Staffing Challenges and Expenses, Margins, and Returns

THE COMBINATION OF LABOR CHALLENGES AND OVERHEAD COSTS NEED TO BE FACTORED IN FOR THE EFFICIENCY OF SENIOR HOUSING:

“[Labor] also is a key consideration, with an increasing number of operators citing labor shortages as a potential limiting constraint on growth. In the WMRE/NIC Investor Sentiment Survey conducted in June 2022, just under half of respondents (41 percent) reported that labor shortages have caused a reduction in the number of operating units/beds in their portfolios. This is presenting challenges for operators seeking to maintain census, much less grow and expand. … While good for employees, low jobless rates present challenges to employers who must staff their businesses. Surveys conducted by the NIC among C-suite operators of senior housing and care properties highlight strategies to combat labor shortages and include raising wages, offering flexible work hours, higher pay frequency, improving the work environment and culture, recruitment programs comparable with those used to market to new residents, and collaboration with educational institutions.”