Employees Drowning in Care Costs
America’s ‘Silver Tsunami’ Crisis Is Only Just Beginning
The impending elder care crisis in America demands our attention. As Sarah House, a senior economist with Wells Fargo, aptly states, "It does feel unsustainable." House points out that while the elder and child care crises do have some overlapping similarities, there’s one big difference: parents usually have some advance notice that they’ll need child care (pregnancies last about nine months, after all) whereas for many people, it’s hard to know when a family member will need outside care, what kind, or for how long. Someone might be perfectly healthy until something sudden happens, a stroke or a fall, and their care needs change overnight. “It leads to more more rapid changes in work status for their family members,” House says. “It can cause a real financial disruption.” Currently, about 12% of large US companies offer some form of elder care cost-sharing — a figure that will likely rise over the coming decade. Read more on Bloomberg, June 2024.
Crisis in childcare and the state of work in America
Childcare issues are severely impacting the US workforce, with 29% of prime-age women not working for pay, and nearly two-fifths citing childcare responsibilities as the reason. The crisis affects productivity too - workers taking time off due to childcare problems has reached record highs. As one study found, "every dollar spent on caregiving benefits resulted in gains of $18.93" for companies. It's clear that offering childcare or eldercare support isn't just an employee perk - it's a strategic investment in productivity and retention. Smart companies are recognizing this, with 56% of employers saying childcare benefits will be prioritized in 2024. Read more: Crisis in childcare and the state of work in America by KPMG, May 2024
An Alabama manufacturer shows how to retain working moms: child care
At Mazda Toyota Manufacturing in Alabama, offering up to $250/month for child care led to a 20% drop in attrition among women. "We're talking about young families. We're talking about moms who end up working and being primary caregiver," says Jessica Luther, highlighting why this benefit matters. Supporting employees' care needs isn't just nice - it's smart business that can boost retention and attract talent. As the workforce evolves, so too must our approach to benefits. Read more on this National Public Radio talk.
Rethinking workplace mental health
Workplace mental health is no longer a nice-to-have – it's a must-have for attracting top talent. Did you know 60% of Gen Z prioritize mental health resources when choosing an employer? And a whopping 91% of respondents in a 2021 Harvard Business Review survey stressed the importance of a workplace culture supporting mental health. As the article states, "By adopting holistic approaches to mental health support, companies demonstrate a commitment to supporting the entire person, acknowledging their roles as parents, spouses, caregivers, and members of various communities." Expert childcare and eldercare support relieves emotional anxiety, financial anxiety and logistical anxiety , to truly foster employee well-being and productivity. Read more at Employee Benefit News, June 2024.
Pro-family workplace benefits affect women’s mental health
Working parents need support, not just lip service. A University of Iowa study found employer-sponsored family benefits improved mental health for women balancing work and home responsibilities. Strikingly, working mothers experienced more mental health challenges than their childless counterparts. "Demonstrating and fighting for these kinds of benefits could be a part of what leads us to redefine our relationship with work," says researcher Jonathan Platt. With 2,400 women surveyed over 9 years, the data is clear: family-friendly policies aren't just nice-to-haves, they're essential to women's mental health. Read more in this University of Iowa 2024 study.
For caregivers, 'bringing Your whole self' to work isn't going to happen
Caregiving is a hidden challenge for many employees, with over 53 million US adults caring for a loved one. The average caregiver spends 24 hours weekly on care duties, equivalent to a second full-time job. As the article states, "Caregiving puts an incredible strain on every aspect of a caregiver's life, and the last place they need additional stress from is their job." By 2034, adults 65+ will outnumber children under 18, making this issue increasingly urgent. Forward-thinking companies can support their workforce by offering childcare and eldercare benefits, helping employees manage their responsibilities and thrive both at work and at home. Read more in this Benefits Pro, May 2024 article.
Women's Central Role in a Growing Eldercare Economy
The aging U.S. population is driving up eldercare needs, with 1.7 million more seniors projected to require care by 2032. Women shoulder 59% of unpaid caregiving responsibilities, often forcing them to reduce work hours or exit the workforce entirely. As the article states, "Unpaid care demands weigh on women's finances and businesses' ability to hire." With labor force growth set to slow, companies can't afford to lose valuable talent. Offering childcare or eldercare support isn't just a perk - it's a strategic imperative for attracting and retaining skilled workers in an increasingly competitive labor market. Read more in this Wells Fargo March 2024 article.
How Employers Play A Key Role In Employee Personal Milestones
Did you know that 73% of employees provide 20-30 hours per week of care to children and loved ones? Yet, 43% feel under supported when caring for an adult family member. It's clear that the need for workplace support extends far beyond just working mothers. As Vicki Shabo points out, "the constituency for policies that support work, family, and care realities is huge." Companies that offer childcare or eldercare benefits aren't just being kind - they're making a strategic investment in employee well-being, engagement, and retention. Read more in this Forbes June 2024 article.
Ways & Wane solves family care challenges for busy professionals
73% of your employees are caring for kids or older adults.
Offered as an employer-paid benefit, we solve eldercare and childcare challenges, no matter where employees live. Reach out for information at [email protected]