Strategies to support working caregivers

 

As population aging transforms American society and the workforce, caregiving has emerged as one of the central, if least well understood or addressed, issues facing employers. Due to dramatic increases in life expectancy and declines in the birth rate, older Americans make up a larger share of the population than ever before — and this trend is accelerating. As a result, the need for elder care is reaching unprecedented levels, leading to rapid growth in the number of employees who also provide care.

 

This shift has critical implications for employers, as working caregivers are now a key element of the overall labor force. Over 1 in 6 working Americans are assisting with the care of an elderly or disabled family member or friend,1 and a recent Harvard Business School study on caregiving in the workforce finds that this number may be even higher.2 For many of these working caregivers, the caregiver role significantly affects their work life. When employers don’t proactively address this need, it can cause a range of negative effects for both the employee and the organization: lost productivity, poor health and high medical costs, recruitment and retention challenges, financial anxiety, and, ultimately, intense competition for a shrinking pool of talent. It can also have an adverse impact on society at large, which is not good for any of us.

 

However, employee caregiving also presents important opportunities for proactive employers who are willing to align their competitive advantage with employee needs. Those organizations that design and implement efforts to support their working caregivers, especially the growing number in elder care, can mitigate productivity losses, recruit and retain valuable talent, and realize a vital competitive advantage. As a result, a successful talent and organizational strategy for the 21st century must include support for working elder caregivers as a core element.

 

This paper discusses the following:

  • Population aging and the need for elder care
  • How caregiving is changing: 2015 - 2050
  • Employee caregiving: A challenge for caregivers and employers
  • Support for working caregivers: Can employers take the lead?
  • Next steps: Employer actions to support working caregivers
  • The new employer imperative to support working caregivers

 

Read our paper

Read our paper for additional insights into how employers can recognize this vital issue and implement effective responses. It examines key demographic and workforce trends, the effects of caregiving on employers, and emerging best practices. Then, it proposes a series of next steps that employers can take to engage and support their working caregivers.

 

What are working caregivers?

Working caregivers are individuals who balance caregiving responsibilities with the demands of their careers. In addition to their work obligations, they take on everything from assisting a family member or friend with shopping, picking up medications, or scheduling doctor appointments to assisting with daily activities like bathing, dressing, and eating.

 

In fact, 74% of caregivers have been employed while caregiving and over 50% have full-time jobs.3 As life expectancy grows, so does the number of elders, illness, and disability. At the same time, as people remain in the workforce longer, more will find themselves balancing caregiving for aging loved ones with the demands of their jobs.

 

The increase in senior care is taking even a bigger toll on working caregivers and the U.S. workforce.  Many admit that their responsibilities at home are cutting into their obligations. They end up having no choice but to rearrange schedules, reduce working hours, or take unpaid leave or sabbaticals. As a result, lost productivity is costing the workforce billions of dollars.

 

Working caregiver challenges for employers

As the U.S. population ages, more employers are increasingly recognizing the need to address the hidden toll caregiving can take on employee performance and retention. These challenges are particularly amplified by those who may not disclose their caregiving duties or may be managing both elder care and dependent children.

 

Employers may face a variety of challenges as caregiving responsibilities intersect with the workplace. These common challenges include:

  • Absenteeism, as caregiving responsibilities often lead to unplanned time away from work.
  • Diminished productivity, driven by mental fatigue and emotional strain, can limit an employee’s capacity levels and ability to focus.
  • Additional stress from balancing work and caregiving roles may contribute to burnout and long-term disengagement.
  • Poor health resulting from the added stress, lack of sleep, as well as psychological effects such as anxiety and depression.

 

In addition to operational impacts, employers may also face challenges with their existing benefits and policies as the needs of caregiver employees evolve. Offerings such as paid time off and regular working hours may not provide the level of flexibility needed for caregiving roles. Without thoughtful updates to benefit programs, employers may fall short in successfully supporting their employees.

 

How can employers support caregiving employees?

In a survey held by the NEBH-AARP, 82% of employers agreed or strongly agreed that caregiving would become an important issue for their company over the next five years.4 While leaders are starting to respond — with initiatives like ReACT (Respect A Caregiver’s Time) coalition to support working caregivers — there’s still work to resolve the daily challenges that caregiving employees face.

 

Employers can start by leveraging their already existing employee benefits packages. Just as companies provide childcare options for working parents, they have an opportunity to offer benefits tailored to support caregivers. Perks like paid leave, flexible schedules, and emergency back-up care can all have a lasting impact.

 

For more, download the full paper to learn how employers can support their working caregivers.

 

1 Taylor Shuman, “Family Caregiver Annual Report and Statistics,” SeniorLiving.org, Feb. 14, 2025.

2 Joseph B. Fuller and Manjari Raman, The Caring Company: How employers can help employees manage their caregiving responsibilities — while reducing costs and increasing productivity, Harvard Business School, 2021.

3 Strategies to support working caregivers, Bank of America 2025.

4 https://www.aarp.org/content/dam/aarp/work/employers/2018/11/AARP-NEBGH-EmployerCaregivingToolkit_Practical-Guide-102517.pdf

 

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