According to a recent Harris Poll and KinderCare Learning Companies survey, 8 out of 10 human resources (HR) professionals report difficulties convincing senior executives that investing in childcare benefits for workers is beneficial. The survey, which included 152 senior executives and HR leaders from Fortune 500 companies shows that the C-suite is uncertain that an upgraded investment in childcare would result in sufficient returns.
HR professionals say that lack of knowledge about employees’ needs is a contributing factor to the executives’ uncertainty about embracing enhanced childcare benefits. In response, many HR professionals plan to complete employee needs assessment surveys to help inform senior executives about specific employee needs. The survey further reveals that HR professionals have seen an increasing demand for better childcare solutions from employees.
Almost all HR professionals reported that their company already offers some type of childcare benefits. Subsidized childcare is the most popular benefit (66%), closely followed by mixed childcare benefits (63%). Other prevalent types of childcare benefits offered by employers include on-demand childcare (57%), emergency back-up care (56%), off-hour care (54%), and tax credits (53%). Only 45% of employers surveyed offered onsite childcare or co-working spaces.
Another recent study by Moms First, a working parent advocacy group, and Boston Consulting Group shows that providing childcare benefits to workers results in a 425% return on investment. The five companies participating in the survey reported that childcare benefits improved employee attendance, productivity, and retention. Furthermore, aside from the financial benefits, offering childcare benefits greatly increased employee morale.
Moreover, the U.S. Department of Labor’s National Database of Childcare Prices (NDCP) showed in November 2024 that employer-sponsored childcare is critical. Nationwide, working families spend between 9 and 16% of their median income for full-time childcare for one child. For some families, these figures mean childcare costs are equivalent to their monthly rent.
HBL has experience in all areas of benefits and employment law, offering a comprehensive solution to all your business benefits and HR/employment needs. We help ensure you are in compliance with the complex requirements of ERISA and the IRS code, as well as those laws that impact you and your employees. Together, we reduce your exposure to potential legal or financial penalties. Learn more by calling 470-571-1007.
Hall Benefits Law, LLC
