Over 50 million working parents in America face a crushing problem: lack of affordable, high-quality childcare.
Quality care is expensive, particularly for babies.
Last year alone, the average yearly cost of care in America was $11,582 per child.
Placing two kids in a child care center now costs at least 25% more than typical rent in every state, and it surpasses annual mortgage payments in 45 states and D.C
And while 60% of US households pay more than 20% of their annual income for childcare, many American parents are left with no choice but to quit the workforce.
America’s Child Care Deserts
Not only is childcare in America expensive, but it’s also hard to find.
According to the Center for American Progress, over 50% of the US population lives in a childcare desert.
What is a Child Care Desert?
‘A child care desert is any census tract with more than 50 children under age 5 that contains either no child care providers or so few options that there are more than three times as many children as licensed child care slots.’
According to BCG,
Only 12% of workers have access to childcare benefits through their employer.
This figure falls to 6% for part-time employees.
The numbers are worse for desk-less workers:
75% of organizations do not offer childcare benefits to desk-less employees, who occupy 70% of US jobs.
The childcare crisis in America is a multifaceted issue and addressing the problem is crucial for the well-being of families and the overall economy. That's why employers and policymakers must step up and offer affordable and accessible childcare solutions.
But does an investment in childcare benefit the employer?
Yes!
According to the BCG study, it makes economic and strategic sense to offer childcare benefits. Not only do childcare benefits yield financial returns but they even pay for themselves.
Childcare Benefits: A Smart Financial Move for American Companies
Over the past decade, US businesses have expanded and innovated their human resources offerings, yet many have overlooked the importance of childcare. By doing so, they’ve missed out on significant advantages.
Here's how:
1. Childcare Benefits Attract Top Talent
By refusing to offer benefits, you lose your best talent to your competitor. A recent study
found that millennials prioritize childcare and 83% said that given the choice, they would leave their job for one with better family-friendly benefits.
2. Childcare Benefits Improve Job Satisfaction in Employees
Providing childcare benefits fosters a positive work environment, enhances employee morale, and boosts overall job satisfaction.
3. Childcare Benefits Lead to Employee Retention
Replacing an employee can cost up to 150% of their annual salary when considering recruiting, onboarding, and training expenses. Providing childcare benefits helps retain valuable staff and reduces these costs.
4. Quality Childcare Equals Increased Productivity
A study by the US Chamber of Commerce Foundation found that childcare issues cost businesses $3 billion annually in lost productivity. By offering childcare solutions, companies can ensure their employees are more present, focused, and productive during work hours.
5. Reliable Childcare Means Reduce Absenteeism
When parents have access to dependable and high-quality childcare, they are less likely to miss work due to childcare-related issues.
6. Childcare Benefits Pay for Themselves
Apart from the intangible perks, childcare benefits pay for themselves.
Companies witnessed an ROI of up to 425% on their childcare benefits, according to Mom's First and BCG's study. Plus, the investment reached a breakeven threshold with just 1% of qualified staff retained- thus, making childcare a no-brainer for HR.
Offer Inclusive Childcare Benefits With Carefully's Community-Based Care
Carefully stands out by offering community-based care that caters to all types of organizations and
employees, including salaried staff, hourly workers, essential personnel, and freelancers.
By streamlining the organization, planning, and coordination of cooperative care, Carefully enables employees to concentrate better, enhance their productivity, and enjoy the advantages of being part of a supportive company.
Get in touch with us to learn more about Carefully for Employees.