Supporting Caregivers Through Strategic Leave Policies
Today, caregiver leave is provided for within Family and Medical Leave Act regulations and is often a topic of conversation for our in-force clients when discussing leave utilization, particularly as concern regarding the aptly named “caregiver crisis” grows. As the population ages, we’re watching increased caregiving needs being placed on the American workforce. The trend of employees doubling as familial caregivers is growing, with women supplying most of the unpaid labor.1
These demands have an impact on caregivers’ daily lives, relationships and overall health, and they also affect the organizations that employ them. At The Standard, we can help evaluate your organization’s annual leave trends in comparison to your industry peers. This can help uncover where there may be opportunities for improvement when it comes to supporting and retaining employees who are balancing caregiving demands.
Unpacking Low Leave Rates
While many employers may be initially pleased to see low leave utilization during an annual trend review, it’s important to understand that low leave utilization may suggest something altogether different. This could be indicative of an employee population that would benefit from additional training to better understand their options and resources. Alternatively, it could be a symptom that employees are concerned that taking a leave of absence may result in a negative employment outcome even when it is necessary for their overall health and well-being. Data suggests this may be particularly true when leave is to care for a family member, as many employees report fearing consequences when sharing caregiving-related information with their employer.2 Low leave utilization of this type can lead to growing presenteeism or attrition, which can quickly become costly endeavors for the overall organization.
Leave Data Tells a Bigger Story
In a recent example, a client’s data demonstrated significantly higher leave utilization at one of their two primary locations. While the initial takeaway following the annual review was to understand and resolve the cause of high leave utilization in their first location, what we came to find in subsequent meetings was that this location had a much more tenured employee population. Their leave program was more established than at the secondary location. While employees were reporting leave at a higher volume, they were also staying in their positions for significantly longer periods of time. The solution for this client then was to introduce additional leave training opportunities at the second location in an overall effort to increase employee retention. Annual absence trend reporting can help tell a story that increases an employer’s ability to be strategic in attracting and retaining a productive workforce.
Understanding your leave utilization alongside other key data elements such as presenteeism and retention is important. Data indicates that caregiving responsibilities are impacting all levels of your talent pool, and your tenured, highly compensated employees are the ones most likely to resign due to competing responsibilities.2
According to Harvard’s Healthy Outcomes Report, U.S. businesses incur over $1 trillion annually due to turnover. Subsequent loss of productivity, as well as recruitment, training and hiring costs to replace new talent results in up to twice the resigned employee’s annual salary.3 It’s not a matter of if, but when your workforce will be impacted by the caregiving crisis. Understanding how caregiving impacts employee performance, health and retention isn’t just thoughtful — it’s a smart business decision.
Key Takeaways
Caregiving demands are rising and continue to disproportionately affect women in the workforce. Low leave utilization may signal gaps in your organization’s benefits or leave programs. With support from The Standard’s Absence Management Services, organizations can analyze trend data to uncover meaningful opportunities within their leave programs, ultimately supporting caregivers and protecting the bottom line.
Contact your account manager if you have questions about your program or find a representative near you for questions or more information about leave resources.
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Provide a better way to manage employee leaves and support their transitions.
Absence Management Services make it easy to track your employee leaves. We handle a broad range of absences, including short term and long term disability and family medical leave. Get expert help to comply with state and federal regulations.
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