Child Care Benefits Are a Win-Win for Parents and Companies

By: Anneken Tappe · March 28, 2024 · Reading Time: 2 minutes

Child Care Benefits

Providing child care benefits for workers may pay for itself, according to a new study from consulting firm Boston Consulting Group (BCG) and nonprofit Moms First.

Companies offering child care benefits appear to attract more engaged employees, per the research, which focused on five companies offering care benefits. These companies earned anywhere from 90% to 425% return on investment in the form of fewer sick days, increased productivity, and money saved on enhanced employee retention.

Steep Cost

Raising a child is an expensive endeavor, especially in the U.S. According to the Department of Labor , care for young children can cost as much as $15,000 annually per child.

Meanwhile, only 12% of U.S. workers receive employer-provided child care benefits, meaning most parents must solely shoulder care costs without or with little help. For some workers, and particularly women, this can even lead them to leave the labor force in order to provide care themselves rather than to pay for it.

If employer-sponsored child care benefits were to become the norm, or at least more common, it could prove beneficial for both young parents struggling to balance their careers with raising children and companies contending with a tight job market.

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