Many employees face a growing and often overwhelming challenge: caregiving for loved ones. Whether they’re looking after aging parents or supporting family members with disabilities, caregiving can take a serious toll on a person’s financial, emotional, and physical wellbeing. With over 100 million Americans serving as caregivers, the struggle to balance caregiving with a full-time job can lead to significant financial stress, reduced productivity, and emotional exhaustion.
The financial burden on caregivers is complex and far-reaching. Many must make career sacrifices, with 67% of family caregivers having difficulty balancing their jobs with caregiving duties, whether that means reducing their hours, taking a leave of absence, or facing warnings about performance and attendance, due to caregiving responsibilities. These adjustments often lead to a loss of income, undermining their financial security.
On top of that, AARP reports that nearly 8 in 10 of those caring for an adult family member are facing regular out-of-pocket costs, averaging $7,242 per year, and, on average, 26% of the caregiver’s income. These costs go towards medical bills, medications, and home modifications, resulting in financial pressures that can quickly drain savings and heighten financial strain.
But the impact of caregiving goes beyond finances. It affects overall wellbeing and job performance. Caregivers often struggle with distractions and reduced focus at work, and nearly 1 in 4 report absenteeism or presenteeism because of their caregiving duties. Among those effected, caregiving reduced work productivity by one-third on average, or an estimated $5600 per employee when annualized across all employed caregivers. These challenges not only limit their career advancement but can also affect the entire organization.
The financial strain of caregiving is a widespread issue, impacting a significant portion of the workforce. Employers can play a pivotal role in supporting caregiving employees by offering financial wellness benefits that help them manage both their personal and professional lives. By investing in the wellbeing of their caregiving workforce, employers can foster a more resilient and productive workplace, benefiting everyone involved.
