As the U.S. population continues to age, data shows that 23% of employees now belong to “the sandwich generation,” those who are supporting aging parents and raising children at the same time.
With high rates of stress and burnout among those balancing increased care requirements with work responsibilities, employers must consider what they can do to support these workers.
For many, the answer lies in your employee compensation and benefits strategy. Explore how adding caregiving benefits can help your employees thrive, and explore your options for creating packages that work for your workforce.
Why Expand Your Employee Benefits Package to Include Family and Caregiver Support?
Making childcare and eldercare benefits a permanent feature in your employee benefits package is a smart business move for several reasons.
Attract Top Talent
According to Gallup, more than half of U.S. employees are actively seeking a new job, with 69% citing better employee compensation and benefits as their top reason. Offering caregiver benefits can differentiate your organization and make it an attractive option for top talent deciding between multiple offers.
Reduce Workforce Attrition
One-third of employees have voluntarily left a job at some point because of caregiving responsibilities. As the cost of turnover continues to rise, providing caregiving benefits is an excellent way to prevent operational disruption and financial loss that accompanies high turnover.
Improve Employee Well-Being
With 64% of employees reporting higher stress when their caregiving needs are unsupported by their employers, you may notice several negative effects, including:
- Lost productivity and engagement
- High rates of absenteeism
- Decrease in job satisfaction and morale
- Increase in mental health concerns
- High rates of employee burnout
If caregiving stress affects a large enough portion of your workforce, it can impact your ability to reach organizational goals and objectives. Consequently, you can consider adding family care benefits as an investment in your employees and in the business as a whole.
Key Components of a Caregiver-Focused Employee Benefits Package
Finding the right mix of caregiving benefits can be daunting. These options can help you improve your employee compensation and benefits options and build a high-performing workforce.
Flexible Work Options
Offer remote or hybrid roles, compressed workweeks, or flexible scheduling when possible. These arrangements make it easier for caregivers to amend their schedules to tend to their loved ones’ needs without compromising their work responsibilities.
Dependent Care Flexible Spending Accounts
A dependent care FSA is an employer-sponsored account that allows employees to pay for essential services (such as daycare or elder care) with their pre-tax dollars.
Because these accounts reduce the employee’s taxable income, they save money on care costs. This has become an especially attractive option as the One Big Beautiful Bill has increased the dependent care FSA limit to $7,500 per household.
Paid Caregiver Leave
Even if you aren’t in a state that requires it, offering employees paid time off to care for their loved ones can help relieve the mental and financial strain of taking time away from work. The One Big Beautiful Bill has also secured employer tax credits for those offering paid family leave.
Financial and Administrative Support
If your budget allows, consider offering stipends or subsidies to help employees pay for child or respite care. Providing backup care benefits can also allow employees to have peace of mind that they’ll be able to find reliable care in the case of a short-term emergency.
Tips for an Effective Caregiver Benefit Rollout
Consider the following best practices as you prepare to roll out these options for your workforce:
- Conduct a needs assessment to locate the gaps in your current benefits package
- Secure senior leadership buy-in to ensure you have the budget to expand your benefits offerings
- Offer personalization to allow employees to tailor their packages to their unique situations
- Start with a smaller-scale pilot rollout and tweak your strategy with feedback from your team
- Use multiple communication channels to ensure your employees know how to take advantage of their new benefits
These tips will help ensure a successful rollout so that your good intentions in supporting your workforce translate into real, tangible results.
Use Employee Benefits to Support Your Workforce Through Every Stage of Life
Supporting your sandwich generation employees is no longer a perk. It has become a strategic business necessity in an aging society where caregiving needs can lead to burnout and high turnover.
If you’re looking for ways to help your employees care for their children and aging parents, Benefits Advisory Group can help. Contact our team today to see how our unique solutions can help your company attract, retain, and support top talent.