Understanding the Benefits of Employer-Sponsored Child Care

Child care reform is a hot topic – and businesses play a significant role in shaping this national conversation. According to a 2018 survey by the U.S. Chamber of Commerce Foundation, four in five working parents say it’s important that the business community leads the way when it comes to providing access to quality child care.

Several HR executives have called their on-site child care a “competitive advantage” that differentiates their company as family-friendly. On-site child care produces a tangible ROI for employers, encouraging talent retention and increased productivity.

However, despite the fact that both employers and employees report that on-site child care is among the most valued benefit for workers, only 7 percent of employers offer access to on- or near-site child care, according to The Hill

A Solution for Employers

U.S. businesses lose $3 billion annually due to employee absenteeism as a result of child care breakdowns. A more reliable option, such as employer-sponsored care, can decrease employee absences by up to 30 percent and job turnover declines as much as 60 percent, according to the Early Care & Learning Council.

While many companies have yet to invest in on-site child care, employee favorites are providing this important benefit. Roughly one quarter of Fortune magazine’s “Best 100 Companies to Work For” offer at least one on-site child care center compared to the slim 4 to 8 percent of all other companies who offer it.

Improving employee retention pays off in the long run. Talent Daily found that turnover costs for replacing an employee can range from 35 percent of an annual salary for non-managerial positions, to several years’ pay for a director or vice president.

Global outdoor retailer Patagonia has championed on-site child care for more than 35 years. They’ve seen an enviable 100 percent of employed mothers return to work after their pregnancies, which in turn has empowered a greater number of women to hold upper-level leadership positions.

Dean Carter, VP of HR at Patagonia, told Outside Online that 85 percent of employees with children enroll in their program. Cost also isn’t a concern — the company recoups 91 percent of the $1 million child care budget through federal tax credits, employee retention and productivity. 

When targeting prospective employees and retaining top talent, a company’s proven commitment to supporting work-life balance goes a long way. It also benefits the future of business as a whole. By providing quality child care, organizations demonstrate their interest and investment in preparing today’s children for their roles in our future workforce.

A Valuable Benefit for Employees

With more than two-thirds of children under five now living in dual-income homes, more and more parents are struggling to find quality child care, and in some cases, are forced to exit the workforce. The issue is top-of-mind for millennial parents — 83 percent say they would leave their job for one with more family-friendly benefits.

Working parents are also more likely to view their employer positively, continue their education and work longer hours if on-site child care is available. This perk can also result in increased connectedness in the office — employees with access to on-site daycare were nearly 20 percent more engaged at work than average.

Talented employees and top companies recognize the value of on-site child care. By aligning with an experienced, high-quality early education and care provider like Primrose Schools, which has been a leader in the child care industry for more than 35 years, companies benefit from a tailored offering that meets the unique needs of both parties.

Primrose on PremiseSM, the employer-sponsored extension of Primrose Schools, brings the exceptional Primrose experience directly to the workplace. Our Balanced Learning® approach, which is implemented in our nearly 400 schools across the country, combines purposeful play with nurturing guidance from teachers to encourage curiosity, creativity, confidence and compassion. During each work day, parents can have peace of mind knowing their children are developing lifelong skills and preparing for future success.

To learn more about offering child care benefits to employees and bringing the leader in early education and care to your workplace, contact the Primrose on Premise team.