Demographic data indicate that the percentage of elderly people in the United States is steadily increasing. Many employees who care for elders must interrupt their work to deal with elder care issues. The costs of these interruptions are high, and are projected to increase in the future. They can be reduced by referral services that help employees find assistance for their elders. This study uses a discounted cash flow method to estimate the net present value (NPV) of providing elder care referral services. The study includes 22 firms from diverse U.S. industries and the U.S. Navy. Using data from 1996 annual reports, the results show that for all of the firms, the NPV of investment in elder care referral services is positive. This study also estimates the cost of elder care interruptions for the year 2015, based on data obtained by projecting demographic trends to that year. This analysis suggests that elder care referral services will be even more valuable to businesses in the future than they are today. U.S. businesses should provide elder care referral services for their employees.
