Michigan will need thousands more caregivers as its senior population grows toward 2.4 million. But nursing homes, assisted-living communities, and in-home care companies already face a more immediate problem: keeping the caregivers they have.
ANN ARBOR – Many frontline caregivers earn less than $20 an hour. Michigan employers say better compensation is one of the leading reasons hourly workers leave. Replacing departing caregivers means another round of recruiting, screening, and training—assuming replacements can be found.
For senior-care employers, employee retention is increasingly becoming more than an HR problem.
It can determine how many patients or clients they can serve — and ultimately how much their businesses can grow.
WHY SHOULD YOU CARE?
If you’re losing caregivers, continually recruiting replacements isn’t the only answer. Showing existing employees they’re valued can boost morale and loyalty, which is crucial for senior-care providers.
Introducing employee wellness programs to Michigan senior-care employers aims to boost employee retention by offering benefits that can increase take-home pay and reduce payroll costs.
A 51-employee assisted-living facility reports more than $120,000 in annual employer savings after implementing the program, along with improved employee satisfaction.
Another assisted-living and skilled-nursing operator covering 132 employees reports more than $250,000 in annual savings and says additional money employees received each month significantly improved morale.
MITechNews has not independently audited those financial results, and individual employer results will vary.
The bigger question for Michigan senior-care employers is straightforward:
If caregivers are leaving for better compensation, could putting more money in their paychecks give more of them a reason to stay?
Michigan Has An Hourly Worker Retention Problem
The American Society of Employers’ 2026 Employee Turnover Survey found voluntary turnover among Michigan hourly workers reached 25.1 percent in 2025.
Compensation is a major factor. Some 57 percent of employers surveyed identified better salary or compensation as a leading reason hourly employees voluntarily left their jobs.
Those numbers have particular consequences for organizations dependent upon caregivers.
When an assisted-living facility loses several caregivers, remaining employees may have to cover additional shifts.
When a nursing home loses CNAs, it must recruit and train replacements while maintaining adequate staffing.
And when an in-home care company loses caregivers, it can lose something else: the ability to accept additional clients.
A home-care company may have families waiting for service but be unable to take their business because it doesn’t have enough caregivers.
That turns employee retention directly into a revenue issue.
The Caregiver Challenge Is About To Get Bigger
Michigan’s demographics are moving in exactly the opposite direction employers would like.
The state’s population age 65 and older is projected to grow from about 1.9 million in 2022 to more than 2.4 million by 2032, approaching one-quarter of Michigan’s population.
And the people most likely to require assistance are growing even faster.
Michigan projects its population ages 75 to 84 will increase sharply as Baby Boomers age, followed by substantial growth among residents 85 and older.
The workforce required to care for them will have to expand, too.
Michigan already employed roughly 83,900 home health and personal-care aides in 2024. State projections call for employment in that occupation to increase 17.4 percent by 2032, pushing the workforce above 100,000.
Senior-care companies therefore face two simultaneous challenges:
Recruit thousands of additional caregivers — and stop losing so many of the ones they already employ.
Many caregivers earn less than $20 An Hour.
Retention becomes easier to understand when looking at caregiver pay.
Michigan home health and personal-care aides had a median wage of about $16.83 an hour in 2025, illustrating how low pay can make changing jobs more attractive for caregivers earning less than $ 20 an hour.
At $16.83 an hour, a full-time employee earns about $35,000 annually before taxes.
For someone earning $16 to $19 an hour, a relatively small difference in compensation can make changing employers attractive.
Healthcare benefits can also be an issue for lower-paid and part-time workers
National Bureau of Labor Statistics data show only 48 percent of private-sector service workers had access to employer medical benefits in 2025, while 22 percent participated. Among part-time private-sector employees, only 25 percent had access to employer medical coverage.
Those figures encompass more workers than caregivers alone, but they illustrate the challenge employers face in competing for lower-wage and part-time workers.
Can More Take-Home Pay Improve Retention?
That’s the problem William Shaw believes ACA Wellness could help senior-care employers address.
Shaw, owner of Genus Credit Services and an independent agent representing ACA Wellness, is introducing the employee wellness program to Michigan nursing homes, assisted-living communities, and home-care companies, offering a promising way to address caregiver retention challenges.
The program is structured to potentially increase eligible employees’ net take-home pay without requiring employers to provide an equivalent increase in hourly wages.
It also provides wellness services, including telehealth.
For an employee earning less than $20 an hour, Shaw believes the combination of additional take-home income and wellness benefits could provide another reason to stay with an employer.
Senior-Care Employers Report Results
Golden Living Point Loma, a family-owned 113-bed assisted-living facility in San Diego, provides one example.
Owner and attorney Dan Salceda said he initially approached the program skeptically and reviewed applicable tax codes, consulted CPAs, and obtained a legal opinion before proceeding.
The facility implemented the program for 51 employees.
Salceda reports Golden Living subsequently generated more than $120,000 annually in FICA and workers’ compensation savings while also improving employee satisfaction.
Assisted-living and skilled-nursing facility owners report annual savings exceeding $ 250,000 and note that additional monthly employee payments significantly boost morale, demonstrating tangible benefits.
Adelman said attorneys reviewed the program before implementation. He reports annual FICA and workers’ compensation savings exceeding $250,000 and said employees received additional money each month, significantly improving morale.
Affinity Hospice also sought outside review before proceeding.
CFO and CPA Ariel Joudai said Affinity hired CBIZ Advisors LLC to evaluate the program. According to Joudai’s testimonial, CBIZ issued an opinion supporting its compliance with Internal Revenue Code Section 125 requirements.
Joudai reports employees subsequently experienced increased net take-home pay and received telehealth benefits for themselves and their families without a copay.
Keeping Caregivers Could Become A Competitive Advantage
ACA Wellness won’t solve Michigan’s caregiver shortage on its own.
But the program raises a larger question senior-care executives may increasingly have to confront.
Employers can spend more money recruiting replacements after caregivers leave.
They can continually increase hourly wages to compete for workers.
Or they can look for additional ways to make existing employees think twice before leaving.
With Michigan moving toward 2.4 million seniors, demand for nursing homes, assisted living, memory care, and especially in-home assistance is likely to grow.
The companies positioned to capture that growth will need caregivers.
And before Michigan’s senior-care industry figures out where thousands of new caregivers will come from, keeping more of the caregivers it already has may be the best place to start.
Editor’s Note: Genus Credit Services is an advertiser at MITechNews.Com.
