How Employers Can Help Ease the Financial Strain of Caregiving
For decades, the cultural norm was for employees to keep the details of their families and personal lives quiet when at work. But if you take a look around, you’ll notice that that’s shifted greatly in recent years, and for good reason: Caregiving is a reality for millions of employees, whether it's for children, aging parents, or other dependents. In fact, 70% of employees care for at least one other person in their household. And while the emotional and physical challenges of caregiving are well-known, the financial strain is often underestimated. Employers who choose to address the significant financial impact that caregiving can have on employees isn’t just compassionate; it’s good business. Not only can supporting caregivers improve employee satisfaction, but it can have a real impact on employee retention and productivity.
Want to add your company’s name to the list of employers who help ease the financial toll of caregiving? Here’s how:
1. Offer Flexible Work Arrangements
Time is money for business, but for caretakers too – and that’s partly because the cost of care (whether it be for children or the elderly) can be prohibitively expensive. Offering flexible schedules, remote work options, and compressed workweeks can allow employees to manage caregiving duties without sacrificing income or paying for extra help. How does that benefit employers? Flexible work means less absenteeism and improved loyalty.
Here’s how it breaks down: A parent with a sick child can work from home instead of having to take the day off. Similarly, a parent can be there for their kids when they get home from school instead of paying a babysitter while they’re stuck at the office.
2. Provide Access to Caregiving Resources
Investing in partnerships and programs with resources aimed at caregivers can go a long way in relieving financial burden. Not sure where to begin? Benefits like professional caregiving services, financial counseling and eldercare directories can save employees countless hours of research and money spent on high-cost options. Plus, caregiving resources are a benefit that can make you stand out when recruiting top talent.
3. Subsidize Dependent Care Costs
While we’re on the subject of competitive benefits packages, we should include Dependent Care Assistance Programs (DCAPs) and childcare subsidies. These helpful resources can directly reduce caregiving expenses. Many companies also offer flexible spending accounts (FSAs) for dependent care, which allow employees to use pre-tax dollars for caregiving costs. Want to take it a step further? Match contributions to dependent care FSAs to amplify the impact.
4. Enhance Paid Leave Policies
Caregiving responsibilities – especially around the birth of a child – require time off. But unpaid leave can create a real financial strain. By offering paid family leave – not only for the birthing parent, but also for the non-birthing parent, adoptive and foster parents, and those who are caring for other family members – employers can provide crucial (if not life-changing) financial relief. Want to take it a step further? Expand paid sick leave policies to cover all types of caregiving. Providing these policies can mean the difference between an employee incurring debt or dipping into savings versus keeping their financial head above water.
5. Invest in Employee Wellness Programs
If you’ve ever been under stress, you know that it can have an incredible negative impact on your physical and mental health. Caregivers are under constant stress, which can lead to higher healthcare costs and reduced work performance. Offering wellness programs that address stress management, mental health, and financial literacy can have a significant impact. Even small gestures, like hosting workshops on budgeting for caregiving or managing stress can go a long way, and also show your employees that you care.
6. Recognize and Normalize Caregiving Challenges
Let’s face it: workplace culture has changed in recent years. Cultivating an open, supportive environment where employees feel safe discussing their caregiving responsibilities can have an incredible impact on employee morale and trust. One way to approach this is to create employee resource groups (ERGs) for caregivers. Giving employees a space where they can discuss their daily challenges can reduce the stigma associated with caregiving, and provide a sense of belonging – often resulting in retention.
7. Evaluate and Adapt Benefits Packages
If you want to be an employer that takes the financial strain and related stress of its employees seriously, start by reassessing the current benefits you offer to ensure they address caregivers' unique needs. Your packages should go far beyond health insurance, which has become the bare minimum. As an example, providing a resource that helps people navigate Medicaid or estate planning for their aging parents can save employees thousands of dollars. Benefits like financial planning services, tuition assistance for employees' children, or even legal assistance for navigating caregiving-related challenges can be retention and recruiting game changers.
The Business Case for Supporting Caregivers
Employers who prioritize caregiving support often see reduced turnover and improved productivity. That’s because employees who feel supported are more likely to stay loyal, thereby reducing recruitment and training costs.
By taking proactive steps to ease the financial toll of caregiving, employers can create a win-win environment: employees gain much-needed relief, and businesses benefit from a more engaged and productive workforce.
Supporting caregivers isn’t just an act of kindness—it’s a strategy for success.
Let’s Take the Next Step Together
Helping leaders to support caregivers in the workplace is the foundation of the CARRY™ Consulting process. Book a consultation with CARRY™ Consulting today to enhance the way you’re caring for your caregiving population and start driving real change in your organization.
