Mercer’s 2022 Australian Benefits Review reveals significant gaps for ‘sandwich generation’ of workers 

Australia, October 19, 2022

Australia’s ‘sandwich generation’ of workers are being left behind when it comes to HR policies and benefits, according to Mercer’s 2022 Australian Benefits Review (ABR) released today.

The sandwich generation refers to the large population of Australian adults who face intense pressure between work and home life as they care for both their children and their elderly parents or loved ones, oftentimes without caregiver assistance.

This year’s ABR survey reveals that a staggering 89 per cent of Australian organisations do not offer assistance to employees with child care responsibilities (beyond parental leave policies). The number is even higher for those with other caregiving roles, with 92 per cent of organisations not offering assistance to employees with elderly, aged care or disability care responsibilities.

The impact is significant, particularly when it comes to employee retention and broader organisational productivity. Mercer’s Global Talent Trends Report shows that one in five organisations are experiencing higher than normal employee turnover of people with caregiver responsibilities. Often, it’s a company’s most experienced and highest paid workers that fall within this category.

What’s more, it’s estimated that the average employee with ageing-carer responsibilities will typically take 190 hours in aggregated time (approximately five weeks) to search for and put in place appropriate care solutions for loved ones, highlighting the substantial potential productivity cost to businesses¹.

According to Chi Tran, Head of Market Insights and Data for Mercer’s workforce consulting practice, this significant shortage in employee caregiving benefits represents an important opportunity for employers who are looking to attract and retain top talent in today’s highly competitive employment market.

“As the war for talent continues to intensify, organisations have a huge opportunity to better support a large portion of their workforces – that is, caregivers. Companies may not only gain a competitive edge by enhancing their caregiving benefits, but they can feel comfort in knowing they are providing much needed value to their people.

“Some examples of caregiving benefits we’re seeing in the market include onsite day care, dedicated online portals for carers, discounted legal assistance for eldercare advice or access to holistic care concierge services,” she said.

Despite many employers lacking an established stable of caregiving benefits for employees, flexibility remains a key focus for Australian organisations. 81 per cent are reporting the use of formal strategies or policies to support flexible work arrangements in 2022, which continues to increase year on year. 

Consistent with 2021 survey results, the most common approaches to support flexible working include ongoing flexitime (start and finish times for work) which is offered by 84 per cent of employers, and compressed work weeks, with 26 per cent of employers providing this benefit.

However, peoples’ values are shifting, as are their expectations of work. While flexibility is important, companies need to look at their total value proposition.

“The majority of the market is pursuing flexible work as a benefit in some form, and employees have come to expect this. To remain attractive and adaptive, organisations need to think more creatively when it comes to the benefits they provide. A blanket, ‘one size fits all’ approach isn’t going to cut it,” Ms Tran said.

“Leading organisations are revisiting their benefits programs to ensure they are personalised and focused on the total employee experience. What will become increasingly important is a benefits program that supports employees through the moments that matter most to them,” she said.

• While significant strides have been taken to expand parental leave benefits in Australia, there is still a long way to go before these become standard practices. 86 per cent of organisations pay superannuation for employees while they are on parental leave. However, of this number, the majority (63 per cent) only provide superannuation during the paid portion of the leave.
• There has been a slight increase in organisations providing additional paid leave for wellness, with 19 per cent of organisations offering this as a benefit compared to 15 per cent in 2021.
• The vast majority of the market continues to provide Employee Assistance Programs (EAP) in their workplaces, with 97 per cent of organisations providing this in 2022 compared to 92 per cent in 2020.
• Physical health and wellbeing benefits are still the most common benefits offered, with a majority of organisations providing flu vaccinations (87 per cent), health and wellbeing education sessions (64 per cent) and gym discounts or subsidies (40 per cent).

The Australian Benefits Review (ABR) is the largest and most comprehensive employee benefits data source in the Australian employment market. The 2022 report captures data from 402 participating organisations across a variety of industries. Intended as a single reference point for all HR policy areas in the Australian market, ABR captures detailed information on wellbeing, wealth and career development policies. Learn more here.