How Family Caregiving Affects Employee Financial Well-being and Workplace Performance

Key Takeaways

• Family caregiving affects millions of employees across the workforce.
• Caregiving responsibilities often create financial stress and strain household budgets.
• Financial stress can affect productivity, absenteeism, and workplace engagement.
• Employers can help through flexibility, communication, educational guidance, and Financial Well-being programs.
• Supporting employees with caregiving responsibilities may improve employee experience, retention, and workplace performance.

Family Caregiving Is Becoming a Workforce Challenge

The rising costs of medical bills and medications, household expenses, and the demands of providing care have pushed many workers to a breaking point.

For employers, caregiving is increasingly becoming a workforce issue tied to productivity, absenteeism, retention, and employee Financial Well-being.

According to AARP, one-third (32%) of registered voters ages 18 and older say they were caregivers in the past, one-fifth (21%) are currently caregivers, and nearly half (49%) expect to become caregivers in the future.¹

What's more, multiple sources report that more than 53 million family caregivers in the United States are navigating complex responsibilities while balancing work, household expenses, healthcare costs, and long-term financial goals.¹

This is due in part to the following:

• 71% report receiving no paid help.²
• 75% spend more than 40 hours each week providing care.²

Requests for financial assistance have grown by 22%, while legal assistance needs have increased by 24%, according to Cariloop's recent report on caregiver needs.³

Without assistance, caregiving can significantly affect an employee's health, finances, and ability to remain fully engaged at work.

Why Financial Stability Matters More Than Ever for Employees

Why Caregiving Creates Financial Stress

Caregiving often affects much more than an employee's schedule.

Workers with caregiving responsibilities may face:

• Increased healthcare expenses
• Medication costs
• Transportation expenses
• Legal and estate planning costs
• Reduced work hours
• Interruptions to retirement savings goals

These expenses frequently arrive at the same time employees are trying to maintain their own financial stability and plan for the future.

MSA recently hosted a live event for more than 1,000 employees focused on preparing for and managing caregiving responsibilities. Among attendees who had taken on a caregiving role, 44.5% reported feeling financially stressed and strained by those responsibilities.⁴

As caregiving responsibilities continue, employees may find debts growing and savings balances shrinking. Recovering from these periods can take years and may delay goals such as building emergency savings or preparing for retirement.

How Financial Stress Impacts Employee Productivity, Retention, and Workplace Performance

Compound Caregiving Can Increase Financial and Emotional Pressure

Throughout their careers, many employees support children, parents, spouses, or other loved ones.

When employees provide care for more than one person at a time, it is often referred to as compound caregiving.

Employees in these situations frequently report:

• Physical exhaustion
• Reduced time available for work
• Increased financial stress
• Greater difficulty maintaining work-life balance

As caregiving demands grow, employees may need greater flexibility and access to educational resources that help them navigate financial decisions during challenging periods.

Caregiving Is More Than a Personal Issue

For HR and benefits leaders, caregiving is not simply a personal challenge affecting employees outside of work.

It can also affect:

• Productivity
• Workplace focus
• Absenteeism
• Employee engagement
• Retention risk

Research highlights the impact financial stress can have on workplace performance:

• Financially stressed employees lose an average of 8.1 hours of productivity per week.⁵
• More than half of financially stressed employees say their stress negatively affects work performance.⁶
• Financial stress costs employers an estimated $1,982 per employee annually through lost productivity and absenteeism.⁷
• Another 2024 estimate places productivity loss at 156 hours per employee per year.⁸

When caregiving creates or intensifies financial stress, employees may need more than empathy.

They may need practical educational guidance that helps them:

• Budget for caregiving costs
• Understand available benefits
• Manage debt
• Protect savings
• Make informed financial decisions during emotionally demanding life stages

Looking for ways to help employees navigate financial challenges during major life events?

 

Learn how educational guidance and personalized Money Coaching can help employees manage financial stress, evaluate available resources, and build a plan for moving forward.

 

Learn More About MSA

Actions Employers Can Take to Help Employees With Caregiving Responsibilities

Employers have an opportunity to create workplace environments that recognize and accommodate caregiving realities.

The following strategies can help.

Improve Communication

Start by acknowledging the challenges employees face and making available programs easier to find and understand.

Emotional well-being services available through Employee Assistance Programs (EAPs) can help employees navigate difficult caregiving situations.

Financial Well-being programs can also help employees create budgets, manage debt, identify available resources, and build action plans for addressing financial challenges.

Communication efforts can also normalize caregiving as a common workforce experience.

Employees often hesitate to discuss caregiving responsibilities. Consistent communication about available benefits, services, and educational opportunities can make assistance easier to access before a crisis occurs.

Focus on Flexibility

Flexible work arrangements can make a meaningful difference for employees managing caregiving responsibilities.

Examples may include:

• Remote work options
• Flexible scheduling
• Simplified paid time off policies
• Easier access to virtual healthcare services

Employers may also benefit from evaluating how easy it is for employees to access caregiving-related benefits when they need them most.

A valuable benefit may go unused if employees cannot easily find or understand it during stressful situations.

Build Organization-Wide Awareness and Buy-In

Employees may hesitate to disclose caregiving responsibilities because they worry it could affect career growth or workplace perceptions.

Employers can help create a culture that recognizes caregiving as a common life experience and encourages employees to access available assistance when needed.

The strongest caregiving strategies connect compassion with practical action.

Caregiving can affect work hours, focus, financial confidence, and long-term savings goals.

Organizations that make educational opportunities, benefits, and support services visible and accessible may be better positioned to help employees remain engaged while managing one of life's most demanding responsibilities.

Why Financial Coaching Can Help Caregiving Employees

Many caregiving challenges eventually become financial challenges.

Employees may need to make decisions about:

• Healthcare expenses
• Debt repayment
• Emergency savings
• Budget adjustments
• Retirement contributions
• Long-term planning priorities

Financial coaching can help employees evaluate options, understand trade-offs, and develop practical action plans based on their unique circumstances.

During periods of significant life change, having access to objective educational guidance can help employees feel more confident about the decisions ahead.

Frequently Asked Questions

What is family caregiving?

Family caregiving refers to providing care or assistance to a family member, spouse, child, parent, or other loved one who requires ongoing support.

How does caregiving affect employee Financial Well-being?

Caregiving can increase healthcare expenses, reduce available work hours, create budgeting challenges, and interrupt long-term savings goals.

How does caregiving affect workplace performance?

Caregiving-related financial stress can affect productivity, focus, absenteeism, and employee engagement.

How can employers help employees with caregiving responsibilities?

Employers can help through flexible work arrangements, improved communication, educational guidance, Financial Well-being programs, and caregiver-friendly workplace policies.

What role does financial coaching play?

Financial coaching can help employees manage caregiving-related financial challenges, evaluate options, and develop practical action plans for moving forward that balance current needs with future goals.

Next Steps for Employers, EAPs, and PEOs

• Evaluate how caregiving responsibilities may be affecting your workforce.
• Review the accessibility of existing caregiving-related benefits and services.
• Increase awareness through ongoing communication and education.
• Consider how Financial Well-being programs can complement EAP and caregiver initiatives.
• Create opportunities for employees to access help before challenges become crises.

Helping Employees Navigate Caregiving Challenges

Family caregiving is becoming an increasingly common reality in the workforce.

While employers cannot eliminate the challenges caregiving creates, they can help employees access the educational guidance, flexibility, and Financial Well-being resources that may ease the burden.

Learn how MSA helps employers, EAPs, and PEOs support employees through life's most challenging financial moments with personalized Money Coaching and other Financial Well-being resources.

¹ Keenan, Teresa A. U.S. Voters' Views on Support for Family Caregivers. Washington, DC: AARP Research, May 2023.

² Family Caregiving: Where Compassion Meets Complexity. Family Caregiver Alliance.

³ 2025 Employee Caregiver Top Needs Report. Cariloop, March 2025.

⁴ My Secure Advantage, Inc. November 2023. Based on MSA member self-reported live event data. 1,102 responses.

⁵ 2025 Employee Sentiment Study. Aon.

⁶ 2025 Workplace Outlook Perspectives for Talent and Benefits Leaders. Fidelity Workplace.

⁷ 2024 Financial Resilience and Longevity Survey. John Hancock Retirement.

⁸ Addressing the Evolving Needs of a Multigenerational Workforce. PNC Insights.