Senior Living
Compensation
Survey
2012
An executive summary of the ALFA Senior Living
Compensation Survey produced by Western
Management Group.
EXECUTIVE SUMMARY
Average base pay of employees overall in the senior living business is up 5.5 percent in 2012. For
executive jobs, the average increase over 2011 salary was approximately $12,000, with the
average executive bonus payment up by about $11,000 as well. These are among the key
findings in the newly-available report of the ALFA 2012 Senior Living Compensation Survey.
This is the seventh annual such survey conducted nationwide on the behalf of ALFA and its
member companies by compensation and benefits survey firm Western Management Group
(WMG). A total of 50 operators of senior living communities took part in the 2012 edition, reporting
comprehensive compensation data on more than 230,000 employees in 139 jobs at 1,950
locations. The survey data represents salaries in effect as of May 2012.
The survey participants represent a broad cross-section of the industry, from operations employing
fewer than 100 employees to large nationwide companies employing more than 38,000
employees, and with annual revenues ranging from under $5 million to greater than $10 billion.
Thirty-two percent of the participating companies this year operate assisted living communities,
with another 21 percent specializing in Alzheimer’s care, 13 percent offering independent living, 7
percent skilled nursing, and 26 percent some combination of these services.
NOTABLE YEAR TO YEAR CHANGES
A notable observation is that those companies who
participated in the survey in both 2011 and 2012 reported
dramatic year-to-year growth in employment (up 25 percent),
in resident capacity as measured by beds (up 25 percent),
and in revenue (up 22 percent).
While pay figures overall rose in this environment, it’s far from
evenly distributed across all jobs. The survey reports little-tono increase in salaries for many positions, and even slight
decreases in some jobs in the industry.
For example, Site Operations Directors (executive
directors/administrators) is up from a median base salary of
$76,500 in 2011 to $80,730 this year. The Site Resident
Services Director job saw its median base salary go up from
$53,040 to $55,550.
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A notable observation is
that those companies who
participated in the survey
in both 2011 and 2012
reported dramatic year-toyear growth in
employment (up 25
percent), in resident
capacity as measured by
beds (up 25 percent), and
in revenue (up 22 percent).
ALFA Senior Living Compensation Survey© | 2012
Other notable findings within this still-turbulent U.S. economy are average salary growth for the
Director of Nursing Services (from $76,131 in 2011 to $79,997) and career-level Registered Nurse
($53,040 to $56,160), and average salary decline for Corporate Resident Services Director
($120,000 to $101,175) and second-level Resident Care Provider ($22,672 to $22,128).
EMPLOYEE BENEFITS
Along with incumbent-level pay information, the survey collects extensive data on a variety of
employee benefits programs common in the industry, and numerous other general Human
Resources policies and practices.
WMG’s survey database includes information provided by many hundreds of employers across
many industry sectors, allowing for comparison of the senior living industry programs with those in
other specific industries, and the broader economy. For example, senior living employers report an
average salary merit increase budget of 2.5 percent in 2012.
The average cost of benefits as a percentage of payroll reported at 16 percent, distinctly lower than
the 26 percent figure reported by retail employers, and barely more than half of the nationwide
average of 30 percent.
While senior living employers’ medical and dental benefits plans tend to be about equal to, or
slightly more generous than employers in the retail sector. In addition to health and dental, the
survey offers insight into such benefits as paid vacation and holidays as well as percentage match
in employee 401(k) retirement savings plans. Additionally, the detailed report looks the senior
living sector as compared to other industries.
IMPACT OF PART-TIME LABOR
Thirty-four percent of the employees reported in this year’s survey were working part-time. The
percentage is highest, unsurprisingly, in several of the lower-level jobs (Waitstaff/Server at 67
percent part-time, Entry-level Receptionist at 64 percent, and Dishwasher at 54 percent). But quite
a few of the more highly-skilled jobs reported high rates of part-time employees, most notably
nurses, at between 37 percent and 52 percent part-time, depending on the level. There is no
individual-contributor job in the survey not reporting at least some proportion of part-time
employees.
AVAILABILITY OF DATA
The detailed compensation data included in the ALFA Senior Living Compensation Survey
is not available to the general public. Only those companies who participated in the 2012
survey, or who undertake a contractual commitment to participate in the 2013 edition, are eligible
to purchase the data. Such participants are granted access not only to a series of various reports,
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ALFA Senior Living Compensation Survey© | 2012
but also may choose to gain credentialed log-in to the survey database, and create customized
cuts.
ALFA member companies receive a membership discount off their survey purchase fee.
More details are available at www.alfa.org/career.
CONTACTS & FEEDBACK
Any employer interested in learning the process of participating in the survey or who has feedback
is encouraged to contact Donna Bowman, the Survey Manager at Western Management Group, at
408.399.4900, extension 228, or donna@wmgnet.com.
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ALFA Senior Living Compensation Survey© | 2012