A new white paper from Argentum shows a potentially large financial benefit for senior living operators that reduce employee turnover.
A typical operator with 1,500 workers, 20 communities and $80 million in annual operating revenue potentially could save $4.4 million annually by decreasing turnover by 10%, according to “Building an Engaged Senior Living Workforce,” produced with consultancy Great Place to Work and downloadable from Argentum’s website.
Of the total, $2 million would come via risk reduction, $1.4 million would come in annual revenue and $1 million would result in incremental turnover savings per year, found the report, which is based on data from senior living companies across the country.
The authors found a strong correlation between employee engagement and improved retention, occupancy, resident satisfaction and care quality consistency.
“Senior living providers recognize the importance of employee retention in our human resources strategies,” Argentum Vice President of Workforce Development Brent Weil said. “This research helps make the business case for building employee engagement and culture.”