Implementing corporate day care programs may not be a top priority on your list, but doing so can pay off in the long run. The Pennsylvania Department of Human Services says the average American parent misses eight days of work yearly due to child care problems, which means lost productivity in the workplace. That’s why offering corporate day care can do wonders for your bottom line.
Why Consider Corporate Child Care?
While corporate child care surely eases burdens for employees, employers reap benefits as well. Oregon Bureau of Labor and Statistics says employers offering on-site child care saw returns on investments of 50 to 200 percent. Moreover, the Early Care and Learning Council reports that corporate child care programs may decrease employee absence by up to 30 percent, and reduce employee turnover by up to 60 percent.
Who Offers Corporate Child Care Options?
Numerous corporations are hopping on the bandwagon when it comes to employee child care assistance. The Pennsylvania Department of Human Services says about 9 percent of U.S. companies, or 8,000 employers, offer some type of employer-supported child care. The U.S. Bureau of Labor and Statistics says in the year 2014, 39 percent of U.S. employees had access to employer-sponsored child care reimbursement accounts, and 11 percent reaped benefits of employer-funded child care.
Benefits of Corporate Day Care
The main benefit of corporate day care programs is easing employee burden, which leads to fewer absences and increased productivity. Improved employee morale is yet another perk. The Early Care and Learning Council says businesses with 250 employees may save $75,000 yearly in lost work time by subsidizing employee child care. Plus, offering corporate day care benefits is a recruitment tool when hiring top-notch employees. Oregon Bureau of Labor and Statistics says some states offer employer tax credits to companies who fund child care expenses.
So you’ve made the decision to implement a corporate day care program. Now it’s time to take action. Consider the following options based on your budget, building space and time commitment:
- Dependent care reimbursement accounts: This option allows employees the opportunity to put pretax money into flexible spending accounts (FSA) to use for child, elderly or disabled care. Employers can also contribute to dependent care reimbursement accounts.
- Employer-funded child care: This option allows employers to pay for all or part of dependent care expenses at predetermined facilities—whether on-site or near the workplace.
- On-site child care: If you have the space and funds available to set up on-site child care for employees, this benefit is a strong recruitment tool for high-quality employees who value work–life balance. On-site child care can drastically improve morale, productivity and retention, as many employees love opportunities to visit their children during the day.
Making Corporate Day Care Work
Fronting the cost of corporate day care programs might seem intimidating, but doing so can save you money in the long run. The Early Care and Learning Council says corporations lose $3 billion annually because of child care-related employee absences. And, happy employees with eased burdens means better retention, productivity and morale.