Dive Brief:
- Nearly 8 in 10 HR leaders responding to a survey said they struggle to convince the C-suite that investing in expanded child care benefits pays off, according to a survey of 152 CHROs, CPOs, VPs and HR heads of Fortune 500 companies by the Harris Poll and KinderCare Learning Companies.
- The disconnect stems primarily from the C-suite’s uncertainty about the return on investment in providing enhanced benefits and a lack of clarity over employee needs, the analysis, released Jan. 15, concluded.
- To close the gap, HR leaders said they are assessing employee needs to help them and the C-suite better understand the specific needs of their employee base.
Dive Insight:
HR professionals responding to the survey largely said they’ve experienced or anticipate increased demand for child care solutions from employees. Most also said such benefits would be critical for return-to-office plans.
But they reported difficulting obtaining C-suite buy-in, despite more than 80% of respondents reporting a belief that child care benefits reduce turnover, help with recruiting, improve employee mental health and improve productivity.
Some research indicates a measurable return on investment: A March 2024 study by working parent advocacy group Moms First and Boston Consulting Group revealed that child care benefits result in a return on investment of up to 425%.
The five companies that participated in the study reported that child care benefits improved retention and productivity and reduced absences. It’s not just the money, it’s “an incredible morale booster,” one corporate employee said.
Almost all of the HR leaders responding to the most recent survey said their company already offers some kind of child care benefit, with subsidized care being the most popular at 66%. This was followed by mixed child care benefits (63%); on-demand child care (57%); emergency back-up care (56%); off-hour care (54%); and tax credits (53%). Less than half (45%) of the HR leaders surveyed said their companies offer on-site child care or co-working spaces that double as day care.
For many working parents in the U.S. who depend on paid caregivers for their children, the need for employer-sponsored child care benefits may be dire, according to a November report from the U.S. Department of Labor’s National Database of Childcare Prices.
Nationwide, families spend between nearly 9% and 16% of their median income for full-day care for one child, the NDCP said. In 2022, for some, this meant paying almost as much as, or more, than a month’s rent, according to DOL.
