Day Care Benefits for Employees

Daycare Benefits for Employees

In the age of the two-parent income, it is clear to see that working parents need safe, reliable and affordable child care for their children. And yet, parents are having difficulty finding care that meets their needs. Why? The answer is threefold: Availability, affordability and quality. These challenges exist because child care is labor-intensive, and high-quality child care is even more so due to the salary and benefits needed to attract and retain qualified staff and the teacher-to-child ratios required by law. (Yang 112)

There are three challenges that parents confront in finding high-quality child care: If care is available and affordable, often it is not of high quality. If child care is available and of high quality, it is often unaffordable. Finally, given the more intense teacher-to-child ratios for infants, many community programs do not offer infant care for financial reasons, further increasing the challenge working parents experience in finding care for their children.

The general economics of the child care business create a child care shortage. This is because child care is a high-cost/low-return business that is cost prohibitive -- specifically for infants and toddlers, causing a severe shortage of care for these children Additionally, it is often available for limited hours, which may not match employees' needs. (Hamburg-Coplan 46)

High-quality child care is limited for a variety of reasons. Why? According to a recent article entitle "The Daycare Dilemma" "Demand exceeds supply, which creates long waiting lists for parents, and only 8% of child care centers throughout the country are accredited by the National Association for the Education of Young Children (NAEYC), which means the centers meet national standards of high-quality care. Given this, there are far fewer high-quality centers available than those of lesser quality."(Ferguson 58)

Given these statistics, it is no real surprise that employees continually cite finding quality care as their number one challenge (68%), followed by affordability of care (63%) and availability of care (53%). (Hamburg-Coplan) These findings are based on the results from surveying nearly 100,000 employees at 33 different work locations over the past three years. So, what's the solution? While there are a number of possible child care solutions to address one or another of employees' child care challenges, only an employer-sponsored child care center can eliminate all three challenges at the same time.

An employer-sponsored center increases the supply of child care available for working parents. By providing exclusive or priority enrollment to the employees of the employer sponsor, a work-site child care center provides employees with access to high-quality care, including care for infants and toddlers. In addition, the operating hours and days are tailored to match work schedules, providing child care during times when employees often have the most difficulty finding care. This is essential for organizations that operate around the clock. Many employer-sponsored centers also have sliding-scale parent fees or scholarship programs based on household income to assist employees. Other employers choose to contribute ongoing support to the center to make the fees affordable for all of their employees. And, Employer-sponsored child care centers usually meet the higher-quality standards set by NAEYC to provide quality care for children and peace of mind for employees. In fact, The Cost, Quality, and Child Outcomes in Child Care Centers Study - which examined the influence of child care on development over four years - showed that high-quality care positively predicts children's cognitive and behavioral performance well into their school experience. When working parents know that their children are taken care of in a high-quality setting, they can better focus on work. (Yang)

Employer-sponsored child care solves the dilemmas that working parents face in their quest for a solution to their child care problems. So what are the benefits to the employer? There are several which include:

Greater Employee Job Satisfaction and Performance

Recruitment and Retention Made Easier

Absenteeism Decreased/Employee Productivity Increased

Turnover Reduced

Employer-sponsored child care programs generate a powerful return on investment. By driving down turnover, reducing absenteeism, and increasing productivity on the job, child care and work/life programs are not only an investment in employees, but an investment in the success of the companies that institute them. In fact, after the first year of employment, most employee turnover occurs among the parents of young children. (Hamburg-Coplan) By providing programs that allow those parents to work, and perform to their full capacity, leading employers reduce the recurring costs of recruiting and retaining skilled employees.