Workforce Challenges & DDS Waiver Services Analysis slide image

Workforce Challenges & DDS Waiver Services Analysis

Direct Support Worker Workforce Challenge The longstanding Direct Support Professional (DSP) workforce crisis has been exacerbated by the COVID-19 pandemic and increased wages in multiple sectors. A&M surveyed ND providers, who rated this as the toughest problem they are currently facing. People with disabilities and families also shared the impact of the workforce crisis on their lives - with people unable to get the supports they need. Workforce shortages are one of the most significant issues facing LTSS systems. With a pre-pandemic full-time vacancy rate of 8% and part-time rate of 11%, combined with a turnover rate of 43%, ID/DD services are in crisis.1 Likewise, for aging and disability service providers, nearly 90% of LTC facilities are reporting staffing shortages.² In addition to raising serious concerns about quality of services and the safety of people with ID/DD, this comes at a significant cost A federal report estimates the costs of this turnover to be approximately $2.3B annually. Updated for inflation, turnover costs roughly $5,400/ DSP.3 Sources: 1 - National Core Indicators, Staff Stability Survey; America's Direct Support Workforce Crisis and Direct Support Workforce and COVID-19 National Report: 6 Month Follow-Up; 2 -State of the Long Term Care Industry; 3- The Staffing Struggle is Real; 4 - Employment Cost Index (BLS March 2022); 104 YoY Wage and Salary Increase (%) Wages and salaries and benefits for civilian workers, 12-month percent change, not seasonally adjusted -Wages and salaries Benefits Percent 5.0 4.0 3.0 2.0 1.0 Mar... Mar... Mar... Mar... Mar... Mar... Mar... Mar... Mar... Mar... Mar... Mar... Mar... Mar... Mar... Mar... Mar... Hover over chart to view data. Note: Shaded area represents recession, as determined by the National Bureau of Economic Research. Source: U.S. Bureau of Labor Statistics. + Wages and salaries increased 4.7% percent for the 12-month period ending in March 2022 (all civilian sectors). Data is year over year, March 2006 - March 2022.4 ALVAREZ & MARSAL LEADERSHIP. ACTION. RESULTS.
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