions.
“Sharing your job openings with these centers of education allows them to identify candidates with the skills and training and match them to your job openings,” the report said.
Leadership development
Survey questions about leadership development show an industry that has not fully embraced its potential influence on an organization. Of respondents, 45.7% said leadership development was an important practice for their organization, while 30% said it was investing in leadership development “but not at the level we should.”
According to studies conducted by Holleran, disengaged employees are five times more likely to depart from their jobs – whether voluntarily or involuntarily – and inadequate communication and a lack of engagement are two primary factors in employee turnover. Both can be attributed to leadership shortcomings. For that reason, training leaders to engage effectively with employees can promote higher retention rates and “foster a culture of well-being and sustained engagement within the workforce,” according to the report.
“Supervisors who lack essential skills such as deep listening, empathy and the ability to interpret non-verbal cues may jeopardize both their own effectiveness and the engagement of their employees,” the report said. “Moreover, failure to acknowledge employees’ contributions or ensure they have the necessary tools and training can further contribute to disengagement.”
Foreign-born workers
The report emphasizes that recruiting diverse talent with varied backgrounds and expertise strengthens a community’s collective knowledge and improves its ability to meet the diverse needs of residents.
In particular, the report zeroes in on the benefits that hiring foreign-born workers can offer senior living communities.
“These individuals often bring diverse cultural perspectives, language skills and unique life experiences to the table, enhancing the community’s ability to provide culturally competent care and foster inclusivity,” the report said. “Moreover, foreign-born workers often possess specialized skills and training that may be in demand within the senior care sector, contributing to a more dynamic and versatile workforce.”
The report highlighted that the immigrant share of the U.S. population grew from 12.62% to 13.65% from 2007 to 2021, while the percentage of immigrants among all workers aged 16 and older grew from 15.81% to 17.17%.
The survey revealed a general lack of awareness in the industry of service organizations for immigrants with just 3% of respondents saying that they use foreign-born service organizations. One of the resources that respondents said would be beneficial to senior living communities was gaining more information about how to sponsor foreign-born workers. “This interest is encouraging and poses an opportunity for Argentum and the senior living industry,” the report noted.
“By embracing diversity and leveraging the talents of foreign-born workers, senior living communities can tap into a broader talent pool, filling critical staffing gaps and fostering innovation in care delivery,” the report said. “Additionally, the presence of foreign-born workers can create a vibrant and culturally rich environment that enhances the quality of life for residents, promoting cross-cultural understanding and enriching social interactions. Overall, hiring foreign-born workers not only addresses staffing needs but also fosters a more inclusive and resilient senior living community that thrives on the strengths of its diverse workforce.”
Recently, Argentum developed the Foreign-Born Workers Resource Guide which provides guidance for senior living organizations about recruiting and hiring foreign-born workers, and includes links to relevant resources in all 50 states. The report was produced to advance Argentum’s overall workforce development and policy initiatives.
Policy and regulatory compliance
Policy plays a major role in shaping the landscape of senior living communities, including workforce issues, according to the report. For that reason, policy decision-making at the local, state and federal levels has implications for every aspect of senior living operations.
Survey participants said that regulatory compliance topped their concerns of issues related to local, state and federal policy. The costs related to compliance, including staff training, administrative overhead and potential fines for non-compliance can strain a senior living provider’s resources, including as it relates to staffing.
In fact, a survey participant said the biggest challenge in today’s workforce environment was “increasing wage pressures in direct opposition to increasing regulations and decreasing reimbursement.”
Looking ahead
Going forward, workforce issues in senior living will only grow more important. “As the world witnesses a demographic shift with an expanding aging population, the demand for senior care services intensifies, bringing into focus the myriad of challenges faced by the workforce in this critical sector,” according to the report.
“Throughout our research, it has become increasingly evident that addressing these challenges is paramount,” the report said. “Through collaborative dialogue, innovative strategies, and unwavering dedication to excellence, we aspire to cultivate a workforce ecosystem that not only meets present needs but also paves the path for a sustainable and compassionate future in senior living.”
Fortunately, the report found opportunities in addition to the challenges, particularly in the areas of cultivating talent, emphasizing organizational values and fostering a culture rooted in purpose and empowerment.
The report was sponsored by UKG. At UKG, our purpose is people. We are on a mission to inspire every organization to become a great place to work through HCM technology built for all. More than 80,000 customers across all sizes, industries, and geographies trust UKG HR, payroll, workforce management, and culture cloud solutions to drive great workplace experiences and make better, more confident people and business decisions. With the world’s largest collection of people data, work data, and culture data combined with rich experience using artificial intelligence in the service of people, we connect culture insights with business outcomes to show what’s possible when organizations invest in their people. To learn more, visit ukg.com.
Watch argentum.org to gain full access to the report when it is released at the Senior Living Executive Conference 2024.
