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Dependent care in the new economy

Long-distance caregiving poses challenges for employees, employers

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By Cathy Leibow
May 2, 2010

We are living in an ever-expanding global workplace. Employees today have to adapt to many new challenges as a result - interacting with coworkers and clients in different time zones, language issues, cultural differences, to name a few.

One challenge we don't often hear about is globalization's affect on the care of employee caregivers. More employees with aging parents in other states and countries are trying to navigate long-distance caregiving.

It's hard enough to know what resources are available in your own community, much less in another state or a country where the services and delivery models may be very different. This has become a pressing issue for a growing population of employees, who often have to take time away from work to navigate unfamiliar territory and learn about eldercare resources in other areas.

This could involve being on the phone during the work day talking with doctors, social workers, home care providers and rehabilitation facilities. Or, employees may need to travel to their relatives' location to assess eldercare needs. (Read fellow Contributing Editor Betty Long's column on helping employees assess caregiving resources on page 20.)

According to the "MetLife Study of Working Caregivers and Employer Health Care Costs," employees in the United States who are caring for an older relative are more likely to report health problems like depression, diabetes, hypertension or heart disease, costing employers an estimated additional average of 8% per year, or $13.4 billion annually.

The report, produced by the MetLife Mature Market Institute, the National Alliance for Caregiving and the University of Pittsburgh Institute Of Aging, also found that younger caregivers (aged 18 to 39) cost their employers 11% more for health care than non-caregivers, while male caregivers cost an additional 18%.

It also found that eldercare may be closely associated with high-risk behaviors like smoking and alcohol consumption. Exacerbating the potential impact to employers is the possibility that these medical conditions may also lead to disability-related absences.

In addition, lost productivity may give way to attrition as caregivers are forced to cut back at work. Losing experienced employees at the peak of their careers adds to recruitment and retention costs. MetLife reported that 9% of working caregivers leave work - of these, 3% take early retirement and 6% simply resign and an additional 10% cut back to part-time hours.

Strategies for employers

Here are some suggestions for employers who want to help employees navigate these challenges:

* Provide a dependent care resource and referral program that covers national as well as international services. A 24/7 toll-free phone line is offered that will provide advice and referrals that specifically match their needs. There are many vendors that offer these types of services - from standalone work-life service providers to employee assistance programs. Typically, these programs are 100% funded by the employer.

* Offer a geriatric care management program nationally, as well as internationally. This service will match employees with geriatric care managers who are knowledgeable about local, community resources, and can provide one-on-one care and assessment. This program is typically paid for by the employee; however, sometimes the employer will fund it or partially pay for the services.

* Provide flexible work schedules so employees can "flex" their time as needed when issues arise. This can include telecommuting, part-time work and flextime hours. You'll create a work environment that is more supportive and will result in higher productivity, loyalty and fewer health issues.

* Offer education. This can include onsite workshops or webinars on topics such as long-term care insurance, long distance caregiving, wellness, raising children, and financial planning. Reach out to your current vendors or your broker to find free or low-cost options.

* Provide management training. It's essential that your managers are prepared for these issues and that they will be sensitive to employees' needs. Make sure they know about and are good role models for the policies and practices you offer. Many employees forget what is offered and this is a good way to reinforce the benefits you are currently providing.

Assisting employees with these issues is not just a feel-good solution. A recent MetLife study reported a savings of $3 to $5 for every $1 spent helping employees with elder care issues. You can calculate the costs to your organization by going to www.eldercarecalculator.org.


Contributing Editor Cathy Leibow is a senior business development advisor for the Great Place to Work Institute, a research and management consultancy based in the U.S. with international affiliate offices around the world. Contact her at cleibow@greatplacetowork.com.

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