People often think of factors like demographics, occupancy rates, and rent growth when considering an investment in senior housing. One thing they may not consider: the operator’s long-term recruitment strategy. However, in today’s market, the success of any senior living community will rely heavily on an operator’s ability to attract and retain quality talent. And judging by market statistics, that task will not be easy.
Front-line caregivers play an important role in the care of residents at assisted living communities and nursing homes. They’re the ones providing day-to-day care and socializing with residents on a personal basis. Statistics show, however, that caregiver roles are increasingly hard to fill and maintain. Research from LeadingAge shows the average annual turnover at senior living communities is nearly 45 percent. That’s 3x the national average of about 15 percent across all industries (2016). Those stats offer a clear challenge—one that will only keep growing. By 2020, it’s anticipated we will need another 1.2 million people to support the growing number of aging likely to fill senior living communities. Thus, for an investment in senior housing to be successful, the issue of recruitment will also need to be successfully managed.
The following are a few thoughts to consider when making an investment in senior housing: [Read more…]