What’s Your Company’s Financial Loss from Employee Caregiving?
January 8, 2013 Leave a comment
by Kevin K. Johnson, Certified Senior Advisor (CSA)®
In previous posts, I’ve documented the fact employers in the United States experience well over $30 billion per year in lost productivity due to employees having to provide caregiving for an elder loved one.
So just how much of that +$30 billion per year does your company lose? MetLife’s Mature Market Institute has developed a method for any business to estimate their likely individual cost. They use 3 basic parameters to broadly approximate your lost cost.
- Size of your company or business
- Average hourly wage, including benefits
- Number of employed caregivers in your company or business
Let’s take a look at just 2 illustrations.
Illustration 1: Let’s say you have the following company parameters:
Calculated for 250 employees, 5 Employed Caregivers (2% of your workforce), Average Hourly Wage with Benefits of $25.00
Replacement Cost (for employees who quit as a result of caregiving) |
$3000.00 |
Absenteeism Cost |
$2,080.00 |
Partial Absenteeism Cost |
$797.50 |
Costs Due to Workday Interruptions |
$2,687.50 |
Costs Due to Crisis in Care |
$1,800.00 |
Costs Due to Supervision |
$742.00 |
Costs Due to Unpaid Leave |
$1,600.00 |
Costs Due to Reduction of Hours |
$1,153.00 |
Total Cost : |
$13,860.50 |
Calculated for 750 employees, 15 Employed Caregivers (2% of your workforce), Average Hourly Wage with Benefits of $30.00
Calculated for 15 Employed Caregivers, Average Hourly Wage of $30.00
Replacement Cost: (for employees who quit as a result of caregiving) |
$10,800.00 |
Absenteeism Cost |
$7,488.00 |
Partial Absenteeism Cost |
$2,871.00 |
Costs Due to Workday Interruptions |
$9,675.00 |
Costs Due to Crisis in Care |
$6,480.00 |
Costs Due to Supervision |
$2,673.00 |
Costs Due to Unpaid Leave |
$5,760.00 |
Costs Due to Reduction of Hours |
$3,459.00 |
Total Cost |
$49,206.00 |