Employer Assisted Care: Not Just for Children
Feb 1, 2012
In 1971, Arnold Hiatt, the then CEO of the Stride Rite Corporation, opened the first on-site childcare center, and revolutionized the way people balanced their work lifewiththeir home life. The program proved to be innovative and wildly successful. Today, nearly every major organization that prides itself on being an excellent place to work provides anon-site daycare center or some form of childcare assistance.
As many great ideas originate, Hiatt and Stride Rite stumbled on the idea of their employer assisted daycare center. In the late 1960’s, women were leaving their homes to work at an escalating pace and baby boomers were beginning to start families of their own. This led to the need for affordable childcare. Hiatt’s childcare center was originally planned to be for underprivileged children living in the neighborhoods of Boston. Many of his employees could not justify the operating costs of the center, which was serving the community in general without direct benefits to them. With pressure from the labor union, Hiatt offered Stride Rite employees the opportunity to bring their own children to the center as well. The results were unprecedented, establishing Stride Rite as an industry leader in work/life balance and setting the foundation for the employer assisted childcare industry.
Today, the combination of an aging population and an increased demand on both men and women in the workplace are leading to unheard of eldercare challenges for families. By 2030, the American population of people age 65 and over will double to 70 million1. The sandwich generation is expanding at a rapid pace. The average caregiver provides 21 hours of caregiving a week or 1080 hours a year2 and will lose over $500,000 in lifetime earnings3due to this responsibility.
As employees look to provide the best possible care to their loved ones, employers are experiencing the consequences. According to a recent MetLife Study, 62 percent of employed caregivers say they make some sort of workplace accommodation such as going in late or leaving early, taking a leave of absence, or dropping back to part-time due to caregiving responsibilities.4 This costs employers approximately $2,110 per employee annually.4 If you think this issue doesn’t affect your organization, picture this: 65.7 million Americans or 29 percent of the adult population are currently serving as caregivers2 and as the population ages that number will continue to grow. The eldercare dilemma is one that mimics that of the early years of the childcare issue. However, this situation is going largely unnoticed and is not being addressed.
Employer funded eldercare assistance can provide access to resources to help employees manage this complex responsibility. The result will not only be an increase in employee peace of mind, but also an increase in employee loyalty and respect for your commitment to helping them gain work/life balance. There are also significant financial benefits for both employers and employees. According to the 2010 MetLife Study, research shows that investment by a company in helping with eldercare support has a pay back to the employer of 3 to 13 times the cost.4The investment by an organization will help offset costs due to absenteeism, unpaid leave, replacing employees, reduction in employee hours, as well as distraction and presenteeism.4
Some options that are available to employers include offering subsidized and/or voluntary eldercare support programs provided by third party companies. Employers may also offer respite care and back-up care to employees. The most useful and practical support programs begin with a comprehensive assessment of the elder loved one’s current situation. This assessment informs the recommended plan of care. Employees then receive information on quality resources to support the plan of care and their caregiving needs. Organizations that deliver this service will become partners with the employees and their family in guiding and supporting their eldercare responsibilities. Employers that introduce and implement eldercare support programs will be innovators and industry leaders in this critical issue, just as Stride Rite was in the early 1970’s.
About The Author
Anne Harrington is the COO and co-founder of Long Term Solutions and their WeCare+ service. LTS is a national healthcare company that specializes in helping families address the care needs of their loved ones. WeCare+ is a signature program designed to assist families with eldercare needs. Send inquiries to AHarrington@LongTermSol.com.
Nan Stone, “Building Corporate Character: An Interview with Stride Rite Chairman Arnold Hiatt,” Harvard Business Review (March 1992)
1- Coughlin, J., (2010). Estimating the Impact of Caregiving and Employment on Well-Being. Outcomes and Insights in Health Management, Vol. 2; Issue 1.
2- National Alliance for Caregiving and AARP, Caregiving in the U.S. Bethesda, MD: National Alliance for Caregiving, and Washington, DC: AARP, 2009
3- AARP Public Policy Institute. (2011) Valuing the Invaluable: Contributions, Costs and Consequences of Family Caregiving
4- The MetLife Study of Working Caregivers and Employer Health Care Costs (2010, February). New Insights and Innovations for Reducing Health Care Costs for Employers. Pittsburgh, PA.
