Caregiving Leave Can Offer a Labor Market Advantage

As many in the workforce navigate the transition from remote work to in-office, some employers are building bridges between the two with enhanced leave programs. These programs address the needs of the estimated 1 in 5 employees who are providing care for someone who is “aging, ill, or disabled, outside of their paid job,” according to the Rosalynn Carter Institute for Caregivers.  

With potentially 20% of the workforce engaged in caregiving at any one time, companies that build caregiving leave programs into their total rewards strategy can expand their talent pool, boost employee loyalty, and strengthen their ability to adapt to a dynamic labor market.  

The future of work, according to Wendi Safstrom, president of the SHRM Foundation, is striking a balance between “collaborative and in-person work and personalized flexible benefits.”

The Evolution of Workplace Flexibility

Many employees have found that the flexibility of remote work or even hybrid work helps them fulfill their duties both at work and at home. For caregivers, this flexibility is especially significant: 45% of working caregivers currently have access to a flexible work schedule, with 80% reporting they use it, according to a survey from S&P Global and AARP Research. As companies return to the office, caregiving leave programs offer an opportunity to maintain flexibility while addressing diverse employee needs. In terms of recruiting, these programs expand the talent pool to include candidates who need additional flexibility to join the workforce. 

In addition to offering greater convenience, these programs can drive productivity and engagement. Employees say their caregiving responsibilities make them “motivated to be productive and efficient,” rating the motivation they get from caregiving at 4.2 on a scale from 0 (not motivating) to 5 (very motivating), according to data from Vivvi and The Fifth Trimester. Caregiving programs can reassure employees that flexibility will be available to them when their circumstances change. Additionally, these programs help embed empathy into company culture, further impacting productivity. In one survey from Catalyst, 76% of workers with highly empathetic leaders reported feeling “often or always” engaged with work. This highlights the impact of prioritizing empathy and finding ways to build trust and support within your organization: It helps enhance employee retention and satisfaction.

Addressing Diverse Definitions of Caregiving

Caregiving responsibilities are as varied as the employees who undertake them. Traditional definitions focus on family members such as children, spouses, and aging parents. However, modern workplaces must account for evolving family structures and societal norms. State policy is evolving to include workplace protections for varied caregiving responsibilities. For example, Illinois recently enacted legislation that seeks to protect caregivers from workplace discrimination when they are providing care for domestic partners, siblings, and grandparents. Companies evaluating their capabilities and capacity to offer benefits for caregivers may want to expand these definitions further to include care for close friends and pets—both of which reflect shifting cultural trends.

Taking Fido to his annual vet appointment may not be a leader’s first thought when considering whether to create or expand caregiver leave. However, members of different generations may have different cultural norms, with traditional roles and community makeups shifting. According to the CDC, from 2014 to 2020, the fertility rate dropped by 2% a year. After an uptick in 2020-2021, the rate fell again in the most recent report by 3% in the last year, 2024. This is consistent with data collected from Generation Z and Millennials—part of the future of our workforce—that shows these generations having fewer children, if any. At the same time, pet ownership, specifically of cats and dogs, is growing. 

Beyond pets, family dynamics are changing. Families continue to grow, but in nontraditional ways where caregiving might shift from helping a spouse or parent to supporting a close friend or “chosen family” member. 2020 data collected by the Center for American Progress shows the reliance of the LGBTQ+ community on caregiving from their chosen family, with 51% reporting relying on a nonfamily member for support for a health-related need. Those outside the LGBTQ+ community also demonstrate their reliance on nonfamily members, with 36% reporting they have required help for a health-related need.  

While many in the workforce continue to elect for traditional family makeups, it’s clear that demographics are shifting. Leave programs that expand coverage accordingly will imbue trust and loyalty with employees. 

Overcoming Challenges to Caregiving Leave Programs

With such a wide berth of coverage, there is concern that productivity will be lost from extending leave to cover caregiving duties. Aside from the increased motivation that comes from employees who trust their employers, leaders can look to a few metrics to stack up absences against other costs that come from more rigid programs. Specifically, turnover, the cost per hire, and the time to fill can all be compared against the cost of absenteeism tied to these leave programs. It may also help to look at the revenue per employee over time to see if it shifts up or down as employees take advantage of the leave program.   

Another potential challenge is manager readiness, according to Lauren Fast, chief people officer at iS Clinical and executive coach. Fast explains, “while caregiving leave programs can enhance well-being, their success depends on whether managers are equipped to handle the operational and interpersonal aspects of leave management.” According to Fast, there is a balance managers must find between the “practical realities of redistributed workloads” and the “emotional nuances” when it comes to supporting team members who may feel concerned about taking leave.

There is also an equity-in-access issue where front-line employees or those in male-dominated fields may feel cultural or structural pressure to avoid taking leave. According to Fast, overcoming this barrier requires companies to ensure “caregiving leave is perceived as a universal benefit, free from stigma,” and to “actively monitor utilization rates across demographics to identify and address gaps.” When looking to build this type of flexible leave program, here are parameters to consider: 

Types of Caregiving

There are many definitions of “caregiver,” including individuals with the responsibility to provide care to a child, stepchild, spouse, domestic partner, sibling, parent, mother-in-law, father-in-law, grandchild, grandparent, or stepparent. Leaders seeking to offer comprehensive caregiving leave should consider that caregiving also extends to pets, partners who do not cohabitate, and friends. 

Length of Leave

When building parameters around the number of hours or days available to use, it’s important to consider the current offerings for paid time off (PTO) and/or sick leave. It may be helpful to distribute caregiving leave time on a quarterly basis, with some type of rollover to allow employees to better plan for anticipated leave needs, such as scheduled surgeries or other health events. 

Transparency

Consider what information HR needs to qualify employees for this type of leave. Your organization might offer open leave, where PTO is uncategorized and available whenever employees need it. This can reduce the burden on both the employee and the employer to provide specific documentation when taking leave. However, this flexibility also means it can be more easily misused by employees. If your organization offers PTO for specific reasons such as vacation, sick time, or something else, it can be easier to prevent misuse with caps on time taken. It will also require a system of documentation and recordkeeping for employees and employers. 

There are infinite ways to assemble a caregiving leave program, which means each program can meet the unique needs of an organization. When building a program for your organization, consider surveying employees about current caregiving needs and starting with a pilot program that can change at key inflection points. 

Steps to Building a Successful Program

When designing a caregiving leave program, organizations should: 

1. Define Caregiving Broadly: Start with established definitions, looking to state, local, and federal laws as a base, but expand your definition to include pets, partners, and chosen family members to ensure inclusivity.
2. Determine Leave Length and Flexibility: Offer a set number of caregiving leave days or hours per quarter with rollover options for planned caregiving events.
3. Plan for Workload Distribution: Fast advises companies to be proactive about distributing the workload when employees are on leave. This means cross-training and resource planning to support the company as caregiving becomes a more frequent need.
4. Establish Transparent Processes: Simplify eligibility requirements by allowing employees to submit informal documentation, such as an email or verbal confirmation, for emergencies.
5. Pilot the Program: Launch a six-month pilot with measurable objectives, such as participation rates, employee satisfaction scores, and absenteeism trends. Use feedback to refine and scale the program.
6. Communicate Benefits Clearly: Highlight the program’s role in supporting employee well-being and fostering a supportive workplace culture.

Caregiving leave programs are a bridge between the flexibility employees utilized in a remote work environment and the demands of in-person work as the world returns to the office. They also help protect against an unpredictable labor market and the many costs associated with attrition, putting organizations in a position to flourish with a team that is motivated to accomplish more. By offering caregiving leave programs now, organizations can mold policies to fit the needs of the workforce while continuing to attract top talent.