Employer sponsored childcare

Smart companies are realising that providing childcare can be good business. It makes sense to provide childcare, or at least support it in some way. The benefits aren’t just for parents either. Organisations are finding that childcare can become much more than an expense.

The benefits to employers
Good quality and inexpensive childcare is a major concern for parents who work.

They need to know that their children are well cared for during the day. More importantly, they don’t want to work just to pay for childcare costs. Employer sponsored childcare can act as both an attraction and retention tool for a company. Some of its benefits include:

• Increased staff loyalty - it can reportedly reduce turnover by up to 60%;
• Decreased absenteeism due to childcare issues;
• Dramatically increased morale;
• Attracts women back to the workplace;
• Reduced conflict over work vs. childcare;
• Enhanced business image and corporate profile;
• Improved retention rates, which reduce training and recruitment costs; and
• Increased productivity - many employers report output improvements in more than half of their staff when childcare is available.

Family-friendly companies are becoming the only choice for many workers. In fact, it has been estimated that up to a third of working families will willingly sacrifice salary and benefits, to access employer sponsored childcare facilities. One report suggested up to a third of working families would be willing to change employers for better childcare facilities.

The benefits to employees
Employees enjoy a whole range of benefits when their employer offers childcare programs. Some of the most obvious benefits include:

• Greater flexibility in working hours;
• Shorter commuting times, especially when there is on-site childcare;
• Improved peace of mind, knowing children are close by;
• Ability to return to work faster for breast feeding mothers; and
• Greater contentment with work/life balance.

What are the options for employers?
Many of the biggest and most respected employers already have worked out that childcare creates company benefits. Small and medium sized firms may think that it’s beyond their resources. However there are a number of strategies for employer sponsored childcare that are worth considering which can fit any organisation:

• On-site childcare. This has been typically the realm of bigger companies, although it has proven to be cost effective for many companies, especially given staff will work for less if it is provided;
• Leasing an existing childcare centre;
• Investing in permanent places at a nearby childcare centre;
• Designating a special room in the building for emergencies. This might allow an employee to do a full day’s work when a child is sick or when a parent is not able to get a baby sitter;
• Find a resource or referral organisation whose consultants will search out childcare options for employees; and
• School holiday care. This can be an excellent option, especially during Christmas holidays when many parents find it difficult to find day care.

Issues for employers to consider
Every business should weigh up the pros and cons of offering childcare for employees. There are a number of relevant factors to consider including:

• Demand: are there enough children to warrant a centre?
• Existing childcare: what provisions do employees already have?
• Childcare in the area: what is already available in the nearby community?