Employers could raise retention rates, productivity by investing in caregiving support, report says

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The United States is racing toward a severe caregiver shortage with expectations that the issue will continue through 2028. The COVID-19 pandemic exacerbated this problem.

Credit: Photo by Kampus Production from Pexels

More and more adults are juggling full-time work and caregiving responsibilities — and it’s costing employers about $33 billion a year in lost productivity and employee retention, said Diane Ty, managing director of Milken Institute Future of Aging and co-author of the institute's report on the issue.

When companies create a culture of openness, people feel secure in sharing their difficulties with work/life balance and caring for loved ones, Ty said.

• MORE: Early onset dementia is making the caregiving crisis worse

"There is some fear of stigma," Ty said, especially when it comes to the challenges for members of Generations Y and Z who, increasingly, split caregiving responsibilities between children and aging parents.

Child rearing and needs for child care, day care, preschool and on are understood better by employers than when a worker is caring for an adult with dementia.

"When it's an older adult, it is often sudden, episodic," Ty said.

While, economically, the caregiving crisis will affect just about everyone, the majority of caregiving falls to women, who already earn less than men.

"We already have a labor shortage in this country," Ty said.

Women who leave the workforce to care for someone who then dies, face ageism when they try to return to a career, she said.

It's having a multi-generational impact.

"It's a whole cycle," Ty said. "My big concern are the number — and growing number — of young adults, Gen Z, who are caregiving, whether for their parent or grandparent."

On average, people are paying about $7,200 a year out of pocket for a dementia caregiver, Ty said, noting costs can range upwards to $12,000 a year — at the individual level.

On the employer level, people leaving the workforce exacerbates the labor shortage, and, on a societal level, we're facing a quiet crisis, she said, adding that it's no longer quiet.

Employers should consider paid leave beyond maternity and paternity leave, to policies that support any family member whether that looks like paid time off unrelated to sick or vacation pay, the report said.

The Milken Institute worked with U.S. News & World Report on its inaugural list of best companies when it comes to supporting family caregiving.