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