Why Employers Should Support Workers Caring for Aging Parents

The needs of an aging population affect individuals, their employers, and the economy. Companies can help caregivers and the bottom line.

The population is getting older, and the number of individuals caring for aging family members is growing. There will be more Americans over 65 than under 18 in the next decade, many requiring dedicated care. And Harvard researchers estimate much of the burden “of providing that care will fall on the working-age population—draining the talent pool available for hire.”

Let’s review the stats, impacts, and what employers can do to support workers.

A look at the numbers

The proportion of Americans over 65 increased from one in eight in 2000 to one in six in 2020, and it’s projected to reach one in five by 2040. The “number of adults ages 85 and older, the group most often needing help with basic personal care, will nearly quadruple between 2000 and 2040.”

Some key stats illustrate the financial and health impacts on families:

• 70.0% “of people turning age 65 […] will develop a severe long-term-care need in their lifetimes.”
• The “median annual cost for a home health aide” is estimated at $61,776.
• 41.8 million US residents cared for someone 50 or older in 2020, with 24% caring for at least two people.
• 21% of caregivers “say that their own health has gotten worse during their caregiving responsibilities.”
• 42% report that “their financial situation has been affected by their caregiving responsibilities.”

Here’s another crucial number employers should know: Family caregivers spend an average of 22.3 hours a week providing care.

This amount of time—perhaps even half—isn’t compatible with working a full-time job long term. Additionally, the financial and psychological stresses often cause an employee’s productivity and career to suffer along with their well-being and bank account.

The impacts of caregiving on businesses

The term “caregiver” covers many people, including “parents, those caring for elderly family members, and those supporting a sick or disabled child, sibling, or spouse.” About “73% of all employees have some type of current caregiving responsibility.” However, the proportion of caregivers assisting elderly relatives is growing significantly as Americans age and have fewer children.

Time spent with doctors’ appointments (planned and spontaneous), backing up hired caregivers, changing bandages, looking in on someone, and handling all life and financial needs are just a few of the responsibilities borne by caregivers. 

Harvard Business School Professor Joseph B. Fuller and researcher Manjari Raman conducted surveys of employers and employees about caregiving, publishing a comprehensive report of their findings. Two results illustrate a significant challenge in even recognizing the issue:

• “More than 80% of employees with caregiving responsibilities admitted that caregiving affected their productivity.”
• Yet “only a minority of employers (24%) responded that caregiving influenced workers’ performance.”

This divide points to a blind spot among many employers and ultimately threatens their bottom lines. The researchers argue that “America’s demographics are reaching a tipping point” and “the 2030s will be a transformative decade” in aging. Many more workers will have more caregiving responsibilities, exacerbating the following negative impacts:

• Absenteeism: tardiness, early departure, or not showing up
• Presenteeism: distraction and caregiving while working
• Unexpected care events impacting availability
• Replacement: others picking up the slack for caregiving employees

Further, the researchers note that many “physically drained and emotionally distracted” workers reduce their hours and eventually leave the workforce. This creates additional employer costs:

• Frequency of turnover costs: retraining, automation, or outsourcing expenses.
• Lost institutional knowledge
• Temporary hiring and overtime costs

Thus, assisting overburdened workers isn’t just the right thing to do or a nice-to-have benefit. Addressing this situation can have a clear and compelling return on investment.

“Businesses will ignore the looming care crisis at their peril,” the researchers conclude.

How companies can support workers caring for elderly family members

Employers can help ease the burden of caregiving in several ways. The first step costs little: changing the culture. The Harvard research revealed that employers not only underappreciate the impacts of caregiving, but many are in denial about what they are doing to help.

Most employers “characterize themselves as being supportive of caregivers.” However, other data doesn’t back the assessment.

The respondents underestimated the burdens on employees and reduced productivity. However, employers agreed that “manifestations of caregiving responsibilities (such as tardiness, unplanned absences, and turning down work-related travel and promotions) damage careers.” In addition, 42% of workers said caregiving “negatively affected their careers,” with 28% stating direct impacts, such as lost opportunities for promotion.

Thus, employers should recognize any issues, destigmatize these situations, and give individuals the opportunity to shine. This effort should involve assessing and changing the culture, if necessary, and providing flexible work arrangements where it makes sense.

Another significant strategy is providing benefits that relieve some of the burden, including through expanded employee assistance programs (EAPs). There’s clearly a need: a 2021 survey reported that 79% of caregivers “do not have access to caregiver support benefits at their workplaces.”

Some potential approaches include:

• Better and more creative communications of benefits available to employees. Many workers do not understand what services may be available through their employer.

• Healthcare advisory services that connect workers with providers and assist in navigating resources such as Medicaid, Medicare, health savings accounts, and more.

• Legal and financial coaching can help individuals manage common questions and costs associated with caregiving.

• Adding elder care resources to a “benefits cafeteria plan.” Organizations don’t need to design programs from the ground up; several “plug-and-play” platforms can give workers info and support.

• More innovative time-off and scheduling policies for caregivers can take a page from the progress already made with remote work and unlimited time-off programs, allowing for a more achievable work/care balance.

• Giving managers training on how to ask the right questions to understand what their employees are experiencing. Many managers have no idea their employee is a caregiver.

This AARP planning guide has some helpful assessment checklists and a list of potential benefits.

An aging population presents novel challenges for workers and companies—but addressing them is also an opportunity. The employers who support the growing number of elderly caregivers will stand out, attracting and retaining valuable talent.

Karp HR Solutions helps businesses master the mix of finance and human resources. Contact us today for a free consultation.