To rapidly improve bottom line results and market value.
NOI is an outcome.
We have proven, time and again, that NOI is an outcome of an equation combined of three critical operational components that cannot stand alone. People + Product + Process = NOI. It's just that simple, but easier said than done. That's how we work; in a whole-systems manner and we stand beside our clients to make a measurable IMPACT™ in record time.
People. Without them we have no business.
Prospects choose our communities, ultimately, because they find one that "feels right". Price, amenities, and location all matter- of course, but if it doesn't "feel right", nobody is going to move a parent or loved one in. Period. Ask yourself: "Who is closest to the residents?" and "How are we finding and keeping the very best, since they are our product?".
Product. It's about the resident experience.
We are real estate "junkies", but the truth in senior living is that beautiful buildings do not generate NOI on their own. It's what happens inside that counts. The resident and family experience is almost exclusively controlled by the front line staff, as they are closest to the "customers". This fact, combined with quality social engagement and wellness programs are essential levers for market reputation... and ultimately sales.
Process. Critical thinking on what matters most.
All too often we see teams working hard but not doing the right work. What work gets done is more important than work just getting done. It's the 80/20 rule all wrapped up in focus, urgency, and measurements.
22% Average Increase in Occupancy
Six communities on the East Coast implemented the HireIMPACT, using it consistently over a one year period. These six communities were labeled the test group.
An additional six communities were randomly selected as the control group, and continued hiring front line employees as they had always done- with traditional practices.
All twelve were "same store": operated by the same company, same products (AL/MC), and in the same state to account for regulatory impacts. All operational practices and processes were consistent in all twelve communities.
Result? The HireIMPACT communities (test group) delivered an average 22% increase in occupancy one year later.
75% Increase in NOI (among focus properties) and 40% increase across portfolio
We were asked to focus on seven communities-- hands on consulting, implementing our proprietary IMPACT Operating Process-- within a 20-community portfolio. The goals were to rapidly increase NOI in the seven "focus" communities, while simultaneously raising the bar with the remaining thirteen. We partnered with the teams in each of the seven communities and the senior team to produce the result achieved.
Result? The seven communities we focused on increased their NOI by 75%. The HireIMPACT was implemented in all 20 communities. The increase in the entire portfolio of 20 communities increased by *40%, averaged across the portfolio.
*This case study was presented at the national ALFA (now Argentum) conference in Tampa, FL 2015.
51% Increase in NOI Per Employee
Over a one year period July 2014 to July 2015, among seven "focus" communities, where the HireIMPACT was deployed, the average increase in NOI per Employee increased 51% (a key performance indicator rarely measured in senior living).
Result? This is a direct correlation to staffing these communities with front line employees who align, statistically (valid and reliable) with the top 20%, best-of-the-best employees across the country.
8% Occupancy Increase in 6 Months
Over a six month period in mid-2015, a community led by a very successful and seasoned Executive Director, was able to increase occupancy from 87% to 95% having partnered with Senior Living NOI and using the IMPACT process and the HireIMPACT tool.
Result? 8% increase in occupancy over a 6 month period. 14 new hires all aligned with the industry's Best-of-the-Best using the HireIMPACT tool. 100% retention of all new hires. Average monthly net move-ins over same period = +4.57.
Total cost of HireIMPACT tool = $1500 based on new flat-fee, unlimited use pricing model.
$197K cost savings in one calendar quarter.
Senior Living NOI was asked to put the HireIMPACT in place across a mid-sized portfolio with the goal of reducing overall turnover. We measured turnover and retention and focused on the most detrimental turnover period, which is the first 90 Days.
New hire turnover (first 90 days) has the greatest negative impact on the bottom line (vs. ordinary attrition) due to the loss of management productivity, shift disruption, shift coverage with overtime or Agency, cost of repeat background checks, wasted time onboarding for 8 hours, advertising, management time screening and interviewing and so on and so on.
Result? 21% reduction in turnover for the first 90 days of employment. A cost savings of $197K/quarter or $788K annualized.
Rapid drop in Workers' Comp Mod Rate
Senior Living NOI's hypotheses that hiring front line workers who emulate the motivations of the industry's best and top talent identified by Operators would have a measurable impact on reducing workers' compensation costs. We selected one client with more than 15 communities to track and measure the correlation of improving the quality of front line talent with the overwhelming cost of workers' compensation.
We tested the belief that when a workforce is authentically motivated by compassion, caring and giving vs self-centeredness, money, or cheating the system, they would be less likely to make false workers comp claims, thus reducing cost. Our bet was that truly altruistic people don't have it in their DNA to leave the residents by being out on a false claim.
Result? Our gut was right. Mod rate reduction from 1.23 to .84 in under one year.