Corporate Child Care

By reducing turnover, companies can save considerable amounts in recruitment, training, and lost productivity. It was found that companies offering childcare benefits experienced up to 50% lower turnover rates. Given that replacing an employee can cost between 20% to 150% of their salary, depending on their position, this can significantly reduce their overall operating expenses (Source: Boston Consulting Group)

According to a study by the U.S. Chamber of Commerce Foundation, businesses that invest in childcare report a ROI of $3 to $4 for every $1 spent on childcare benefits. This ROI comes from reduced absenteeism, lower turnover, and higher productivity (Source: U.S. Chamber of Commerce Foundation).

Case Study: A CitiBank study showed that their on-site childcare centers generated a 125% ROI due to lower and/or leveraged administrative costs from reduced absenteeism, turnover, and higher productivity from working parents (Source: CitiBank).

Citations:

CitiBank. On-Site Childcare ROI Study: Measuring the Impact of Employer-Sponsored Childcare. Citibank, 2015.

• Report summary: https://www.citigroup.com/citi/sustainability/data/child_care_roi_study.pdf

Boston Consulting Group. "Childcare Benefits Pay for Themselves at U.S. Companies." Boston Consulting Group, September 27, 2024. https://www.bcg.com/publications/2024/childcare-benefits-pay-for-themselves-at-us-companies.

Boston Consulting Group. Why Childcare Solutions Are a Workforce Imperative: Global Workforce Trends in Childcare. Boston Consulting Group, 2020.

• Full report: https://www.bcg.com/publications/2020/global-workforce-trends-in-childcare

Employees facing childcare challenges are twice as likely to miss work due to family responsibilities. Providing childcare solutions can reduce absenteeism by up to 30%, boosting overall productivity according to the U.S. Chamber of Commerce Foundation.

Offering childcare benefits can significantly increase employee loyalty, engagement, and productivity.

A Bright Horizons study found that companies offering backup childcare services saw a 96% retention rate of employees who used the service, significantly improving overall retention rates (Source: Bright Horizons Modern Family Index). Another study found the same results, 90% of employees in companies that provide childcare benefits report greater commitment to their employer (Source: Boston Consulting Group).

At the same time, it was found that Employees who have reliable childcare are 25% more productive, as they are less distracted and stressed by family concerns during work hours (Source: American Academy of Pediatrics). Another study found that, when employees are confident that their children are in safe, nurturing environments, they can focus better on their work, leading to increased productivity and efficiency (Source: National Fund for Workforce Solutions).

Case Study: Patagonia, a company known for offering on-site childcare, reports 125% more employee retention for new parents compared to national averages, leading to savings in talent replacement and higher engagement (Source: Harvard Business Review).

Citations:

Harvard Business Review. Patagonia’s Radical Transparency: The Case of Childcare. Harvard Business Review, August 2016.

• The case study is discussed in this article: Vincent Stanley & Rose Marcario, Patagonia’s Philosophy of Business, HBR, 2016. https://hbr.org/2016/08/why-patagonia-offers-on-site-child-care

Boston Consulting Group. Why Childcare Solutions Are a Workforce Imperative: Global Workforce Trends in Childcare. Boston Consulting Group, 2020.

• https://www.bcg.com/publications/2020/global-workforce-trends-in-childcare

National Fund for Workforce Solutions. "Why Assistance with Childcare Is So Important to Employees." National Fund for Workforce Solutions, June 26, 2024.

• https://nationalfund.org/why-assistance-with-childcare-is-so-important-to-employees/.

In another study, it was found that offering childcare benefits can be an effective recruitment tool, noting that 62% of working parents say that childcare assistance is a top factor in choosing between job offers, helping businesses attract top talent (Source: Society for Human Resource Management).

According to the National Fund for Workforce Solutions, companies that offer childcare benefits for employees are more attractive to top talent, particularly those with young families. In fact, 70% of working parents state that they would likely choose an employer that offers childcare benefits over one that does not.

National Fund for Workforce Solutions. "Why Assistance with Childcare Is So Important to Employees." National Fund for Workforce Solutions, June 26, 2024. https://nationalfund.org/why-assistance-with-childcare-is-so-important-to-employees/.

The childcare crisis continues to grow and is likely to get worse post-pandemic as wages within alternative occupations continue to rise faster than childcare wages (Source: EY), creating financial headwinds for your company in the future that can cripple your business if they are not prevented.

Another article from KPMG (May 2024) also highlights the childcare crisis affecting the U.S. workforce. Key issues include high costs and limited access to childcare, leading many parents to reduce work hours or leave jobs.

As KPMG notes, the shortage of childcare providers further compounds these challenges, impacting economic productivity and workforce participation. Employers are increasingly exploring solutions, such as flexible work policies and childcare support, to mitigate these challenges and retain employees.

EY (Ernst & Young). Total Rewards and Early Childcare Staffing: Addressing the Childcare Staffing Crisis. EY, 2023.

• https://www.ey.com/en_us/insights/strategy/total-rewards-support-early-childcare-staffing

KPMG. "Crisis in Childcare and the State of Work in America." KPMG, May 2024.

• https://kpmg.com/us/en/articles/2024/may-2024-childcare-crisis-state-work-america.html.