Caregiving is not merely a personal responsibility; it is an essential societal function. Research has found that 73% of all employees¹ have some current caregiving responsibility—whether caring for aging parents, supporting a loved one through illness or raising a child—requiring them to juggle caregiving duties and their professional careers.

Intense caregiving demands can significantly impact an employee’s physical and mental health. They may neglect self-care due to time constraints and exhaustion or have increased feelings of isolation and depression. In addition, caregiving comes at a considerable financial cost. An AARP study² uncovered that caregivers spend an average of $7,242 annually on out-of-pocket expenses related to caring for an older loved one. A separate survey from Care.com³ showed that on average, families are spending 24% of their household income on child care.  

In August 2024, the U.S. Surgeon General issued Parents Under Pressure: The U.S. Surgeon General’s Advisory on the Mental Health & Well-Being of Parents, calling attention to the need to “better support parents, caregivers, and families to help our communities thrive.” The report states that 33% of parents reported high levels of stress in the past month compared with 20% of other adults.

This struggle, however, often occurs in the shadows. Only half of caregivers⁴ have made their employers aware of their situation, indicating that many employees feel uncomfortable discussing their caregiving responsibilities out of fear that it might make them seem less committed to their jobs. Though employers may not have visibility to the caregivers’ struggles, what they will note is decreased productivity and engagement, higher turnover and higher recruitment costs.

How Employers Can Help

Because caregiving needs vary significantly from case to case, there is no universal solution for employers to provide support. However, employers may want to consider the following 4As approach.

• Acknowledge: Recognize that nearly all employees have some caregiving duties, whether for children, aging relatives or others. Openly acknowledging that caregiving is a widespread issue affecting a significant portion of the workforce, and expressing gratitude for caregivers is the first step toward creating a supportive and stigma-free environment.
• Ask: Engage with employees to understand their specific needs and challenges in balancing caregiving with work. Surveys, focus groups, employee resource groups and thoughtful discussion during one-on-one meetings between managers and reports can provide valuable insights. By creating a culture of open communication where employees feel comfortable sharing their caregiving challenges and stories, employers will learn what benefits and programs will provide the greatest value.
• Assess: Evaluate current caregiving benefits to determine their effectiveness and relevance. Conducting regular assessments ensures that the offered benefits align with employees’ needs. Employers should review feedback and adjust benefits accordingly to remain relevant and impactful. For example, many employers offer backup care, but its utilization tends to be very low. In addition, during the height of the pandemic, some employers added perks such as virtual child entertainment or virtual tutoring that may no longer be needed.
• Act: Based on the feedback received and budget available, implement customized caregiving benefits. Tailoring benefits to a unique workforce and even to the individual demonstrates a genuine commitment to supporting caregiving responsibilities and could potentially result in improved productivity and engagement. One example may be an employer eliminating an underused backup care program, instead helping soon-to-be parents secure daycare spots to ease their return to work.

The following hypothetical example depicts how this model can be implemented. Using the guidelines above, here’s how the employer can best provide support.

• Acknowledge: On February 16, the president of Esther’s company sent out a memo to honor National Caregivers Day. The president thanked the caregivers at their company for all their unseen efforts and their dedication to supporting their families and loved ones. The president shared how hard and rewarding it is for her to balance her career with the demands of supporting her adult son with special needs. For the first time at her company, Esther did not feel alone. Her mother had moved in with her three months prior and stayed home alone while Esther was at work, frequently calling her throughout the day.
• Ask: Esther’s manager had noticed that her behavior and work seemed more distracted recently. During one of their discussions, her manager asked whether anything had changed recently, either at work or at home. Because of the message from the president, Esther felt comfortable explaining her situation and the challenges and fulfillment she found from taking care of her aging mother. 
• Assess: Esther’s employer did not have the resources to offer a dedicated caregiving benefit, but with the help of her manager and human resources department, she learned about services she didn’t know their employee assistance program (EAP) offered. She worked with the EAP to find community-based adult day care for her mother within her budget and received legal and financial support to manage her mother’s accounts and estate. Esther also worked with the human resources (HR) department to set up a dependent care flexible spending account, and she worked with her manager to shift her workhours earlier to better align with the adult daycare center’s hours.
• Act: After working through this life-changing development and receiving unexpected support from her employer, Esther felt relieved and encouraged. The HR director asked her whether she would be willing to lead a caregiver’s employee resource group. The group now meets monthly and has created a resource guide on affordable community-based programs that can help caregivers of children, adults, elders and more.

As evidenced by Esther’s story, fostering a supportive work culture is key to improving the chances that an employee will ask for help. In addition to creating personalized caregiving benefits, employers should consider equipping managers with the skills to have open and empathetic conversations with employees about caregiving-related issues and offer appropriate accommodation. Training on difficult and candid conversations can be helpful, as can mental health first aid, which helps managers notice subtle behavior cues and open supportive discussion.  

Senior executives can also help by sharing their personal caregiving experiences and illustrating how the company’s benefits have provided support. Authentic and open sharing and support from every level of an organization is the foundation needed for other benefits and programs to succeed.

Bottom-Line Impact

The positive benefits of a caregiving-friendly workplace extend beyond compliance and employee satisfaction. Research indicates that employees receiving caregiving support are 30% more likely⁵ to stay with their employers, reducing turnover rates and associated financial and operational burdens. This also translates into higher productivity, as employees are less distracted by personal stressors and more focused on their professional responsibilities.

Moreover, fostering an environment that accommodates caregiving needs can enhance employee morale. When employees feel understood and supported, their loyalty increases, resulting in a more engaged and committed workforce. A caregiving-friendly workplace can also bolster the company’s reputation as a compassionate and progressive employer, potentially differentiating the company to help attract top talent who value work-life balance.

By acknowledging caregivers’ contributions and challenges, assessing current benefits, asking employees for their input and acting on this feedback, employers can create a supportive environment with thoughtful and flexible solutions that benefit both employees and the organization.

Benefits Magazine Extras articles provide you with bonus content on a mix of benefits topics as well as deep dives and analyses on the latest benefit trends and compliance issues. Foundation members can visit ifebp.org/benefitsmagazine to view the full bimonthly print edition of the magazine. 

1. The R.O.I. of Caregiving Benefits. Vivvi and The Fifth Trimester. ↩︎
2. Nancy Kerr, “Family Caregivers Spend More Than $7,200 a Year on Out-of-Pocket Costs.” June 29, 2021. AARP. ↩︎
3. “This is how much child care costs in 2024.” January 17, 2024. Care.com. ↩︎
4. Tricia Sandiego, “How Caregiving Affects your Workforce.” AARP. ↩︎
5. Ibid. ↩︎