Elder care obligations challenge the next generation

HR Magazine, July, 1996 by Kate Walter

In the 1970s and '80s, child care issues were the catalyst for many work-family policies; today, elder care concerns have been added to the list. "The issue of elder care has gained prominence as the workforce has aged," says Sally Coberly, director at the Washington Business Group on Health, a D.C.-based nonprofit that researches and analyzes health care issues for large employers. The problem is magnified as members of the baby boom generation take on responsibility for caring for their aging parents.

The New York City office of Buck Consultants surveyed 313 employers and found 33 percent offer resource and referral information on elder care. Forty-four percent of respondents said work-family programs have a favorable effect on their bottom line. "Elder care is a growing issue," says Suzanne Kidd, a principal with Buck. "As people live longer, employees may be spending more time dealing with elder care than with raising their children."

As a workforce issue, elder care surfaced less than 10 years ago. But companies are paying attention to the trend. A survey of 1,050 major U.S. employers by Hewitt Associates found 26 percent offered elder care benefits in 1995 - more than double the number offering such benefits in 1990. Of those offering benefits, 77 percent offer resource and referral services, 21 percent offer long-term care insurance, and 19 percent offer counseling.

GIVE EMPLOYEES A PLACE TO TURN

The Prudential Insurance Company has offered elder care resource and referral services to its more than 99,000 employees since 1990. "It evolved as a grassroots effort," says John Teehan, personnel policies consultant. "Employees were asking for this assistance, and we looked at the data for Workforce 2000 that indicated that the need for employers to provide elder care services would increase in the future."

The resource and referral service, which employees access by dialing an 800 number, is particularly valuable for employees who provide care for relatives living far away. "Employees are at a total loss because they aren't familiar with the state or the community where the parent lives," said Teehan. "Sometimes, they pick up the phone and try to do their own leg work and run into brick walls. Then they use the 800 number; they're amazed at how much time it saves."

Teehan says it makes great business sense to offer a 24-hour resource and referral service because restricting availability to regular business hours can eat into company time and affect productivity. Instead, Prudential employees can call an 800 number that is staffed by an outside vendor at any hour and speak with consultants offering technical assistance, consumer education and information packages, as well as referrals to local vendors or counselors who may set up appointments to discuss services.

"Resource and referral services help retain and attract valuable employees," says Teehan. "It's good for the company because it improves morale and reduces stress." About 2 percent of Prudential employees have taken advantage of the 800 number to inquire about elder care.

Since 1991, Schering-Plough Corporation, a Madison, N. J.-based pharmaceutical manufacturer with 10,000 domestic employees, has offered an 800 number for child and elder care referrals.

"We got into the work-family arena hot and heavy around 1990," says Pam Fisher, human resource manager and corporate work-family coordinator. "We thought it would be a good idea to start offering more family friendly benefits because of the diversity of the workforce."

In 1995, about 15 percent of the workforce at Schering-Plough used the 800 line for child or elder care referrals. "A smaller percentage has used the number for elder care, but that's due to our demographics," Fisher says. Only 2.5 percent of the company's employees currently face elder care issues. "But as time goes on, this number will increase."

The highest percentage of elder care calls were for help with functional problems, such as helping a parent who can no longer cook or clean the house. Other common requests were for help in handling legal and financial planning, and serious medical problems. Thirteen percent of the calls were from employees with parents living more than 1,000 miles away. "When employees are trying to arrange quality care in another region, it's a real convenience for them to make a call and have someone give them local referrals," said Fisher.

Both The Prudential and Schering-Plough use Work/Family Elder Directions, an outside vendor based in Boston. The vendor developed the elder care resource and referral program for IBM and now has a national network of more than 200 community-based organizations. Many companies offering elder care resource and referral programs contract with national firms.

"Providing a telephone referral service is a wonderful employee benefit," says Molly Rees Gavin, interim president of Connecticut Community Care, a managed care company with its own in-state elder care network. "Employees get qualitative recommendations from the first two phone calls, rather than wasting 10 calls." Gavin also recommends seminars, support groups, resource fairs and libraries as efficient, inexpensive ways to get information out to employees.