Caregiving doesn’t stop when employees clock in for the day. Whether it’s child care, senior care, or unexpected responsibilities, caregiving takes a toll—on employees and on businesses.
Our just-published 2025 Cost of Care Report reveals just how deep these challenges run.
Employees are burning through savings, juggling responsibilities that stretch them thin, and making career sacrifices because they can’t find or afford the care they need. These pressures lead to higher absenteeism, lower productivity, and increased turnover, creating hidden costs that many businesses overlook.
The good news? When companies step up with caregiving support, it’s not just the employees who benefit. Teams are more focused, turnover slows down, and people actually feel like they can bring their best selves to work—because they’re not constantly worrying about what’s happening at home.
Caregiving responsibilities are pushing employees to their limits
The 2025 Cost of Care Report paints a stark picture: employees are paying more for caregiving and struggling more because of it.
Key findings from the report:
- 40% of household income goes toward caregiving expenses—including child care, elder care, pet care, and home management.
- 33% of parents have dipped into savings just to afford child care.
- 29% of parents say caregiving stress has led them to consider self-harm or suicide.
- 90% report losing sleep, and 75% say they feel a sense of dread.
These numbers highlight a widespread crisis that’s not just affecting employees at home—it’s following them to work.
Absenteeism and turnover: the hidden cost of caregiving for businesses
When caregiving responsibilities become too much to handle, employees make tough choices that directly impact their work.
How caregiving costs businesses:
- Absenteeism spikes: Employees take more time off to deal with caregiving emergencies.
- Productivity drops: Stress and exhaustion lead to disengagement.
- Turnover increases: Employees leave jobs that don’t support their caregiving needs.
In fact, the report found that:
- 15% of parents have had to reduce their hours at work.
- 7% have left the workforce entirely due to caregiving challenges.
- 13% have switched jobs to find better caregiving support.
The cost of losing and replacing an employee can be incredibly high. Companies that invest in caregiving benefits aren’t just supporting employees—they’re making a strategic decision that improves business comments.
What employees want from their employers
Employees are clear about what they need: flexible, affordable caregiving support.
The top benefits people are asking for:
- 79% want employer-subsidized caregiving benefits.
- 86% want access to a single platform where they can find multiple types of care (child care, elder care, and pet care).
These solutions don’t just benefit employees—they make workplaces more attractive, more supportive, and empower people to focus when they’re on the clock.
How companies can take action
HR leaders and benefits brokers have an opportunity to make a real impact. Here’s how:
1. Offer employer-subsidized caregiving benefits
Providing financial support for caregiving—whether through spending accounts or reimbursement programs—helps employees afford the care they need without dipping into savings.
2. Make finding care easier
A membership to Care.com helps employees quickly find trustworthy providers for child care, senior care, pet care, and household services.
3. Educate employees on available resources
Many employees aren’t aware of the full scope of benefits available to them. Regular communication—through onboarding, emails, or manager training—ensures employees can take full advantage of their options.
Investing in care is investing in your workforce
Caregiving isn’t just a personal issue—it’s a workplace issue. And employers who address it win on multiple fronts:
- Increased retention: Employees stay longer at companies that support them.
- Higher engagement: Workers who feel supported are more productive.
- Lower absenteeism: Reliable caregiving options mean fewer unexpected absences.
By offering caregiving benefits, businesses don’t just help employees—they strengthen their workforce, reduce costs, and create a culture where employees can thrive.
Check out the full 2025 Cost of Care Report for more about what your employees are facing, or reach out to talk to our benefits experts about what you can do to build a better workplace.
