Experts weigh in on why care benefits will only increase as Americans live longer

Note to readers: Three years ago I wrote this article for Stria, an industry trade publication focused on the $8.3 trillion longevity economy. To commemorate 2022 “Companies That Care Day” on March 18, I look back and it is both encouraging and disturbing when it comes to the support for employees who are caregiving.

I am encouraged because the COVID-19 pandemic created a focusing event for employers where caregiving was put in the spotlight. Necessary work-from-home (WFH) pivots proved employees can remain productive. This coupled with flex time and avoiding the long commutes gave caregivers a little breathing space during a global crisis.

However, it is disturbing to see that now we are coming out of the pandemic, employers cannot sever the connection between the critical mental health issues employees are facing and their caregiving roles. Each employer must look at the make-up of its workforce to address these issues. There is no one-size-fits-all solution but with recruitment and retention issues emerging as huge employer priorities, paying attention and supporting those employees who are caregiving will go a long way.

–Sherri Snelling, corporate gerontologist and consultant to HR departments on employee caregiving benefits and programs

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While some U.S. businesses are doing a noble job providing caregiver support at work, a Harvard Business School report published earlier this year shows far too many employers are not delivering when it comes to caregiving. Employers are still struggling to become what Harvard calls, “caring companies.”

“While some companies just check the box on offering caregiver support, others are really investing in their workforce because they understand the caregiving challenges better,” says Peter Burki, chairman and CEO of LifeCare, a leading work-life services company that offers senior care benefits to more more than 61,000 U.S. employer clients. “These employers of choice know that including a menu of options in senior care services has tremendous ROI when it comes to recruiting and retaining loyal employees.”

The need to address caregiving in the workplace has never been more urgent. Today one in six employees are in caregiving situations for older loved one and 20 percent of working women are caregivers. This shift is a reboot of the 70s, 80s and 90s when women streamed into the labor force and family support issues first came into focus. By 2035, for the first time in U.S. history, we will have more people over age 65 than children under age 18.

What’s more, caregiving responsibilities are cutting into productivity and retention. One-third of employees in the Harvard report are taking a leave of absence based on their caregiving duties. These employees give up between $284,000 to $324,00 in lost wages and benefits. Among the employees who leave are critical senior management and senior executive level personnel (53 percent and 61 percent respectively) that few employers can afford to lose.

“When it comes to caring for an older loved one and juggling work responsibilities, it isn’t just the baby boomers anymore, it’s three generations who are now engaged as caregivers. In fact, millennials now make up 25 percent of all caregivers,” says Nancy LeaMond, chief advocacy and engagement officer for AARP.

Workers Need a Range of Family Caregiver Benefits

The Harvard report identified areas where employees and employers are not in synch. For instance, one of the benefits employees want is flex time. This benefit was offered by 65 percent of employers surveyed but only used by 39 percent of employees.  In addition, seven in 10 employees described referral services for caregivers as “very important” in terms of company loyalty yet only 38 percent of employers felt these services were effective in employee retention rates.

“Employers who truly understand caregiving offer a broad range of options to support employees showing how to really create a culture of care at work because everyone’s caregiving situation is unique,” said Brooks Kenny, executive director of ReACT (Respect a Caregiver’s Time), a coalition of 40 companies and nonprofits formed to provide employers with essential caregiver information and tools. 

Donna Benton, director of the Los Angeles Family Caregiver Resource Center affiliated with USC, agrees. “Caregiving is not a one-size-fits-all experience,” Benton explains. “At different times throughout the caregiving journey, an employee may need help with home care, Adult Day Care, senior living communities, Medicare/Medicaid questions, transportation and other financially draining needs.”

Innovative options may be the answer. LifeCare reports its utilization rates are 10-15 percent, well above industry averages, and some of the most attractive senior care services are a Leave Coach option to help with employee transitions in Family and Medical Leave Act (FMLA) situations and a backup care service.

Backup care is one of the benefits that Starbucks, announced for its 180,000 employees last fall. The retail coffee giant contracted with Care.com’s Care@Work service to offer both child care and senior care services – including 10 subsidized backup care days annually for emergency situations when an employee cannot be in two places at once and needs on demand help.

Employers Can Benefit from the Entrepreneurial Caregiving Market

One of the benefits for employers who tap into senior care work-life benefits is the connection to an abundance of entrepreneurial services created to help caregivers balance work and life. Apps for home care, personal emergency response systems with GPS tracking, remote monitoring for home safety, on demand transportation services and even personal assistant services to help busy caregivers all are part of a growing caregiving economy.

According to an AARP report, the caregiving market is expected to reach $72 billion by 2020. To help guide employers on the latest technology for caregivers, AARP offers the Employer’s Guide to Digital Tools and Solutions for Caregivers as well as teaming with ReACT on Supporting Working Caregivers: Case Studies of Promising Practices.

Creating Caring Culture Through Communication

Benefits are the foundation for addressing caregiver needs but many employees report not knowing their company offers support. Filling this gap in caregiving support is a differentiator for “caring companies.”

Consistent communication and not just occasional messaging makes a huge difference, as employees don’t focus on these benefits until a caregiving crisis hits.

Language is equally important. Kenny believes that the term, caregiver, is still not how many employees may identify, including the 45 percent of caregivers who are men.

“The language that companies use in its internal communications has to be descriptive and identify the roles employees play when they become caregivers – as daughters and sons, as husbands, wives and partners, as siblings or as special-needs parents,” counsels Kenny.

Caregiving Support is Often a Top-Down Directive

A key to creating a culture of care at work may be the view from the top. Both Burki and LeaMond agree when the CEO or C-suite executives experience personal family caregiving responsibilities, that company is typically one of the best practices in supporting caregivers in the workplace.

Burki is caregiver to 90-year-old parents and in-laws and ensure his company offers robust benefits for its caregiving employees. AARP offers extensive caregiver benefits including two weeks paid time off for caregiving in addition to paid sick leave and annual leave.  

“Caregiving is not a one and done generational issue,” adds LeaMond. “The thought leader employers who offer a strong support system for employees know that the 24 million workers who are caregivers right now is a number that is only going to grow in the future.”