Latest / The Diversity Career Podcast with Fexingo: Inclusion, Equity, and Underrepresented Professionals / How a Bank Created a Career Ladder for Caregivers
Transcript
- Lucas: So there's this stat that I keep circling back to. In the US, about one in five employees is currently caring for an aging relative, a child with special needs, or a partner with a chronic condition. And that number has been creeping up since the pandemic. Luna: And those numbers are even higher for women, especially women of color. I saw a study from AARP that said Black and Hispanic caregivers are more likely to be in the sandwich generation — caring for both kids and parents. Lucas: Right. And here's the thing: most companies still treat caregiving as a personal problem, not a workforce issue. You either figure it out and stay productive, or you burn out and leave. But a regional bank in the Midwest decided to take a different approach. Luna: Which bank is this? Lucas: It's called First Horizon Bank. They're based in Memphis, around 4,500 employees. And in 2024, they launched what they call a 'Caregiver Career Ladder' — it's a formal program that combines flexible scheduling, a pooled leave bank, and a mentorship track specifically for employees who have caregiving responsibilities. Luna: A career ladder — not just a policy, but an actual promotion track? That's unusual. Lucas: Exactly. A lot of companies have caregiver support in theory — you know, 'we offer flexible hours.' But that flexibility often comes with an unspoken penalty. You work part-time or adjust your schedule, and suddenly you're off the promotion path. First Horizon explicitly designed this ladder to prevent that. Luna: So how does it work in practice? Lucas: There are three main components. First, the flexible scheduling isn't just informal — it's codified. Employees can choose from four different schedule templates, including a compressed workweek and a split-shift option. And their manager can't change it without going through HR. Luna: So it's not at the manager's whim. That's a big deal. Lucas: Huge. Because the research shows that when flexibility is informal, it's applied unevenly. White-collar professionals in tech get it all the time; hourly workers in retail or banking are often denied. First Horizon made it a formal benefit for everyone. Luna: And the second component? Lucas: A 'caregiver leave bank.' It's separate from sick leave and parental leave. Employees can donate unused sick days to a central pool, and any caregiver who needs extended time — say, to handle a parent's surgery — can draw from that pool without using vacation time or going unpaid. Luna: That's smart. It creates a peer-supported safety net without the company having to absorb the full cost upfront. Lucas: Exactly. And the third piece is the mentorship track. They pair caregivers who are on a reduced schedule with a senior leader who also has caregiving experience. The mentor is explicitly tasked with ensuring the employee is still considered for promotions and stretch assignments. Luna: So it's not just emotional support — it's career advocacy. Someone in the room who says, 'Hey, don't forget about Sarah when the senior analyst role opens up.' Lucas: Right. And they track outcomes. After the first year, First Horizon reported that caregivers in the program had a 15 percent higher promotion rate than caregivers who weren't enrolled. And the retention rate among caregivers was 92 percent, compared to 78 percent for the bank overall. Luna: That's a pretty dramatic gap. And it makes sense — if you feel like the company is actually invested in your long-term success, you're less likely to leave for a competitor. Lucas: And the bank didn't just do this out of altruism. They calculated that the cost of replacing a caregiver who left was roughly 1.5 times their annual salary. The program cost about $200,000 to set up across all three components. They figure they saved more than three times that in reduced turnover in the first year alone. Luna: So it's a business case, not just a diversity initiative. That probably made it easier to get buy-in from senior leadership. Lucas: Absolutely. And the program also addressed a specific pain point: caregiving disproportionately affects women, and especially women of color, in terms of career progression. The motherhood penalty is real — studies show that mothers are 20 percent less likely to get hired than childless women, and they earn about 11 percent less. Meanwhile, fathers often get a wage boost — the so-called fatherhood bonus. Luna: Which means caregiving is one of those things where gender equity and racial equity intersect. If you fix the caregiving problem, you're also addressing pay gaps and promotion gaps for women and people of color. Lucas: Exactly. And First Horizon's program is explicitly designed to close those gaps. They track promotion rates by gender and race within the caregiver cohort, and they publish the data internally. That transparency is rare. Luna: Has any other company adopted a similar model? Lucas: A few. Patagonia has had on-site childcare for decades, and they recently added a 'caregiver concierge' service. But I don't know of another company that has a dedicated career ladder tied to caregiving. Most are still in the flexible hours and hope for the best phase. Luna: So what would it take for this to become more widespread? Lucas: I think it requires a shift in mindset — from seeing caregiving as a temporary disruption to recognizing it as a long-term reality for a large chunk of the workforce. The demographics are clear: the population is aging, and the need for caregiving is only going to grow. Luna: And companies that don't adapt will lose talent. If I'm a caregiver and I see that First Horizon has a clear path for me, while my current employer just says 'we're family-friendly' but doesn't back it up, I'm going to look at First Horizon. Lucas: Exactly. And speaking of backing things up, that's actually something we think a lot about with this show. If you've found these episodes useful for your own career decisions or just understanding how workplaces are changing, there's a small way to keep the show ad-free and independent. Luna: Yeah, listener support is the reason we don't have ad breaks or sponsored segments. It's pretty straightforward — people who can and want to, can chip in at buy me a coffee dot com slash fexingo. Lucas: No pressure at all. But it does help us keep digging into programs like this one. And now, I want to talk about a potential downside that came up in the implementation. Luna: What's that? Lucas: Some employees who weren't caregivers felt that the program created a 'special treatment' perception. There was a bit of resentment — 'Why do they get a mentor and I don't?' First Horizon handled that by expanding the mentorship track to all employees after the first year, but keeping the caregiving-specific component for scheduling and leave. Luna: That seems like a smart compromise. Because you don't want to create a two-tier system where caregivers are seen as getting undeserved perks. Lucas: Right. And the data actually helped — they showed that the program reduced overall turnover, which benefits everyone because it means more experienced colleagues and less workload churn. The resentment faded once people saw the numbers. Luna: So transparency around the data was key. That's a lesson for any company considering a similar program. Lucas: It is. And I think the broader lesson is that caregiving support isn't just a nice to have — it's becoming a competitive advantage in talent retention. If you're an employer and you're not thinking about this, you're going to lose your best people to companies that are. Luna: Especially as the workforce ages. I mean, millennials are now in their forties and fifties — they're the sandwich generation. And Gen Z is already asking about caregiving policies in job interviews. Lucas: Yeah, I've seen surveys where Gen Z ranks caregiving support higher than on-site perks like free lunch. They want structural support, not just amenities. Luna: So First Horizon might be ahead of the curve. I wonder if we'll see more banks or other industries adopt this model in the next few years. Lucas: I think we will. Especially in sectors like healthcare and retail, where the workforce is predominantly female and caregiving is a huge factor in turnover. The business case is too strong to ignore. Luna: And the beauty is that it doesn't require a massive investment — it's more about redesigning existing policies and adding accountability. Lucas: Exactly. It's a reminder that sometimes the most impactful diversity initiatives aren't the flashy ones — they're the ones that address the real, everyday challenges that keep talented people from advancing. Luna: And in the process, you make the workplace better for everyone, not just caregivers. Lucas: Right. So if you're thinking about your own career or your company's policies, look at caregiving. It's one of those hidden barriers that, once removed, can unlock a lot of potential.