Working parents have reached their breaking point, employers need to rethink 2023 benefits

With 40% of parents who make up the workforce, now is the time for companies to invest in them and create a workplace where everyone can feel supported.

(Photo: Monkey Business Images/Shutterstock)

Being a working parent in the U.S. today is arguably among the hardest jobs you’ll ever have.

Between the demands of work itself, caring for children and other family members, concerns about kids’ learning gaps and mental health, in addition to recession fears, national and global issues, and personal stressors, parents have a lot on their minds.

For 1 in 6 children who also have a developmental disorder diagnosis, the everyday pressures for parents are on a whole other level.

In the wake of the COVID-19 pandemic, employers are prioritizing mental health and responding with benefits solutions to attract and retain top talent, improve health outcomes, reduce rising health care spend, and drive employee engagement.

In fact, according to a recent report by Business Group on Health, 85% of large employers say expanded mental health benefits and coverage is a pandemic change that will continue.

While this is a welcome change, solutions that are uniquely suited to the needs of working parents and those with neurodiverse children are vital to helping employers address their biggest challenges.

Stressed to the max

While the pandemic ushered in a lot of positive change for working parents including remote work, flexible schedules, and compressed workweeks, a myriad of new challenges have surfaced.

Positions have been combined or eliminated, roles have changed, and responsibilities have increased. Amidst recession fears, many companies have endured layoffs and hiring freezes.

At the same time, the Great Resignation shows no signs of slowing down, putting even more pressure on working parents to do more with less.

Although COVID-19 proved that people can effectively work from home — and be more productive and happy at the same time — many companies are enforcing return-to-office policies.

In fact, 69% of mid- to large-sized employers say they’re requiring employees with jobs that can be done remotely to be in the office for a set number of days, a report by Gartner found.

Caring for kids takes a toll on employee mental health

On the home front, there’s no reprieve for working parents.

Not only are they overwhelmed by the everyday demands of caring for their kids, but the pandemic has created an entirely new set of worries like learning gaps and mental health issues that parents, particularly those who are working from home, are keenly aware of.

A report from the Centers for Disease Control and Prevention (CDC) found that 44% of high school students say they persistently felt sad or hopeless and nearly 20% have contemplated suicide.

Daniel Etra, Co-founder & CEO, RethinkFirst

Parents are also concerned about their children’s development. According to a 2022 survey by the American Psychological Association (APA), their concerns are centered around:

For working parents who also care for children with developmental delays, the level of stress, worry, and mental load is heightened.

These parents have a never-ending list of tasks related to health care, insurance, school, and caregiving — all of which take a toll on their mental health. In fact, parents of neurodiverse children are 2.4 times more likely to have mental health issues.

The cost of low engagement and “quiet quitters”

Over the last 20 years, employee engagement has increased but still remains low at just 32%. Plus, an estimated 50% of the workforce is made up of quiet quitters — or those employees who are doing the bare minimum at work.

The lack of engagement is a challenge for employers, but for those who have working parents, productivity, absenteeism, and presenteeism are significantly impacted. Consider this:

All in all, caregiver absenteeism costs the U.S. economy a whopping $25 billion in lost productivity every year.

How employers can support working parents

Employers looking to attract and retain top talent, drive engagement, and reduce spend need to look to new approaches and innovative solutions that support working parents before it’s too late.

The challenge, however, is that many organizations invest in multiple point solutions to address every need, but the result is a highly-fragmented, complicated journey in which employees feel confused and frustrated and don’t get the help they need.

Therefore, investing in a single, integrated solution that takes a holistic approach to addressing the needs of working parents is critical. This type of solution provides parents with:

Read more: Why paid parental leave insurance is an untapped opportunity

With 40% of parents who make up the workforce, now is the time for companies to invest in them and create a workplace where everyone can feel supported, or otherwise risk losing some of their most valuable employees.

Daniel Etra, Co-founder & CEO, RethinkFirst