2016 Industry Outlook Video: Not For Profit

Calculating the Cost of Employee Turnover in Senior Living Communities

The According to the 2021 Aging Services Report by CNA, employee turnover is not only a liability risk that affects quality of care and customer service, it can also cost hundreds of thousands of dollars.  Another study by Leading Age, Better Jobs Better Care, also details various calculations showing each nursing position emptied generates 110% increase in annual costs.  The more staff that leave, the larger the financial impact can be felt for years to come.

The cost of losing a frontline worker not only includes direct costs but can also cause significant indirect costs related to orientation, training, lost productivity as well as the deterioration in the organization’s culture and morale.  When caregivers leave, the relationships and services provided to residents are also disrupted and sometimes are so compromised that the well-being of both residents and workers is negatively affected.

The 2021 Aging Services Report by CNA indicates that employee turnover is a financial liability risk that affects quality of care and customer service.  Regardless of Senior Living setting, the costs can be staggering: 

  • Average fall-related claims

    • Assisted living facilities = $224,300
    • Skilled nursing facilities = $187,774
    • Independent living facilities = $193,236

  • Average pressure injury related claims

    • Assisted living facilities = $168,446
    • Skilled nursing facilities = $236,043
    • Independent living facilities = $737,919

We realize that one approach to enhancing employee satisfaction doesn’t work for everyone. At Assurance, we work with clients across all industries to establish a custom strategy that addresses specific challenges based on their employee population. One solution that has been particularly effective in Senior Living is EnrollSMART, an Assurance proprietary solution that delivers a specialized approach to enrollment support, such as open enrollment meetings, communication pieces and educational webinars and video and has been proven to help attract and retain talent. 

Here is a Senior Living client case study that further demonstrates the significant value of EnrollSMART. Contact your Assurance broker today to learn more. 

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Marty Butler

Marlene (Marty) Butler is Senior Vice President, Practice Leader for Assurance’s Senior Living and Not For Profit divisions. With more than 25 years of experience, Marty capitalizes on her expertise to help set the strategy and vision of both practice groups based on client needs, industry trends and regulations. Before joining Assurance, Marty held many different roles within the insurance industry, including claim handling, underwriting, accounting, marketing, client services and sales. Marty is actively involved in several associations, including the Illinois Health Care Association (IHCA), LeadingAge, the American Health Care Association (AHCA)/National Center for Assisted Living (NCAL) and Assisted Living Federation of America (ALFA).