Our population is aging fast. By 2035, 78 million Americans will be 65 or older, yet access to elder care isn’t keeping pace. Rising costs, limited resources, and increasingly complex care needs mean employees must step in to fill the gap to care for their family members.
Without support, this juggling act leads to higher stress, absenteeism, and even turnover, impacting both employees and businesses. Employers recognize this challenge and are responding with elder care benefits. This blog explores different types of elder care benefits and their advantages to both employees and employers.
What is elder care?
Elder care is the paid or unpaid support people provide to aging loved ones who need help with daily life. This can mean assisting with meals, household tasks, personal care, or transportation to appointments. On average, elder caregivers spend 20 hours a week providing care, making work-life balance a constant challenge.
Types of employer-sponsored elder care benefits
Elder care benefits help employees navigate the challenges of caregiving by providing essential resources and guidance, reducing stress, and allowing people to focus on both their work and their families.
Common elder care benefits for employees include:
- Backup care – A reliable short-term care solution for when regular caregiving plans fall through. Access to subsidized, on-demand elder caregiving support helps employees remain focused at work, knowing they have a solution to caring for their aging loved ones.
- Personalized coaching support – A caregiver support benefit that provides personalized coaching from elder care experts, helping employees explore all available care options, assess quality and affordability, navigate difficult conversations, and make informed decisions that best fit their needs.
- Emotional well-being resources – Employer-sponsored therapy and support groups to help employees take care of themselves while they invest so much in caring for their aging loved ones.
- Flexible work options – With flexible hours and remote work options, employees have more opportunities to balance caregiving responsibilities with professional duties.
- Caregiving stipends – There is often a significant financial burden when supporting aging loved ones, with some employees spending an average of more than $7,000 annually on out-of-pocket expenses. Stipends provide financial support for elder care expenses like transportation to appointments, medical supplies, or other essential care costs.
Why your employees need elder care benefits
While much attention is given to childcare benefits, elder caregiving benefits are often overlooked – yet they’re just as critical. Studies show 37.1 million Americans provide unpaid elder care, with nearly half caregiving multiple times a week and 25% providing care daily. However, 80% of working caregivers feel companies are more understanding of childcare issues than elder caregiving responsibilities.
Employees caring for aging loved ones often experience caregiver stress and burnout –
physical, emotional, and mental exhaustion. An AARP study found that over 60% of caregivers report burnout symptoms, including fatigue, stress, withdrawal, anxiety, and depression.
A major driver of this burnout is work-life imbalance, as employees struggle to juggle job responsibilities and caregiving. The same AARP study found that 67% of caregivers have difficulty balancing both roles, with 27% reducing their work hours and 16% temporarily stepping away from the workforce to meet caregiving demands.
Caregiving also causes significant financial strain. A report from the National Alliance for Caregiving shows that 28% of caregivers have stopped saving, 23% have increased their debt, and 22% have depleted their short-term savings. Additionally, 37% report that rising costs have increased their financial burden.
The toll of caregiving on employees also impacts workplace productivity. Research shows that caregiving reduces work productivity by an average of one-third, costing employers approximately $5,600 per caregiver each year. The losses are even greater among employees caring for older adults with complex needs. Caregiving challenges lead to more absenteeism, lower engagement, and reduced focus, impacting both employees and organizations.
The business case for offering elder care benefits
As more employees take on caregiving responsibilities, organizations providing elder care benefits are emerging as employers of choice. Supporting caregivers leads to a healthier, more engaged workforce while driving measurable business results.
Boost productivity and retention – Caregiving responsibilities cost employers an estimated $44 billion annually in lost productivity and increased employee turnover. You can maintain high productivity and retain top talent by providing resources such as flexible hours and remote work options, or coaching from elder care experts.
Reduce absenteeism – Nearly 1 in 4 employed caregivers report absenteeism due to care responsibilities. These unplanned absences leave teams short-staffed and can reduce productivity by up to 36%. Additionally, costs rise from hiring, onboarding, overtime, and downtime. Elder care benefits, like backup care and access to professional caregiving resources, help employees manage their responsibilities and miss less work.
Increase engagement – Employees who feel unsupported and overwhelmed are less engaged and motivated. The American Psychological Association found that 90% of employees who feel valued are highly motivated, compared to just 33% of those who don’t. Eldercare benefits – like therapy access, support groups, and stipends – help employees feel cared for while reducing mental and financial stress so they can stay focused and engaged at work.
Attract top talent – According to an S&P Global/AARP survey, nearly 87% of Human Resources professionals agree that caregiving policies help attract talent. With millennials and Gen Xers comprising the majority of working caregivers, many of your current and future employees are balancing adult caregiving responsibilities. Elder caregiving stipends, flexible work options, and paid leave can set you apart as an employer and attract top talent in today’s competitive job market.
Lower healthcare costs – Caregiving impacts employees’ health, increasing healthcare costs for employers. Many caregivers, pressed for time, skip doctor visits and report poor eating and exercise habits. A Guardian Life Insurance report found that 41% of caregivers have low well-being. By providing support to manage caregiving challenges and improve employee well-being, you can reduce healthcare expenses.
Providing elder care benefits with Cariloop
Caring for an aging loved one often means navigating tough decisions, difficult conversations, and complex information. Cariloop is here to help you connect your employees with trusted elder care resources and support, from personalized guidance to a pre-screened provider network and practical planning tools.
Contact us today to learn how Cariloop’s elder care support can be easily incorporated into your existing benefits package.