How Corporations Profit From The Absence Of Daycare?

Child care issues are causing employees to miss work, quit their jobs, or be let go by employers. Businesses are increasingly turning to child care benefits and early learning advocacy to retain skilled workers and stand out in today’s competitive talent market. The nonprofit arm of the world’s largest business federation warns that the skills gap feeding an unprecedented labor shortage will only worsen. Employers can help prevent productivity losses from the child care Cliff by adding childcare benefits to their employment packages. Indiana loses $3 billion annually due to lack of high-quality child care options for Hoosier families.

Many companies have started providing virtual programs for children, expanded flexibility for employees, and expanded support for low- and middle-income parents. This creates an ongoing workforce challenge as the U.S. faces a $23 billion annual loss due to lost revenue or hiring costs caused by losing working parents over insufficient care.

Despite high costs, childcare providers operate on thin margins, and low pay in the childcare sector can make employees less likely to move to a new job. Recent BCG research finds that childcare benefits deliver returns of up to 425 of their cost for companies across the US. By providing childcare support, companies can help alleviate stress and improve employee productivity, which in turn drives up the bottom line.

Offering childcare subsidies can augment employers’ benefits packages, supporting employees’ well-being, reducing stress and burnout, and increasing productivity. Investments in child care can improve a community’s economic vitality, a business’s ability to attract talent, and a working environment.