The newest addition to workplace benefits? Caregiving support

In the race to retain top talent, employers are exploring a new category of benefits.

When it comes to benefits at work, employees are looking for much more than two weeks of PTO.

An Asian woman in a white button-down and glasses helping an elderly Asian man with white hair and glasses look at someone on a smartphone.

And companies, anxious to retain talent, are increasingly trying to meet those demands with more robust offerings.

According to a 2023 Gallagher report, talent retention is the No. 1 priority for businesses — even before revenue.

While some benefits have become more common — child care, transportation, hybrid work — per Bloomberg, there’s one need that often goes unmet: caregiving.

  • Over 50% of US workers have caregiving responsibilities outside of work, whether for aging parents or loved ones living with chronic illness or disabilities.
  • An estimated 37m Americans spend an average of four hours a day looking after an elder.

The economic cost of caregiving in the US is estimated to range from $264B to as much as $600B.

This has major implications…

… as the population grows older.

Research suggests the nation’s caregiver shortage will only increase, and that the aging population will cost the US $290B annually by 2030.

But only 12% of companies offer some form of elder-care support, despite caregiving obligations being a primary driver for employee turnover.

To fill the void…

… new businesses are creating solutions.

Wellthy, an elder-care benefit startup, brings caregiving benefits to large employers like Best Buy and Meta:

  • Companies pay $3-$6 per employee per month, on average, for access to Wellthy’s network of specialists (often social workers).
  • The app helps workers navigate issues, from finding assisted-living facilities and home aides to choosing between rehab options — it also interviews vendors on behalf of employees.

Hilton’s HR chief told Bloomberg that the platform saved its 49k US employees 20k hours in less than a year. At Best Buy, 90k workers saved ~60k hours in two years.

This might be just the beginning…

… of a new workplace norm.

Already, employers looking to retain top talent are covering a wider range of benefits, from egg-freezing and IVF to talk therapy and maybe even psychedelics.

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