Direct care workers who support older adults and people with disabilities may qualify for bonuses of up to $1,000 from the state of Minnesota through a program aimed at addressing the state’s workforce shortage. But not every senior living organization is excited about the payments.
Last week, the Minnesota Department of Human Services announced that the Minnesota Care Force Initiative will disburse $84 million to eligible direct care workers, including personal care assistants and nursing home workers, via their employers in early 2025.
Care Providers of Minnesota said many of its assisted living members have expressed an interest in participating in the program.
“It may help assisted living members recruit and retain our workforce,” Care Providers of Minnesota President and CEO Thomas “Toby” Pearson told McKnight’s Senior Living. “Our long-term care workforce has still not recovered from the pandemic, and we continue to see large numbers of open positions, so more tools to recruit and retain workers will hopefully help our workforce recovery.”
LeadingAge Minnesota told McKnight’s while they appreciate one-time bonuses for long-term care employees, they are not the ultimate solution to the state’s workforce crisis, which is only worsening in the way of a projected 60,000 Minnesotans ruing 65 every year between now and 2030..
“Our state has more seniors than schoolchildren,” said LeadingAge Minnesota Vice President of Advocacy Erin Huppert. “We’ve had a piecemeal approach to addressing our workforce challenges. We need to meet this unique moment with a multi-faceted approach that includes providing critical funding and looking for creative ways to open career paths and provide professional development.”
She added that there is a growing body of evidence that one-time bonuses are not the most impactful way to recruit or retain employees over the long-term.
“And so, while these bonuses are very welcome, we continue to advocate on behalf of state funding to provide competitive wages for our caregivers,” Huppert said.
Minnesota Human Services Commissioner Jodi Harpstead said in a statement that the payments recognize the direct care workforce and “how much we value their work.” She added she was grateful to the Legislature and Gov. Tim Walz (D) for creating the fund “to help address one of our major workforce challenges.”
Employers must submit applications to the program by Sept. 30. The application process works in two phases. Phase 1, known as the employer verification phase, runs Aug.. 15-Sept. 30 and requires providers to supply business information and how they plan to distribute funds. Employers will be notified of eligibility on Oct. 31. In Phase 2, which runs Nov. 15-Dec. 13, eligible employers must submit applications to request incentives on behalf of their employees.
The Department of Human Services will contact providers organizations that qualify for payments later this year, and eligible employers will receive funds to distribute to employees in January 2025. The size of individual bonuses will be based on the number of applications received, with bonuses potentially reaching $1,000 per eligible employee. More than 200,000 workers across the state are eligible for the bonuses, according to the state.
