Over the past two years, COVID-19 has interrupted every facet of our lives. But for working parents, this period has been even more difficult to navigate, since quarantine measures caused most child care centers and schools to close at the same time that workplaces transitioned from office buildings to the home kitchen table.
As working parents struggled to meet the simultaneous demands of careers and caregiving during the pandemic, some forward-looking companies responded with innovative new benefits that specifically addressed the need for affordable, dependable child care. Company-led childcare options, from tutoring to on-site day care centers, to back-up care when children are sick or unable to go to their regular provider, have been welcomed by working parents, in conjunction with reduced work hours and more flexible schedules, to give them the necessary balance between their work and family responsibilities. These new benefits are particularly important to women, who are still responsible for the majority of child care within a family.1
The struggle to find good child care
More than 12 million children under age five are in some form of care in the United States,2 so it should not be surprising that child care was an critical issue for working mothers long before the pandemic; and during the lock down period it was shown to be essential. When child care was suddenly unavailable, many women were literally unable to continue doing their jobs and made the difficult choice to leave the workforce. Now that life is returning to a “new normal,” many families say finding child care that fits their needs is harder than ever. It has also become more expensive.3 Across the country the cost of child care has risen at a faster rate than most family incomes, and in some states child care costs more than college tuition.4
How important is it that employers address child care issues?
According to a recent study by Care.com, 67% of working parents reported they would be more loyal to their current job if they were offered employer-subsidized child care. That percentage rose to 74% for those with children under 4 years old. In addition, 60% of parents surveyed believed their job performance would improve if child care benefits were available. Additional research by the U.S. Chamber of Commerce Foundation found that when companies provided child care assistance, employee absences decreased by up to 30% and job turnover declined significantly.5
Child care as an employee benefit
Along with the standard package of health, insurance, dental coverage and paid time off, child care assistance has become a highly desirable benefit, which companies can use to attract and retain the best talent. But right now, only 6% of American companies offer it.6 Corporations have traditionally shied away from child care benefits due to the expense, but more progressive firms are finding a variety of ways to support working parents at differing price points. In fact, child care options can take many forms, from onsite child care and child care subsidies, to providing early and late pick-up, extended care hours, weekend care, summer camps and tutoring, in-home nannies, babysitters, or back-up child care.7
On-site child care can be a great option for parents
During already overscheduled workdays, dropping off children at a separate daycare center on the way to work – on time, with all the requisite snacks, supplies, permission slips, clothing, and toys – is a major stressor for parents. Many child care centers also impose fines when those parents are late for evening pick-up, even if weather, traffic, or long-running business meetings made those extra minutes unavoidable.
By contrast, onsite child care is immediately accessible for working parents and doesn’t add to a long rush-hour commute. Moms in particular feel better knowing they can visit their child over the course of the day, and breastfeed their infants at regular intervals instead of pumping and storing milk. Parents are also happier when they have the option to eat lunch with their child.8
It can also be great for companies
On-site child care is still relatively rare – offered by a mere 4% of workplaces, according to the Society for Human Resource Management. But some notable companies that have added those facilities to their campuses include Johnson & Johnson, Goldman Sachs, and Patagonia, which operates three of its own child care centers.
The outdoor clothing manufacturer has seen a very real return on its investment: nearly all of Patagonia’s staff return to their positions after maternity leave and parents who use the child care centers are 25% less likely to leave the company, reducing turnover costs. There are also tax benefits to providing on-site child care. Qualified programs can receive an annual tax credit of $150,000, while deducting an additional portion of the costs from its taxable income.9
Improving productivity
Nationally, 2 million people quit their jobs every year due to child care issues, and nearly half of all employees report missing work because they had difficulty finding qualified, affordable care for their children.10 A recent study also found that employers lose close to $13 billion in earnings and productivity each year due to inadequate child care resources.11
But working parents who don’t have to worry about a sick child at home, or a babysitter who canceled at the last minute, are better able to do their jobs. When parents have access to high-quality child care, they are more engaged at work, which benefits the company’s bottom line.
Increasing retention levels
It is estimated that 20-35% of working mothers who give birth do not return to their previous jobs, leading to higher costs for recruiting and training a replacement. But employees are less likely to move to a new job if it also means moving their child care from an environment they love and trust.12
Child care benefits affect all of employees
Offering child care options is obviously a huge benefit to working parents, but it can also improve morale and productivity throughout the ranks. Child care benefits decrease absenteeism, increase overall job satisfaction, and strengthen employee commitment to the success of the company.13 Finally, providing child care benefits contributes to a better employee experience by recognizing that your best workers also have important work/life balance obligations outside of their jobs.14
Editor’s Note: The TASC Dependent Care Flexible Spending Account allows you to use pretax dollars to pay for eligible expenses related to care for your child including fees for licensed day care or adult care facilities, before and after school care programs for dependents under the age of 14, expenses for babysitters or nursery school provided in or outside of your home, nanny expenses attributed to dependent care, preschool fees, summer day care and late pick-up fees.
Sources:
- “Employers Sweeten Child Care Benefits to Win Over Workers,” CNBC, July 2021: cnbc.com/2021/07/09/employers-sweeten-child-care-benefits-to-win-over-workers-.html
- “Companies — and parents — create their own child care programs while lawmakers dither,” NBC News, October 2021: https://www.nbcnews.com/business/companies-parents-create-child-care-programs-lawmakers-dither-rcna4075
- “Companies offering child care get grown-up payback,” Reuters, August 2021: https://www.reuters.com/breakingviews/companies-offering-child-care-get-grown-up-payback-2021-08-20/
- “Companies — and parents — create their own child care programs while lawmakers dither,” NBC News, October 2021: https://www.nbcnews.com/business/companies-parents-create-child-care-programs-lawmakers-dither-rcna4075
- “Lessons from the pandemic: Companies offering childcare benefits help increase retention and recruitment,” St. Louis Business Journal, April 2021: https://www.bizjournals.com/stlouis/news/2021/02/04/lessons-from-the-pandemic-companies-offering-chil.html
- Only 6% of U.S. Businesses Offer Any Child Care Benefits, Highlighting Significant Challenges for Working Parents,” PR Newswire.com, January 2020: https://www.prnewswire.com/news-releases/only-6-of-us-businesses-offer-any-child-care-benefits-highlighting-significant-challenges-for-working-parents-300984033.html
- “Employers: Here’s Why You Should Be Providing Working Parents with Child Care Options,” Vivvi, December 2020: https://vivvi.com/blog/articles/working-parents-child-care
- Ibid.
- “Companies offering child care get grown-up payback,” Reuters, August 2021: https://www.reuters.com/breakingviews/companies-offering-child-care-get-grown-up-payback-2021-08-20/
- “Lessons from the pandemic: Companies offering childcare benefits help increase retention and recruitment,” St. Louis Business Journal, April 2021: https://www.bizjournals.com/stlouis/news/2021/02/04/lessons-from-the-pandemic-companies-offering-chil.html
- “Employers: Here’s Why You Should Be Providing Working Parents with Child Care Options,” Vivvi, December 2020: https://vivvi.com/blog/articles/working-parents-child-care
- Ibid.
- Ibid.
- “Lessons from the pandemic: Companies offering childcare benefits help increase retention and recruitment,” St. Louis Business Journal, April 2021: https://www.bizjournals.com/stlouis/news/2021/02/04/lessons-from-the-pandemic-companies-offering-chil.html
