The Reasons Why Employer Supported Childcare is a Win-Win-Win.

Employer-supported childcare refers to various strategies offered to assist working parents with their child-care needs. These various options  provide different benefits for both employers and employees:


On-site centers can increase employees’ loyalty to the organization and decrease workers’ commute time.

Emergency back-up care lessens absenteeism and tardiness.

Subsidies and vouchers  lower financial expenses for the employees and provide tax credits for the employers.

Flex-time and leave policies improve workers’ job satisfaction and hence help to recruit and retain key talents.

Parenting at the workplace decreases employees’ stress resulting in increased productivity and boosted morale.

Regardless of the chosen strategy, offering sponsored childcare benefits can help your company to become a more appealing workplace while providing significant financial benefits.  Every dollar the company spends on childcare, saves it at least three dollars in reduced absenteeism, turnover, and work disruption caused by child-care problems.

Without the employer’s support, the childcare difficulties that working parents are struggling with, can create labor market barriers and as a direct result, undermine the competitive edge and success of organizations.

According to the 10-page overview from the National Child Care Information Center, businesses with child care programs report workplace improvements and bottom-line savings in the following areas:

 Lowered Absenteeism: Child care breakdowns leading to employee absences cost businesses $3 billion annually in the United States. Fifty-four percent of employers report that child care services had a positive impact on employee absenteeism, reducing missed workdays by 20 to 30 percent.

 Increased Productivity: 49 percent of employers report that child care services had helped boost employee productivity.

 Reduced Turnover: Almost two-thirds of employers found that providing child care services reduced turnover.

Boosted Recruitment: 85 percent of employers report that providing child care services improved employee recruitment. About one in three working parents is willing to change employers or trade salary and benefits for work/family programs that fit his/her needs.

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