In today's rapidly evolving workplace, the intersection of work and caregiving responsibilities presents a critical challenge for both employees and employers. Companies like Keep Company are emerging as pivotal players in the care economy, providing essential support to employees who juggle professional roles with caregiving duties.
The Caregiving Landscape
Caregiving responsibilities affect a substantial portion of the workforce. Approximately 73% of all employees report having some form of caregiving responsibility, which can range from caring for young children to supporting aging parents or disabled relatives. This demographic includes a significant number of younger employees, with nearly 1 in 4 caregivers being millennials and half of caregivers under the age of 50. Notably, caregiving is not confined to women; about 39% of caregivers are men, indicating the broad and diverse nature of this responsibility across different employee segments.
The Costs of Caregiving
The dual pressures of work and caregiving can lead to significant burnout and financial strain for employees, which in turn impacts organizational productivity and retention. Studies have shown that employees with caregiving responsibilities often face reduced productivity, higher absenteeism, and increased likelihood of quitting their jobs. For instance, nearly a third of workers have reported that caregiving adversely affects their careers, with many citing the struggle to balance these roles as a key reason for leaving the workforce.
From a financial perspective, the hidden costs of caregiving are substantial. U.S. businesses incur over $1 trillion annually in costs related to employee turnover and lost productivity due to caregiving obligations. Furthermore, companies that do not provide adequate caregiving support risk losing valuable talent, leading to additional costs associated with recruitment and training new employees.
On average, caregivers spend 23.7 hours a week providing care, with one in three (32%) providing care for 21 hours or more, and one in five (21%) providing care for 41+ hours—the equivalent of a full time unpaid job, according to AARP.
The Benefits of Supporting Caregivers
Investing in caregiving support can yield significant returns for employers. Providing robust caregiving benefits has been linked to lower turnover rates, reduced absenteeism, and higher employee engagement. For example, research indicates that if caregiving support prevents just five employees from quitting, a company can save approximately $200,000, assuming an average salary of $80,000 and a replacement cost of 50% of that salary.
Moreover, companies that offer comprehensive caregiving benefits often see stronger financial performance. A survey by S&P Global and AARP found that companies with generous family-friendly policies, including caregiving support, reported lower voluntary turnover rates and stronger returns. This underscores the strategic advantage of fostering a supportive environment for employee caregivers.
Implementing Effective Caregiving Support
To effectively support caregivers, employers can adopt several key strategies:
Understand the Workforce: Gather detailed data on employees' caregiving responsibilities to tailor benefits that meet their specific needs.
Expand Beyond Traditional Benefits: Move beyond standard Employee Assistance Programs (EAPs) to offer direct caregiving resources and support.
Promote Flexibility: Implement flexible work arrangements, such as remote work and flexible hours, to accommodate caregiving needs.
Foster an Inclusive Culture: Create a workplace culture where caregiving responsibilities are openly discussed and supported, reducing the stigma and stress associated with these duties.
Keep Company's Role
Keep Company exemplifies how dedicated support for employee caregivers can transform workplace dynamics. By partnering with enterprise clients, Keep Company provides tailored solutions that help employees manage their caregiving responsibilities effectively, ensuring they remain productive and engaged at work. This approach not only benefits employees but also enhances organizational performance and resilience.
Keep Company, based in Bethesda, MD, was founded by Adrienne Prentice, former Vice President and Associate General Counsel at Hewlett Packard Enterprise and Claudia Naim Burt, former executive at various Venture Capital organizations. VEST Her Ventures invested in Keep Company in late 2023.
Supporting employee caregivers is not just a moral imperative but a strategic business decision. By investing in comprehensive caregiving support, companies can mitigate the hidden costs of caregiving, retain top talent, and foster a more inclusive and productive workplace. As the caregiving landscape continues to evolve, forward-thinking companies like Keep Company are leading the way in demonstrating the profound benefits of such investments.
VEST, a peer network and investment fund for women, invests in women-led companies building the future of work and care infrastructure needed to unlock women's labor participation, career potential, and lifetime earnings. VEST also connects and provides executive coaching to women professionals across industries, regions, and career levels. Learn more at www.VESTHer.co.