Employers brace for caregiver crisis 

With the expiration of COVID-era childcare government subsidies, the stage is set for a caregiver crisis that could stall productivity across workplace settings. According to Mercer’s Health on Demand survey, 61% of employees are self-reported caregivers in some capacity. This responsibility directly affects their ability to do their jobs – studies have shown that 80% of employees with caregiving roles say it affects their productivity, one in three have left a job due to stress, and they are twice as likely to develop chronic illnesses, with many experiencing exhaustion, stress financial hardship, and declining physical health.   

The full repercussions have been held at bay by the childcare subsidies that came to an end in October. This funding helped keep daycare centers in business for the past several years throughout the pandemic. Now, an estimated 70,000 daycare centers are likely to close or increase tuition fees substantially to stay in business, disrupting the care plans of millions of children and their families. Employers can use November – National Family Caregivers Month – to put a spotlight on how they will address the potential impact on their caregiving employees, mostly women, who may leave the workforce as options for childcare narrow.

How can employers support families?

Some 34% of employers already offer child or elder caregiving benefits, with another 37% planning to offer them. Here are ways employers can address cost, quality, and access concerns:

• Cost: Consider caregiver subsidies, which could include a payroll credit, caregiver credit, or subsidizing the cost of care including backup care or access to a provider platform. This can support all individuals caring for someone else – babies, children, and aging loved ones.
• Quality: Working with vendors in this space provides vetted provider support both in-home and in-centers who are background checked and have safety standards and liability.
• Access: Consider providing access to a network of providers (in-home and in-center) who could help employees find regular care. With the return-to-work initiatives this year, some employers are considering an onsite employer-sponsored center to promote returning to the office with convenient care. Note that this is typically only for employers with ample space and critical mass at one location, is expensive, and takes significant time to develop. Alternatively, employers could contract with a local provider to purchase seats at a center on behalf of employees or join a consortium to provide near-work options.

As this space and employees’ needs continue to evolve, employers should evaluate their benefits aligned with the needs of their population and determine how best to support them.