Due to the slowing down of business growth and the rising cost of labor, many companies are laying off workers and postponing new hires. However, talented people are always going to be sought-after. One of the most effective ways to court talent is to offer non-monetary perks. The past few years have spawned a new trend in a quest for mental health and overall healthcare benefits. Childcare assistance might seem outside that scope, but it can be a game-changer for some prospective and existing employees. It can be hard to create a benefits program geared toward employees’ needs. Although many employees may not need or qualify for your program, childcare benefits can help ease the pain points of working parents.
During the pandemic, parents had to juggle their job responsibilities while caring for their kids. This change in routine led to mental health issues, burnout, and lost productivity throughout the country. In addition, many women ended up leaving the workforce entirely, including almost 30% of mothers with young children. Although that may seem like a family matter or census statistic, a change of this magnitude can significantly impact employers and their revenue stream.
Parents who can’t find a solution to their childcare issues end up either distracted or missing work. This can have a negative impact on both a company’s bottom line and employee productivity. In addition to fewer workers, the childcare crisis has cost the US around $57 billion in lost productivity. Providing childcare benefits can send a strong message to potential and current employees that you care about their well-being. If your company doesn’t currently offer childcare benefits, it’s time to ask yourself why.
Although the world has started recovering from the pandemic, many childcare centers are still not operational. According to a survey, over one in four families with young children still can’t find a consistent childcare center. This issue could be caused by various factors, such as the closures of thousands of centers during the pandemic. More than half of parents surveyed said they spent more than 20% of their household budget on child care in 2022. That number is up from 72% in 2019 and a 70% increase from 2021.
According to studies, providing childcare benefits can help promote a company’s diversity and inclusion efforts. It has been shown that parents of color are more prone to leaving the workforce due to childcare issues than their white counterparts. In a report released by the Future of Benefits, over 90% of HR professionals stated that providing childcare benefits can help meet the goal of having a diverse workforce.