Handle With Care
Understanding the Challenges and Needs of Employee Caregivers
According to Bank of America’s 2024 Workplace Benefits Report, 52% of the workforce identify as caregivers. Employees balancing their job duties with the demanding responsibilities of caring for a family member face several significant challenges. These challenges can impact their work performance, career progression, financial wellness and retirement confidence. Key challenges include:
Time Management. Balancing work hours with caregiving duties often leads to stress and exhaustion. In addition, unpredictable caregiving schedules can lead to absenteeism or reduced work hours.
Career Impact. Caregivers may have to take leaves of absence, work part-time or accept lower-paying jobs to accommodate caregiving responsibilities. Career progression can be hindered due to less availability for training, networking and advancement opportunities.
Financial Stress. Direct costs of caregiving (e.g., medical bills and special equipment) combined with reduced income can lead to significant financial stress. Many caregivers dip into their savings or take on debt to manage expenses, jeopardizing their financial stability and retirement savings.
Health Issues. The physical and emotional toll of caregiving can lead to health problems, increasing personal healthcare costs and reducing productivity at work.
Taking Care of the Caregivers
To help support employee caregivers, employers may want to consider offering the following:
- Flexible scheduling, remote work and part-time options
- Leave of absence or sick days to give care to family members
- Legal services, health savings accounts and flexible spending accounts
- Employee assistance programs such as counseling or support groups
- Automatic retirement plan enrollment and escalation, with a competitive employer match
- Targeted financial education on topics such as building an emergency fund, managing credit card debt, balancing expense management with retirement planning and estate planning basics.
The Bank of America survey notes that some workers are not comfortable with self-identifying as caregivers. Top reasons include a perception they aren’t committed to doing their job (47%); are concerned that their manager or co-workers will treat them differently (26%); and fear that they will be passed over for a promotion or opportunity (22%). Employers are encouraged to provide training to facilitate a culture of support for caregivers in the workplace and to help diminish the stigma around caregiving.
Informational Resources: Bank of America’s 2024 Workplace Benefits Report; AARP: “How Caregiving Affects Your Workforce.”
This information is not intended as authoritative guidance or tax or legal advice. You should consult your attorney or tax advisor for guidance on your specific situation. In no way does advisor assure that, by using the information provided, plan sponsor will be in compliance with ERISA regulations.
Kmotion, Inc., 12336 SE Scherrer Street, Happy Valley, OR 97086; www.kmotion.com
©2024 Kmotion, Inc. This newsletter is a publication of Kmotion, Inc., whose role is solely that of publisher. The articles and opinions in this newsletter are those of Kmotion. The articles and opinions are for general information only and are not intended to provide specific advice or recommendations for any individual. Nothing in this publication shall be construed as providing investment counseling or directing employees to participate in any investment program in any way. Please consult your financial advisor or other appropriate professional for further assistance with regard to your individual situation.