In planning the workplaces of the future, companies should consider a cost-saving benefit that improves retention and engagement: onsite childcare. A 2022 report found that just 10.4% of surveyed companies provided onsite family childcare for their employees. However, that same report found that onsite childcare can reduce employee absences by 30% and turnover by 60%.
Consider these facts:
- Data from the U.S. Bureau of Labor Statistics shows that 562,000 parents had to miss some work due to childcare problems in 2023.
- A report by the U.S. Chamber of Commerce notes that 58% of parents who left the workforce in 2021 cited a lack of available childcare as their reason for leaving.
- A study by the Simmons College Graduate School of Management found that 93% of parents cite onsite childcare as an important consideration when choosing an employer, and 42% of all employees said it was a factor when evaluating job offers.
- A study published in the Global Journal of Management and Business Research found that increased childcare assistance directly correlated to increased employee retention.
- Companies that provide onsite childcare resources can earn back 25% of the costs associated with providing those resources as a tax credit of up to $150,000.
Corporate Best Practices
Fair360 spoke with three companies that have had successful onsite family childcare centers: Marriott International (a Hall of Fame company), Eli Lilly and Company (No. 5 on the 2023 Top 50 Companies list) and Toyota North America (No. 4 on the 2023 Top 50 Companies list).
