Title text here Family Caregiving and the Workplace: The Problem and Solutions Lynn Feinberg, MSW Senior Strategic Policy Advisor AARP Public Policy Institute Minnesota Working Caregiver Policy Forum November 30, 2012 2 Changing workplace demographics Profile of the working caregiver Research on the impact of caregiving on work Promising strategies and solutions Overview 3 The Problem Changing Workplace Demographics Eldercare is having an increasing impact on both employees and employers because of the aging of the population and the labor force. An estimated 1 in 5 Americans (or about 72 million people) will be age 65+ in 2030, up from about 1 in 8 Americans (or more than 40 million) today. Older workers are a growing part of the workforce. Workers age 55+ share of labor force participation: 12.0% (1999) 19.5% (2010) 23.9% (2018, projection) 4 Changing Workplace Demographics Most family caregivers are women, and more women are in the workplace too. In 2010, nearly half (47%) of women worked outside the home, up from 33% in Working Family Caregivers: Who Are They? The average U.S. caregiver is a 49-year old working woman. The vast majority (74%) of family caregivers have worked at a paying job at some point during their caregiving experience. 61% are currently employed (FT or PT) Approximately 26.5 million working caregivers Source: National Alliance for Caregiving and AARP, Caregiving in the U.S More Workers Have Eldercare Responsibilities 42% of U.S. workers have provided eldercare in the past 5 years. About half (49%) of the workforce expects to be providing eldercare in the coming five years. Source: Families and Work Institute, The Elder Care Study: Everyday Realities and Wishes for Change, October More Workers Have Eldercare Responsibilities In 2011, more than 1 in 6 (17%) workers in the U.S. provided eldercare, up from 13% in % women; 46% men 22% of middle-aged and older workers (ages ) report being caregivers typically for an aging parent The largest of any age group in the labor force Source: Gallup, Inc Working Family Caregivers: Socioeconomically Diverse Annual Income 21% earn less than $36,000/YR 16% earn $36,000 - $89,000 15% earn > $90,000 Education Level 20% high school or less 15% college graduate 16% post-graduate work or degree Race 21% African American 20% Hispanic 17% White 14% Asian Source: Gallup, Inc Working Family Caregivers: Financial Impact Impact on income security includes: lost wages, job security, and career paths Impact on employment benefits includes: health insurance, Social Security, and retirement savings Even small reductions in work hours to provide unpaid care can have long-term consequences for retirement security. Some evidence that family caregiving increases a womans risk of living in poverty in old age. 10 Working Family Caregivers: Lost Wages and Retirement Lifetime income-related losses Family Caregivers age 50+ who leave the workforce to care for a parent = $324,044 for women $283,716 for men $304,000, on average, in lost income and benefits Source: MetLife Mature Market Institute, The MetLife Study of Caregiving Costs to Working Caregivers: Double Jeopardy for Baby Boomers Caring for Their Parents, June Impact of Caregiving on Work 1 in 5 (19%) retirees left the workforce earlier than planned due to caring for an ill spouse or other family member (Source: Employee Benefit Research Institute, The 2012 Retirement Confidence Survey, 2012) 24% of family caregivers say providing care keeps them from working more (Source: Gallup, Inc. 2011) 68% of working caregivers report making work adjustments due to caregiving Arriving late/leaving early or taking time off during the day (64%) Taking a leave of absence (17%) Quitting a job to give care (10%) Reducing work hours (9%) (Source: National Alliance for Caregiving and AARP, Caregiving in the U.S. 2009). 12 Impact of Caregiving on Work Caregivers most likely to make work accommodations: Have the most intense level of caregiving (21+hours of care/wk) Live with the care recipient Experience a high burden of care Are in poorer health Source: National Alliance for Caregiving and AARP, Caregiving in the U.S Impact of Caregiving on Work: Health Effects Compared to workers who are not caregivers, working caregivers are: Less well rested More likely to be diagnosed with high blood pressure Experience elevated daily and chronic physical pain Source: Gallup Inc., Impact of Caregiving on Work Caregiving has economic consequences not only for working caregivers, but also for employers Costs to accommodating and supporting caregivers, but there are also costs to not doing so Average est. annual cost to employers in lost productivity per FT working caregiver = $2,110 (Source: MetLife Mature Market Institute and NAC, 2006). - Costs include absenteeism, workday distractions, supervisory time, replacing employees, reductions in hours from FT to PT Employers pay about 8% more for the health care of working caregivers compared to non-caregiving employees (MetLife Mature Market Institute, NAC & Univ. of Pittsburgh, 2010) 15 Making the Business Case: Cost to Bottom Line 16 Loss of $33.6 billion/yr in lost productivity from full-time caregiving employees Promising Strategies & Solutions 17 Making the Business Case: Cost Savings 18 Institution of workplace policies that support and accommodate working caregivers provide an increase in cost savings to the employer. Providing Workplace Flexibility Many working caregivers do not have access to workplace flexibility Particularly low-wage workers Successful workplace flexibility requires a supportive workplace culture Emphasize supportive supervision Flexible workplace arrangements care include: flextime, compressed work-week scheduling, reduced hours/work-week scheduling, job sharing, telework, and job-task negotiation 19 Providing Workplace Flexibility Workplace Flexibility ToolkitDeveloped by the U.S. Department of Labor 172 resources in the toolkit 20 Offering Eldercare Benefits 71% of working caregivers report that their employer is aware of their caregiving role, yet Only 25% or 1 in 4 employees has access to eldercare programs that would support them and help keep them on the job. Source: Gallup Inc, Offering Eldercare Benefits Eldercare benefits can help working caregivers better manage their caregiving responsibilities and their jobs Examples of such workplace programs include: Referral to respite care resources in the community, care consultation, access to transportation to medical appointments, discounted backup home care for emergency needs Eldercare programs can improve worker retention, productivity, stress levels, and health among workers. 22 Promoting Wellness Programs Business strategy to support the needs of employees and employers Providing wellness programs to: lesson stress/strain (e.g., yoga) enhance worker satisfaction/morale improve worker physical/mental health reduce health care costs 23 Enhancing Public Policy Solutions Public policy plays an important role in long-term services and supports (LTSS) by establishing: Who is eligible for help What services are provided How quality is monitored And the ways in which family caregivers are supported, i ncluding working caregivers Actions of the private sector also affect state performance 24 Enhancing Public Policy Solutions State Long-Term Services and Supports Scorecard Minnesota : Ranked 1st overall in the nation Ranked 4 th on the overall Support for Family Caregivers dimension Ranked 17 th on legal and system supports for caregivers (composite indicator) Source: Reinhard et al., Raising Expectations: A State Scorecard on LTSS for Older Adults, People with Physical Disabilities, and Family Caregivers, Enhancing Public Policy Solutions Legal system supports are important to help working caregivers maintain their caregiving role and still hold down a job. State LTSS Scorecard: Recognizes and supports family caregivers as a key component of state LTSS systems Legal system supports for working caregivers: Exceeding federal minimum FMLA Having mandatory paid family leave and sick days Protecting caregivers from employment discrimination Source: Reinhard et al., Raising Expectations: A State Scorecard on LTSS for Older Adults, People with Physical Disabilities, and Family Caregivers, Public Policies for Working Caregivers Help Families, Employers, and Our Economy Enhancing the FMLA to cover more workers Providing paid family leave insurance Only California and New Jersey offer paid family and medical leave Ensuring paid sick days Nearly 40 million private-sector workers do not have paid sick time Improving Social Security benefits for caregivers Protecting family caregivers from employment discrimination 27 Examples of Workplace Discrimination in Eldercare Penalizing family caregivers for requesting or taking job-protected leave to which they are entitled (FMLA) Stereotyping caregivers as less competent and committed workers Sending the message that caring for parents is not an adult childs responsibility Treating employees caring for aging relatives differently than others 28 Best Practices for Removing Barriers to Equal Employment Opportunity for Working Caregivers Adopt a model employee policy for preventing family responsibilities discrimination Provide workplace flexibility Develop and provide education and training to supervisors and managers Offer eldercare support, resources, and referral services to employees Implement recruitment practices for people with eldercare responsibilities Some midlife and older people may quit their jobs to care for a parent, and then wish to return to work later on /.29 Take Aways Equal opportunity in the workplaceand the ability of workers to balance work and family responsibilitiesis central to quality of life Eldercare is fast becoming an issue in the workplace Family caregiving responsibilities at home can lead to negative consequences at work Family caregiving has economic consequences not only for the worker, but also for the employer Policy and best practice solutions are win-wins to both help workplaces adapt and support caregiving families 30 Questions? Lynn Feinberg