Caregiving’s Hidden Toll on Retention—and What Employers Can Do
Today’s workplace runs on people balancing more than their job titles. Many employees are also caring for family members, and that reality shapes what they need from work. A recent survey from Principal Financial Group makes the case clear: tailored benefits matter, especially for people juggling caregiving alongside their day-to-day responsibilities.
The Caregiver Experience, Up Close
Roughly 20% of the U.S. workforce are family caregivers. The strain shows. In one study, nearly a quarter of employees (24%) who care for both a child and a dependent adult said they strongly want to leave their current job—a warning sign for retention. And 22% in this group have already left a job in the past because caregiving demands made it unworkable.
Burnout, Mental Health, and Practical Support
Caregivers report burnout, rising mental health concerns, and the heaviness of carrying two roles at once. For people actively providing care, practical benefits—life insurance and paid family leave in particular—stand out as support that eases worry and helps them stay afloat.
Amy Friedrich, President of Benefits and Protection at Principal, points to a clear opportunity: employers can actively support caregivers by understanding what they need and designing benefits accordingly. That understanding matters across a career, since more than half of employees identify as caregivers at some point.
Why a Broader Benefits Package Matters
The survey shows employees are looking beyond the basics of health insurance and retirement plans. Sixty-four percent say life insurance is extremely valuable. Paid medical and family leave is close behind at 63%, and 52% place strong value on disability insurance. These preferences tie directly to retention: people stay when employers offer a mix of benefits that fits the realities of their lives.
Make the Message Stick
There’s a catch. Forty-three percent of employees said they hear about their benefits from their employer only once a year—or less. Infrequent communication leaves people unclear on what they have and how to use it. As Friedrich notes, intentional, consistent outreach helps employees understand and actually take advantage of what’s on the table.
Growth in an Uneasy Economy
Even with worries about inflation and the broader economy, many businesses report progress: 69% say their financial health has improved. Still, economic stability is an increasing concern for both employees and employers, coming in just behind inflation on their list of worries.
Hiring and satisfaction trends are more upbeat. Fifty-five percent of businesses are adding to their teams, 70% of employees report wage increases, and 87% say they’re satisfied in their current roles.
What Could Slow Expansion
Business owners expect growth, but rising interest rates loom large. Sixty-nine percent anticipate needing more capital, and many say high rates are a major barrier to getting the funding they require. Access to capital may be the constraint that tests their plans.
About the Principal Financial Well-Being Index
The findings come from the Principal Financial Well-Being Index, a survey of business leaders and employees across the U.S. designed to take the pulse of worker financial well-being. It offers a wide view of sentiment and day-to-day dynamics inside small and mid-sized businesses in the current market.
Commissioned by Principal, the survey is meant to guide employers as they respond to shifting needs—spotting the trends that matter and the pressures that shape how people work, care, and plan.
Frequently Asked Questions
What does the Principal survey say about caregiving and retention?
It shows caregiving responsibilities are closely linked to turnover risk, with many caregivers considering leaving—or having already left—a job, and that broader benefits can help retention.
How common is caregiving among employees?
About 20% of U.S. workers are family caregivers, and more than half of employees become caregivers at some point in their careers.
Which benefits matter most to caregivers?
Life insurance and paid family leave rise to the top, with disability insurance also valued. Employees increasingly want a broader mix beyond core health and retirement plans.
How often do employees hear about their benefits?
Forty-three percent say they get benefits information only once a year or less, which can leave them unaware of what’s available and how to use it.
What are the current business and employee trends?
Many businesses report improved financial health and are hiring, with wage gains and high employee satisfaction—though inflation and economic stability remain significant concerns.
