Why Working Caregiver Benefits Matter (Blog 5/6/25)

If you are an employer, whether a small business owner or large corporation, you may wonder why offering caregiver benefits to your employees is important. You may be asking yourself: “Is it really necessary? Can I afford it?  Why should I--no one has asked me for them? We agree that the advantages of offering these benefits may not be so obvious. So, let’s take a few minutes to discuss some of the positive consequences for business owners who make the decision to do so. Before we get there, however, let’s consider some pertinent facts and figures that may help guide your decision.

Employers are Improving Their Paid Leave Policies

According to a 2023 benefits report conducted by the Society of Human Resources Management (SHRM), we should note that a majority of employers, 83%, offer unpaid leave time to care for an immediate family member in accordance with the federal FMLA – Family Medical Leave Act. In addition, about 36% of employers provide unpaid leave to care for extended family members who do not fall within the definition of “immediate family” as defined by the FMLA.

As of 2023, the landscape for employee paid time off (PTO) policies has improved compared to what was being offered in previous years. Currently, about 33% of companies are offering PTO to care for immediate family members. An additional 22% of employers say that they are planning to provide paid leave benefits within the next two years. This means that over the next two years, more than half of U.S. employers will be providing paid leave to their caregiving employees who step back from their jobs to care for a loved one. This would be a major step forward for the working caregiver population. And for their employers.  

What’s In It for Employers?

So why are employers deciding to cross over the line from offering unpaid caregiver leave to providing paid caregiver leave to their employees? The simple answer lies in their ability to attract, engage and retain top talent. It is clear that since the Covid pandemic beginning in 2020, the job market has grown more competitive. Employees feel empowered to seek flexibility. The most talented job-seekers are holding out for benefits that go beyond the traditional offerings.

The SHRM report suggests that employer-sponsored benefits are critical recruitment tools. Employers are incorporating not only the needs of their employees into their benefits offerings, but the needs of their families as well. In addition they are looking at the entire life cycle of their employee, not just parts of it like college student loans or having a baby. For example, they are focusing on what an employee needs today and what that same employee may need down the road in various situations so they can retain that employee. Flexible work arrangements remain important options for employees, with over 60% of employers continuing to provide remote work opportunities in 2023. Likewise the percentage of employers who allowed flexible work schedules either during core business hours or outside core business hours was 54% and 33% respectively. We anticipate these numbers will increase over the next few years.

As the caregiver crisis continues to disrupt the workforce throughout the U.S., employers who pay attention to the family needs of their employees are more likely to be able to attract and retain the most sought after talent. Based on the research, it’s safe to conclude that employers who ignore family support benefits run the risk of not only being unable to recruit the talent they need, but also risk losing critical talent they currently have as well. 

What’s In It for Working Caregiver Employees?

One of the biggest obstacles for employees in dealing head-on with working caregiver conflicts is the lack of self identification as a caregiver.  There are many reasons for this issue but one that keeps popping up is the negative stigma associated with identifying as a caregiver to their employers and fellow colleagues. Employees feel that if they reveal their working caregiver status, they may be overlooked for moving up in the organization, or may even lose their jobs. The irony is that in many cases, the employer ends up losing the employee anyway, because the employee feels unsupported by the company.  

Having caregiver benefits in place gives working caregivers the peace of mind to take time off from work to care for a loved one, without worrying about losing their jobs or experiencing negative consequences. Caregiver policies along with other benefits can have a positive impact on dispelling negative stigma, and promote happier, more productive employees.

Conclusion

In their efforts to remain competitive in the job market, in the next two years, we should see more employers incorporating and/or expanding employee caregiver benefits in their employee benefits offerings. As the U.S. population of elderly individuals continues to increase (10,000 people per day turn 65 years-old), the working caregiver crisis in U.S. businesses will continue to grow. Employers who have policies in place to support their working caregivers will reap the benefits of being able to attract and retain the talent they need. Afterall, the question is not “if” an employer will be impacted by the caregiver crisis. The reality is they already are.

Until the next blog. Thank you for stopping by, reading, and for caring!

References

-SHRM Releases 2023 Employee Benefits Survey Results, businesswire, June 12, 2023.

-Most US Employers plan to boost their leave programs in next 2 years, WTW finds, by Ryan Golden, January 26, 2024.

-Employers are enhancing their leave benefits to boost recruiting and retention, HR Brew, by Amanda Schiavo, June 30, 2024.

-Why more employers are improving their time off, leave policies, Worklife Daily Briefing, by Hailey Mensik.