Family Care: A Meaty Problem for ‘Sandwich Generation,’ Employers
Workspan Daily
May 08, 2025

Family caregiving — for children, ailing partners, aging parents and even pets — is becoming an increasingly costly conundrum for both employees and their employers. A recent research report by caregiving provider Helpr found that lack of access to family care benefits annually contributes to an estimated $1 trillion in costs associated with voluntary turnover, while employees’ care, if compensated, would add up to another $1 trillion each year.

More than 70% of the global workforce has some sort of a caregiving role, according to data compiled by Mercer; the rates for so-called “sandwich generation” demographic groups — millennials (78%) and Generation X (74%) who must care for children and their aging parents — lead the way. All of these figures exceed traditional estimates of caregiving support because many of the people being cared for — elderly parents, spouses, even friends — generally aren’t included in government and insurance definitions of “dependents,” according to Mercer.


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Return-to-office (RTO) policies and the growing cost of care are forcing employees to “face impossible choices that threaten their health, careers and financial stability,” said Bob Stephen, the vice president for health security programming at the American Association of Retired Persons (AARP).

But even with growing interest in expanding family care offerings, “it isn’t a benefit that is table stakes yet,” said Melinda Izbicki, a senior principal for health and benefits, and leader of the caregiving vertical at Mercer.

“Caregiving is impacting people in all areas of work,” she added. “It’s not hitting your claims and spend, but it’s affecting turnover, leaves of absences, presenteeism and attracting the talent we want to get.”

An ‘Unsustainable’ Challenge

Sixty-one percent of people who are family caregivers work full- or part-time, according to a 2024 AARP/S&P Global study. A Helpr survey conducted in late 2024 and early 2025found nearly half of all employees take time off for caregiving, contributing to $8.8 billion in annual productivity losses. Meanwhile, more than 80% of polled employees with caregiving responsibilities in Helpr’s new report said those duties impact their occupational performance (i.e., reduced output and/or quality, presenteeism, absenteeism).

At the same time, childcare providers are closing or increasing costs as federal support is being curtailed. More than half (51%) of the U.S. population now lives in childcare deserts with limited options for care. Elder care needs also continue to grow as the U.S. population ages, with 10,000 Americans turning 65 each day. These challenges impact workers unevenly, with hourly and frontline workers facing the greatest barriers.

“Ignoring the problem isn’t just costly — it’s unsustainable,” the Helpr report stated. “Without intervention, businesses risk losing their most valuable asset: their people.”

The Business Case for Care Benefits

Experts point to intangible and tangible benefits to supporting caregivers. “Employers who design their policies, benefits and manager training with caregivers in mind see major benefits, including higher employee engagement, retention, productivity and willingness to recruit others,” said AARP’s Stephen.

Then there’s the bottom line: Childcare support alone results in employees taking as many as 16 fewer days off each year, according to Helpr. Retaining just 1% of employees can recoup the cost of care benefits, which “deliver measurable returns that almost always outweigh the initial investment,” the report stated, noting that every dollar spent provides a return on investment (ROI) between 90 cents and $4.25.

“The returns businesses achieve vary widely, and they depend heavily on one crucial factor: how care benefits are structured and delivered,” the report stated. “Their success hinges on how well they are designed to address the real needs of employees. Poorly executed programs risk falling flat, while thoughtfully tailored benefits can transform workplaces.”

Building Blocks of Better Care Benefits

Among the strategies to develop effective benefit programs, consider ways to:

  • Pinpoint employee needs through surveys or focus groups. “It’s hard to leap in and do everything at once,” said Julie Stich, the vice president of content at the International Foundation of Employee Benefit Plans (IFEBS). “If you know the most urgent issues facing employees, you can get started.”
  • Use existing policies and providers as a foundation. Many employers have policies to comply with the Family and Medical Leave Act (FMLA) or state and local requirements, along with telecommuting and flexible work rules. Benefit brokers and consultants also can identify opportunities to expand offerings, according to Stich.
  • Consider a broad range of care benefits. Emergency backup care, paid leave, subsidized care benefits, flexible work schedules, and services that address care for neurodivergent family members and those with other special needs are among the options. Some employers also are offering onsite care or partnering with other regional employers, particularly in areas with care deserts.
  • Be creative. Backup care programs can cover both unplanned emergencies and scheduled events, such as care for school-age children during spring break, as well as services such as tutoring. Traditional onsite services, such as childcare facilities, also could include creative options such as a supervised coffee space where parents and grandparents can socialize while employees work. And, providing paid leave for pet care can make benefits more equitable by reaching more employees, Izbicki noted.
  • Subsidize care benefits. Unlike reimbursement procedures, direct subsidies for care expenses can improve accessibility, according to Stephen.
  • Leverage existing support structures. Both employee resource groups (ERGs) focused on childcare and eldercare issues and related employee assistance programs (EAPs) can provide support. Employers also can provide referrals to community resources or provide third-party concierge navigational support for different types of caregiving needs, said Izbicki.
  • Shift workplace culture. “Employers should legitimize the value of family caregivers’ work,” Stephen said. Along with providing greater visibility of care issues and benefits, train managers to educate employees about benefits — and make caregiving issues less of a workplace taboo. “Employees should be comfortable talking to their managers and coworkers about their caregiving challenges,” Stich said.

Editor’s Note: Additional Content

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