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Writer's pictureAntonio Ribeiro

The Cost of Lost Workdays: Caregiving’s Hidden Impact on UK Employers

Updated: Dec 4, 2024

Summary 

  • Caregiving Responsibilities Have a Tangible Cost on Businesses: Caregiving-related absenteeism cost UK employers £2.2 billion(1) over the last five years, disrupting business productivity.  

  • Costs Beyond Lost Work Days: Presenteeism reduces focus at work, and underemployment limits carers’ contributions and responsibilities even when at work. 

  • Sandwich Generation are Disproportionately Impacted: Population aged 35–50 faces dual caregiving roles for children and aging relatives, making them prone to higher absenteeism and stress. 

  • Yurtle’s Back-up Care Provides a Practical Solution: Yurtle’s Back-up Care offers immediate caregiving support and a continuity of care promise, helping businesses reduce absenteeism, improve productivity, and support their caregiving employees. 


Introduction 

Caregiving is a reality for 4.3 million people across the UK workforce. Whether it’s supporting elderly parents, caring for children, or managing other dependent needs, many workers juggle these responsibilities alongside their jobs. While caregiving often comes from a place of love and duty, it introduces challenges that are not just personal but also professional. 


For employers, caregiving responsibilities among staff can lead to increased absenteeism, presenteeism, and turnover—costing businesses millions of pounds each year. Between 2019 and 2024, caregiving-related absences alone cost UK employers £2.2 billion(1). 


With lost workdays and operational inefficiencies mounting, businesses must take proactive steps to support caregiving employees, ensuring a sustainable and resilient care team. 

 

Caregiving’s Hidden Costs in the Workplace 


Lost Workdays and Rising Costs 

The financial impact of caregiving-related absences on UK employers is substantial: 

  • 3.2 million workdays lost in 2023/24(1) 

  • £147 per employee per lost workday in 2023/24, up 30% from 2019/20 

  • Resulting in £464m p.a. or £2.2 billion(1) total cost over five years, driven by absenteeism and productivity losses. 


These figures show how caregiving challenges translate into real costs for businesses. Given the aging population, caregiving responsibilities will only increase causing larger real costs to businesses going forward.

Costs Beyond Days Lost –Presenteeism and Underemployment

The ripple effects of caregiving responsibilities extend beyond lost workdays. Caregiving employees often experience:

  • Presenteeism: Even when at work, caregivers may struggle to focus fully, balancing mental and emotional burdens that reduce productivity.

  • Underemployment: Many carers opt for part-time roles to manage their responsibilities, often influenced by eligibility for Carers Allowance, which limits weekly income to £139. This shift not only affects their earnings but also reduces their contributions to the business.

For employers, the combined impact of these factors creates operational inefficiencies, increased workloads for colleagues, and higher costs associated with replacing or retraining staff, which goes far beyond the £464m p.a. in cost from lost working days alone.

 

Caregiving and Workforce Demographics

Caregiving responsibilities disproportionately affect middle-aged employees, particularly those aged 35–50. This group, often referred to as the "sandwich generation," juggles dual caregiving roles for both children and aging relatives.

For these employees:

  • Caregiving emergencies are frequent and unpredictable.

  • Stress levels are heightened, leading to burnout and increased reliance on sick leave.

Employers who provide tailored support to this demographic can reduce work disruptions while fostering loyalty and retention.

Gender Disparities

Caregiving disproportionately affects women, who are more likely to take on unpaid care responsibilities. This gender imbalance leads to:

  • Higher absenteeism rates among female employees.

  • Increased rates of underemployment, as many women scale back their working hours to manage caregiving duties.

  • Career stagnation, as caregiving limits opportunities for growth and advancement.

Addressing these disparities is crucial for promoting equity and retaining skilled female employees, particularly in senior and specialised roles.

 

The Business Case for Supporting Caregiving Employees

Retention and Recruitment

Caregiving responsibilities often force employees to reduce hours, switch to part-time roles, or leave the workforce altogether. For businesses, this creates:

  • Higher turnover rates, particularly in roles requiring specialised skills.

  • Increased recruitment and onboarding costs.


Impact on Team Morale

When caregiving employees are absent, their colleagues are often left to absorb additional workloads. This creates a cascade of challenges, including:

  • Lower team morale, as employees face added pressure.

  • Reduced productivity, as overstretched teams struggle to maintain efficiency.

Supporting caregiving employees isn’t just a compassionate choice—it’s a strategic investment in workforce stability.

 

Yurtle’s Back-up Care: A Preventative Solution

Yurtle’s Back-up Care offers a proactive way to address the challenges of caregiving-related absences. Designed to provide immediate support during emergencies, Yurtle’s solution helps employees manage their caregiving responsibilities without disrupting their professional lives.


Key Features of Yurtle’s Back-up Care

  1. Immediate Access to Care: Provides reliable backup care options for children, elders, or dependents during unexpected situations.

  2. Continuity of Care Promise: Ensures caregiving responsibilities are met, giving employees peace of mind and reducing stress.

  3. Minimised Absenteeism: Employees can quickly resolve caregiving emergencies and return to work, reducing the impact of lost workdays.

  4. Improved Productivity: With access to backup care, employees can focus fully on their work responsibilities, reducing presenteeism.


By integrating Yurtle’s Back-up Care into their benefits packages, employers can support their caregiving employees, preventing real revenue loss for the business.


Conclusion

Caregiving responsibilities are a growing reality for UK employees, creating significant challenges for businesses. From lost workdays to recruitment costs, the financial impact is undeniable. However, by implementing proactive strategies and integrating solutions like Yurtle’s Back-up Care, employers can mitigate these challenges, fostering a resilient and productive workforce.


Supporting carers isn’t just about reducing costs—it’s about creating a workplace where employees feel valued, empowered, and equipped to succeed. By addressing caregiving challenges head-on, businesses can build stronger teams, improve operational efficiency, and ensure long-term success.


Sources: Carers UK, ONS (Employment Survey, Business Survey), Goodshape. (1) Implied based on sample of 190k employees.

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