Many American parents struggle to afford childcare, which has a significant impact on both employees and employers. According to a new study by Moms First, the cost of childcare can be as high as $26,000 per year, and many parents spend up to 30% of their combined wages just on childcare expenses.
The study surveyed hundreds of parents at five companies in fall 2023 and found that childcare benefits offered by employers can have a significant return on investment. For example, Etsy, UPS, Fast Retailing, Synchrony, and Steamboat companies saw positive returns on investments up to 425% through offering childcare benefits.
The study also found that childcare benefits can increase employee retention and productivity. When a company offers childcare benefits, retaining just 1% of eligible working parents can cover the price a company pays for those benefits. Additionally, employees with childcare support are more productive and have reduced their work absences by an average of 16 days per year.
4. Childcare benefits can boost employees' career prospects and earning potential. According to the study, 86% of working parents were more likely to stay at their company if they had childcare benefits, and 78% said childcare support is having a positive impact on their careers.
The study highlights the importance of reliable and affordable childcare. Employers can help address the high costs and limited availability of childcare by offering childcare benefits, such as stipends, on-site care, or backup care. This can help many parents stay in their jobs and advance in their careers.
Some companies have already implemented childcare benefits, such as UPS, which recently piloted a 3-month program offering on-site childcare at a warehouse facility. This program was available to hourly employees and also offered emergency childcare when parents needed it.
The study emphasizes the need for employers to recognize the importance of childcare benefits and to provide them to their employees. By offering childcare benefits, employers can not only support their employees but also improve their bottom line.
Childcare benefits can help employers attract and retain top talent, improve employee productivity and retention, and boost employees' career prospects and earning potential. Employers who provide childcare benefits can gain a competitive advantage in the job market and improve their overall business performance.
In conclusion, childcare benefits are an important investment that employers can make in their employees. By providing these benefits, employers can support their employees, improve their bottom line, and gain a competitive advantage in the job market.