The last five years have created a paradigm shift in the workplace, leading to a greater emphasis on the wellbeing of employees and their families. Between daycare closures, women leaving the workforce to take care of their children, and an increase in sick days to tend to family members, employers – more than ever – have come to fully comprehend the inextricable link between accessible care and work.
The evolution in workplace culture, and the continued shift towards creating better environments for employees, underscores the growing recognition that family care plays a vital role in fostering resilience and support in the workplace. And this shift is more than anecdotal. In the span of just a few weeks, two reports were recently published about the impact care benefits have on both families and employers’ bottom line: Care.com’s own 2024 Future of Benefits Report and Moms First and Boston Consulting Group’s report on the ROI of childcare benefits.
So, why are care benefits generating more research and what is fueling more pervasive conversations about care? There are several factors:
- The need for a stronger care infrastructure is becoming increasingly more dire and cannot be ignored. The U.S. population is aging rapidly, currently older today than ever before. Plus, the number of Americans ages 65 and older is projected to increase by nearly 50% to 82 million by 2050 from 58 million in 2022.
- Meanwhile, the child care industry, which has long experienced an imbalance in supply and demand, is facing even worse conditions right now following the September expiration of pandemic-era funds known as the child care cliff.
- The cost of care is rising continuously, rapidly becoming untenable for American families. On average, child care and senior care each consume approximately a quarter of families’ income annually.
The need for support for American families has never been more urgent or apparent. As we navigate the complexities of an aging population and the challenges of the child care industry, employers can play a pivotal role in alleviating these burdens. Without care, parents cannot work, and without working parents, the economy cannot thrive.
The data highlights from these reports underscore that fact, revealing the measurable benefits of investing in family care, including increased employee retention and enhanced productivity and morale.
The ROI of family care benefits
Conversations about work and the workplace are currently fraught with tension. Employers and employees are portrayed at odds. There’s a struggle between generations, each grappling to understand the other. Plus, a push and pull around remote work vs in-office. Despite these challenges, one thing remains clear: care is a universal constant.
According to the 2024 Future of Benefits Report:
- Care is the common ground upon which both employers and employees stand.
- For roughly 80% of employers surveyed, both child and senior care benefits have a positive impact on objectives like productivity, talent recruitment, talent retention, supporting a diverse workforce, and supporting a multigenerational workforce.
- For employees, access to these benefits helps keep them loyal to their employer. The lack of child care benefits topped the list of reasons for seeking another job, with 29% of job switchers citing it as their primary motivation. One in five of those who had already moved to another job did so because their previous employer didn’t provide family care benefits.
- It is the bond between all four generations in the workplace.
- Multi-generational representation is key to any organization’s success. Gen X and Boomers represent the more experienced, seasoned talent, while Millennials and Gen Z bring fresh ideas to the table. So while we often hear about their work styles clashing, we found that they all share the responsibility of care.
- While child care responsibilities did apply primarily to Millennials (68%) and Gen X (56%), a nearly uniform percentage of employee respondents across generations said they care for seniors.
- The cost of care transcends generations as well, with access to child care and senior benefits saving employees nearly $3,000 annually on each of their caregiving expenses.
- If employers want their employees back in the office, they have to give back too.
- While employers are turning most frequently to on-site food and drink to lure workers back to the office, employees care more about benefits that actually help them go to work and offset related costs, like commuter benefits and child care.
- In fact, about half of employees in our survey said child care and senior care benefits were highly critical for them to return to the office.
- Thankfully, employers are taking note by offering child care (55%) and senior care (47%) benefits as incentives to get people back into the office.
For additional perspective, I asked my friend Reshma Saujani, Founder & CEO of Moms First, why this research is so important in today’s workplace.
“For too long in our culture, child care has been seen as a personal issue that parents must solve for themselves,” she said. “But our economy depends on care — without it, women cannot work. It’s past time to cement child care in our culture as an economic issue, and with this report, we finally have the data to prove once and for all that child care benefits not only pay for themselves, but also make strong business sense.”
According to Moms First and BCG’s report:
- There is a powerful case to be made for the ROI of care benefits.
- The research clearly demonstrates that these benefits pay for themselves. Featuring detailed financial analysis of five employers–Etsy, Fast Retailing, Steamboat Ski Resort, Synchrony, and UPS– the report determined the value of offering child care benefits to their employees. As reported by Axios, the research found that for every $1 spent on child care benefits, the employers saw “a net gain of between $0.90 and $4.25 through reduced absenteeism, less lateness, and lower rates of attrition.”
- Within the analysis, they also determined that retaining 1-12% of employees eligible for child care benefits meets the retention breakeven point, which they define as the number of employees that needed to be retained to cover the cost of child care benefits.
- There are major advantages to child care benefits for employees, both financially and culturally.
- Employees from the participating companies shared that these benefits made them feel their company cared for them. As a result, up to 86% of working parents were more likely to stay with their employer because of their child care offerings.
- They were able to remain more productive at work by avoiding up to 16 absences each year. With less absenteeism and more peace of mind, 78% of working parents reported positive career impacts by being surrounded by coworkers and managers who were respectful of their family needs.
A round of applause
All the forward-thinking employers investing in care are not just meeting a need, they are setting a standard and redefining what it means to be a best–in-class employer. Working caregivers are often expected to be able to do it all, stretching themselves thin as they try to find balance between their personal and professional lives. These employers are removing a major obstacle and opening doors that working caregivers might have previously thought would never open. This deserves recognition, and we should all applaud those who are paving the way.
For those who are still wrestling with the numbers or wondering if family care will truly matter to their team, the research is clear: investing in family care benefits is an opportunity employers cannot afford to miss. Keeping your employees productive? Check. Retaining your top talent? Check. Supporting a multi-generational workforce? Check. Increasing your employee’s happiness? Check. And finally, and most importantly, acknowledging and supporting your employees as individuals with loved ones they care for? Check.
In today’s workplace, a shared value proposition is a rarity that every employer would be wise to embrace. With the care crisis accelerating at an alarming rate, now is the time to be a champion of employee well-being and success and to set your organization apart by building a more caring future of work.
