Why Caregiver Stress Is a Total Rewards Issue (and Opportunity)

A recent survey found an emerging, highly stressful emotional burden felt by Americans that extends beyond the typical financial strain of meeting childcare costs.

According to Care.com’s 12th annual Cost of Care Report, the true care costs in the U.S entail an added layer above the basics. In fact, the responses of 3,000 surveyed parents reveal, according to CEO Brian Wilson, “the relentless juggling act and daily sacrifices of caring” are not just toward children but, in many cases, an entire household.

(Care.com is an online marketplace that connects families with caregivers for childcare, senior care and a variety of other services.)

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At a time when the U.S. surgeon general has declared the declining mental well-being of parents a national concern, the report paints a 360-degree view of the hidden challenges workers navigate and the heavy toll caregiving has on their stress and mental load.

Wilson stated his organization’s report makes an urgent case for actual systematic solutions to help families reclaim their time, joy and personal/professional life balance.

“The stress level and mental load on parents today has reached unacceptable heights, spurring detrimental outcomes,” he added, emphasizing that “it’s not just [about] children, in many cases; rather, working parents take care of it all — and it takes a massive toll.”

“Some parents reveal they are responsible for the care of as many as five loved ones, including children, aging parents and even pets,” Wilson said.

Regarding the stress outcomes resulting from managing caregiving responsibilities, survey participant responses show:

90% are losing sleep.
80% cry (for mothers, this increases to 90%).
75% feel a sense of dread.
71% are experiencing health issues.
29% have considered suicide or self-harm.

More than Financial Costs

Wes Burke, Care.com’s chief human resources officer, emphasized that the caregiving report found it isn’t just expensive for parents to care for loved ones, it’s also exhausting.

“When considering the full scope of caregiving, parents aren’t just managing costs; they also are sacrificing their well-being and having just a few short hours to themselves each day,” he said. “The weight of caregiving is incredibly personal but also universal, yet widespread support remains scarce.”

Burke added it’s not just a family problem, it’s a workforce and economic one, too. When caregivers are stretched too thin, he said, they struggle to remain productive on the job — some even leave the workforce entirely. As a result, businesses can struggle to retain talent, which hinders the U.S. economy.

“On the flip side, if society were to invest in care, there exists an untapped potential to strengthen families, grow the labor force and fuel economic stability,” Burke said.

Melinda Izbicki, a senior principal in health and benefits at Mercer, underscored the mental, physical and financial health impact on workers.

“It’s stressful when care breaks down,” Izbicki said, citing three primary examples: a child may wake up sick, a babysitter fails to show up or school is unexpectedly closed.

“Also, the burden typically falls on women to address these issues while also working,” she added. “This can potentially result in higher absenteeism, lower productivity and even increased healthcare costs related to mental well-being, stress and burnout.”

Izbicki noted the cost of care is becoming so burdensome, workers often must choose between working and being a full-time parent/caregiver. She said Mercer is seeing an increasing trend of workers (particularly women) choosing the latter.

“This directly impacts employers from a retention and turnover perspective, as well as impacts their bottom line in areas such as increased recruiting costs and loss of key talent,” she said.

In addition, Care.com’s Burke cited the organization’s 2024 Future of Benefits Report, which found approximately 80% of employers said care benefits for children and seniors improve productivity, retention and recruitment.

“Employers have a real opportunity to ease the caregiving stress weighing on their workforce,” he said, adding that flexibility matters, first and foremost.

“Employers must make it clear that no worker should feel forced to choose between a job and their family,” Burke said. “Workplace structures that provide clarity — whether through in-office collaboration, hybrid models or predictable schedules — help working parents manage care logistics without feeling like they’re running a daily marathon.”

A Total Rewards Issue

Gord Frost, Mercer’s global rewards solution leader, said it ultimately becomes a total rewards issue, as employers need to take a holistic approach to address what caregivers deem as important.

“For instance, this can include elements of their healthcare and wellness programs and also elements of paid time off and flexible working — which may be managed by other teams within the HR department,” Frost said.

He added that only by working together and taking a broad total rewards view can employers really differentiate themselves in this regard.

Izbicki added there are some common, yet innovative tools at total rewards professionals’ disposal to help employees who are also caregivers. For example, many employers are addressing caregiver needs through benefits like backup care, concierge/navigation support, subsidies to offset the cost of care, and a network of providers (full-time or part-time) to support childcare and eldercare needs.

From a more innovative lens, she said Mercer is seeing employers broaden the definition of caregiving to include:

Petcare, with subsidies to support pet sitting or dog walks while employees are traveling or in the office;
Onsite backup care (not meant for full-time care, but drop-in only), creating their own access either through onsite childcare or near-site, dedicated networks; and,
Expanded eldercare support, with transportation funding and grocery deliveries.

Izbicki said effective communication of offerings can be done through employee resource groups (ERGs), Slack channels, etc., and through cross-promotions with vendor partners (e.g., fertility, wellness, advocacy).

“Promoting all of the offerings — for example, that backup care can support elderly loved ones as well as children — can also be helpful in case they think it’s only for parents of small children. Webinars also have shown to be very effective in communicating the benefits,” she said.

Care.com’s Burke noted there is no better time to start this important work.

“Our research makes it clear: Fixing this isn’t just the right thing to do, it’s necessary for our future,” he said.

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