This article is sponsored by SimiTree. In this interview, Hospice News sits down with Eric Scharber, Managing Principal, VP Talent Solutions, SimiTree, to talk about the factors behind wage growth in home-based care, as well as the impact it’s having on providers. He explores wage growth through a talent strategy lens, and he discusses how interim management falls into this equation. He also shares an outlook on the longevity of the leader shortage in home-based care.
Hospice News: What career experiences do you most draw from in your role today?
Eric Scharber: I started my career in the Talent Acquisition and Retention industry right out of college and have devoted the last 23+ years to the space. I have interviewed tens of thousands of candidates in this time and worked with hundreds of providers to help them with their workforce initiatives. Additionally, I’ve studied dozens of organizations that are very successful in becoming employers of choice, and for the past 10 years, I’ve trained and assisted my clients on improving their company cultures and employee engagement. All of this has led to better results when attracting and retaining the finest staff in the industry.
Are we seeing any wage growth relief for home health and hospice?
No, wage growth for home health and hospice remains at an unprecedented level, significantly higher than what we are seeing in other industries.
The October Employment Cost Index, for example, showed nationwide worker pay and benefits rose 5% in the third quarter from a year before, a slightly lower rate of growth than in previous quarters. Annual wage growth has been somewhere between 5.2 and 5.6 % each month for the nation as a whole.
But for home health and hospice, those numbers have been and still are in the double digits, with annual wage growth running somewhere around 12 to 14 percent each month.
Why is wage growth so much higher for home-based care?
Labor shortages always have a more noticeable impact on heavily regulated fields like healthcare, where specialized knowledge is required. And home-based care is a very specialized niche market within that heavily regulated field, with its own set of regulations and compliance requirements. The more specialized the knowledge, the more challenging it becomes to retain employees.
How is this impacting talent strategy for home health and hospice?
First, it’s leading employers to reevaluate the employee experience, to make certain that we are creating a company culture with the right opportunities to attract and nurture talent. We know engagement creates overall well-being and boosts productivity, so we are seeing home health and hospice providers become much more cognizant of the employee experience.
Second, as an industry, we are rethinking compensation packages to make them more competitive and add value for the company as well. It’s a careful balance. SimiTree is working with companies to create value-added comp packages that reward employees for the value they bring to the employer.
And, equally important, we are looking at some innovative shifts in thinking about how we fill our leadership roles. Interim management is one of the real success stories in this tight labor market. Interim managers are stepping in to fill the gaps. Their targeted expertise is keeping companies operating efficiently to achieve strategic growth.
What is interim management and how does it work?
We have a stable of highly qualified experts in the field who understand the nuances of home health and hospice, have the insight to achieve strategic objectives, and can begin to work almost immediately.
They bring with them a history of driving key performance areas for operational efficiency, reduced risk, and maximum reimbursement, and they have the support of SimiTree’s full network of resources and expertise.
Our interim managers work on-site, remotely, or in a hybrid model encompassing both. They may step into an open leadership position full-time, or they may only work a few days a week or a few days a month, depending on the client’s needs. They work as long in the role as needed. Their targeted expertise enables them to accomplish a surprising amount of work in a short timeframe, and clients are often astounded by how much their expertise brings to the organization.
What is your prediction for the shortage of leaders in home health and hospice? How long will it continue?
Economists and labor analysts predict labor scarcity and a rising wage index will continue to be a problem for employers well into 2023. This means home-based care will continue to struggle with a leadership shortage.
We are expecting to see the demand for interim managers increase as these leadership roles go unfilled, and as interim management gains recognition as a viable solution that can provide strong results.
In a couple of words, finish this sentence: “In the home-based care industry, 2023 will be the year of…”
…increasing demand.
Editor’s Note: This interview has been edited for length and clarity.
SimiTree is a revenue cycle, coding, professional services and talent management resource for post-acute and behavioral health organizations. To learn more about how to achieve stronger financial performance, call 800.949.0388 or visit SimiTreeHC.com.
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