Family Caregiving is Taking a Toll on Employees. What Can Employers Do About It?
The rising costs of medical bills and medications, on top of the steady rise in household expenses, as well as the stress of providing care, have pushed many workers to a breaking point.
Being a caregiver is becoming a common and expensive experience.
Multiple sources report that more than 53 million family caregivers in the U.S. are doing their best but also suffering from complex and taxing impacts. This is due to the following:
- 71% report receiving NO paid help.¹
- 76% spend over 40 hours each week caregiving.¹
According to AARP, “One-third (32%) of registered voters ages 18 and older say they were caregivers in the past, one-fifth (21%) are currently caregivers, and half (49%) expect to be a caregiver in the future.”² Without support, being a caregiver can seriously interfere with holding down a full-time or part-time job.
As if that isn’t enough, the rapid rise of costs associated with owning a home and providing care has strained budgets and increased financial stress. According to Zillow, “In 31 of the largest 50 metros included in Zillow’s new analysis, families looking to buy a home can expect to spend more than 60% of their income on a new mortgage and childcare.”³ When this same analysis was conducted in 2019, the cost of housing and childcare was 50% of the typical household’s income.
Work-life balance is elusive as more caregivers support more than one person.
The term “compound caregiving” refers to someone providing care to more than one person. The AARP has reported that 24% of caregivers care for more than one adult person.⁴ During their careers, many caregivers go through different stages supporting children, parents, spouses, or other family members. Compound caregivers often report physical exhaustion, having less time to work, and financial stress. The longer this goes on, the easier it is for caregivers to find their debts growing and their savings dropping. Recovering from these seasons of life can take years, and they can seriously set back goals such as saving for retirement. These financial and emotional challenges can make it extremely difficult to maintain a healthy work-life balance.
Three Actions Employers Can Take to Help Caregiving Workers
Employers need to create a work environment that supports and encourages workers when they encounter caregiving challenges that may require them to reduce hours or request a leave of absence. These three actions might be a great place to start:
1. Improve Communications – empathize with the “caregiving challenge” and highlight available resources
Emotional well-being resources for employees, such as those typically available through Employee Assistance Programs (EAPs), have the potential to help workers get through difficult periods of caregiving. Most employers also have financial well-being resources, like MSA, that can help with budgeting, debt management, and building a plan to get through financial challenges.
2. Act on Legislation as More Support Programs or Resources Become Available
A good example is 2022’s Secure 2.0 Act. Caregivers typically experience financial stress, and many have student loans they are trying to repay. The Secure Act gives employers the opportunity to modify their retirement programs to provide the following:
- More flexible hardship distributions
- Adding emergency savings accounts
- Student loan debt and education savings match where workers can have qualified student loan payments matched by their employer into their employer-sponsored retirement plan
3. Focus on Flexibility
Flexible work arrangements – such as working remotely or supporting flexible scheduling – can make a big difference, especially for a compound caregiver. Consider grouping paid time off (PTO) programs into a single category without requiring employees to specify the exact purpose of the requested time off. Also, promote the virtual health care services available through health care plans. Easier access to medical or dental consultations can help caregivers who are short on time and resources.
Create Organization-Wide Support & Buy-In for Caregivers
Employees often hesitate to disclose caregiving responsibilities because they fear it will negatively impact their careers. Employers have an opportunity to build a culture that supports and empathizes with caregivers. A great place to start is with improved communications about the emotional and financial well-being resources that are available.
At My Secure Advantage (MSA), we recognize the support needed to help 53 million American workers better manage financial health and well-being through the lens of caregiving. To learn more about our financial well-being solution, schedule a demo or contact us at 800-984-6811 to get started.
¹ “Family Caregiving: Where Compassion Meets Complexity.” Family Caregiver Alliance, n.d. caregiver.org/news/family-caregiving-where-compassion-meets-complexity. Accessed October 2023.
² Keenan, Teresa A. U.S. Voters’ Views on Support for Family Caregivers. Washington, DC: AARP Research, May 2023. https://doi.org/10.26419/res.00616.001
³ Olsen, Skylar. “American Families Need to Spend 66% of Their Monthly Income to Afford Their Mortgage and Childcare.” Zillow, 7 Feb. 2024. zillow.com/research/childcare-affordability-33677. Accessed 20 Feb. 2024.
⁴ AARP and National Alliance for Caregiving. Caregiving in the United States 2020. Washington, DC: AARP. May 2020. https://doi.org/10.26419/ppi.00103.001. Accessed 20 Feb. 2024.
More Like This
Are your employees concerned about the safety of their savings due to the banking crisis? Learn what caused it, what the Federal Deposit Insurance Corporation is doing about it, and how you can help employees.
Employers who are seeking to improve retention rates need to consider some of the problems causing employee turnover, and money issues are high on the list. When employees struggle with finances, they have trouble focusing at work. When employees can’t focus, they lose patience, and so do their employers, but employers can break that cycle […]
A recent study from MetLife shows that each generation has their own unique financial concerns, and they want their employers to provide help. 1 in 3 employees think their employer should help them address concerns about financial security; moreover, the study found that decreasing financial worries through company benefits can actually improve employee satisfaction.1 What […]
A financial wellness program differs in many ways from a typical retirement program, but it shares one key feature in common – it can prepare your employees for the future. According to a study published by Metlife in 2019, 52% of employees believe that employers have a responsibility for the financial well-being of employees, and […]
