It is difficult for employees to find childcare while they work full-time. According to our survey of 505 U.S. workers, all employees should have childcare benefits. Businesses should offer a variety of benefits that are cost-efficient and efficient, such as flexible spending accounts for dependent care (DCFSAs), and back-up childcare assistance.
Kelly is a mid-career professional who has two children younger than 5 years. Kelly will spend approximately $20,000 annually to enroll both her children in a nursery or daycare during her work hours. Kelly earns $50,000 annually — the national average. She will almost be unable to make half her income if she has to pay childcare.
Kelly’s employer can provide support, but how? Kelly will not be able stay at her company and progress without support.
Situations like Kelly’s for American businesses are not hypothetical: The cost of childcare in 33 states and District of Columbia is higher than that of college. For employees and companies, childcare benefits are just as important as sick days and paid time off.
To find out more about the childcare benefits offered by their jobs, we surveyed 505 employees.
Companies should aim to:
- Consider which childcare benefits would be most beneficial for their company and best suited to their budget
- All employees should be offered childcare benefits so that they feel like they have the opportunity to advance.
- All employees, regardless of size or business, can be offered childcare savings accounts
Our findings
- Only 6% offer childcare benefits to employees, despite the fact both parents are employed in 63% American families with children. Companies need to carefully think about what childcare benefits would be beneficial for their business and how they can fit into their budget.
- Only 43% of women believe that their company has a fair chance of advancement. This is less than half of the 43 percent who are female. To ensure that everyone feels that they can move up, childcare benefits can help women feel happier.
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13 percent of women are unhappy with their childcare benefits. Only 3% of men dissatisfy with their company’s childcare offerings. This means that women are four times more likely than men to be unhappy with their company’s childcare benefits. Employers’ dissatisfaction about childcare benefits can be addressed by childcare savings accounts at all sizes.
