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Guest Article

(By Richard F. Federico VP, Communications and Work/Life, The Segal Company)

Eldercare: Avoid Productivity Losses Through Effective Communications


Beth is 58 years old and the primary caregiver for an 88-year-old mother who is showing advanced signs of Alzheimer's. Two years ago, when Beth was 56, it was her dream to retire at 60 and take care of her loving mother.

But, Beth's life has changed. The whole American workforce's life has changed. Her 401(k) became a 101(k), her company-paid retiree medical benefits have been cut and her dream of early retirement went away. Beth's mother's memory slipped away quickly and her loving slipped away, too-- replaced by frustration and anger. And, at a time when Beth most needed her company's elder care support programs, she didn't use them-- because she didn't know she had them!

Demographic Issues

There are many Beths in today's workforce-- their lives are changing, their dreams are vanishing and the resulting hit on U.S. productivity will be profound. But, Corporate America's wake-up call has been delayed, cushioned by a recession that has increased the supply of people and reduced the demand for productivity. When the call comes, it will be an alarm that's louder than ever before, because the facts don't lie:

  • America is aging and many Americans are planning to delay retirement.
  • Employees are feeling the effects of stress caused by eldercare-giving responsibilities.
  • Employer-provided elder care programs are underutilized and poorly communicated.
  • Employers are suffering from a silent productivity killer that will soon roar.

The roar began with a whisper-- a well-publicized 1997 MetLife/National Alliance of Caregivers study, "Employer Costs for Working Caregivers," that estimated that more than 14 million U.S. workers care for older relatives and that care causes a productivity loss that costs employers as much as $29 billion per year. But, the correlation between the stress of caregiving and the impact on health care costs had never been proven, until now. A study recently published in the Proceedings of the National Academy of Science shows that long-term stress associated with looking after elderly relatives takes a toll on the immune system of caregivers, placing them at risk for heart disease, certain cancers, arthritis, diabetes, osteoporosis and other age-related illnesses.

Beth has just been dealt another foreboding card in the deck of life-- as an eldercare-giver she has a high potential for costly health risks. So, how do Beth and millions of her co-workers cope with eldercare-giving?

Coping Strategies

In the best of worlds, they rely on employer-sponsored eldercare programs that provide a wide range of support, including:

  • Information and referral services for caregiving programs and facilities, as well as legal and estate planning referrals;
  • Geriatric care management that provides individual elder evaluation and counseling;
  • Time off and flexible work arrangement policies, such as family leave, flex time, job sharing and part-time work; and,
  • Financial support, such as dependent care assistance programs and long-term care insurance.

But, while employers are providing benefits support and employees are facing greater need for support, utilization of these eldercare services is typically low-- in the range of two to three percent.

Facts from the New York Business Group on Health Eldercare Task Force

Why so low? The Eldercare Task Force of the New York Business Group on Health (NYBGH), a non-profit coalition of New York-based employers that works on finding solutions to various healthcare issues, asked the same question.

In an attempt to shed some light on this utilization enigma, the task force enlisted four-NY-area employers for a series of focus groups consisting of both users and non-users of their company-sponsored eldercare benefits. All participating employees had direct responsibility for an elder.

Six of the task force's seven key findings identified communications and education failures at the root of the problem, making a strong statement for the potential ROI of having strategic and sustainable communications in support of eldercare benefits.

Here is a high-level summary of the key focus group findings and the implications of those findings:

  1. The employee definition of "eldercare" varies.

    Employees conceive of "eldercare" in a variety of ways that may or may not represent what eldercare means.

    Implications: Employers must clarify for employees what eldercare is and must communicate more effectively what benefits are available.

  2. Caregivers experience a period of evaluation before seeking employer- based resources. Denial about the burden of their caregiver activities may further delay accessing services.

    Many employees have the perception that caring for an elderly loved one is a personal matter that must be handled privately. Consequently, they may not rely on their corporate benefits programs as a primary resource for their caregiving needs.

    Implications: Communications that better define caregiver benefits may eliminate or shorten the employee's evaluation period, thereby increasing employee productivity.

  3. Differences in benefits accessibility may exist within organizations. Employees aware of eldercare benefits will access services, while those unaware of the company's benefits have a greater difficulty accessing needed services.

    Employees can't access a service if they aren't aware of it. Many of the non-user participants in the focus groups reported having no knowledge that eldercare services were offered by their employer.

    Implications: Poor communications about the availability of eldercare services is clearly linked to low utilization. Better benefits communication is critical if employers are to reach those employees who have the greatest need for eldercare services.

  4. Challenges to benefits communications exist within organizations.

    The major theme of the focus groups was around limited information about eldercare and how that prevents employees from accessing those services. Employees reported confusion and misconception about what was covered under their employer-sponsored eldercare services. As a result, they don't use the services.

    Implications: Better communications is needed after an employee has begun to navigate the benefits matrix. Employers should work with their EAP and other eldercare providers to ensure ease of access.

  5. Employees report significant disruption in their work due to their caregiving responsibilities.

    As expected, participants found themselves underperforming at work as a result of elder caregiving responsibilities-- a direct hit on productivity.

    Implications: Employees find caregiving disruptive during business hours, underscoring the need for employer-based eldercare services.

  6. Employees' perceptions of corporate receptivity to their caregiving activities vary. "Users" perceive employers as more receptive to employees' accessing eldercare services than do "non-users."

    Most participants reported their organizations have a good understanding of caregiving needs. However, this perception varies depending on the employee's responsibilities. For example, employees who work in the field anticipate problems if they access eldercare services.

    Implications: Employers must educate and inform their field workers that services are available and must enable these workers to access them.

  7. Attitudes of immediate managers are important determinants for utilization of services.

    The relationship between the employee and the immediate supervisor may have a significant impact on the utilization of eldercare services. Many employees reported concern with confiding to their bosses when they were in a caregiving situation. They were especially concerned that the manager -- especially in the case of an older employee and a younger manager that has had no experience as an elder caregiver -- may not understand or be sensitive to the eldercare experience.

    Implications: If managers are not sensitive to the plight of employee caregivers, no amount of communications about the program will help. Managers need to be educated and trained on the issue of employee caregiving -- and they must be encouraged to refer employees to eldercare programs.

Communications Issues

Perhaps the greatest implication of these findings is that if eldercare benefits are not accessed and used, employers won't get their promised return on investment. Based on the task force's findings, the primary solution is to improve employee communications and managers' education. No easy trick since employers struggle constantly to get their benefits messages understood, appreciated and valued.

In the end, the value of a benefit is not in its existence but in its use. The major challenge employers face is how to communicate eldercare benefits to employees in ways they will access, read, understand and remember. Frequent and creative communications is the key to the success of any benefit.

This perennial problem of reaching employee audiences is typically driven by either having or not having one of the six "C's":

  1. Clutter -- The more ways we have to deliver information-- thanks to technology -- the more information we throw out there. In contrast, employees are reading less these days and, even if they are reading, they're confused by the number of messages they're receiving.
  2. Clairvoyance-- It would be nice if we could read the minds of our employees and know what their needs are at any moment in time. But we can't. The best we can do is target our messages to the groups that are most likely to have the need and deliver these messages with the frequency and media mix necessary to increase our odds of reaching them at the right time.
  3. Clarity-- Clarity and clutter go hand and hand. If we keep eldercare benefits descriptions short, simple and clear, we stand a better chance of being understood.
  4. Cohesiveness-- Integrating eldercare communications into work/life communications, benefits communications and corporate communications works. Employees appreciate the big picture, especially when it's presented in a snapshot.
  5. Consistency-- If the vendor of eldercare services is describing them one way and the company is describing them another, misinformation will prevail.
  6. Competency-- When HR communicators are chosen for their technical benefits competency rather than their communications competency, the communications is destined to failure.

In the end, the value of a benefit is not in its existence but in its use. The major challenge employers face is how to communicate benefits to employees in ways they will access, read, understand and remember. Targeting the demographics of employees who may fit the profile of a user will help to get the messages to the right people with a better chance of getting them read and the services used. Frequent and creative communications is the key to the success of any benefit.

The author, Richard F. Federico, is a vice president of The Segal Company, with communications and work/life responsibilities. He is also a member of the New York Business Group on Health's Eldercare Task Force. Rich can be reached at rfederico@segalco.com or 212-251-5175.

BenefitsLink is an independent national employee benefits information provider, not formally affiliated with the firms and companies who kindly provide much of the content and advertisements published on this Web site, including the article shown above.