In today's workforce, caregiving responsibilities significantly impact employees at all levels, from frontline staff to senior executives. A Harvard Business School study revealed that nearly a third of workers, including many in top positions, have seen their careers suffer due to caregiving obligations. However, the repercussions of caregiving extend beyond the individual employees, affecting the entire organization.
Employee absences and turnover attributable to caregiving responsibilities cost American employers up to $33 billion annually, often without leadership recognizing the underlying cause. Failing to account for factors such as reduced productivity and increased turnover leads employers to leave money on the table when it comes to care.
Employers do not realize the extent to which caregiving affects employee performance
Only 24% of employers responded that caregiving influenced workers’ performance; yet more than 80% of employees with caregiving responsibilities admitted that caregiving affected their productivity.
Employers grossly underestimate the direct and indirect costs of caregiving
The employee survey revealed that 32% of all employees had voluntarily left a job during their career due to caregiving responsibilities.
In the absence of a supportive “care culture,” employees worry that admitting to caregiving responsibilities penalizes their career growth
Few employees (28%) are willing to admit to their organizations that they are caregivers for fear that it will undermine their career prospects. These caregivers perceived harmful consequences, such as demotivation due to a lack of challenging assignments (54%), lower salary increases or bonuses (50%), and an unsatisfactory career path (46%).
Employers’ higher-titled and more responsible employees are most likely to be affected
Many more employees with titles like vice-president and higher had left a position due to caregiving conflicts and cited decreased productivity. For example, the percentage of people who had left a position rose higher at each position level: employee (23%); manager of
Creating a Caring Company
To cultivate a caring company culture that supports employees in their caregiving roles, organizations must take proactive steps:
Conduct a Care Census: Understand the caregiving demographics among employees to tailor support initiatives.
Raise Awareness of Existing Benefits: Ensure employees are fully informed about the benefits already available to them.
Solicit Employee Feedback: Gather input from employees to assess the adequacy of current benefits and identify additional support needs.
Expand Benefits: Consider introducing new benefits to address unmet needs. Data has shown that flexible work arrangements, paid time off, caregiver support services, classes, and onsite/near site care facilities are widely used by caregiving employees.
Monitor Utilization and Impact: Regularly evaluate the usage and effectiveness of benefits to ensure they align with employee expectations and contribute to a positive work environment.
Establish Support Networks: Create affinity groups or Employee Resource Groups (ERGs) specifically dedicated to caregivers to foster a sense of community and provide mutual support.
By embracing these strategies, companies can not only reduce costs associated with caregiving-related turnover and productivity losses but also foster a compassionate work environment that values employees' well-being.
Join the ranks of Caring Companies by partnering with Mellie to support your caregiving employees. Our solutions not only alleviate financial burdens but also serve as a beacon of support during life's most challenging moments, ultimately promoting employee retention and satisfaction.
Contact us today to discover how Mellie can help your organization cultivate a caring culture while optimizing operational efficiency and cost savings.