By Lindsey Giardino, Freelance contributor
With five generations now active in the workforce, caregiving responsibilities are increasingly shaping what employees need — and expect — from their employers. New research from Principal Financial Group “Work & Worth: Insights on Stress, Money and Well-Being in the Modern Workplace” found that caregivers are 98% more likely than non-caregivers to experience work stress spilling into their home lives and 74% more likely to say that stress impacts their romantic relationships.
The research also found that employees who have access to benefits like health insurance, financial assistance for caregiving and wellness support feel their benefits packages are significantly more tailored to their lives. Access to paid family care benefits increased employee loyalty by 20%, including among workers who are not currently caregivers themselves.
Kara Hoogensen, senior vice president and head of workplace benefits at Principal Financial Group, shared how caregiving is transforming the workforce and what employers can do to better support employees both at work and at home.
The following Q&A with Hoogensen has been edited for brevity and clarity.
I’m curious how Principal defines caregiving, especially in terms of the research that was done.
We’re really looking at individuals who self-identify as caregivers. That can mean providing financial or non-financial support for a younger individual or dependent in their lives. It could be a neighbor or a loved one. It also includes caring for the prior generation, whether that’s parents or extended family. And then there’s the sandwich generation — individuals who are doing both of those things at the same time.
Why did Principal decide this was an area worth exploring more deeply?
Attracting and retaining talent continues to be a major focus for businesses. In fact, retaining top talent is a growing concern for 60% of businesses. Part of our role is educating employers and the advisers who work with them on how to create work environments where individuals can truly be productive and deliver their best work.
Caregiving became a major focus area. Outside of our own research, AARP recently highlighted that unpaid caregiving now represents a $1 trillion economic reality. That’s a startling statistic and highlights the important role employers play in overall well-being.
About 20% of the workforce is currently in caregiving status, and that’s not going away. By 2030, there will be 73 million people age 65 or older. Health care advances may improve quality of life, but they don’t eliminate the reality that more people will need support with daily living as they age.
How does this research impact women, in particular?
There’s a disproportionate amount of caregiving that falls to women. The U.S. Department of Health and Human Services has cited that 75% to 80% of elder care hours are delivered informally, and 61% of that care is provided by women.
It has a real impact. One in three working mothers is considering a career downshift because of the stress that comes from balancing work and caregiving responsibilities.
Tell me a little about the benefits Principal offers related to caregiving, or benefits other employers could consider implementing.
With five generations in the workplace, employers really need to think about offering benefits that meet a wide range of needs. Employees value optionality and flexibility because what one employee needs today may look very different from another coworker’s needs, or from what they themselves may need later in life.
When employers offer tailored benefits packages, employees feel more cared for, and it creates a stronger workplace culture. Health insurance remains at the top of the list, and it absolutely contributes to employee loyalty. Other highly valued benefits include financial assistance for caregiving support, child care assistance, wellness support and flexible time off.
We also have a day care center next to our Des Moines campus, and it’s been a fantastic retention tool. It makes life easier for working parents to be able to visit their children during the day or participate in day care events.
Another important benefit is paid leave for welcoming a child into the family. Principal offers both maternal and paternal leave. Paid family medical leave is another newer benefit gaining traction, and some states now require it. More employers are recognizing the value of supporting employees financially while they care for themselves or loved ones.
I feel like a lot of the things you mentioned aren’t necessarily out-of-the-box ideas, but they can make employees feel cared for and understood.
Absolutely. One interesting thing we found through this research is that simply having access to benefits like paid family leave increases employee loyalty, even among employees who may never use the benefit themselves.
I think people view it as a safety net. If something unexpected happens, they know support is available.
