AARP estimates that there are over 53 million caregivers across the United States1. This equates to roughly 1 in 6 employees providing unpaid care to family members or friends. While caring for loved ones can be deeply fulfilling, it also leads to increased stress, reduced productivity, and higher absenteeism. The ripple effect extends beyond the family unit, as colleagues and employers are also impacted.

To attract and retain top talent, employers have started to reprioritize caregiving benefits. Historically, organizations recognized a gap in child and adult care services, and have responded by offering onsite or nearby care centers along with backup care services to boost presenteeism. While these solutions addressed the immediate logistical challenge of caregiving, they often overlooked the emotional burden on caregiving employees.

Recently, forward-thinking employers have adopted a more holistic approach to caregiving, resulting in a more satisfied and engaged workforce. Caregiving benefits commonly fall into five categories: time off, financial support, referral services, care centers, and emotional support.

Time Off: This includes enhanced policies for parental or family leave and flexible work arrangements like hybrid or remote work, which allow employees to better manage their caregiving responsibilities. Employers may provide additional leaves on top of federal or stated mandated requirements.

Financial Support: Employers may offer stipends, dependent care assistance plans, subsidized child or backup care, or financial incentives linked to broader employee benefits, such as Health Savings Accounts or maternity care programs.

Referral Services: For employers with limited budgets, services such as care navigation, employee assistance programs (EAPs), and educational resources can offer significant support.

Care Centers: Larger employers with a geographically concentrated workforce may continue to offer onsite childcare centers or partner with external providers for backup child and adult care. This is particularly vital in regions with long childcare waitlists, an issue worsened by the COVID-19 pandemic when many in-home daycare providers did not reopen2.

Emotional Support: Perhaps the most critical, this category includes coaching, support groups, and integration with mental health services. While much attention is given to the transition into parenthood, fewer resources exist for employees who must care for aging parents with declining health, a role that can be devastating and isolating without proper support.

Though the return on investment (ROI) for caregiving benefits can be difficult to quantify, many employers find it results in reduced turnover, increased employee satisfaction, and fewer unplanned absences. This may also be an important benefit when working to recruit new employees. A phased approach that begins with lower cost options, builds awareness, and later expands the benefit offerings can be an effective strategy for organizations beginning this journey.

While caregiving support is advisable for all employers, it becomes essential when employee loyalty and work-life balance are core aspects of your company culture. Additionally, caregiving benefits can be a valuable negotiation point in union discussions, particularly when retention is a shared concern, and the workforce includes those in the “sandwich generation”—employees caring for both young children and aging parents3.

The easiest and fastest way to show you are a caring employer is simple. Care for your caregivers.

1AARP. (2020). Caregiving in the U.S. https://www.aarp.org/ppi/info-2020/caregiving-in-the-united-states.html
2Center for American Progress. (2021). The Child Care Crisis Causes Job Disruptions for More Than 2 Million Parents Each Year. https://www.americanprogress.org/article/child-care-crisis-causes-job-disruptions-2-million-parents-year/
3Pew Research Center. (2013). The Sandwich Generation: Rising Financial Burdens for Middle-Aged Americans. https://www.pewresearch.org/social-trends/2013/01/30/the-sandwich-generation/