80% of employers say Care benefits have a positive impact on productivity, and 78% say they help boost recruitment and retention efforts. But how does this translate into cost savings for an organization?
Employer-sponsored family care benefits are a win/win for both employees and employers. Employees get the help they need to find care for their families so they can show up at work less distracted—and employers’ benefit from reduced absenteeism, and increased productivity and retention.
Until now it has been difficult to estimate the return on investment, but with the recent launch of Care’s business impact calculator, we can help employers calculate the potential savings of Care’s benefits from:
- Annual savings from lost productivity
- Annual recruiting costs saved
- Total potential savings from Care benefits
Here’s How the Business Impact Calculator Works
Let’s say your organization is considering offering Backup Care benefits. Backup Care is a subsidized solution to help your employees find care on the days when their regular, ongoing care is unavailable, so they don’t have to miss work. To help you calculate the potential savings of offering Backup Care, you simply need some basic workforce data from you such as:
- Annual savings from lost productivity
- Annual recruiting costs saved
- Total potential savings from Care benefits
While employer-specific data provides a more accurate estimate of impact, if you do not have access to all the requested data fields, you can use default national averages built into the calculator. For example, if you don’t know your projected program utilization, we recommend that you use a conservative estimate of 10% and assume your employees will be eligible for 15 days of backup care per year. Once you submit the requested data, within minutes you will receive a custom estimate of your potential savings from Care’s benefits.
Potential Cost Savings for a Mid-Size Company Considering Care Benefits
Let’s put the calculator into action so you can see firsthand how it works. A mid-size company is considering implementing Care benefits. Their organization has a high attrition rate of 32+% and their recruitment costs are running them approximately $4,700 per new hire. Not to mention, every time an employee misses work or leaves their organization, productivity suffers.
The company provided us with the following data:
- Number of employees = 3,000
- Average employee salary = $51,480
- 10 days of backup care per year will be provided to employees
- They assume 10% utilization in year one
Using this specific workforce data and Care’s Business Impact calculator, we estimate that this company can potentially save:
- $600K in annual savings from lost productivity (and by averting 300 days of employee absenteeism)
- $760K saved in recruiting costs
- $1.3 million in annual cost savings
Ready to learn more about how Care benefits can help your organization save money? View our caregiving solutions and use Care’s business impact calculator to discover how a small investment in Care benefits can have significant returns for your business.
