Businesses are under pressure to provide more for their workers, including enhanced employee benefits plans, but there’s one area that can help keep employees and their employers happy.
A new report from Boston Consulting Group and Moms First shows that firms that provide childcare benefits, such as onsite or near-site facilities for regular use, backup services such as last-minute or drop-in care, and stipends to help parents to pay for their own arrangements, can see positive return on investment of between 90% and 425%.
However, just 12% of all US workers have access to childcare benefits, including just 6% of those who are part-time or low-income workers.
“Our study provides evidence that U.S. employers adding childcare benefits to their employment packages are seeing quick and lasting rewards in recruiting, retention, and productivity. This result was consistent across a range of industries, and for both salaried and hourly employees,” said Emily Kos, a managing director and partner at BCG and a co-author of the report. “One striking example of how the benefits pay for themselves is tied to something as basic as showing up. Parents miss far less work when they have reliable care and more options to manage childcare disruptions. That’s good for employees and for employers.”
The study also found that employers can pay for childcare benefits by retaining as few as 1% of eligible employees, with up to 86% of employees who took part in the poll saying they were more likely to stay with their employer because of their childcare benefits, and as many as 78% saying the peace of mind resulting from the benefits has given their careers a boost.
“The lack of quality, affordable childcare in the US is a crisis for working families, 40% of whom are in debt because of the cost of childcare. Our economy depends on care—without it, women cannot work,” said Reshma Saujani, founder and CEO of Moms First and a co-author of the report. “Until now, we lacked the data that demonstrated a clear return on investment for companies that provide childcare benefits. That ends today. This report with BCG is proof that childcare benefits not only pay for themselves, but also make financial and strategic sense, creating an advantage for businesses that step up and make the investment in their employees.”
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