The July edition of Ziegler’s CFO Hotline Report highlights the deepening strain workforce challenges are placing on aging services providers. In a survey of nearly 200 not-for-profit senior living organizations, 36% of CFOs reported a significant increase in workforce costs, while another 60% noted a slight rise. Though not new, staffing challenges are becoming more financially and operationally burdensome.
CNAs remain the hardest roles to fill, followed by dining staff and RNs. Many providers are leaning on agency staffing, with 5.7% of nursing roles now filled through temp agencies. Single-site providers are increasingly using this approach, historically more common among multi-site organizations. Staffing shortages have led 25% of single-site and 18% of multi-site providers to turn away skilled nursing admissions—directly affecting care access and revenue.
On average, staffing now accounts for 56.1% of total operating costs, with many organizations seeing workforce expenses consume more than half their budgets. Most are responding by improving workplace culture, increasing wages, offering training, and creating career pathways. Yet only 8% reported no margin impact, while over half saw moderate to significant effects.
Despite these pressures, 61% are not pursuing international recruitment. Just 15% are trying, but most face visa barriers, and only a few have succeeded. Some providers are piloting creative solutions like staff housing, internal labor pools, and dedicated workforce recruiters.
As these issues persist, LeadingAge Ohio continues to track developments and advocate for solutions that help members build a strong, stable workforce.