Beyond the Paycheck: Investing in Caregiving to Drive Employee Retention and Productivity

Recent BCG research finds that childcare benefits deliver returns of up to 425% of their cost for companies across the United States. At From Day One’s January virtual conference, Rachel Peterson, VP of marketing at Upwards, provided insight on sustained care and creating holistic solutions for employees.

“How can we ask “why” a few more times to really get ourselves to the heart of what is the holistic need that isn’t being met here? We can do a better job of serving and that will then help [improve] everything from mental and emotional well-being at work, to financial well-being when there’s a steady care system in place,” she said. “When we offer that organizationally, we see employees that are happier, that are healthier, that are more successful. If we care for an employee, they take better care in their day working responsibilities.” 

Peterson spoke on not only the lack of childcare resources, but the growing need for adult care resources for employees across organizations. A highly impacted demographic of employees are those working nontraditional hours when child care or adult care is not available. “Are we able to offer something to employee populations that creates a sustainable improvement in their lives?”

“So, we know that over 50% of families in the U.S. live in a child care desert, and that means that there are not adequate care centers to meet the needs of families within an area. In areas that are seeing that desert, there are also 18 plus month wait lists for childcare centers,” said Peterson.

According to a 2020 U.S. Chamber of Commerce Foundation study, 58% of working parents reported leaving work because they were unable to find childcare solutions that met their needs. Outside of the lack of childcare resources the cost of childcare leaves families balancing if working outside of the home is feasible. 

“I remember hearing around the middle of last year, a new report came out that childcare for two children is now more expensive than rent in all 50 states, which is really one of the other things that makes this no longer nice to have, but really a need for employees,” said Peterson. 

With a lack of available resources and resources that most working families cannot afford, a family care benefit provided for employees could make all the difference when balancing working outside of the home. “We’ve seen 80% reduction in turnover for organizations that do offer this benefit, a 30% reduction in absenteeism and, unsurprisingly, improved employee satisfaction,” she said. 

Not only do employees feel strain when trying to balance child rearing and a career but many also have an added weight of caring for aging parents. “65% report a negative career impact as a result of not having the support they need in that caregiving and its complex journey right now,” said Peterson. 

Not only do many employees struggle to find appropriate childcare but they may be caring for aging parents at the same time, navigating insurance, medical resources, and appointments. 

Rachel proposed a question for all employers, “Keep going down into the ‘whys,’ and oftentimes, what we find is that the central why of what holistic care and holistic benefits mean for an employee population is, what can we offer them that makes them feel valued, safe, secure, and know their families are being taken care of,” she said.

“The challenge of work-life balance is without question one of the most significant struggles faced by modern man,” as said by Steven Covey. What’s important for the modern company is listening to the concerns of their employees and shifting to find solutions not only in the workplace but lightening whatever struggles employees face.

Editor’s note: From Day One thanks our partner, Upwards, for sponsoring this thought leadership spotlight.

Tabitha Cabrera, Esq. is a writer and attorney, who has a series of inclusive children's books, called Spectacular Spectrum Books.