{"id":2194,"date":"2023-04-07T14:35:39","date_gmt":"2023-04-07T14:35:39","guid":{"rendered":"https:\/\/www.care.com\/business\/2017\/11\/14\/investments-in-child-care-pay-off\/"},"modified":"2023-04-07T14:35:39","modified_gmt":"2023-04-07T14:35:39","slug":"investments-in-child-care-pay-off","status":"publish","type":"post","link":"https:\/\/www.care.com\/business\/investments-in-child-care-pay-off\/","title":{"rendered":"How We&#8217;d All Benefit from an Investment in Child Care"},"content":{"rendered":"<p><span style=\"font-weight: 300\">When it comes to benefits and making smart investments in today\u2019s economic climate, employers are looking for strategies that are low in risk and high in rewards. This is exactly what they get when investing in employer sponsored child care programs. With 95% of employers recalibrating their benefit strategies, 46% of employers told Care in the <\/span><a href=\"https:\/\/www.care.com\/business\/resources\/ebooks-and-reports\/future-of-benefits-report-2023\/\"><span style=\"font-weight: 300\">Future of Benefits report<\/span><\/a><span style=\"font-weight: 300\"> that they will continue to prioritize child care benefits in 2023. This begs the question, what do these employers know that others don\u2019t?\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 300\">Simply put, the positive impact of child care benefits can be felt across entire populations of people, from working parents, to new mothers and their children, as well as future generations who are entering the workforce ready to build a life for themselves. Savvy employers know that by offering valuable child care programs to their employees, they are able to be a part of a life-changing solution, while harnessing crucial benefits for themselves and their bottom line.<\/span><\/p>\n<h2><b>What does investing in an employer sponsored child care program look like?<\/b><\/h2>\n<p><span style=\"font-weight: 300\">In order for an investment in child care benefits to truly make an impact, employer paid child care benefits must be of high quality, affordable, and accessible for families of all incomes, regions, and care needs. This could look like offering soon-to-be working parents paid parental leave, subsidizing child care benefits after the child is born, or providing public resources that equip parents with the support they need when raising their children.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 300\">Child care benefits come in all shapes and sizes, which is a good thing since there is no one size fits all solution for every single family, workforce, or population. There are several different <\/span><a href=\"https:\/\/www.care.com\/business\/child-care-benefits\/\"><span style=\"font-weight: 300\">types of child care benefits<\/span><\/a><span style=\"font-weight: 300\">, but the most in demand include:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 300\"><span style=\"font-weight: 300\">Flexible care options<\/span><\/li>\n<li style=\"font-weight: 300\"><span style=\"font-weight: 300\">Backup child care<\/span><\/li>\n<li style=\"font-weight: 300\"><span style=\"font-weight: 300\">New parent support<\/span><\/li>\n<li style=\"font-weight: 300\"><span style=\"font-weight: 300\">Monetary subsidies for child care<\/span><\/li>\n<li style=\"font-weight: 300\"><span style=\"font-weight: 300\">Tutoring platforms and subsidies<\/span><\/li>\n<\/ul>\n<h2><b>How do we each benefit?\u00a0<\/b><\/h2>\n<p><b>Empowering women personally and professionally: <\/b><span style=\"font-weight: 300\">In a recent <\/span><a href=\"https:\/\/hbr.org\/2021\/04\/childcare-is-a-business-issue\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 300\">Harvard Business Review<\/span><\/a><span style=\"font-weight: 300\"> study, 26% of women who became unemployed during the pandemic said it was due to a lack of childcare. This matters because according to the <\/span><a href=\"https:\/\/momsfirst.us\/childcare-report\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 300\">McKinsey Global Institute<\/span><\/a><span style=\"font-weight: 300\">, employers are potentially losing up to $840 billion in economic output due to diminished workforce participation of women\u2014who tend to be the primary child caregivers. Care is the linchpin that allows more working mothers to remain in the workforce and balance their caregiving responsibilities at home. When interviewed by Care\u2019s CEO Tim Allen, renowned economist <\/span><a href=\"https:\/\/www.care.com\/business\/what-the-child-care-crisis-costs-us-all\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 300\">Betsey Stevenson<\/span><\/a><span style=\"font-weight: 300\"> also discussed how we shouldn\u2019t approach parenting and childcare responsibilities as a women\u2019s issue at all. But when investments in childcare benefits are made for the betterment of the entire family, women are as a result, more empowered to make personal, financial, and professional decisions for themselves.\u00a0<\/span><\/p>\n<p><b>Competitive advantages for employers: <\/b><span style=\"font-weight: 300\">Everyone\u2019s bottom line is impacted by the broken child care system. Nationally, the cost of lost earnings, productivity, and revenue due to inadequate child care resources just for parents of children under the age of three totals an estimated <\/span><a href=\"https:\/\/strongnation.s3.amazonaws.com\/documents\/1598\/05d917e2-9618-4648-a0ee-1b35d17e2a4d.pdf?1674854626&amp;inline;%20filename=%22$122%20Billion:%20The%20Growing,%20Annual%20Cost%20of%20the%20Infant-Toddler%20Child%20Care%20Crisis.pdf%22\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 300\">$122 billion each year<\/span><\/a><span style=\"font-weight: 300\">. Because there is no legislature that provides subsidized child care for working families, leading employers have found these competitive advantages when they offer employer-sponsored child care programs to their employees:<\/span><\/p>\n<ul>\n<li style=\"list-style-type: none\">\n<ul>\n<li style=\"font-weight: 300\"><span style=\"font-weight: 300\">Increased productivity<\/span><\/li>\n<li style=\"font-weight: 300\"><span style=\"font-weight: 300\">More diversity and inclusion<\/span><\/li>\n<li style=\"font-weight: 300\"><span style=\"font-weight: 300\">Better recruitment and retention<\/span><\/li>\n<li style=\"font-weight: 300\"><span style=\"font-weight: 300\">Improved employee satisfaction,\u00a0<\/span><\/li>\n<li style=\"font-weight: 300\"><span style=\"font-weight: 300\">Positive reputation and brand awareness\u00a0<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><b>Cost of care relief for working families: <\/b><span style=\"font-weight: 300\">No matter what economic situation families find themselves in, child care is expensive. According to a report by UNICEF, most wealthy countries outside of the U.S heavily subsidize child care for disadvantaged groups. In 19 of these countries they analyzed, a single parent of low earnings would pay <\/span><a href=\"https:\/\/www.unicef-irc.org\/publications\/pdf\/where-do-rich-countries-stand-on-childcare.pdf\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 300\">less than 5% of their wages<\/span><\/a><span style=\"font-weight: 300\"> on childcare for 2 children full time. However, in the U.S, such a parent would need to spend between <\/span><a href=\"https:\/\/www.unicef-irc.org\/publications\/pdf\/where-do-rich-countries-stand-on-childcare.pdf\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 300\">one third and half of their salary<\/span><\/a><span style=\"font-weight: 300\"> for the same care. What&#8217;s worse? According to the latest Care.com <\/span><a href=\"https:\/\/www.care.com\/c\/how-much-does-child-care-cost\/\"><span style=\"font-weight: 300\">Cost of Care survey<\/span><\/a><span style=\"font-weight: 300\">, child care got even more expensive in 2022 for 63% of parents.\u00a0<\/span><\/p>\n<p><b>Better quality of life for children: <\/b><span style=\"font-weight: 300\">Quality child care and early childhood education have been tied to positive long-term outcomes for children. When it comes to children in low-income homes, they also benefit most from access to quality child care because it\u2019s their parents who are struggling to make ends meet. Child care support affords them access to that care, which in turn, creates a more stable home environment. When the children in a family are thriving, the family unit as a whole does as well.<\/span><\/p>\n<p><b>Supporting future generations: <\/b><span style=\"font-weight: 300\">When we take into account all of the ways investing in childcare benefits us, it&#8217;s easy to see how it creates a better society for future generations to be born into. In 2020, the general fertility rate fell 2% to <\/span><a href=\"https:\/\/www.wsj.com\/articles\/u-s-birthrates-fall-to-record-low-11589947260\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 300\">58.2 births per 1,000 women<\/span><\/a><span style=\"font-weight: 300\">, its lowest level since the US government began tracking this data. With no childcare infrastructure to support them, it is no surprise that Millennial and Gen Z adults are choosing to wait longer or not have children at all due to the financial burden of childcare.<\/span><\/p>\n<h2><b>Investing in the future<\/b><\/h2>\n<p><span style=\"font-weight: 300\">Our child care system is a complicated, multi-layered problem where it\u2019s easy to agree something needs to be done, but far harder to agree on a solution.<\/span><b> But one thing is crystal clear: <\/b><a href=\"https:\/\/www.care.com\/business\/offering-child-care-benefits-to-employees\/\"><b>investing in child care<\/b><\/a><b> through employer-subsidized child care is an investment in the future we want to have. <\/b><span style=\"font-weight: 300\">And like all good investments, if we aren\u2019t thinking about the long-term return, we\u2019re doing it wrong.<\/span><\/p>\n<p><span style=\"font-weight: 300\">With the rising costs of care, changes to the job market, and a rapidly changing work culture where employees have more care responsibilities falling on their shoulders at home, we cannot afford to ignore the positive impact childcare benefits have in all of our lives. After all, aren\u2019t we worth it?<\/span><\/p>\n<h2><b>Want to see how other leading employers are investing in child care benefits?<\/b><\/h2>\n<p><span style=\"font-weight: 300\">Check out the <\/span><a href=\"https:\/\/www.care.com\/business\/resources\/ebooks-and-reports\/future-of-benefits-report-2023\/\"><span style=\"font-weight: 300\">2023 Future of Benefits<\/span><\/a><span style=\"font-weight: 300\"> report where 500 HR and business leaders gave us an inside look into how their care benefits support their workforce.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>When it comes to benefits and making smart investments in today\u2019s economic climate, employers are looking for strategies that are low in risk and high in rewards. This is exactly what they get when investing in employer sponsored child care programs. With 95% of employers recalibrating their benefit strategies, 46% of employers told Care in<\/p>\n","protected":false},"author":1421,"featured_media":6987,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"care_post_updated_flag":false,"care_updated_date":"","last_update":"2023-04-07","content-type":"","footnotes":""},"categories":[2],"tags":[39],"member-type":[],"vertical":[],"platform":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v23.4 (Yoast SEO v23.4) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>How We&#039;d All Benefit from an Investment in Child Care<\/title>\n<meta name=\"description\" content=\"Care is the lynchpin that allows parents\u2014and especially mothers\u2014to remain in the workforce. 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