Backup Care is a benefit everyone can get behind. Companies that provide childcare benefits, including Backup Care, report as much as a 30% drop in employee absences and a 60% reduction in turnover. For working parents and caregivers, Backup Care is a lifeline when regular care is unavailable.
Still, most employees don’t have access. As of 2022, only 8% of working parents with young kids had employer-provided Backup Care services. Nearly half said finding last-minute care would be very difficult when their usual plans failed.
As caregiving demands grow and flexibility shrinks, employee Backup Care benefits become essential. In this guide, we break down what Backup Care is, why it matters, and how Cariloop makes it easy to support working parents and caregivers when life throws a curveball.
Why employees need Backup Care services
Today’s employees carry more caregiving responsibilities than ever before. And when routine care isn’t available, it doesn’t just disrupt their day; it disrupts business, too.
At Cariloop, we see this firsthand. Childcare is the number one need among working parents, with 73% of caregiving-related requests tied to finding care. But access is harder than ever to come by, thanks to:
- Rising costs: Full-day childcare now eats up 8.9% to 16% of median household income, and in some areas, it costs more than housing.
- Limited supply: Staffing shortages and facility closures have left families with long waitlists and few reliable options.
- Return-to-office pressure: Without the flexibility of remote work, many families must rework their childcare arrangements, often with little notice.
It only takes one disruption—a sick kid, a daycare closure, a canceled nanny—to throw everything off. Without Backup Care, working parents are left scrambling.
And it’s not just parents. Around 23% of U.S. adults care for both children and aging loved ones. Elder caregivers now average 20 hours a week on care duties, often on top of full-time jobs.
Adult caregiving can be just as unpredictable:
- A parent recovering from surgery needs help at home
- A home health aide cancels at the last minute
- A loved one needs transportation to an urgent appointment
The senior care sector is also facing a staffing crisis, making it even harder to secure emergency elder care. Without adult Backup Care, working caregivers are left navigating a high-stress, time-sensitive situation with no margin for error if care plans change.
This kind of stress doesn’t stay at home: it shows up at work in missed days, reduced focus, burnout, and even turnover. That’s where Backup Care employee benefits make a real difference.
How a Backup Care program helps employees
Roughly 73% of the workforce is caring for someone. That number climbs even higher for millennials and Gen X, the heart of the sandwich generation.
Backup Care brings real relief for these employees trying to balance work and caregiving. They don’t have to panic or burn PTO when something unexpected comes up, like a school closure or caregiver cancellation. And they can easily access specialized short-term care and respite care when needed. With Backup Care benefits, employees can quickly line up trusted care and get back to work.
Backup Care also saves employees money. Emergency care can be pricey, especially when it comes out of pocket. With employer-sponsored Backup Care programs, those costs are often reduced or covered altogether, making reliable care more accessible (and less stressful).
At a Glance: What Backup Care helps employees navigate
- Last-minute disruptions: Like school closures, illnesses, or caregiver no-shows
- Limited care options: Driven by care supply gaps and staffing shortages
- Financial strain: Emergency care often comes at a high cost
- Planned care gaps: Like holidays or caregiver vacations
How Backup Care benefits employers
Caregiving challenges may feel personal, but their impact is organizational. When care falls through, so do meetings, deadlines, and morale. Missed work, last-minute schedule changes, and employee burnout hit teams hard and quietly chip away at business performance.
A Backup Care program is a high-impact way to reduce those disruptions. It helps employees stay focused, teams remain consistent, and your company to stay competitive. Here’s how it pays off:
Fewer absences, more stability
When care is disrupted, employees often have no choice but to miss work. And those missed days add up. For example, companies with 250 employees that subsidize child Backup Care can save up to $75,000 in lost work time. Backup Care means fewer callouts, fewer gaps, and smoother operations overall.
Higher retention and reduced turnover
In 2024, 57% of caregivers said they’ve considered leaving the workforce due to the stress of balancing work and care. Backup Care benefits show employees they don’t have to choose between being a great parent or caregiver and a great teammate. That kind of support builds trust, boosts loyalty, and helps you keep great people longer.
Smoother return-to-office transitions
As flexibility decreases and more companies return to in-person work, caregiving challenges are ramping up again. Backup Care benefits help employees navigate this shift. Whether it’s childcare during a snow day or adult care after a surgery, your people can show up for their loved ones, knowing they have support at work.
A competitive edge in talent attraction Today’s candidates want more than ping-pong tables. They want employers who get it. Benefits like child Backup Care and elder care support are rising on the must-have list, signaling that your company understands what employees are juggling. That investment pays off. Cariloop data shows 89% of employees view their employer more positively when caregiver support is part of the package.
Why Backup Care is a must-have employee benefit
Backup Care isn’t a “perk” in your benefits strategy; it’s a core business need.
Care disruptions happen every day: a child’s school closes, a parent’s caregiver cancels, an aging loved one needs last-minute help. When that happens, employees without reliable options must choose between showing up for work or showing up for family. Productivity, focus, and morale all take a hit.
That’s why Backup Care anchors a healthy employee benefits strategy. It gives employees affordable access to vetted care providers when regular routines for children, adults, or even themselves change. For employers, it means fewer absences, steadier performance, and stronger retention.
Leading companies take it a step further. They view Backup Care as part of a holistic caregiving strategy that supports employees through every stage of care, not just emergencies. With Cariloop, that strategy becomes reality. Cariloop’s approach combines flexible Backup Care with comprehensive caregiver support, helping employees manage care confidently while your organization thrives.
How traditional Backup Care works
Traditional Backup Care programs were built for predictability, not for the realities of modern caregiving.
Most rely on exclusive provider networks, outdated reimbursement methods, or narrow definitions of care. These systems were designed decades ago and haven’t evolved alongside the workforce. They often serve only certain age groups or care types, leaving many employees without support when they need it most.
For working parents, that might mean calling dozens of centers with no openings. For employees caring for aging parents, it often means no coverage at all. When care isn’t available, employees miss work or use PTO, and employers lose valuable time and focus across teams.
The problems don’t stop there. Legacy programs create administrative strain and unpredictable costs. Underutilization drives wasted spend, while overutilization can trigger budget overruns in the hundreds of thousands. Employers are left guessing what the benefit will cost each year, without clear visibility into who it helps or how well it works.
In short, traditional Backup Care wasn’t built for flexibility, equity, or today’s multi-layered caregiving reality. It’s time for a better approach.
How Cariloop stands apart
Cariloop’s Backup Care solution flips the model: it’s predictable, flexible, and designed with employer budget and employees’ needs in mind.
For employees
Every caregiving journey is different, and flexibility matters. Cariloop removes the limitations of fixed provider networks, allowing employees to choose the care that works best for them, including friends or family members. They can request Backup Care anytime, 24/7, and get human support from our Care Team to find and book vetted providers quickly.
Cariloop also offers fast, straightforward reimbursements, eliminating the stress of waiting for payback.
For employers
Cariloop replaces rigid, pre-paid models with a usage-based approach that’s transparent and cost-effective. You only pay for the care your people actually use, with clear cost tracking and detailed reporting.
Employers can customize coverage by the hour, day, or dollar to fit their team’s needs and budget. And every experience is trustworthy by design: our technology and Care Team work together to verify legitimate use and process reimbursements quickly and accurately.
Take the next step
Get better Backup Care with Cariloop.
Frequently Asked Questions
What is Backup Care?
Backup Care is a short-term caregiving solution that helps employees when their regular care arrangements are disrupted, whether it’s a school closure, a sick child, or a canceled elder care appointment. It’s a critical benefit for working parents and caregivers, providing a safety net that helps people stay present at work.
Backup Care isn’t limited to childcare. It also supports employees caring for aging parents, family members with medical needs, or loved ones who require specialized attention.
What are the different types of Backup Care benefits?
A comprehensive Backup Care benefit supports a wide range of needs, including:
- In-home care: A vetted caregiver provides care in the employee’s home
- Center-based care: Access to licensed care centers
- Use of a personal network: In some cases, employees can designate a known caregiver (e.g., a family member or neighbor)
What should employers look for in a Backup Care program?
When evaluating Backup Care solutions, employers should look for programs that offer:
- Comprehensive coverage: Care for children, older adults, and other dependents
- Reliable access: Fast, easy pathways for employees to request and receive care
- Flexible options: The ability to accommodate different types of care needs and preferences
- Trusted provider options: Vetted, qualified professionals and/or approved community resources
- Personalized support: Human assistance (not just digital tools) to help navigate care decisions
- Predictable costs: Structured models that prevent pre-payment, “use it or lose it” models, overspend, and reduce administrative burden
How does Cariloop’s Backup Care work?
- A caregiving need arises: An employee’s usual care arrangement changes.
- The employee requests Backup Care: Employees can request Backup Care through the Find Care feature on the Caregiver Support Platform, available 24/7.
- A care solution is arranged: A vetted provider is matched to the employee’s need (or the employee arranges their care through an approved process). The employee reviews the provider and books them once they are satisfied.
- The employee is reimbursed: After care takes place, they are reimbursed quickly through Cariloop’s platform once they submit a receipt.
- The employee stays on track: With dependable care in place, they can focus on work with peace of mind.
How much do Backup Care benefits cost?
The cost of Backup Care benefits varies depending on the employer’s program. Some companies fully cover Backup Care services, while others offer subsidized rates or co-pay models.
Employers typically work with providers to create customized Backup Care solutions that fit their budgets and employees’ needs. With innovative solutions like Cariloop, you can cut traditional Backup Care costs by 30–50% while giving your team the coverage they need.