Is Caregiving Becoming a Strategic Imperative for Employers? A Closer Look at a Mission-Critical Employee Benefit

Caregivers make up approximately 20% of the current U.S. workforce. All signs point to this trend continuing. As the population ages, more workers will find themselves in the sandwich generation, caring for both a child and an elderly parent. These employees are typically less productive and more prone to burnout, if they even make it to work at all. According to a recent survey by AARP and S&P Global, 50% of employed caregivers said they consistently arrive late to work or leave early, while 32% have taken a leave of absence and 37% have cut back on hours worked.

With this reality as a backdrop, it’s no surprise that a Prudential Financial study found that paid time away from work to care for a loved one is now one of the most valued workplace benefits. Proving this point, one of our employer clients recently surveyed employees to better understand which benefits they value most. As it turns out, caregiver support topped the list, even though it isn’t a benefit the company currently offers. This was an unexpected finding, since they had not heard this preference articulated previously.

Employees need help when bearing the double burden of a full-time job and caregiving responsibilities. They deeply value benefits from their employer that relieve some of the stress of caregiving. Most employers understand that caregiver support resources as a benefit can make a meaningful difference for their workforces, while boosting productivity, recruitment and retention.

Here’s the problem: Caregiving support is not a straightforward offering. It can be incredibly expensive and almost impossible to effectively administer. For example, how do you arbitrate various employee scenarios and make determinations about who should be eligible for specific caregiving benefits? What do you do in situations that are prolonged and increasingly demanding for the employee? How do you balance providing empathetic support with the realities of running a business? How can you ensure employees don’t game the system?

But as one of our clients shared with us during a recent advisory council meeting, caregiving support is a benefit that you provide because you are a compassionate organization that wants to do the right thing for your people, period. So, you find a way.

Many employers have struggled to find their way. A recent Society of Human Resource Management survey showed that support for caregivers remains a weak spot in benefit strategies with only 13% of employers offering elder care referral services, and just 10% providing paid prenatal leave beyond legal requirements.

Below are some thoughtful considerations for employers who are evaluating their caregiving benefits and striving to do more for employees with these specific needs. 

Financially Supporting Caregiving Leave

Obviously, when we talk about caregiving support, the first thing that comes to mind for employers and their workforces is financial support in the form of paid leave for caregiving duties. Caregiving leave is gaining traction from a legislative perspective, with employers finding they are required to support employees who are navigating these situations. Currently, 13 states have laws requiring Paid Family and Medical Leave  as a response to caregiving challenges, while additional states have voluntary laws. Regardless of legal requirements, offering paid caregiver leave is a strategy employers should closely examine. A recent article in SHRM Business concluded that offering caregiving leave can be a labor market advantage for employers.

That article also provides guidance for organizations when offering caregiving leave, including being broad and flexible in how terms like “caregiving” and “family” are defined, establishing a transparent process for eligibility, and communicating available benefits clearly and consistently across the population.

One of our clients, Lee Company, has developed a creative way to offset the expense of caregiving. They established a public charity called the Lee Emergency Assistance Fund that provides substitute wages for a range of circumstances, including acute caregiving. The charity is funded through employee contributions with a 100% match from the company. You can learn more about it here. 

Increasing Flexibility and Remote Work Options

Financing formal caregiving leave is just part of the equation. Employees also need flexibility to navigate work responsibilities. They need assistance to fulfill duties without compromising work performance. Some tactics we’ve seen from employers across the country include setting a schedule of core hours while allowing for flexible start and end times or making remote/hybrid work arrangements for employees when their roles allow for that approach. Employers have also experimented with part-time or job-share options during intensive caregiving periods.

Advocacy, Navigation and Holistic Support for the Caregiving Journey

Caregiving-related stress can lead to anxiety, depression and burnout, so it’s important for employees to have access to mental health counseling and resilience resources. They need help with financial and legal guidance, as managing finances and legal issues for dependents can be a major paint point. Spiritual counsel plays an important role for many employees as well. In conjunction with all these priorities, it can be difficult to navigate available benefits and the health care system in general. These employees are already overwhelmed, so making it easier to find exactly the help they need is critical.

In short, caregiving employees need a range of support along their journeys. Some companies are leaning on their Employee Assistance Program, while also identifying and promoting available community resources.

Providing care advocacy and navigation assistance is another effective way to support those with caregiving responsibilities. Our patient advocacy and access team, which consists of social workers, registered nurses and chaplains, spends a significant amount of time on needs related to employee caregiving. This team prevents people from falling through the cracks. Whether individuals need to find a therapist to cope with stress or just need direction on the next best move, this team plays a pivotal role in easing the burden of caregiving.

“We’ve had situations where an employee needs help navigating the process of moving a parent to a care facility, finding answers to insurance questions or learning how to better manage caregiving responsibilities,” said Tyler Banks, a licensed clinical social worker for Vanderbilt Health. “We listen, educate and advocate. We help employees navigate the system and connect them to existing benefits or community resources.”

The advocacy team initially worked with employers to help employees manage their own health, but it became apparent very quickly that employees also needed help managing the health of their entire household, including aging parents. However, while employees value having someone to turn to for support and answers to tough questions about caregiving, the most critical piece is still helping them address their own needs in the process.

“We see a lot of individuals who have neglected their own health and well-being because they are overwhelmed by caring for others, said Yolonda Powell, nurse navigator for Vanderbilt Health. “They are juggling a lot, and the first ball to drop is their own health. Our team makes it easier for them to get the care they need and to be more proactive in pursuing their health. The first rule of caregiving is to take care of yourself. But too often employees wait until they are in crisis to focus on themselves.”

The Bottom Line

Supporting caregiving employees is not just a benefit enhancement—it’s a business imperative. These individuals often represent an employer’s most experienced, dedicated talent. Effectively addressing these needs can lead to reduced turnover, improved morale, boosted performance and an enhanced reputation as an employer of choice.

Has your organization implemented effective caregiving support resources for your workforce? We would love to hear what’s working for you. Please take a moment to complete a short poll here. We’ll share the feedback we receive from others as well.

Is your organization examining ways to better support caregiving employees? Contact our team by emailing employersolutions@vumc.org or calling (615) 421–0112. We would love to share more about what we’re seeing from employer clients and how our solutions support employees in all their health-related pursuits.