These statistics should grab your attention: According to AARP, 19% of Americans provide unpaid care for an adult, 26% find it hard to coordinate care and 61% of family caregivers are working in their regular jobs. Many could be at your firm. How do you address the needs of employees who are also caregivers?
#1: Educating employees about FMLA
The first step should be educating your employees about the provisions of the Family and Medical leave Act (FMLA). One of the act's primary purposes is "to care for an immediate family member with a serious medical condition." The Act allows for up to 12 weeks of unpaid leave. The time period is even longer if the person requiring care is a covered member of the military. Although the leave is unpaid, the employee's job is protected if they need to be away from work for an extended period of time.
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#2: Support employees with EAPs, DCAPs
Many companies have an Employee Assistance Program (EAP). This can involve emotional support like counseling and assessments. Another way firms can support the employee who is also a caregiver is through a Dependent Care Assistance Plan (DCAP). If the employee cannot be at their relative or spouse's side providing care, a paid caregiver can be brought in. This comes with a cost. Those costs can be a pretax payroll deduction coming off the employee's paycheck. It is not an uncommon benefit. 41% of employers offer something similar.
#3: Provide respite care
Respite care is another form of support. It also comes with a cost. The role of caregiver can be stressful. If they are also your employee, they are holding down two jobs at once. One of those jobs is unpaid. They can get stressed. The concept of respite care is bringing in someone to share the load, perhaps taking the role of temporary caregiver for a short period of time. This can also be useful in other roles, like relieving childcare duties for the caregiver. Some companies provide caregiver support as an employee benefit.
#4: Offer flexible work options
Flexible work options is another way firms can be supportive. This may fit in well with the post pandemic culture of working from home for all or part of the workweek. The employee is still getting work done instead of leaving work to stay at home with the relative for whom they are providing care. Flexible work hours are another solution, although this is difficult if employees are assigned to shifts and coverage needs to be arranged.
Related: Recovery mode: Getting caregivers back on track for retirement savings
Employees also need to understand how caregiving is treated from a tax standpoint. Although many employees might think providing paid help for their relative when they are not around is an out-of-pocket cost, there are tax deduction considerations.
Some older people prepare for this eventuality and buy long term care insurance earlier in life. It can vary by the type of policy, but in-home nursing care or assistance from a home health aide may be included. This can help relieve the burden borne by the employee.
One of the simplest and most obvious solutions is to have a caregiver-friendly environment at the company. Being flexible regarding time away from the office and short term absences is one example. The firm can organize group discussions where fellow employees in a similar situation can provide emotional support and also share best practices. They can also set up training classes, either in person or online to help educate employees who might be new to this role.
Bryce Sanders is president of Perceptive Business Solutions Inc. He provides HNW client acquisition training for the financial services industry. His book, "Captivating the Wealthy Investor" is available on Amazon.
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Bryce Sanders
Bryce Sanders, president of Perceptive Business Solutions Inc., has provided training for the financial services industry on high-net-worth client acquisition since 2001. He trains financial professionals on how to identify prospects within the wealthiest 2%-5% of their market, where to meet and socialize with them, how to talk with wealthy people and develop personal relationships, and how to transform wealthy friends into clients. Bryce spent 14 years with a major financial services firm as a successful financial advisor, two years as a district sales manager and four years as a home office manager. He developed personal relationships within the HNW community through his past involvement as a Trustee of the James A. Michener Art Museum, Board of Associates for the Bucks County Chapter of the Fox Chase Cancer Center, Board of Trustees for Stevens Institute of Technology and as a church lector. Bryce has been published in American City Business Journals, Barrons, InsuranceNewsNet, BenefitsPro, The Register, MDRT Round the Table, MDRT Blog, accountingweb.com, Advisorpedia and Horsesmouth.com. In Canada, his articles have appeared in Wealth Professional. He is the author of the book “Captivating the Wealthy Investor.”
