6 Senior Care Wage Pressure Stats You Need to Know

Senior care has always had to compete for talent with retail, fast food, and other entry-level employers. But as the minimum wage rises across the country, pressure mounts at an unprecedented level. Here are six stats that showcase just how important it is for senior care leaders to have a plan to deal with increased labor costs:

1. This year alone, 17 states and Washington, D.C. will have increased their minimum wage. This trend will continue, as 11 states have already committed to additional minimum wage increases in upcoming years.
2. Both New York and California recently approved measures to gradually increase the minimum wage to $15 per hour. In Pennsylvania, certified nursing assistants (CNAs) have secured a new collective bargaining agreement, forging a pathway to a $15-per-hour wage.
3. Over 30 cities and localities have increased their minimum wage above and beyond the state mandated wage minimum. 
4. Many corporations are raising pay for entry-level workers as the competition for talent increases. Wal-Mart, the largest private employer in the U.S., announced last year that it would boost pay to at least $10 per hour in 2016. Gap, Starbucks and Panera Bread are among other companies who have raised their starting wages, or soon plan to.
5. The Department of Labor recently finalized the overtime rule, almost doubling the threshold for those employees entitled to overtime pay. Starting December 1, 2016, employees who earn yearly salaries of $47,476 or less will be entitled to paid overtime if they work more than 40 hours a week.
6. With an estimated shortage of 2.5 million caregivers between now and 2030, the bar has been raised for senior care organizations to attract top talent.

All of this together creates a perfect storm for senior care organizations trying to control labor costs. According to Jon DeLuca, CEO of Senior Lifestyle Corporation, which employs 9,500 nationwide, “As the minimum wage increase goes into effect in Chicago, 56% of our workforce at our Senior Suites Communities will average a 24% wage increase.”

Providers face challenges from almost every angle, and now more than ever schedulers, administrators and executives need the proper tools to be set up for success. Paper schedules can make it difficult to see where excess labor costs are occuring. Utilize technology to add visibility at the point of scheduling to identify and prevent unnecessary costs before they happen. While many economic issues are out of your control, it is possible to avoid excess labor costs with careful planning and attention to staffing details.