Caregiver Benefits: A Strategic Guide for HR Leaders

We all know that balancing work with caregiving duties can be incredibly challenging. The skyrocketing costs, decreasing availability, and logistical hurdles of care services can lead to stressed employees and high turnover, which can seriously impact your business success.

But there is good news! You aren't just at the mercy of the caregiving economy.

 By offering comprehensive caregiver benefits, you can support your team, reduce turnover, and boost overall performance. There are a wide variety of caregiver benefits — like financial assistance, paid leave, flexible work arrangements, and more — so you can select a mix that's right for your company to boost employee satisfaction. Let’s dive in and discover how investing in caregiver support can transform your workplace for the better!

What Are Caregiver Benefits?

Caregiver benefits, or dependent care benefits, are programs and financial benefits that help employees take care of their dependents. These benefits support parents of young children as well as caregivers with a dependent spouse, parent, or relative. 

Any multigenerational workplace has a lot to gain by offering caregiver benefits. They support employee work-life wellness and ensure that working professionals can provide for their dependents without having to leave their jobs. However, not all caregiver benefits are the same — some businesses offer only minimal financial support while others provide a wide range of scheduling and counseling services.

Caring for an infant or adult dependent can be like a full-time job. Offering a range of benefits is a great way to reduce the burden on caregivers so they can balance their home and work life more comfortably.

The Business Case for Caregiver Benefits

Comprehensive caregiver benefits foster inclusion in the workplace by providing opportunities for caregivers. But that’s not all ­— these benefits can also boost employee retention and maximize performance by supporting work-life wellness.

Consider the example of working parents. In an interview with CNBC, economist Sinem Bubar reported that there are around 1.2 million fewer women in workforce data since the start of the COVID-19 pandemic — in part due to rising childcare costs. Working parents of all genders, mothers in particular, are increasingly forced to quit their jobs because they can’t afford full-time child care. 

Employee attrition is expensive. According to one estimate, it can cost between $4,000 to $20,000 to hire a new employee. That’s not including the hidden costs of lost talent, burnout, and time wasted in the recruitment process. 

In addition to preventing attrition, caregiver benefits can also increase employee happiness by helping caregivers feel less exhausted and stressed. This, in turn, boosts productivity and encourages better individual performance.

Types of Caregiver Benefits

There is more than one way to support a caregiver. It’s not just about helping them afford child care — it’s about boosting wellbeing to ultimately improve your company’s bottom line. 

Here are a few different types of caregiver benefits HR professionals can consider. 

Financial Assistance

One of the most direct ways to help parents and caregivers afford the services they need is to provide financial assistance. Caregiving services — such as daycare, summer camp, and in-home care — have gotten more expensive over the past few years. According to a Care.com survey, most parents spend around 24% of their income on child care.

Financial assistance programs help caregivers offset these costs. This can be done through:

• Tax credits and deductions: Some care services qualify for child and dependent tax credits, according to the IRS. HR teams can offer assistance in accessing those credits as well as providing additional deductions.
• Stipends and reimbursement programs: Annual, quarterly, or monthly stipends help offset the costs of qualifying care services.
• Spending accounts: Flexible spending accounts and dependent care assistance programs allow caregivers to invest a portion of their paycheck into employer-sponsored care funds.

Paid Leave

Even with financial assistance and access to care services, sometimes a caregiver simply can’t come to work. New parents, for example, need time off to bond with their newborn or recently adopted child. Employees may need time to care for a relative after a severe accident. Paid leave allows employees to take that vital time without losing their income. 

Types of paid leave for caregivers include:

• Family and medical leave: The Family and Medical Leave Act entitles employees to up to 12 weeks of job-protected leave for the birth of a child or another event. Companies can choose to offer partial or full pay during this period.
• Paid time off (PTO): There are many forms of PTO, including sick leave and vacation time. Many companies offer additional PTO for caregiver purposes.
• Short-term disability benefits: Some caregivers qualify for private short-term disability insurance, which compensates for income lost during a period of leave.

Flexible Work Arrangements

One of the biggest challenges working parents face is adjusting to a new schedule, according to Care.com. Whether it’s coordinating schedules with a co-parent or dropping kids off at school, a caregiver’s schedule might conflict with their work schedule. This can lead to decreased productivity and working mom burnout. 

Offering flexible work arrangements is a great way to accommodate caregivers’ schedules without sacrificing productivity. Examples of working arrangements for caregivers include:

• Remote and hybrid work: Working from home allows caregivers to stay on top of their work while still being available for their dependents.
• Flexible schedules: If an employee can get their work done any time of day, there is no reason to enforce a 9-5 schedule. Allowing caregivers to clock in earlier or later than usual gives them more freedom throughout the day.
• Task sharing: Sharing duties between team members, rather than assigning entire projects to one individual, helps the whole team meet deadlines even if one employee’s schedule is unpredictable due to caregiving duties.
• Compressed work weeks: A compressed week, or working longer hours per day and fewer days per week, is popular among millennials and a great way to accommodate a caregiver’s schedule. 
• Phased return to work: Caregivers who take PTO don’t need to return all at once. Allowing them to start on a part-time schedule can make their return easier. 

Respite Care

Respite care is a service that provides part-time support for caregivers. The goal of respite programs is to provide temporary relief, allowing caregivers to focus on their professional responsibilities or take time for self-care. These services are typically offered to caregivers whose dependents have mental or physical disabilities.

There are two main types of respite care:

• In-home care: An in-home respite worker takes over the caregiver’s duties at home.
• Facility-based care: Respite facilities offer more intensive, supervised care for children or adults with disabilities.

As an HR professional, you might not be able to provide respite care for your employees. However, you can offer subsidies or discounts for respite care services. Offering respite benefits alongside standard child care benefits is a great way to encourage workplace diversity, as it shows support for caregivers of all ages and identities, not just new parents. 

Counseling and Support Services

Counseling and mental health support services are a must for supporting neurodiversity and creating a welcoming, inclusive workplace. They can also go a long way to support caregivers. Taking care of a dependent — whether they’re a child, family member, or partner — is mentally and emotionally exhausting. Support services will help to fight the stress and burnout many caregivers experience.

Here are some examples of support programs for employees. 

• Workplace counseling: Offering mental health counseling services at work is a great way to make sure all employees have access to support if they need it. 
• Support groups: Consider offering support groups for parents and caregivers on your team. These can be self guided or hosted by a counselor.
• Employee assistance programs (EAPs): These are workplace programs designed to help employees and their families through trying times. Caregiver-centered EAPs can provide educational resources, access to counseling services, and other support.

Caregiver Training and Education

Another helpful caregiver benefit is access to training and educational support. Many caregivers, particularly first-time parents, may feel overwhelmed by their responsibilities. Training programs can help them build confidence as they step into their new roles. However, education can also get pricey — that’s where employer benefits can help. This can include: 

• Directly: You can offer free access to workshops, online courses, and caregiving classes in your community. An e-book voucher or subscription is another helpful employee perk.
• Through a partner organization: Some companies partner with local organizations to provide educational resources to employees. This is a great way to offer access to free birthing, parenting, or caregiving courses without paying out of pocket.

Legal and Financial Planning

Legal and financial support helps caregivers navigate some of the more confusing aspects of their role. It’s important for caregivers to understand their options when it comes to planning for their futures. Offering that support at work is a simple way to reduce stress and improve caregivers’ wellbeing.

Legal and financial planning services might include:

• Legal guidance: In-house or external counseling services on wills, trusts, power of attorney, long-term care insurance, and other legal matters caregivers need to know. 
• Financial guidance: Counseling on relevant financial topics for caregivers, such as 529 education accounts and dependant care FSAs.
• Access to financial advisors: Offer to connect caregivers on your team with a financial advisor. This can be a one-time meeting or an ongoing service and will help them set up funds and plan for their dependents’ financial futures.

How To Implement Caregiver Benefits (Step-by-Step)

Like any employee benefits program, caregiver benefits help your employees thrive and foster a supportive working environment. There’s just one problem: Unfortunately, no company has unlimited resources. 

Successfully implementing caregiver benefits requires careful planning and resource allocation. 

A few steps to help your HR team implement caregiver benefits include:

1. Talk to Your Employees

If you’re wondering what benefits employees value most, there is a simple solution: Ask them. Talking to parents and caregivers on your team about their experiences is a great way to gain insight. Open communication can help you learn which benefits would help them feel most supported, encouraging them to stay with the company long term.

This can be done through focus groups, surveys, or individual conversations. Asking your employees about the benefits that matter to them will help shape your strategy and let them know they’re valued.

2. Plan an Investment Budget

Employee benefits are an investment in your business. However, they also come with an upfront cost. Work with company leaders and stakeholders to come up with a budget for caregiver benefits. This should include the costs of financial support and paid leave, as well as potential costs of hybrid and flexible work schedules. 

Some caregiver benefits might be covered under your current employee benefits package. For example, if you already employ a mental health counselor, you may be able to offer caregiver-specific counseling at no extra cost.

3. Work Out the Details

Once your budget is laid out, you can plan for the details of your caregiver benefits plan. Factors to address include: 

• Eligibility: Will new employees have access to these benefits or are they limited to long-term employees?
• Qualifying services: Which caregiving services qualify for stipends or discounts under your benefits plan?
• Definitions: How will you define a caregiver? Who will have access to perks like education and legal guidance?

4. Roll Out New Benefits

Start implementing new caregiver benefits. Be sure to communicate with your employees for feedback and make sure their needs are being met. 

Implement Caregiver Benefits to Support Employee Wellness

Despite what hustle culture might tell us, everyone deserves a balanced, supportive work culture. By supporting caregivers, you’ll promote a healthy work culture, boost productivity, and improve employee retention. When in doubt about which benefits your company should offer, just talk to your team — your employees will tell you what they need. 

Caregiver benefits can be used in tandem with other wellbeing programs and initiatives to keep your entire diverse workforce happy.  

Wellhub is here to help HR teams invest in their employees' wellbeing.  Speak with a wellbeing specialist to learn more about the best ways to support a well and happy team. 

You May Also Like

• Paternity Leave: Everything HR Needs to Know
• Parental Leave is More Than an Employee Perk — It Benefits Businesses Too
• Navigating Stress Leave from Work: A Guide for HR Leaders 

References

• Assemble. (2023, March 21). Forbes EQ Brandvoice: Five hidden costs of employee attrition. Forbes. https://www.forbes.com/sites/forbeseq/2023/03/21/five-hidden-costs-of-employee-attrition/
• Dhue, S. (2023, March 9). Companies enhance benefits to help employees balance their work and caregiving demands. CNBC. https://www.cnbc.com/2023/03/09/employers-enhance-benefits-to-help-keep-caregiver-employees-on-the-job.html
• Staff, Care.com. (2024, April 29). This is how much child care costs in 2024. Care.com Resources. https://www.care.com/c/how-much-does-child-care-cost/
• Veith, H. (2023, September 19). Top 10 back-to-school challenges Working Parents Face. Care for Business. https://www.care.com/business/back-to-school-challenges/
• What is the cost of hiring new employees? Indeed.com. (n.d.). https://www.indeed.com/hire/c/info/cost-of-hiring-employees