Consider offshoring some staff
By Sarah Thomas
With inflation and staff shortages impacting us all, it’s difficult to find qualified talent to fill our open positions at a rate we can afford to sustain.
The average salary increase in the U.S. this year for people who switched jobs was 12.2 percent. This means open positions are not only hard to fill but come with a much bigger salary expectation.
Looking at offshoring or near-shoring options is a reality many have sought since inflation is high.
By Terri Cunliffe
President and CEO
Inflation has certainly made us review operational expenses, and to see if we should absorb those higher costs or increase rates. We have implemented small increases on certain bistro food items and some healthcare supplies. We’re holding steady on resident rate increases to 3 percent, but that could change in our next fiscal year.
Inflation really forces us to reflect on every aspect of our organization and seek more opportunities for optimization, centralizing certain functions and eliminating waste. It’s about making sure we’re spending money on the right things before increasing resident rates.
Calm fears, demonstrate value
By Christy Van Der Westhuizen
Vice President of Sales and Marketing
MBK Senior Living
Our customers have always been price aware. Today’s surging inflation only makes them more concerned about the impact on retirement savings and potentially reluctant to make a move to senior living, which impacts our occupancy goals and bottom line.
But if we learned anything during the pandemic, it was how to sell in uncharted territory by calming fears and demonstrating value. The onus is on us to educate older adults about the costs of living at home and how moving to a senior living community can be an investment in their longevity, wellness and peace of mind.
Expense increases hit hard
By Isaac Dole
Founder, Managing Partner
Birchwood Healthcare Partners
The industry is facing unprecedented cost increases across everything from raw food to building materials to insurance premiums to labor. We are facing some of the highest cost increases we have seen in years.
With labor as the largest expense category, operators are trying to slow the impact of sustained cost increases by increasing labor costs through one-time programs where possible, such as bonuses. With that said, fixed wage increases are rapidly becoming the norm as well.
Immigration reform could help
By Brenda Bacon
President and CEO
Inflation is a macro-economic issue that we have little control over. I do think we could take actions to address our most challenging issue — labor availability — by advocating for targeted reform of our immigration policy. This could allow hard-working, honest, caring people from other countries to address our workforce needs and fulfill their dream of coming to the greatest country on earth. We, as an industry, could take responsibility for screening, training and housing.
Let’s change some lives of young people like we do with seniors.