Employers Prioritize Child Care Benefits to Support Workforce

The demand for child care benefits in the workforce has intensified as employers recognize the significant role it plays in both employee productivity and retention.

According to a recent survey conducted by Care.com, 56% of American companies have made child care benefits their top priority in 2024, surpassing other perks such as mental health support, fitness discounts, and commuter benefits.

The economic impact of insufficient child care options is staggering.

A study by the bipartisan Council for a Strong America estimates that the lack of available child care costs the U.S. economy a staggering $122 billion annually.

Additionally, the exodus of workers who must care for seniors or sick family members costs an estimated $44 billion, according to Blue Cross Blue Shield.

Several factors have contributed to the growing need for expanded child care benefits. The COVID-19 pandemic led to the closure of daycares and nursing homes, causing an increased demand for care in the home.

Furthermore, federal funding for child care, which supported over 80% of licensed providers, expired in October, further exacerbating the situation.

Employers are stepping up to address these challenges and meet the needs of their employees.

Alicia Modestino, an economist at Northeastern University, notes that a tight labor market has forced companies to prioritize care benefits not only from a productivity perspective but also to enhance employee retention.

Care.com's survey reveals that 1 in 5 U.S. workers have left a job due to inadequate care benefits, and a similar proportion would consider switching jobs for better support.

To accommodate the evolving landscape of care, employers are offering innovative benefits. Companies like Chobani provide stipends for senior care and child care, while Salesforce offers $2,000 for doula services during the early weeks after birth.

Trane Technologies, on the other hand, contributes to dependent-care flexible spending accounts, providing cash for employees to arrange care as needed.

However, it is important to note that not all workers have access to the same level of support. Employees on the lower end of the wage spectrum often rely on publicly subsidized centers that were severely impacted by the pandemic and may struggle to recover.

This discrepancy emphasizes the need for a public option that prioritizes equity and ensures that all workers have access to affordable and quality child care.

In conclusion, employers are increasingly prioritizing child care benefits as they recognize the crucial role it plays in supporting their workforce. The economic costs of inadequate care options have prompted companies to offer new and innovative benefits.

However, addressing the disparities in access to care remains a challenge that requires ongoing attention and advocacy.