Employer Child Care Provides A Bigger-Than-Expected Bang For The Buck

As companies far and wide attempt to convince workers to return to the office after an extended pandemic-related hiatus, there are more than a few issues those employees say need to be addressed. One of them involves a dearth of affordable child care, which has presented a hurdle for parents for generations and could once again be a deal-breaker in the current return-to-office era.

Researchers weigh in

A joint study by Boston Consulting Group and the nonprofit group Moms First revealed that the benefits of employer-funded child-care services are often as great or greater than the initial investment.

Since productivity is a key metric for any workplace, providing working parents with reliable and affordable child care options can help ensure that they make it to work and maintain more focus on the job while they’re there.

According to the most recent research, every dollar invested into child care pays between $0.90 and $4.25 in value through:

• Reduced absences
• More on-time arrivals
• Fewer resignations

As the authors of the study concluded: “These benefits pay for themselves.”

Slow, steady growth

More and more employers are beginning to understand the pros associated with offering child care … including UPS, which has introduced an emergency daycare facility onsite in Northern California that has translated to an average of three fewer employee absences per day over the three months the program has been underway.

The package delivery company is exploring plans to roll out a similar strategy at eight other warehouses this year.

At Etsy, more than three-fourths of all employees said they’re more loyal to the company because of its policy to provide up to $4,000 each year for child care.

Nevertheless, only about 12% of U.S. employees (and just 6% of low-income workers) have access to employer-provided child care.

Chris Agee March 28th, 2024

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