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By Agency Forward Editorial Team

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Human Services organizations navigating workforce, demand and regulatory challenges

January 29, 2025

Tens of millions of people in the United States are supported by Human Services organizations every day, and yet these providers are also confronting their own challenges while caring for others in their communities.

Human Services organizations — such as food banks, community organizations, daycares and rehabilitation centers — face an increasingly complex post-pandemic landscape as need grows, regulations evolve, and competition increases for funding and resources.

These pressures can heighten risks, from workplace injuries to severe liability claims.

To maintain operational resilience, Human Services organizations need effective protection solutions and risk management strategies. By addressing workforce challenges, improving intake processes and navigating regulatory shifts, they can better manage risks and deliver quality care.

Critical challenges reshaping the industry

Human Services organizations face a range of issues that can impact their ability to provide quality care while managing risks. These challenges are reshaping how organizations operate and the strategies needed to maintain resilience.

  • Staffing shortages and retention struggles – Staffing shortages remain one of the most significant issues confronting Human Services organizations. More than 83% of providers have had to turn away or stop accepting new referrals due to insufficient staffing.1

Limited funding and competition from other minimum-wage employers contribute to an environment where it can be difficult to attract and retain qualified staff. Frontline employees in these settings often take on additional responsibilities, leading to burnout and turnover. This overextension increases the risk of regulatory compliance issues and claims.

To address these challenges, organizations are exploring new ways to reduce turnover and foster stability by exploring benefits programs, such as short-term no interest loans to employees, low to no cost healthcare options, and improving career paths to incentivize retention.

  • Surging demand for services post-covid – The demand for Human Services has surged since the COVID-19 pandemic, placing additional strain on already stretched resources. When it comes to mental health, clients are presenting with more severe symptoms and greater care needs for the third consecutive year. As a result, 56% of providers report having no openings for new patients due to the high demand.2

Organizations struggle to balance their capacity with the need for quality care. In many cases, this imbalance can lead to moral hazards, where organizations accept clients they cannot fully support, increasing the risk of negligence claims and regulatory violations.

Strong person-centered intake planning, while also understanding the strengths and limitations of each organization’s program, helps ensure there are no compromises to the quality of the care provided.

  • Regulatory shifts and litigation pressures – Shifting regulations and rising litigation costs add further complexity to the Human Services industry. Extended statutes of limitations for abuse claims have led to an increase in lawsuit severity, creating financial and reputational exposure. Similarly, private equity investment in litigation funding also drives costs up in many cases that go to trial.

This makes it key that organizations live their Code of Conduct, not only training on it, but documenting incidents where staff may step out of line, and using them as teachable moments for their teams. Robust policies and procedures are essential to ensure safety and compliance, regardless of ownership changes or location.

Essential risk strategies for Human Services

Organizations can adopt proactive approaches across their operations to help reduce incidents, ensure compliance and create safer environments for clients and staff.

Establishing a culture of vigilance and accountability helps protect clients and staff. To mitigate abuse risks effectively, organizations can:

    • Not only conduct background screening, but prioritize reference checks during the hiring process to help ensure employees are properly vetted. This step can reduce the risk of negligent hiring by identifying potential red flags early.
    • Increase supervision in high-risk areas like bathrooms and playgrounds to minimize opportunities for abuse.
    • Moving beyond mandated reporter training to really help staff recognize and report early signs of abuse. Ongoing education creates a community-wide commitment to prevention.
    • Establish clear reporting policies for handling minor incidents before they escalate. Consistent policies and procedures ensure allegations are addressed promptly and remedial actions are taken to prevent future incidents.
  • Enhanced driver safety – Auto-related claims are among the most common claims for Human Services organizations. Poor driving practices can lead to accidents, injuries and liability issues. Monitoring driver behavior and implementing consistent safety protocols are essential for minimizing these risks and protecting clients. To improve driver safety, organizations can:
    • Use telematics tools like dash cams and GPS tracking to monitor driving behavior.
    • Conduct regular driver screenings with motor vehicle reports.
    • Provide ongoing defensive driving training to ensure adherence to safety standards.
  • Strategic de-escalation training – Combative behaviors in Human Services settings can lead to workplace injuries and workers’ compensation claims. Formal de-escalation training equips staff with the skills to manage these situations effectively, reducing the risk of harm. Integrating crisis management protocols into training helps ensure staff are prepared for high-stress scenarios. To strengthen de-escalation efforts, organizations can:
    • Implement de-escalation training programs based on nationally recognized best practices.
    • Incorporate crisis management protocols to guide responses to high-stress situations.
    • Schedule regular refresher training during onboarding and annually to maintain skills.
  • Targeted employee recognition and retention – Staffing shortages and burnout are persistent challenges in Human Services. Effective recognition and retention strategies help create a motivated workforce, reducing turnover and associated risks. When employees feel valued and supported, they are more likely to stay engaged and deliver high-quality care. To enhance employee retention, organizations should:
    • Recognize contributions throughout their employment to make employees feel appreciated.
    • Offer clear career development pathways with promotion and skill advancement opportunities.
    • Provide employee support programs like enhanced healthcare benefits.
  • Innovative technology integration – Technology enhances risk management and client care by improving safety, efficiency and documentation. Tools like health risk screening, GPS tracking and mobile support apps help organizations manage risks while promoting client independence and dignity. To make the most of technology, organizations can:
    • Use health risk screening tools to identify potential issues early and reduce liability.
    • Implement GPS tracking systems to prevent client elopement by increasing supervision.
    • Adopt mobile support apps for discreet client assistance and streamlined communication, which promotes dignity.
    • Leverage telehealth solutions to ensure continuous care during staffing shortages.

Further resources

By implementing risk mitigation strategies like those above, Human Services organizations can address critical challenges. You can find more resources to share with clients on our Human Services resource library, such as:

Visit mylosscontrolservices.com to find more risk management resources that can be shared.

Citations/Disclaimers

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