Supporting employee wellbeing just makes sense. According to recent Employee Benefit News research,1 97% of employers agree that supporting employees in their physical, mental and financial health is a good business decision. It's also what employees have grown to expect. Despite this, employees are experiencing stress and burnout from being overstretched and not having the proper support resources. Combine this with an employee caregiving population that continues to grow, and employee wellbeing is in dire need of attention.
With a significant 45% increase from 2015, approximately one in four American adults (63 million) provide ongoing care to adults or children with a medical condition or disability. This is just one staggering stat from the AARP and National Alliance for Caregiving (NAC)
The overlooked link: Caregiving and overall employee wellbeing
When caring for a loved one, the responsibilities are personal. While the need for support is great, many caregivers suffer in silence. With the significant amount of time required and the constant uncertainty that comes with shifting needs, caregiving employees struggle to manage it all despite their best efforts. Challenges associated with mental health, physical health, financial stress and burnout are frequent strains on a caregiver's wellbeing.
More specifically, the AARP/NAC research found that 20% of caregivers rate their health as poor or fair, and close to 25% indicate difficulty in caring for themselves because of caregiving. From a mental health perspective, caregivers report an average of seven days per month of poor mental health – whether that be due to feelings of loneliness, emotional stress, or the lack of choice they have in their situation. This toll is not just felt at home; it directly impacts employee productivity and translates into workplace disruption and turnover risk.
Caregivers of those with special needs
For all the mental, physical and financial stress that caregiving adds to one's life, those who care for someone with special needs feel these stressors with much more intensity.2
- Nearly 1 in 5 caregivers support someone with a developmental or intellectual disability.
- This level of care occasionally requires additional paid care (16%), resulting in increased financial burden.
- Higher intensity of care with a longer duration creates more emotional stress for caregivers to those with special needs.
The business case: Caregiving's impact on the workplace
When resources are not available or properly advertised for employees to quickly access when they need them, financial burden also becomes apparent. One woman caregiver noted, "I had to give up a prosperous career and took jobs to work around their schedule. I took a 90% pay cut and lived out of my savings, which has been depleted." These situations happen far too frequently, and employers have a significant opportunity to support working caregivers not only for the benefit of the employee but also the organization.
Seventy percent of caregivers are currently employed working an average of 35.6 hours per week.2 If left without proper caregiving benefits, the disruption felt from their disengagement or departure would be strong. The good news is that access to caregiver-friendly work benefits is increasing, such as paid sick days, flexible work hours, programs to help caregivers such as EAPs, and telecommuting. However, simply offering these benefits is not enough. First, employees must be properly educated in the benefits available to them and how to use them. Second, it's essential they feel comfortable and supported to utilize these benefits before their caregiving situation takes a toll on their personal and workplace wellbeing.
Not only do employees feel financial strain, but employers also see increased financial costs due to higher health claims related to elevated stress levels, increased short- and long-term disability claims, and high recruiting costs due to turnover and replacement needs. The top work impacts because of caregiving according to the research show a direct line to this – employees who go in late, leave early or take time off, and those who went from working full to part-time or to reduced work hours. The data is clear – caregiving support is not just an employee perk; it is a workforce sustainability strategy.
Employer action plan: Practical ways to support caregivers
For many caregivers, the economic impact extends far beyond immediate costs as they reduce their work hours, pass up promotions or leave the workforce entirely. These career sacrifices can amount to hundreds of thousands of dollars of potential lifetime earnings. Caregivers need more than just a check list of benefits to navigate these financial challenges; they need meaningful relief and policy solutions from their employer. Some of these may include:
- Flexible work options – a sometimes-simple solution that is most valued by caregivers
- Paid family leave & caregiver-friendly policies – ensure there are appropriate level of access for both hourly and salaried workers.
- Employee Assistance Programs (EAPs) & counseling – these programs help address stress, isolation, and financial strain.
- Caregiving benefits – may include backup care, stipends, and navigation resources.
- Special needs support – tailored resources such as financial planning, coordination with healthcare systems, and navigation for Medicaid/HCBS programs.
The strategic HR imperative
Caregiving is no longer peripheral in the workplace. It touches every dimension of workplace wellbeing. And as close to half (49%) of caregiving employees expect their caregiving duties to get more intensive over the next few years according to EBN's 2025 Caregiving study, it is essential for HR and benefits leaders to integrate caregiver support into their overall employee benefits strategy.
While an understanding of the solutions that caregivers would like is a start, many HR and benefits leaders need more guidance to effectively set up their strategy. Employers should look for partners, such as New York Life Group Benefit Solutions, who serve as an extension of their team and meet them where they are – offering personalized employee support, flexible plan designs and consultative guidance. Not only does this type of collaboration and human-centered approach help employers craft benefits packages that seamlessly integrate into their existing solutions, but it also provides employees with the specific care they need. This makes everyone – whether an HR or benefits leader, or a caregiving employee – feel supported in the work that they do. Which then becomes a catalyst for employee satisfaction, engagement and retention.
About New York Life Group Benefit Solutions
New York Life Group Benefit Solutions, a division of New York Life Insurance Company, combines the expertise of a Fortune 100 leader with the parent company having 180 years of proven success. Awarded top financial strength ratings from all major agencies,3 we provide reliable and trusted solutions for businesses and their employees, focused on delivering a best-in-class benefits experience. From Life and AD&D, to supplemental health plans, to comprehensive disability and leave management, our offerings focus on support, connection, and meeting real needs. It's all about Putting Benefits To Work For PeopleSM.
1 Employee Benefit News' 2025 Workplace Wellbeing research
2 AARP and National Alliance for Caregiving. Caregiving in the U.S. 2025. Washington, DC: AARP, July 2025.
3 New York Life has received the highest financial strength ratings currently awarded to any U.S. life insurer by Standard & Poor's (AA+); A.M. Best (A++); Moody's (Aa1); and Fitch (AAA). Source: Individual Third-Party Ratings Reports as of 9/30/2025
New York Life Group Benefit Solutions products and services are provided by Life Insurance Company of North America, New York Life Group Insurance Company of NY, and New York Life Insurance and Annuity Corporation, subsidiaries of New York Life Insurance Company. Life Insurance Company of North America is not authorized in NY and does not conduct business in NY.
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This article was created by Employee Benefit News in partnership with New York Life Group Benefit Solutions.
