BACKUP CARE – FASTEST-GROWING WORK-LIFE BENEFIT

Backup care continues to be one of the fastest-growing employee benefits. The percentage of companies nationwide now offering this benefit has doubled year-over-year and backup care growth exceeds that of all other work-life benefits (1). The emerging interest in backup care can be attributed to several factors in today’s business environment.

Retention Ranked as #1 HR Concern
Employee retention has edged out controlling costs as the number one benefits objective of employers, for the first time since MetLife began polling both benefits decision-makers and full-time employees in 2003. According to MetLife, the benefits package now plays a greater role in determining whether employees decide initially to work for an organization as well as whether they change employers. Since employers believe the competition for skilled workers will intensify, work-life benefits could be seen as playing a more prominent role as a key differentiator (2).

Eldercare Emerges as Workplace Issue
Eldercare has hit the workplace and the news headlines as a major issue. Already 12.4% of the population is 65 or older and by 2030, almost 1 in 5 Americans – some 72 million people – will be 65 or older (3). Americans are living longer (average life expectancy is now nearly 78 years (4)) and are more likely than ever to live either on their own or with family members, vs. in formal assisted living arrangements (80% eldercare is provided by family members(5)). As life expectancy increases, more workers will be involved in caring for aging spouses, siblings, parents or other loved ones, forcing employers to consider eldercare resources and programs as part of a work-life package.
 
Absenteeism Rates Continue to Climb
Absenteeism recently reached its highest rate since 1999 with nearly 1 in 4 unscheduled absences due to family issues (6). Absenteeism caused by caregiving responsibilities costs employers more than $7 billion per year (7). As employers begin to track the bottom line impact of employees who miss work, they are seeking solutions like backup care to help reduce absenteeism.

Productivity Demands Increase While Workforce Remains Lean
Many businesses are trying to do more with less. Today’s business culture demands incredible productivity from a very lean workforce. Workers feel valued when their employers provide programs like backup care that recognize the caregiving responsibilities that employees manage outside of work, which in turn help employees succeed at work.

Employee Benefits Must Produce Measurable Results
Managers face pressure to offer benefits that create tangible results. Companies realize a measurable financial return from offering backup care. For every dollar invested in backup care, employers can expect a return of $3-$4 in increased productivity and reduced turnover (8).

Employers Seek Cost-Effective, Universal Benefits
When compared to the growing costs of healthcare and other employee benefits, backup care is available for a very low annual cost per employee and offers a feature that is priceless – peace of mind for employees who need care for their loved ones. Additionally, companies have employees of all ages, genders, family structures, income levels, geographic locations, work hours and positions. Backup care provides dependable and affordable care for loved ones of all ages, equally serving the needs of diverse employee populations. This inclusive program goes beyond being female-friendly or parent-friendly and is instead workplace-friendly. The program makes care available to all employees who face a common challenge of caring for family members and remaining productive at work. 

Employees Push for Work-Life Balance
Two recent polls indicate that better work-life balance is high on the priority list for most Americans.

• Nearly 6 out of 10 respondents put a healthy work-life balance as their most important workplace goal for 2008 (9).
• 7 of 10 respondents said what they wanted most of all from a job was a flexible, family-friendly workplace (10). Employees often list backup care as the most valued, most important or most highly regarded benefit provided by their company because the program solves a very real problem and supports their demands for work-life support.

Sources:
1 – 2007 - SHRM Backup Care Report
2 – 2007 - MetLife Annual Employee Benefits Benchmarking Report
3 – 2007 - U.S. Census Bureau
4 – 2007 - National Center for Health Statistics
5 – 2007 - AARP
6 – 2007 - CCH Unscheduled Absenteeism Survey - 2006
7 – 2006 - MetLife Mature Market Institute
8 – 2004 - WFD Consulting
9 – 2007 - Beyond.com
10 – 2007 - Center for State and Local Government Excellence