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The Hidden Cost of Care: Why Every Employer Needs an Eldercare Policy – June 21, 2025

June 21, 2025

By Christine Vanlandingham

As America ages, so too does its workforce—and with it, the number of employees quietly juggling full-time jobs and full-time caregiving. These are the daughters helping their parents with personal care before heading to the office, the sons managing medication schedules between Zoom calls, and the spouses navigating dementia care while trying to meet deadlines. They are everywhere, and they are exhausted.

A recent article in the Harvard Business Review, “Your Company Needs an Eldercare Policy,” makes a compelling case: caregiving is no longer a personal issue—it’s a workforce issue. And it’s costing us dearly.

For the first time in U.S. history, the number of working adults providing care to an older adult—nearly 23 million—has surpassed the number providing care to preschool children (21 million). This shift signals a profound transformation in the caregiving landscape and underscores the urgent need for workplace policies that reflect this new reality.

According to AARP, 73% of employees have some form of caregiving responsibility. Nearly one-third have left a job to care for an aging relative. The result? Billions in lost productivity, increased absenteeism, and higher turnover. Yet only 24% of employers recognize that caregiving affects performance. This disconnect is not just unfortunate—it’s unsustainable.

At Region IV Area Agency on Aging, we see the toll every day. Our Caregiver Community Needs Assessment, which engaged 159 caregivers across Berrien, Cass, and Van Buren counties, revealed that many caregivers don’t even identify as such until they’re in crisis. They’re overwhelmed, isolated, and often unaware of the support available to them.

That’s why we’re calling on employers to act.

The Economic Impact of Caregiving

The financial toll of caregiving is staggering. According to AARP, 61% of the nation’s 48 million family caregivers are also employed. Among them, 27% have had to reduce their hours or shift from full-time to part-time work due to caregiving responsibilities. Half have made changes to their work schedules, and 16% have turned down promotions or left the workforce entirely for a period of time.

These disruptions come at a cost—not just to the caregivers, but to their employers. Absenteeism, reduced productivity, and turnover linked to caregiving responsibilities are adding millions of dollars in hidden costs to company bottom lines. AARP estimates that U.S. businesses lose an estimated $33.6 billion annually due to lost productivity from full-time working caregivers.

Building a Caregiver-Inclusive Workplace

Creating a caregiver-friendly workplace doesn’t require a massive overhaul. It starts with awareness—and a willingness to listen. Here are four steps any employer can take:

  1. Start with Data: Know how many of your employees are caregivers. Anonymous surveys can help uncover hidden needs and guide policy development. Region IV Area Agency on Aging can assist employers in designing and administering these surveys to better understand the caregiving landscape within their workforce.
  2. Offer Flexibility: Flexible hours and job-sharing arrangements can make a world of difference. Caregivers need time to attend doctor’s appointments, manage crises, and simply breathe.
  3. Implement Caregiver Leave Policies: Just as parental leave supports new parents, caregiver leave allows employees to manage eldercare responsibilities without risking their job or income. Even a few days of paid or protected leave can prevent burnout and turnover.
  4. Develop an Employee Assistance Program (EAP) with Eldercare Support: This could include access to geriatric care managers, respite care referrals, and educational workshops. Region IV AAA offers a robust network of caregiver resources, including virtual and in-person support groups, dementia education, kinship care programming, and—critically—connections to services and supports that meet the needs of the care recipient. Whether it’s home-delivered meals, transportation, in-home care, or adult day services, Region IV AAA helps caregivers navigate and access the right mix of services to sustain care at home.

A Local Resource with National Impact

Region IV Area Agency on Aging is proud to be part of a statewide effort to build a coordinated Caregiver Resource Center. We partner with local respite providers, health systems, and national organizations like the National Caregiver Support Collaborative to ensure caregivers are seen, supported, and sustained.

Employers who invest in caregiving support aren’t just doing the right thing—they’re doing the smart thing. They’re retaining talent, reducing burnout, and building a culture of compassion that pays dividends in loyalty and performance.

Caregiving is not a detour from the workforce—it’s part of the journey. Let’s make sure our workplaces are ready for the road ahead.

For more information on how to support caregivers in your workplace or to request assistance with employee caregiver surveys, visit https://www.AreaAgencyonAging.org or contact Region IV Area Agency on Aging at info@areaagencyonaging.org.

Christine Vanlandingham is CEO of Region IV Area Agency on Aging in Southwest Michigan. Questions on age or independence services? Call the Info-Line for Aging & Disability at 800-654-2810 or visit areaagencyonaging.org. The Generations column appears each weekend in The Herald-Palladium.

Filed Under: Generations Columns

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Area Agency on Aging Region IV

2900 Lakeview Avenue, St. Joseph, MI 49085

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