Senior Living Operators Report Rising Staffing Costs, Recruiting Concerns

Almost all of the senior living operators that responded to a recent survey said they have dealt with higher staffing costs over the last 12 months.

According to a new survey by Chicago-based investment bank Ziegler,part of the organization’s CFO Hotline series, 36% of operators said staffing costs have “increased significantly” while 60% reported a slight increase as 3% reported no change in staffing costs.

Senior living providers have struggled to attract and retain licensed care staff, and the certified nursing assistant (CNA) position remains the most difficult position to recruit and retain across all aspects of senior living staffing, the survey shows.

Single-site organizations reported the highest clinical turnover with rural, multi-site operators being most impacted.

Staffing typically makes up the lion’s share of operating costs for senior living operations, and respondents said that they devote “over half” of all total operating expenses to wages, incentives, training and benefits.

To improve retention, 78% of respondents said they want to attract and retain workers through a positive workplace culture. Another77% of providers surveyed by Ziegler reported increasing wages or bonus structures to improve retention.

A total of 46% of executives polled said they are implementing flexible scheduling and career pathways to promote workers to rise in the ranks.

“Looking ahead, concerns about recruiting, retention, wage inflation, and a shrinking labor pool dominate executive outlooks for the next 12 to 18 months,” the report states.

Aspects driving these staffing challenges include rising resident acuity, increased clinical demands—placing the burden on providers to make sure their operations can support more intensive operational and clinical needs.
That’s being done through sifting through technology partners to reap revenue gains through data analysis and strategic action based on analytics. This comes following last month’s CFO Hotline survey found nonprofit senior living providers are increasing their technology spending and realigning their budget priorities to enhance the sophistication of their operational strategies in 2025.

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