PRINCETON, N.J.--(BUSINESS WIRE)--Findings released today from a new compensation study, conducted by Salary.com and sponsored by Otsuka America Pharmaceutical, Inc. (Otsuka), reveal caregivers of loved ones with Alzheimer's or other dementias would earn a six-figure salary—approximately $114,000 on average—if paid for the daily care they provide.
"Americas Unseen Workforce: What if Family Caregivers Were Paid a Salary?” — the latest in a research series sponsored by Otsuka advocating for the visibility and support of family caregivers — assessed the average wages associated with typical daily tasks of caring for a loved one who has Alzheimer’s or other dementias. Projected salaries of family caregivers varied based on regional and state-level pay rates which are driven by factors such as local demand for the work and cost of living.
The daily spectrum of caregiving responsibilities can span 12 distinct jobs ranging from household chores to complex tasks such as nursing and financial counseling. However, unlike paid jobs, there is rarely, if ever, time to clock off, with family caregivers needing to work overtime and weekends. The rapidly aging population is driving a national caregiving crisis, leaving family caregivers to navigate a challenging journey without access to adequate resources and limited financial stability.
“This timely research documents the financial impact of family caregiving to a critical segment of our population who serve as the primary support system for their loved ones,” said Debra Barrett, vice president of corporate affairs for Otsuka. “We need to re-envision healthcare and social support networks to safeguard the well-being of family caregivers and the loved ones they tirelessly serve. This community deserves to be supported with resources that offer a tangible impact in their lives. Sponsoring this study is part of a larger corporate caregiver commitment by Otsuka to advocate for family caregivers everywhere. We stand ready to work with policymakers who want to relieve the burdens caregivers face by providing other means of financial or logistical support.”
This compensation research coincides with pivotal policy movements, such as the Guiding an Improved Dementia Experience (GUIDE) Model led by the Centers for Medicare & Medicaid Services, poised to address the pressing financial challenges confronting unpaid family caregivers and pave the way for alternative payment models and more robust support services. In addition, members of Congress have introduced a variety of measures that address caregiving such as tax credits for services and streamlining early detection to support older Americans and their families.
According to the Alzheimer’s Association, the societal contribution from family caregivers of those with Alzheimer’s or other dementias is estimated at $350 billion. However, not enough attention has been paid to the individual contributions of family caregivers who are often forced to reduce their hours at work or leave the workforce entirely, sacrificing wages to manage their loved one’s deteriorating condition. These circumstances create financial hardship, with nearly two in three (64%) caregivers admitting they are forced to make tough financial choices.
“Much of the conversation around the economic value of unpaid family caregivers of those living with Alzheimer’s or other dementias provides the big picture view, and while critical to understanding the landscape, it doesn’t depict the immense loss and burden on individual caregivers,” said Greg Wolf, managing director, Salary.com. “This research shows that these family caregivers are taking on a full-time job, requiring a complex skillset, that would equal significant income if in the paid workforce.”
New caregiver compensation calculator
A new compensation calculator from Salary.com, and sponsored by Otsuka, enables caregivers of loved ones with Alzheimer's or other dementias to put a number to what they would earn, if compensated for the time dedicated to their loved one, giving a clearer picture of their financial impact.
In two easy steps, individuals can add the typical hours they spend on common caregiving tasks and add their location to get an estimated salary if they were to be paid. Once calculated, a shareable link showing the caregiver’s estimated salary is provided. To access the calculator, visit Salary.com/CaregiverCalculator.
“I commend Otsuka’s leadership in fueling the growing advocacy for the millions of family caregivers of those with Alzheimer’s or other dementias who make up our country’s unseen workforce,” said Liz O’Donnell, founder of Working Daughter, an online community for women balancing eldercare, children, care, and more. “The interactive compensation calculator enables this critical community to put a number to their time and immense contribution, which I hope will ignite a rallying cry of support.”
To learn more about Otsuka’s caregiver commitment visit: otsuka-us.com/valued-minds/caregiver.
Methodology
America’s Unpaid Workforce: What if Family Caregivers Were Paid a Salary?
The market value was established using Salary.com proprietary CompAnaylst Market Data, drawn from over 350 distinct HR-reported salary surveys, to align job descriptions with the typical tasks performed by full-time family caregivers of individuals with Alzheimer’s disease and dementia from the latest literature as cited in Alzheimer’s Association 2024 Facts and Figures and National Institute of Aging. The market value was compiled at the 50th percentile for national, regional and state scopes based on benchmark analysis.
The list of typical caregiver jobs the research assessed included:
- Helping with daily tasks like dressing, bathing, etc.
- Safety proofing the house for loved ones (adding ramps, signs, etc.)
- Help with managing their loved one’s medications, keeping prescriptions current, and giving their loved one medicine
- Help with cooking the loved one’s meals and feeding their loved one
- Running essential errands such as shopping for food, clothes and household items
- Help with cleaning their loved one’s home
- Arranging medical care and making healthcare decisions for their loved one
- Scheduling: managing bill payment reminders, scheduling doctor appointments, etc.
- Driving and accompanying their loved one to medical appointments
- Establishing power of attorney, managing tax filings, managing accounts and investments, property and retirement plans
- Managing their loved one’s finances
- Being available for middle of the night care
Projected annual earnings were calculated based on an average of nine caregiving hours per day for advanced dementia or Alzheimer’s care. This translates to 63 hours per week, including 23 hours of overtime beyond the standard 40-hour work week. In addition, Salary.com included a daily average of two hours of on-call time, compensating for availability outside regular working hours.
This approach relies on averages, recognizing that every caregiver's journey and day is unique.
About Otsuka
Otsuka Pharmaceutical Co., Ltd. is a global healthcare company with the corporate philosophy: Otsuka–people creating new products for better health worldwide. Otsuka researches, develops, manufactures, and markets innovative products, with a focus on pharmaceutical products to meet unmet medical needs and nutraceutical products for the maintenance of everyday health.
In pharmaceuticals, Otsuka is a leader in the challenging areas of mental, renal, and cardiovascular health and has additional research programs in oncology and on several under-addressed diseases including tuberculosis, a significant global public health issue. These commitments illustrate how Otsuka is a “big venture” company at heart, applying a youthful spirit of creativity in everything it does.
Otsuka established a presence in the U.S. in 1973 and today its U.S. affiliates include Otsuka Pharmaceutical Development & Commercialization, Inc. (OPDC) and Otsuka America Pharmaceutical, Inc. (OAPI). These two companies’ 2,250 employees in the U.S. develop and commercialize medicines in the areas of mental health and nephrology, using cutting-edge technology to address unmet healthcare needs.
OPDC and OAPI are indirect subsidiaries of Otsuka Pharmaceutical Co., Ltd., which is a subsidiary of Otsuka Holdings Co., Ltd. headquartered in Tokyo, Japan. The Otsuka group of companies employed 34,400 people worldwide and had consolidated sales of approximately USD 14.2 billion in 2023.
All Otsuka stories start by taking the road less traveled. Learn more about Otsuka in the U.S. at www.otsuka-us.com and connect with us on LinkedIn and Twitter at @OtsukaUS. Otsuka Pharmaceutical Co., Ltd.’s global website is accessible at https://www.otsuka.co.jp/en/.
About Salary.com
Salary.com® has been solving the complex human capital needs of global organizations for more than 25 years. Today, over 30,000 organizations in 22 countries use Salary.com’s solutions to confidently hire and retain talent so they can better compete in a constantly changing landscape. Offering the most precise data set on the market, Salary.com provides more than 10 billion data points across more than 225 industries using our powerful, proprietary AI framework and backwards propagating neural network machine learning to get pay right. The company’s flagship product CompAnalyst® is the cornerstone of the compensation management software platform. It empowers organizations with a suite of tools that simplifies hiring, eliminates compensation guesswork, and increases retention. Building trust with employee’s depends on fair pay and Salary.com’s solutions get it right. For more information, please visit www.salary.com.
