Employee Retention: Why Supporting Working Caregivers is Essential for Business Success

Employee Retention and Caregiving Connection

When business leaders talk about keeping their best people, the focus usually falls on compensation, promotions, or workplace culture. But employee retention depends on much more than paychecks and perks. Millions of employees today are also family caregivers, balancing their careers with responsibilities like caring for aging parents, children with disabilities, or relatives with long-term health conditions.

This growing reality is reshaping the workforce. Caregiver employees bring unique strengths to the workplace, like empathy, resilience, and multitasking skills. Yet, too often they face burnout and limited support. Companies that recognize and respond to these needs not only support their people but also improve morale, loyalty, and productivity.

Supporting caregivers is not just a matter of compassion; it’s critical for your business to boost retention and long-term organizational success.

What is employee retention and why does it matter?

At its simplest, what is employee retention? It’s an organization’s ability to keep its employees over time. High retention means workers are satisfied, engaged, and loyal to the company. Low retention, on the other hand, signals disengagement, turnover, and instability.

Turnover is costly. Culture Amp estimates that replacing an employee can cost between one-half to two times that person’s annual salary. These costs include recruiting, training, and lost productivity, but the impact runs deeper. When people leave, companies lose institutional knowledge, disrupt team dynamics, and risk damaging customer relationships.

That’s why improving retention is about more than reducing expenses. It creates a positive work environment, strengthens culture, and builds long-term business stability.

The Business Case for Retaining Employees

Strong employee retention strategies directly impact profitability. According to Gallup, companies with engaged employees experience 23% greater profitability compared to those with disengaged teams. Engaged employees are also more innovative, collaborative, and willing to go the extra mile.

Recent SHRM research shows that 61% of employees consider leaving their jobs due to dissatisfaction with benefits, and nearly 20% of turnover occurs within the first 45 days of employment. Strong onboarding and retention programs can improve new hire retention by up to 82%. In addition, organizations that provide meaningful growth opportunities see dramatically higher loyalty, while companies that lack retention strategies often face productivity losses, low morale, and weakened customer trust.

Retention also enhances recruitment. Businesses with strong reputations for supporting employees attract top talent more easily. And when employees stay, organizations maintain consistent service delivery and stronger customer relationships.

The evidence is clear: companies that prioritize retention gain a competitive advantage, both financially and culturally. Support for caregivers is a powerful and often overlooked way to achieve this.

Care Work Builds Invaluable Skills That Help Employers

Caregiving doesn’t just shape families; it shapes employees. Employees who care for loved ones develop unique skills for resume building that businesses value. These include empathy, patience, adaptability, and resilience under pressure.

Caregivers often excel at multitasking and time management, balancing demanding schedules and urgent needs. They also bring strong problem-solving skills, since caregiving requires quick decisions in complex situations. These qualities mirror the competencies needed in leadership and management roles.

Research from Harvard Business Review highlights that caregiver employees bring skills that are of high value to companies: they are more attuned to collaboration, innovation, and inclusive leadership. Caregivers also tend to develop advanced communication skills, the ability to manage conflict with patience, and a long-term perspective that helps them anticipate challenges before they arise. 

These strengths influence team cohesion, productivity, and customer service. By recognizing caregiving as professional development, businesses can tap into a deeper pool of leadership potential.

The Leadership Lessons Caregiving Teaches

The overlap between caregiving and leadership is undeniable. Caregivers regularly practice skills that align with organizational leadership: empathy, strategic thinking, adaptability, and crisis management. Managing complex care decisions often mirrors the decision-making process leaders face in business.

Caregiving also teaches employees to navigate uncertainty, build resilience over long periods, and lead with humility. Unlike typical professional training, caregiving often requires making decisions without perfect information, helping employees grow more comfortable with ambiguity and change. It also fosters long-term planning, as caregivers must anticipate evolving needs and coordinate resources accordingly. These lessons equip future leaders with foresight, adaptability, and the ability to inspire confidence in teams facing complex challenges.

When companies acknowledge and support these experiences, they help employees channel personal caregiving skills into professional growth. This not only benefits the individual but also enhances the organization’s leadership pipeline. Organizations that value caregiving experience may discover untapped leaders already within their ranks, capable of guiding teams with empathy and resilience. 

Findings from the Center for Creative Leadership show that empathy is positively related to job performance. In a study of 6,731 managers across 38 countries, leaders who demonstrated more empathy toward direct reports were rated as better performers by their bosses; the empathy–performance link was even stronger in high power‑distance cultures.

Supporting caregivers is a proven way to strengthen leadership capacity and reinforce employee retention strategies that drive long-term loyalty.

Real-World Examples: Companies Supporting Caregiver Employees

Several leading businesses have recognized the importance of caregiving support. Microsoft provides paid family caregiver leave, enabling employees to balance work and family responsibilities without financial stress. PwC offers caregiver resources and backup care services, ensuring employees can access professional help when needed. Bank of America connects employees with elder care referrals and support programs.

These initiatives not only help employees manage personal responsibilities but also illustrate how to improve employee retention and motivation. When companies demonstrate genuine support, employees are more likely to remain engaged and committed.

Still, there is room to grow. Employers can go further by expanding flexible scheduling, remote work options, paid caregiver leave, and access to caregiving tools that simplify coordination.

Creating a Positive Work Environment for Caregivers

A positive work environment for caregivers is built on empathy, flexibility, and understanding. Research from the Center for Creative Leadership shows that leaders who demonstrate empathy are rated as stronger performers, which underscores the business value of creating workplaces where employees feel seen and supported. For caregivers, this means managers who acknowledge their responsibilities, respect their boundaries, and provide opportunities to succeed without penalty.

Organizations can foster this environment by normalizing open conversations about caregiving, offering training for managers on empathy and listening skills, and cultivating policies that encourage balance rather than conflict between work and care. When employees feel safe disclosing their needs, trust grows, and so does loyalty. This type of environment reduces burnout and builds a culture where employees remain engaged long-term.

Companies that invest in empathy-based leadership and flexible policies create workplaces where caregivers can thrive, setting the stage for higher retention, stronger morale, and better business outcomes. Practical examples include empathy and listening workshops for managers, peer support groups for employees to share caregiving experiences, and dedicated caregiver resource networks that connect staff to external services. Even small actions, such as recognizing caregiving milestones or offering confidential counseling, signal to employees that their whole selves are valued.

Actionable Employee Retention Strategies for Supporting Caregivers

Employers looking for how to improve employee retention should start by addressing caregiving needs directly. Practical steps include offering flexible schedules, supporting remote work arrangements, and providing access to caregiver resources such as Employee Assistance Programs (EAPs).

Companies should also consider policies for caregiver leave and programs that encourage peer support. Recognition and appreciation are equally important. When caregivers know their efforts are valued, they are more motivated to remain loyal and engaged. By aligning support initiatives with how to improve employee retention and motivation, businesses create a culture of empathy and understanding that benefits everyone.

Bringing It All Together: How Caily Can Help

Employee retention is about more than compensation and career ladders. It’s about creating workplaces where people can bring their whole selves, including their caregiving responsibilities, without fear of penalty. Supporting caregivers is both a human-centered and business-centered strategy that strengthens loyalty and engagement.

Caily helps make support happen. As the family elder care app, Caily helps employees organize care, coordinate with family members, and manage medical appointments and documents. By offering Caily as part of their workplace benefits, employers can show meaningful support for caregivers while building a culture of trust and care.

Organizations that integrate tools like Caily into their benefits package not only support their employees but also strengthen their own future. A workplace that values caregivers is a workplace where people want to stay. Want to learn more about bringing Caily to your employees? Contact us here.

Frequently Asked Questions About Working Caregivers

What is employee retention?

Employee retention is a company’s ability to keep employees over time by maintaining satisfaction, motivation, and loyalty.

Why is employee retention important for businesses?

Retention reduces turnover costs, preserves institutional knowledge, and builds a stronger, more motivated workforce.

How can companies improve employee retention?

Employers can improve retention by offering flexibility, supporting work-life balance, providing competitive benefits, and fostering a positive work environment.

What unique skills do caregivers bring to the workplace?

Caregivers often excel at empathy, multitasking, time management, resilience, and problem-solving—skills that directly benefit employers.

How can businesses better support working caregivers?

By offering caregiver leave, flexible schedules, remote work options, and access to caregiving resources, businesses can reduce burnout and boost retention.

Do caregiving benefits really help employee retention?

Yes. Companies that invest in caregiver support see higher engagement, lower turnover, and stronger long-term loyalty.