Employee leave requests rose in 2024 for the third consecutive year, according to a recent report by AbsenceSoft. While injury and illness recovery (57%) and managing mental health challenges (47%) topped the list of reasons, caring for an aging parent (37%) emerged as the third most common driver. This trend underscores the growing pressures on employees balancing work with caregiving responsibilities.
More than 48 million Americans currently serve as unpaid family caregivers, a number that is poised to grow as the Baby Boomer generation continues to age. With approximately 10,000 Baby Boomers turning 65 each day, the demand for caregiving is set to reach unprecedented levels over the coming years.
Employees who are also caregivers face a unique set of challenges that significantly impact their physical, mental, and financial well-being. Studies show that caregivers experience higher rates of physical and mental illness compared to non-caregivers, yet they often place their own health needs on the back burner. Financially, the situation is just as demanding. U.S. caregivers contribute an estimated $600 billion in unpaid labor annually, while also shouldering substantial out-of-pocket costs to ensure their loved ones receive necessary care.
As caregiving responsibilities continue to rise, employees are increasingly looking to their employers for meaningful support and resources to help them manage these competing demands.
The Growing Impact of Caregiving on Employers
Employers are increasingly feeling the impact of caregiving demands, and the effects extend well beyond accommodation requests. The growing trend of employees juggling work and caregiving responsibilities presents significant challenges to workforce stability and productivity. According to a recent report from AARP and S&P Global:
- 67% of family caregivers have difficulty balancing their jobs with caregiving duties.
- 27% of working caregivers have shifted from full-time to part-time work or reduced their hours, and 16% have turned down promotions.
- 16% have stopped working entirely for a period of time, and 13% have changed employers to meet caregiving responsibilities.
Clearly, as the population continues to age, employers will have to implement policies and benefits designed to retain this critical segment of employees in the workforce. But that’s easier said than done.
Barriers to Offering Caregiver Benefits
Despite the growing need, many employers face significant challenges in implementing caregiver benefits. Rising healthcare costs, ingrained workplace norms, and the lack of regulatory mandates create obstacles that make it difficult to introduce new support programs. While employers recognize the importance of offering these benefits, balancing financial constraints and cultural shifts within the workplace can be a complex task. Here are some of the primary challenges they must navigate:
- Cost: Subsidized eldercare, paid caregiver leave, or access to caregiving resources can be expensive to implement and maintain. For smaller companies or those with tighter budgets, these costs may seem prohibitive compared to more traditional benefits. A report by Mercer highlighted that the cost of employer-provided healthcare has grown by an average of 6.5% annually, leaving many organizations struggling to balance budgets while also considering the addition of new benefits like caregiving support. This financial strain and focus on cost containment underscores the difficulty employers face in expanding their benefits offerings.
- Cultural Stigmas: Some workplaces still harbor cultural stigmas around discussing caregiving responsibilities. Employees may worry about being perceived as less committed or capable if they admit to caregiving challenges, reducing demand for benefits and deterring employers from offering them. According to the Harvard Business Review, nearly 60% of employees feel uncomfortable discussing caregiving responsibilities with their employers, highlighting the critical need for cultural shifts that normalize these conversations.
- Lack of Regulation or Mandates: In the U.S., there is no federal mandate requiring comprehensive caregiver support. Without a regulatory push, many organizations deprioritize these benefits in favor of compliance-focused initiatives. Comparatively, countries like Germany and Japan have implemented national policies to support caregiving, illustrating a gap that leaves U.S. employers to navigate this complex issue largely on their own.
Leveraging Employee Discount Programs to Support Caregivers
For companies unable to provide dedicated caregiving benefits, an employee discount program can serve as a meaningful and cost-effective way to assist employees. While they can’t replace a purposeful employee caregiving strategy, these programs can offer immediate assistance that addresses many of the unique challenges caregivers face. Here’s how these programs can help:
Elder Care
The median cost of an in-home health aide in the U.S. is $5,148 per month—a significant financial burden for many employees. Discount programs can provide access to reduced costs for elder care services such as home health aides, senior transportation, or respite care. These savings can help employees manage the high cost of providing quality care for aging loved ones without sacrificing their own financial stability. According to Genworth’s 2023 Cost of Care Survey, long-term care costs have increased by 4-5% annually, underscoring the importance of financial relief for employees.
Child Care
More than 37% of caregivers also care for children or grandchildren under the age of 18, making them part of the “sandwich generation.” Juggling the needs of children alongside caregiving responsibilities for older relatives can be overwhelming. Discounts on childcare services, including daycare, after-school programs, and summer camps, can help ease both the financial and logistical challenges these employees face, giving them valuable time to focus on other responsibilities.
Medical Supplies and Equipment
Not all medical supplies and equipment—such as walkers, wheelchairs, specialty beds, or adaptive devices—are covered by insurance. These uncovered items can cost caregivers thousands of dollars annually, and The National Alliance for Caregiving notes that 45% of caregivers use their personal savings to cover these costs. Discount programs that offer reduced prices for essential medical equipment or partnerships with suppliers can make a significant difference, helping employees ensure their loved ones have what they need without creating unmanageable financial stress.
Financial Planning Tools
Roughly 90% of physical caregivers are also financial caregivers, responsible for managing their loved ones’ expenses and navigating complex financial decisions. Given the high costs associated with caregiving, access to financial planning tools, workshops, or consultations through a discount program can empower employees to better manage their budgets, reduce financial strain, and prepare for future expenses more effectively. Studies indicate that caregivers who receive financial guidance are 27% more likely to feel confident about their ability to manage caregiving costs.
Health and Wellness Resources
The physical toll of caregiving is significant, with three-fifths of caregivers reporting fair or poor health, chronic conditions, or disabilities. Encouraging caregivers to prioritize their health is crucial. Discounts on gym memberships, fitness equipment, or wellness retreats can motivate employees to stay active and focus on self-care. Additionally, partnerships with wellness coaches or nutritionists can provide caregivers with personalized guidance to maintain their physical well-being. A recent study by the Caregiver Action Network revealed that caregivers who engage in regular physical activity report a 40% improvement in overall mental health.
Mental Health Resources
Caregiving often leads to “caregiver burnout,” a state of physical, emotional, and mental exhaustion caused by the constant demands of managing another person’s well-being. This burnout can negatively impact not only the caregiver’s mental health but also their overall productivity at work and quality of life. Offering discounts on counseling services, mental health apps, or wellness programs can be a lifeline, helping caregivers build resilience, cope with stress, and regain balance in their lives. Providing access to virtual therapy or support groups can also make it easier for caregivers to seek help within their busy schedules.
Everyday Essentials
According to a study by the TIAA Institute and the University of Pennsylvania School of Nursing, the average caregiver’s uncompensated expenses total more than $7,000 annually. These costs often include groceries, household goods, and other essentials. Discount programs that offer savings on these everyday items can alleviate some of the financial strain, allowing caregivers to redirect their limited resources toward other critical needs.
Educating Employees About Discount Programs
To truly maximize the impact of an employee discount program, employers must take intentional and proactive measures to ensure their workforce is both aware of these benefits and confident in how to use them. It’s not enough to simply offer a discount program—it requires consistent communication, clear guidance, and active promotion to highlight its value and accessibility. By fostering awareness and engagement, employers can transform their discount program into a powerful tool that directly supports caregiving employees. Here are a few actionable strategies:
- Assist Employees Requesting Accommodations. When employees request accommodation for caregiving reasons, make sure they’re informed about how the discount program can help them. Personalized guidance during these discussions can make a significant difference.
- Connect with Employee Resource Groups. Proactively engage with relevant employee resource groups to share information about the benefits of the discount program and how it supports caregivers. These groups can also serve as a valuable channel for gathering feedback to improve the program.
- Incorporate Caregiving Benefits into Communications. Given the expected increase in caregiving responsibilities over the coming years, include information about how the discount program can assist caregivers in your standard benefits communications plan. Use newsletters, intranet updates, and dedicated webinars to ensure employees are aware of these valuable resources.
By leveraging employee discount programs and raising awareness about their benefits, employers can better support employees who are also caregivers, enhancing both retention and employee well-being in the process.
