America's employers are on the front lines of America's caregiving crisis. Millions of American workers — often some of the most productive employees — balance caregiving and work responsibilities. At a time when employees have more choices than ever when it comes to where and how they work, employers have a tremendous opportunity to implement novel programs and policies that not only respond to this crisis, but also help empower those workers to take the best care of their families and themselves.
A 2022 report from the Rosalynn Carter Institute for Caregivers found that employees who are also caregivers represent 22 percent of the U.S. labor force. While many caregivers experience immense amounts of physical, emotional, and mental pressure, they also experience often-overlooked financial hardships. Sixty-two percent of caregivers report being occasionally overwhelmed with financial stress, and according to AARP, family caregivers spend an average of 26 percent of their income on caregiving expenses.
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For those who step back from their careers to focus on caregiving responsibilities for kids or aging parents, the average time out of the workforce was 20 months. A Fidelity report found that 53 percent of employees say the period turned out to be longer than expected. When a caregiver leaves the workforce to become a full time caregiver for a loved one, it impacts not only the employee, but also their employer and the overall economy.
Impact on employers
The economic impact of caregiving on employers can be summed up in three words: employment, absenteeism, and productivity. More than 80 percent of employees with caregiving responsibilities outside of the workplace reports that their caregiving duties affected their productivity at work. Unplanned absences, late arrival to work, or needing to leave work early are three behaviors that not only hinder career advancement but also workplace productivity. When caregivers are able to come to work, they may be distracted or have issues with presenteeism.
As most employers have been impacted by the "Great Resignation" during the COVID-19 pandemic, human resources departments recognize and feel the hidden costs of caregiving on the workplace. These departments are frequently tasked with filling and refilling positions due to turnover, which are costly considering the time and effort to recruit, train, and onboard talent.
Additionally, the physical and emotional impact that caregivers experience can generate additional medical claims costs for employers due to a negative impact on employees' health. A MetLife study found that younger caregivers (ages 18 to 39) exhibited considerably higher rates of cholesterol, hypertension, chronic obstructive pulmonary disease, depression, kidney disease, and heart disease in comparison to non-caregivers of the same age. Many family caregivers also experience burnout, anxiety, fatigue, substance abuse and suicidal thoughts because of the stress of caregiving.
Employers grossly underestimate the direct and indirect costs of unpaid caregiving. According to a Blue Cross Blue Shield study, the economic influence from caregiving needs is estimated at $44 billion through the loss of 650,000 jobs and nearly 800,000 caregivers suffering from workplace absenteeism. The indirect effect that deteriorating caregiver health as on economic outcomes is substantial, as the same study found that estimated indirect economic effect of caregiving is $221 billion.
Support the financial wellness of workplace caregivers
Employers have an opportunity to help their employees navigate caregiving challenges. By creating a supportive workplace culture, employers will empower employees to feel more comfortable with their caregiving responsibilities, more productive at work, and more likely to stay on the job. Here are several steps employers can take to support the emotional, physical, and financial wellness of employees who are family caregivers:
- Awareness – Conduct employee surveys to assess the ways in which your workforce is affected and impacted by caregiving responsibilities. Keep in mind that many caregiving employees don't identify themselves as "caregivers." Oftentimes, caregivers think of themselves as just being a good daughter or son, parent or spouse. So, be sure when you are conducting these surveys that you ask about the kinds of caregiving activities a person may spend time on, rather than asking employees directly if they are caregivers.
- Information – Provide access – for example on your corporate intranet — to accurate, up-to-date information about local resources to help working caregivers, as well as information to tackle legal and financial challenges. This can help to raise awareness of caregiving issues, provide support and resources, and emphasize that the company supports a work-life-balance. Another way to provide information is through lunch and learn sessions where attendees can learn more about available resources, ask questions, and spark conversations about caregiving responsibilities and work.
- Benefits – Provide benefits that offer unique, expert solutions to working caregivers. In tandem with an employee assistance plan, a focused caregiving solution is an invaluable resource to employees looking for help from experienced, trusted professionals. Ideally, your employees should have access to expert-led care teams or counselors to provide medical advice, make referrals, and ask questions to get to the root of problems.
- Wellbeing – The relentless stress of caregiving often leads to mental health challenges for employees. More employers than ever have robust mental health benefits, and it is important to encourage employees to use those benefits and to take time off for self-care. Burnout is widespread among caregivers and can be minimized by encouraging these kinds of steps.
- Culture – America's 'always on' work culture has tremendous benefits, but it can be incompatible with caregiving responsibilities. Create a caregiver-friendly workplace through supportive workplace programs and policies. Examples include updating workplace policies to include flexible work arrangements for all employees, providing managerial training on the importance of helping working caregivers achieve a healthy work-life-balance, or designating a specific team to help employees understand and use available resources.
Caregiving is a complex problem that is becoming a characteristic of the modern workplace. Recognizing this reality and implementing thoughtful, holistic solutions represents a tremendous opportunity for employers to compete – and win – in a highly competitive environment.
Evan Falchuk is chairman and CEO of Family First.
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