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783 Rio Del Mar Blvd, Suite 7, Aptos, CA, 95003

831-661-5697 Website

CAREGIVERS EXPERIENCE FINANCIAL AND PERSONAL STRESS, IMPACTING WORKPLACE PRODUCTIVITY

Statistics indicate that nearly two-thirds of Americans over the age of 65 will need long-term care assistance in some form, whether at home, in an assisted living facility or in a nursing home. This need will take a huge toll on finances -- of the individual needing care and of the family -- as well as on caregivers’ career and personal relationships. Survey data indicates just how stressful long-term caregiving can be, and also shows how being prepared for long-term care needs by having a Long-Term Care insurance plan can help with the financial burden, and alleviate some of the stress. This is significant for employers, who can add Long-Term Care insurance as a voluntary benefit offering, because employees who are less stressed by caregiving responsibilities are more likely to work up to their usual level, meaning less of a negative impact on workplace productivity.

Providing long-term care to a loved one is “expensive” on many levels, according to an annual survey from Genworth Financial, The True Impact of Long-Term Caregiving. Caregiving responsibilities shouldered by primary and, to a lesser degree, secondary caregivers affect finances and career and personal relationships. For example, according to the survey, among primary caregivers:

83% contributed financially to the cost of their loved one’s care
63% reported lost income, an average of 23% of household income
61% cut back on their savings efforts, by an average of 63%
57% dipped into their own retirement funds or savings
45% cut back on their own family expenses
40% cut back on family vacations
29% borrowed money, took out a reverse mortgage and/or sold their home

Among those reporting cutting back on savings, contributions to savings plans were reduced by 73% and to 401(k) plans by 65%. On the home front, primary caregivers can see their personal relationships suffer. Increased stress with a spouse was reported by 44%, with siblings by 27%, and with children by 23%. Career impact is just as significant. Among primary caregivers:

48% lost a job, changed shifts or missed out on career opportunities
44% worked fewer hours
38% were repeatedly absent from work
17% were repeatedly late for work

Statistics from MetLife document how employers also feel the impact of employees’ caregiving responsibilities, estimating that caregiving by employees costs U.S. employers between $17.1 billion and $33.6 billion in lost productivity annually, surfacing in many forms: Time away from work, tardiness, workday interruptions and reduced concentration. In bringing a Long-Term Care insurance offering into a voluntary benefits program, an employer can counter these negative effects proactively, as well as enhance employee recruitment and retention efforts.

The value Long-Term Care insurance can have for caregivers is seen in a study from Greenwald & Associates for New York Life. Baby Boomers -- the generation currently most engaged in caring for aging parents -- increasingly are seeing the value of Long-Term Care insurance, though few have acted on this realization and actually purchased a policy. Of Baby Boomers whose parents had Long-Term Care insurance coverage in place and used it, 72% said it was a good value. When asked about the key benefits of the coverage, 84% said it lessened the family’s financial contribution to care, 77% said it lessened the time family members needed to commit to providing care, 76% said it increased the quality of life for all involved, and 70% said it preserved their parents’ nest egg.

Offering employees the chance to purchase Long-Term Care insurance through a voluntary workplace-based plan will save them money, due to group pricing. It also represents a tremendous convenience for employees. Many people do not understand the ins and outs Of Long-Term Care insurance, nor how it differs from their medical coverage. Present your company as an employer of choice, and add Long-Term Care insurance to your voluntary benefits offerings.

Scurich Insurance Services 831-661-5697 Website

DO YOUR EMPLOYEES APPRECIATE THEIR BENEFITS AND MAKE THE CORRELATION TO THEIR TOTAL COMPENSATION?

It's just a fact that employers, especially those in highly competitive industries, must have a striking benefits package to remain competitive in attracting and retaining the best employees. You probably spend a great deal of time and money providing your employees with an attractive benefits package, but do they actually appreciate what you've invested? Do they even have the slightest idea of how much it costs you to provide them with it?

Sadly, most employers will find that their employees have no idea what they invest in providing good benefits. In fact, a number of surveys have shown that most employees vastly underestimate how much their employer contributes toward their benefits. These surveys also typically find that employees tend to have a negative attitude about the benefits their employer offers. Most employees tend to focus more on elements like cost-sharing methods and uncomfortably rising premiums.

The good news is that most employees don't have this attitude because they're ungrateful, but rather because they really just don't realize how much it costs you to provide them with their benefits. Considering you want and need a return on such a major investment, you are left with figuring out how to better educate your employees on your side of the story. There are actually several low to no-cost ways that you can tell your story and help employees better appreciate their benefits.

Give Employees a Total Pay Statement. If you asked your employees to write down their total compensation, they'd probably write down their gross income. Even though what you pay toward an employee's benefits makes up a substantial portion of what you're paying to keep them, an employee rarely considers what you're paying toward their benefits as compensation.

You can illustrate the value of total compensation by breaking it down into various parts with a total pay statement chart. You can outsource for custom total pay statements or do it yourself with a spreadsheet application. Either way, make sure to include any other compensation perks, such as employer-paid license fees, tuition reimbursement, on-site childcare, and so forth.

Include Cost as Part of Your Benefits Education. Most employers, whether it is during orientation for new employees or during annual enrollment periods, will provide at least one setting for employees to learn about their benefits. Employers shouldn't miss out on the opportunity to also emphasize the value of the benefits being offered and to remind employees that benefits are part of their total compensation. Even if your insurance carrier will be conducting the training, you can always ask your representative to at least mention the total cost of benefits; what you, the employer, pays; and then the portion that the employee pays.

Consider Adding some Perks. Quantity, in having additional choices, can be just as important to employees as quality. Once you look at your benefits package, it might not seem attractive enough, or you might just want to add some additional incentives to help your employees see that their relationship with your business is valuable. Voluntary benefits and other perks like gym discounts, community service days, discounted pet insurance, and so forth have little, if any, cost to you. Keep in mind that adding choices, even if those choices involve 100% employee payment, can increase how much your employees appreciate their benefits. Your insurance agent can help you determine what voluntary benefits best suit the needs of your workplace.

In closing, it will be impossible for you to capitalize on your investment in benefits if your employees don't appreciate what you've invested and what they've gained. Remember that it doesn't take much effort to find out how your employees view their benefits. When benefits are being perceived poorly, it can be relatively inexpensive to make improvements.

Scurich Insurance Services 831-661-5697 Website