The way we work — and the benefits that employees value most — are changing. Because younger generations are the main recipients of benefits, traditional benefits alone are not enough to meet changing needs. Employees are juggling work, life and caring responsibilities in new ways, which means companies need to rethink their approach to benefits. By integrating family care benefits into existing offerings, organizations can create a more supportive, holistic benefit program that increases employee well-being, reduces financial burdens, and improves retention.

Let's look at the numbers

It's official now. For the first time, the number of Gen Z employees (born between 1997 and 2012) exceeds the number of baby boomers.

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Gen Z and their Millennial counterparts (born 1981-1996) now account for a combined 54% of the workforce, resulting in a noticeable shift in employees' attitudes to work and expectations of employers.

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Demographic change goes beyond generational population. Younger generation workers are less likely to live in a traditional family and are more likely to have childcare responsibilities and aging parents.

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According to the latest data, almost a third of families with children under the age of 18 are single-parent households. That number has tripled since 1965, and the number of single fathers is also on the rise.

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Overall, 73% of working people admit to having caring responsibilities. 3 in 4 carers of employees say they spend 10 or more hours a week caring for children, the elderly, children and adults with special needs or pets.

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A new mix of employee benefits

As organizations adapt their benefit strategies to changing working conditions, they are discovering a powerful multiplier effect: when innovative care-focused benefits are integrated into a traditional offering, it has a positive impact on talent acquisition, satisfaction and loyalty.

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However, the positive growth is not only due to the offer of more employee benefits. Instead, the impact is driven by the integration of family care benefits and other standard benefit offerings such as health insurance, paid time off.

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Today, effective employee benefit programs combine traditional benefits with incentive benefits that closely match the challenges faced by an organization's employee population. Examples of incentive benefits include employee support plans, pet insurance, wellness plans, and commuter discounts. The incentive benefits category also includes a range of family care benefits that support the challenges of childcare, elder care, special needs care, pet care, and self-care.

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Family care benefits — support for childcare, the elderly, people with disabilities, pets, and self-care — can complement basic employee benefits such as PTO.

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When employees have access to care benefits such as Benefit Care or resources that support the search for caregivers, they can optimize their leisure time for rest and relaxation rather than emergency cases of lack of care. The impact is felt. A study by Harvard Business School found that access to care planning, administrative services and support reduced employee absenteeism by up to 50%.

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Employees focus on flexibility in work-life relationships

Workplace flexibility is at the top of the list of needs as employees make hiring decisions, staying ahead of such basic issues as healthcare options. As more and more companies implement a return to the office strategy, offering flexibility in the workplace to accommodate the demands of everyday life becomes even more important.

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Depending on the industry and role, flexibility can take the form of flexible schedules, work organization, remote or hybrid work, and paid vacation benefits. In addition to offering benefits that support work-life flexibility, companies need to “translate words into action” by creating a workplace care culture that allows employees to confidently adapt their workday to care appointments or schedules.

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Family care benefits relieve financial stress

7 in 10 employees report experiencing financial stress and estimate that they spend up to 3 hours a day worrying about their finances at work. Employers recognize this problem, and 75% of them say that the financial stress of their employees negatively affects the company's operations.

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Traditional employee benefits, including medical, disability and accident insurance, are designed to ease the financial burden of rising health care costs and unforeseen expenses. However, they do not solve the current budget problems related to the care of children, the elderly or pets.

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Caregiving responsibilities play a significant role in employees' assessment of their financial condition.

Childcare costs continue to be a significant financial burden for families, with parents spending an average of 22% of household income on childcare alone, according to our annual Cost of Care Report. The financial burden doesn't stop there — care spending goes beyond children, and families spend an extra 18% of income on caring for aging loved ones, pets and household needs.

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A third of parents (33%) admitted that they had to reach for savings to cover the rising costs, and 20% went into debt.

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Rising costs of care for the elderly are another major stressor, as families now spend more than three times the rate of inflation on care. Workers with elderly parents and children under the age of 18, 87% report having caring responsibilities for an aging relative and minor children. Nearly half (47%) of caregivers say they have encountered situations where their household was unable to cover essential expenses due to care costs.

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These financial realities make family care benefits a key factor when employees consider the decision to seek a new job or stay with their current employer. Last year's statistics show that 1 in 5 workers left their jobs because their employer did not offer family care benefits, and 23% of workers say they would change jobs to access elder care benefits.

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In addition to accessing care support and proven caregiver options, care expense allowances can be a valuable addition to an employee benefits program. These flexible services provide employees with support for both planned and unplanned care needs. Employers can specify the types of care services, including child care, care for the elderly, care for pets, depending on the needs of the employee population. Employees are interested. Nearly a third of employees rate this type of cash grant for care as the most important family care benefit they currently do not have, but would certainly benefit if it were available.

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Extension of family care benefits

While employers are exploring options to optimize their benefit programs and meet the changing needs of Gen Z and Millennial workers, many are considering family care benefits. These benefits go beyond traditional offerings by helping employees manage caring responsibilities, reduce financial stress and improve work-life balance.

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In addition to being highly valued by employees, family care benefits effectively complement other employee benefits, including:

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• Specialized care support - provides employees with tips and resources to help them face life's challenges big and small — whether it's helping manage care for an aging parent or finding bakeries serving gluten-free products in the area.

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• Home Care Support Services - support employees in providing trusted caregivers who provide caregiving services, so employees have more time for personal and professional priorities.

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• Pet Care Services help employees find pet sitters, dog walkers, and other pet care solutions so they can work without worrying about their furry family members.

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Modernize your benefits strategy today

From traditional core benefits to custom solutions, today's workforce expects benefits that work together to support their real lives. By thoughtfully integrating family care benefits into existing offerings, organizations can deliver meaningful solutions — and amplify their impact.

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While employers are exploring options to optimize their benefit programs and meet the changing needs of Gen Z and Millennial workers, many are considering family care benefits. In addition to being highly valued by Gen Z and Millennial workers as a tool to improve work-life balance and reduce financial stress, care benefits effectively complement other benefits available in the workplace.

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To learn about caregiving solutions and how they fit into your strategic benefits program, request today meeting with the Benefit Care team.

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