5 Reasons Businesses Win Big by Supporting Caregivers

Millions of Americans are juggling work while caring for an aging parent, spouse, or loved one. It's not an easy task. 67% of family caregivers have difficulty balancing their job with caregiving duties. That stress doesn’t just affect families and caregivers. It affects businesses too.

When caregivers are supported in the workplace, both caregivers and the place they work for wins.

Understanding these benefits can help businesses make informed decisions that improve workforce productivity, reduce costs, and enhance employee wellbeing.

1. Caregiver Benefits Reduce Turnover

High turnover is expensive. Research from Equitable Growth estimates that replacing a worker costs about 40 percent of their annual salary. One way employers can reduce turnover rates is by supporting caregivers in the workplace. Harvard Business School and Harvard Kennedy School conducted a study called “Healthy Outcomes”, which looked at the impact of employer-provided caregiving benefits on workforce outcomes. Researchers analyzed companies that offered supports such as backup elder care, flexible scheduling, and care navigation services. They found that employer-provided caregiving benefits reduced turnover by 1% to 7%

For employers, even modest reductions in turnover translate into major cost savings and stronger workforce stability

2. Less Absenteeism

Unplanned absences disrupt productivity, delay projects, and put pressure on coworkers. The stress from caregiving is linked to higher rates of anxiety, depression, and chronic illness. When companies ease that stress with flexible policies, employees experience better health and fewer sick days. That translates to lower healthcare costs and a stronger, more resilient workforce. Caregiving benefits can reduce absenteeism by up to 50%. This is based on the same study by the Harvard Business School and Harvard Kennedy School. When employees know their loved ones are cared for, they can focus fully at work.

3. Increased Productivity and Engagement

Employees who feel supported are more engaged and loyal. Recognizing caregiving responsibilities reduces burnout and improves morale. Workers who are less stressed at home show up with more energy, commitment, and focus at work.

AARP emphasizes that caregiver-friendly workplaces improve retention not only because employees stay, but because they are more motivated and productive when they do

4. Attracting Talent

Offering caregiver benefits strengthens a company’s ability to recruit and retain top talent in a competitive labor market.

In a workplace where flexibility and family support are valued, companies that offer caregiver benefits stand out as employers of choice.

In a survey by Northeast Business Group on Health and AARP, they found that caregiving is among the top 10 employee health and wellness benefits priorities for most employers

5.Benefiting from Diversity.

Caregiving disproportionately impacts women, particularly Black and Hispanic women, who provide more unpaid care compared to men or other groups. Supporting caregivers therefore advances both gender equity and racial equity in the workplace. Diversity also has measurable business returns. According to Mckinsey, companies with over 30 percent women in executive roles were the most likely to outperform their companies that had 10 to 30 percent representation. Firms with fewer women leaders, or none at all, were the least likely to achieve strong financial performance.

Caregiver support is not just a perk. It is a business imperative. Lower turnover, fewer absences, stronger morale, better recruitment, and the proven financial benefits of diversity all add up to a compelling case for action.