It’s up to HR to make the case for childcare benefits

As employers look to diversify their employee value propositions this year, the role of employee benefits will undoubtedly be critical. And with more than 30 million working parents in the U.S. today, according to the U.S. Bureau of Labor Statistics, childcare benefits can have a crucial impact.

It’s a reality many in HR acknowledge.

A new survey of Fortune 500 HR leaders by KinderCare, a provider of early childhood and school-age education and care, found that 84% of HR leaders are seeing or expecting to see increased employee demand for childcare solutions. About two-thirds of those surveyed offer some form of childcare benefits.

And they are seeing the value:

• 86% say such benefits help the organization attract talent
• 85% believe the offerings reduce turnover
• nearly two-thirds call them a “key” factor in the success of their TA strategies

“Human resources leaders overwhelmingly recognize the importance of childcare benefits in addressing workforce challenges,” says Jessica Harrah, KinderCare’s chief people officer.

Unfortunately, while HR leaders acknowledge the impact of childcare benefits, many face C-suite hesitancy to expand such programs because of corporate budget constraints, according to the study.

Nearly 80% of those surveyed said they’re interested in offering more childcare benefits to their employees, but anticipate challenges working with the C-suite and board. Without that support, HR may not be able to capture the true impact of childcare benefits on recruitment, retention and culture-building, Harrah says.

A vast majority of HR professionals said they would like childcare benefits to be subsidized by the government but, given ongoing political polarization, that is unlikely, meaning that “HR leaders themselves will be called on to make the case,” report authors wrote.

“HR leaders can help champion the needs of their people by demonstrating to the C-suite the ROI of childcare-related benefits to their organization,” Harrah says.

Beyond the offering’s impact on recruitment and retention, KinderCare found that 82% of HR leaders surveyed said childcare benefits enable employees to excel in their roles, and nearly as many cited direct impacts on productivity.

“Offering childcare can help with productivity and professional success,” she says. “Investing in childcare not only supports employees but also delivers measurable advantages for employers by creating a more focused and productive workforce.”

This is especially important in an environment where HR is tasked with reimagining ways of working. As more employers call workers back to the office, childcare benefits are becoming even more critical, Harrah says, noting that 82% of those surveyed said the offering can offset the impact of return-to-office mandates.

Providing a range of different childcare benefits can be particularly valuable.

“Choice and flexibility are more critical now than ever as employees return on site and working models continue to evolve,” she says.

Subsidized childcare is the most commonly offered benefit among KinderCare’s respondents. Other popular offerings include on-demand and backup childcare, off-hours care, childcare tax credits, on-site childcare facilities and child-friendly co-working spaces.

“Investing in accessible and affordable childcare benefits is not only the right thing to do from a societal perspective, it’s clearly also a strategic imperative for businesses,” Harrah says.