Seizing Financial Growth Opportunities in Assisted Living Communities

The aging of the baby boomer generation presents a significant opportunity for the assisted living industry. With 73 million baby boomers expected to be over age 65 by 2030 and the number of those 85 and older projected to double by 2035, the demand for assisted living services is expected to rise significantly. However, capitalizing on this opportunity requires more than just increasing capacity; it involves ensuring that your staff can deliver high-quality care tailored to this population’s needs.

Addressing staffing challenges

While employee turnover rates in assisted living have slightly decreased in recent years, staffing shortages continue to plague the industry. According to a  National Center for Assisted Living survey, 63% of assisted living communities faced moderate to high staffing shortages, and 87% experienced difficulty hiring staff. Almost all the assisted living communities asked staff to work longer hours, and 30% limited new admissions or closed their communities. Nearly half of the assisted living providers expressed concern about closing communities due to workforce challenges.

Efficient staffing is crucial for maintaining high-quality care and sustaining occupancy levels. Improving staff retention is a critical strategy for overcoming these challenges. A comprehensive onboarding process can help by setting the stage for long-term employee satisfaction. A Gallup study revealed that 70% of employees who had exceptional onboarding experiences felt they had “the best possible job.” These employees are 2.6 times more likely to be extremely satisfied with their jobs, making them less likely to leave.

“Perfecting your onboarding strategy will pay dividends for years to come with employee retention, career pathing, and employee satisfaction,” said Vince Baiera, BSN, Post-Acute Care Partner at Relias. “It’s your first opportunity to ‘lean in’ and help employees understand the future you can help provide them. The companies that prioritize this are left with employees who adopt the culture of learning and development, which ultimately leads to a growth mindset.”

Organizations that provide ongoing learning and development opportunities also see higher retention rates. According to LinkedIn Learning’s 2023 Workplace Learning Report, 93% of organizations are concerned about employee retention, and the number one strategy they employ to combat this is offering learning opportunities. By investing in your staff’s growth, you meet their career aspirations and foster a loyal, engaged workforce.

Building a culture of learning

As the industry braces for an influx of new residents with diverse needs, creating a culture of learning within your organization is paramount. Staff knowledge and skills are directly tied to the well-being of residents, your organization’s reputation, and, ultimately, its financial success.

The Relias 2023 State of Healthcare Training and Staff Development Report highlights that 68% of managers in the post-acute care sector believe their staff development and training programs significantly impact their organization’s top business goals. These managers also emphasize improving care quality, competency skills, and staff retention strategies through enhanced training.

By adopting a culture of learning, you not only improve staff retention but also create quality outcomes for your residents, giving you a competitive edge in the market. Continuous investment in training ensures that your staff remains equipped to meet the evolving needs of residents, particularly in specialized areas such as dementia care.

Upskilling for competitive advantage

Upskilling your staff is essential to staying ahead in the competitive assisted living market. Specialized training in dementia and memory care can open new revenue streams and attract more residents. According to the Alzheimer’s Association, 42% of assisted living residents are affected by Alzheimer’s disease or dementia, so having well-trained staff in these areas enhances care and differentiates your community in the marketplace.

It is vital to empower your staff with the skills to handle various resident needs, from managing dementia-related behaviors to recognizing potential health complications. These capabilities improve the quality of care and contribute to better resident outcomes and higher satisfaction rates among residents and their families.

Enhancing financial stability through staff development

Sustainable financial growth in assisted living communities hinges on maintaining high occupancy levels, which relies on your community’s reputation for quality care. Investing in staff development is critical to achieving this. A strong reputation, bolstered by well-trained and dedicated staff, attracts more residents and increases referral rates, driving financial growth.

Moreover, offering opportunities for professional development, such as certifications and career advancement, improves employee morale and reduces turnover, further strengthening your organization’s financial standing. According to the 2022 NIC Spring Conference, only 17% of senior living community promotions come from within the organization, compared to 46% in hospitals. Thus, there is a significant opportunity to enhance employee satisfaction by promoting from within.

Investing in your staff improves care outcomes, increases your community’s reputation, and enhances your financial stability. As the demand for assisted living services continues to rise, those prioritizing staff development will be best positioned to thrive through this generational shift.