Caregiving: A challenge that costs employers billions

Caregiving is the defining workplace issue of our time, costing employers billions of dollars in lost productivity every year. One in four American adults is a caregiver, and caregiving has a ripple effect on their financial situation.

The Employee Benefits Research Institute kicked off its Caregiving@Work initiative by announcing the results of research EBRI and Greenwald Research conducted on caregiving’s impact on the workforce.

Caregivers are less confident about retirement, more stressed about expenses and report worse health than noncaregivers, according to Greenwald Research. In addition, research from AARP and Greenwald revealed that caregivers may need to cut back on their working hours or leave the workforce entirely to focus on care.

Caregiving costs employers $50 billion in lost productivity annually, said Elizabeth Myers, senior director of thought leadership at Bright Horizons.

“Caregiving is expanding across stages,” she said. “Caregivers can go in and out of caregiving, and it is a workplace reality.”

A lifelong workforce issue

Modern families face a decreasing “village of support” while employees have increased expectations of support from their employers, Myers said.

“Caregiving is a lifelong workforce issue,” she said. “Caregivers expect their employers to understand that reality.”

Today’s workforce faces a caregiving challenge, said Bridget Bearden, EBRI director of member growth and partnerships. Nearly three out of four workers expect to be a caregiver at some point during their lives. Meanwhile, six in 10 employees find it challenging to maintain a good balance between work and caregiving responsibilities.

Employer interest in caregiving benefits is on the rise, EBRI research showed. Employers said they plan to offer more benefits to support caregivers, with 47% saying they plan to offer an unpaid family caregiver leave policy, and 46% saying they plan to offer either paid childcare slots in the community, childcare reimbursements or subsidies, or eldercare services or programs.

Caregiving is a series of challenges

Caregiving is rarely one issue; it’s a series of coordination challenges, said Theresa Roma, head of insurance programs at Wellthy. Coordinating providers, appointments, paperwork, transportation and family logistics quickly becomes overwhelming. In addition, care needs rarely arrive on a predictable schedule. School closures, hospital discharges, caregiver cancellations and new diagnoses can upend plans overnight.

It’s important to elevate caregiving as a workforce issue because caregiving touches far more workers than many employers realize, Roma said. It spans every generation, life stage and family structure. Caregiving is reshaping workforce participation, productivity and talent strategy.

Organizations that invest in caregivers invest in stronger business outcomes, she said. Supporting caregivers strengthens retention, productivity and workforce resilience.

What caregivers need most is “someone in their corner,” Roma said. The practical support systems caregivers need most are:

• Someone who can take work off their plate – not simply point them to resources.
• Support that’s personal, practical and tailored to each family’s needs.
• A trusted partner who stays with them as care needs evolve.
• Confidence that they don’t have to navigate caregiving alone.

Roma listed some ways employers can better support caregivers while improving workforce outcomes.

• Recognize caregiving as a business issue – not simply a personal one.
• Invest in support that helps employees stay engaged, productive and in the workforce.
• Meet employees during life’s defining moments, when support matters most.
• Build trust and loyalty by showing up when families need it most.

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