Work places are directly involved in elder care!
An important point for employers - Studies indicate as many as 54% of the workforce will soon be involved in care giving.
Employers report: 84% of employees caring for or assisting an aging parent or family member are frequently distracted coordinating or following up on care. This is known as "presenteeism" and it has a large impact on productivity.
A noted Gerontologist tells us - "this decade is bound to be the elder care decade!" Adding to this are studies, such as from the AARP Public Policy Institute, which report care giving, while working, is a complicated and emotionally charged time for working care givers. Some of the major changes in a persons work situation include:
- 83% of employee care givers arrive late; leave early; or take time off during the day
- 41% have to take a leave of absence
- 37% having to change from full to part time
- 35% have to give up working
Some working care givers describe this as being torn between two jobs!
The impact on employers is growing! A Families and Work Institute report indicates "49% of workers expect to care for an older family member or friend in the next five years."
What can employers do to lessen the impact of employees dealing with elder care?
Some firms have expanded their EAP to provide information on types of care giving help and where employees can go for assistance. A more effective approach is to implement a voluntary Long Term Care insurance (LTCi) benefit. The plan's pool of funds would be there so professionals can be hired to help. Firms with this benefit report:
- Employees feel more secure about the future knowing they have protected their retirement savings. The result - they are more productive.
- Plans are usually available to family members and perhaps with a discount.
- Employees are very interested in obtaining LTCi through the workplace. Interest is now higher than for term life.
Its important for employees to understand the value they and their family receive by not becoming a burden on others. Thus, a significant part of implementing a LTCi benefit is an extensive effort to increase employee understanding of the value gained. One important part is to focus on encouraging employees, if they have siblings, to work together so their parents can own this protection. Why? Employees whose loved ones have LTCi are twice as likely to continue working!
(Especially so for the many employees who live some distance from their parents.)
What does an employer gain by offering workplace Long Term Care insurance (LTCi) coverage?
- Employees recognize the firm is really concerned about them and realizes they are very interested in not becoming a burden on others.
- Improved recruiting since it is a highly desired benefit.
- Workers with valuable skills will appreciate the benefit and stay in the work force. Thus, improving retention.
- The EEOC now has guidelines to prevent discrimination against care givers. Having a LTCi benefit shows the firm is committed to elder care issues.
How does this family focused benefit help employees?
- Knowing they have a benefit plan with an ever growing guaranteed pool of money means they are protected from the high cost of needed help and can be in control of what long term services or support are used.
- Any income from a disability plan can be used for living expenses and won't have to be diverted to cover assistance expenses.
- Their income, savings, and other money planned for retirement is protected.
- They are very interested, especially during these uncertain economic times, since it provides them a way to create a personal safety net to protect their retirement saving.
Another plus is premiums are lower in the workplace. Why?
- Taking action and investing when relatively younger (40's and 50's) means a person will have a much lower premium, which normally remains level. It is not unusual during working years for a person, following a change in health, to need long term services.
- Discounts such as - being married - having a partner - perhaps 5% for buying through a plan set up by the employer.
- Employees appreciate the employer discount often applies to family members!
This special benefit helps people during their working years:
- A insurance company that specializes in Long Term Care insurance in the workplace found in a 2008 survey 57% of people using the benefit were under 65. They recently reported 52% of the employees buying this important protection were female and the average age of all employee buyers was 43.
Employers gain special advantages with a Long Term Care insurance benefit!
They gain more flexibility in "tax rules" than with health insurance. Here are some details on the IRS rules for Long Term Care insurance.
- LTCi is of considerable interest to executives since it is available to their spouse - normally.
- Executives face a high probability of increasing Federal and State income taxes plus higher payroll taxes. The tax advantages of a LTCi benefit plan means it will be of much more value to key executives.
- A LTCi executive benefit can be done with no additional cost to the firm. One effective approach would be to divert some executive bonus or deferred compensation program dollars to pay for the LTCi benefit.
- Payments by the organization could also be connected to performance and/or continued service, which is a great way to retain important employees.
Want to Chat about implementing a Long Term Care insurance benefit program? I will get back to you if not available. You can also call John C Parker [860.739.0005] to set a time to visit and talk.
John C Parker, has achieved professional designations as a Long Term Care Insurance professional and a Registered Health Underwriter. John is licensed to conduct business in CT (644135) and RI (1058420) and does not solicit or sell in other states.
This site shares insights from extensive involvement in professional associations, industry conferences, working with leading Long Term Care Insurance organizations, and individual research. These pages do not advocate a specific company or plan.