Will Labor Effect Seniors Housing? My guess is the answer is yes. Labor shortages is a real challenge for Seniors Housing operators. I’m hearing more and more that agency and temp workers, which is costly, is becoming standard in most buildings. I can’t get through a discussion about buying or selling without labor being brought up. Job gain has been strong across the country. Unemployment is hovering around 4.9%. It is getting increasingly difficult for Seniors Housing Owners to find and attract quality employees. It isn’t just the care givers. It is difficult to find and retain quality executive directors and department heads. While the front line workers are the key to success, it starts with quality leadership.
Ways operators are overcoming the labor challenges
Owners are targeting more experienced workers. Many of them could retire, being vested or having retirement savings secure. However, they love what they do and have more experience than anyone. Owners are finding ways to bring those individuals in a leadership or ownership sharing capacity.
Many are offering retention bonuses for front line, entry level positions. The longer employees stay with less turnover, the more owners are saving money.
Bottom line not hurting yet
Thankfully, wages have not increased with reduced unemployment. This is more true for front line, entry level positions. This is primarily due to older. more experienced workers retiring and being replaced by younger, cheaper labor.
What does this mean for you?
There is no doubt that labor is going to be a challenge for many years to come. If you have thought about selling nursing home or selling assisted living now is the time. Take advantage of the great market with low interest rates and capital available. Everyone is waiting for the shoe to drop on the market. Act now before that shoe drops.
Contact Ryan M. Saul, Managing Director at Senior Living Investment Brokerage, Inc. for a confidential proposal or to discuss the market in general.