Unmanaged Eldercare is Costing Your Company Money
by Sheril Herman of American Companion Care
biz2biz News - May, 2011

Family members needing to care for loved ones 50 years or older cost American businesses as much as $29 billion each year.

It is estimated between 15–25% of every workforce are employees providing care to an older loved one.

Each caregiver loses on average 166 hours of productivity due to absenteeism and interruptions.

• 20% of the caregiving employees will quit their jobs to provide care full-time.
• The costs associated with employee turnover have huge impacts on an organization’s bottom line.
• Furthermore, the caregiving employee’s productivity and general attitude affect managers and co-workers and their productivity and morale.

The financial impact of all these factors combines to staggering dollar amounts.

For example, a Kansas City area company that employs 500 people loses over $1.8 million each year to unmanaged eldercare—equal to about 15% of their salary budget.

Employed caregivers are more likely to...

• Miss work or come in late/leave early
• Experience a loss in productivity
• Lose a job or career opportunity
• Experience negative economic impacts
• Take unpaid leaves of absence or use personal or sick days to provide care
• And they are two to three times more likely to develop depression

The bottom line: Caregivers need help.

What is the return on investment (ROI) of an Eldercare Benefits Program?

Since 1996, it has been reported that every $1 spent on eldercare programs gets a return of $3 - $5 in productivity, retention and reduced absenteeism.

The most valuable return on investment for an eldercare program is employee retention. The time, money and valuable expertise that are lost when employees leave is far more costly.

A national study reported that companies without eldercare benefits stand to lose $2,500 a year per caregiving employee.

“For those employees who serve as caregivers, peace of mind while they are working is key,” says Sheril Herman, Co-Founder of American Companion Care.

Eldercare programs like American Companion Care can help alleviate some of the responsibilities and pressures of family caregiving through providing some respite from care. Adding eldercare services to a benefits package will enhance the value of an employer and help any employees who have eldercare responsibilities affecting their work. Contact Us or Call (913) 390-6300 for further information.