The numbers don’t lie – the modern workforce is undergoing dramatic demographic shifts. We’re seeing an aging population, with more people balancing caregiving for both children and aging parents. Dual-income families are now the norm, with both partners participating in the workforce. Despite these clear changes, many workplace policies—especially those around caregiving and family support—don’t reflect the new realities that employees are facing. In this blog post, we’ll explore the latest trends in leave programs, dig into critical data and insights that HR leaders contributed to in the 2024 Larkin Leave Benchmarking Report, examine how the needs of today’s workforce have evolved, and discuss why many companies are falling behind.
An Aging Population and Workforce
As America’s population ages, a growing number of employees find themselves in a caregiving “sandwich”—juggling the responsibilities of caring for young children while also looking after elderly parents. By 2050, the number of Americans aged 65 and older will reach 83 million, representing a significant portion of the population. Many of these individuals will rely on their adult children for care, putting extra pressure on the working population. But this isn’t just a problem of the future – caregiving stressors are a potent and pervasive issue for employees today. According to S&P Global 67% of family caregivers have difficulty balancing their job with caregiving duties, with 27% cutting their hours significantly, and 16% exiting the workforce entirely for a period of time.
These statistics point to the urgent need for companies to reevaluate their family care policies, but despite this, only 45% of companies in the Larkin Leave Benchmarking Report offer paid family care leave. The lack of support has not gone unnoticed with 80% surveyed by S&P agreeing that companies are more understanding of childcare issues than with adult caregiving–a particularly troubling trend given that the number of adults over 65+ is expected to surpass the number of children in the US by 2030. Without comprehensive paid family medical care leave (PFML) policies in place, companies risk losing valuable employees who are forced to choose between their careers and their caregiving responsibilities.
What Can Companies Do?
- Implement paid family care leave to support employees caring for aging relatives
- Offer flexible work schedules to accommodate caregiving responsibilities
- Provide caregiver assistance programs such as Larkin’s new Family Care Concierge, that offer resources and support for employees managing dual caregiving roles
Susan Reinhard, Senior Vice President and Director of AARP Public Policy Institute argues that providing much-needed support to struggling workers should be thought of as a moral imperative for companies:
As the backbone of America’s long-term care system, providing $600 billion every year in unpaid labor, family caregivers need and deserve greater support from their own employers.
But paid family medical leave can also prove fruitful to companies who get it right. S&P found that companies that offer better leave report the lowest voluntary turnover rates – data that mirrors the superior retention and recruitment reported by participants in our benchmarking report.
The Rise of Dual-Income Families
According to the Boston College Center for Work & Family (BCCWF), 66% of American families are now dual-income households, with both parents working full-time jobs. Further, the BCCWF found that both men and women now consider themselves equally focused on family and career. These dueling interests are putting employees in a bit of a pickle: how do you balance work and home when both parents are working and over half of U.S. residents live in areas where childcare options are too overcrowded or too expensive for them to access? It’s a question that employees are looking for employers to answer. Though more traditional leave programs such as paid parental leave have become almost ubiquitous across the board, with 91% of organizations offering paid parental leave, and 91% offering paid foster and adoption leave, the rise of dual-income families means that parents need more than just basic leave policies. They need flexible, comprehensive benefits that accommodate the realities of modern parenting. Yet many companies have been slow to adapt. The Larkin Leave Benchmarking Report shows that 39% of companies offer child care assistance beyond basic Employee Assistance Programs (EAPs). Without access to affordable, reliable childcare, working parents are often forced to make difficult trade-offs. This isn’t just a personal issue—it’s a business issue. When parents can’t find adequate childcare, they are more likely to miss work, reduce their hours, or leave their jobs altogether. This turnover comes with high costs for employers in terms of both lost productivity and the expense of recruiting and training replacements. Conversely, the BCCWF reported that 75% of employees say they are more likely to stay loyal to an organization that offers expanded leave – a statistic that strongly aligns with the benchmarking report that revealed that 81.25% of companies say paid leave helps reduce turnover.
What Can Companies Do?
- Expand paid parental leave to include family-building support like fertility assistance, miscarriage leave, and adoption assistance
- Provide meaningful child care assistance, going beyond EAPs to help employees manage childcare costs and availability
Partner with Larkin and elevate your workforce’s experience, giving you the competitive edge to draw in and hold onto the industry’s best talent.
Why Family Care Policies are Critical for the Future
As workforce demographics continue to shift, employers must adapt their benefits programs to meet the changing needs of their employees. With an aging population, the rise of dual-income families, and a growing caregiving burden, it’s time for companies to take action. Family care leave and childcare assistance are no longer optional perks—they are essential components of a modern benefits strategy. Companies that invest in these programs now will not only support their employees but also set themselves up for long-term success in attracting and retaining top talent. Curious what other trends top employers are making note of? Check out the 2024 Larkin Leave Benchmarking report to learn more about the future of benefits and leave.
