As more companies issue return-to-office mandates, working parents are increasingly facing a dilemma.
In recent years, the proliferation of remote work has made it so that over one-quarter of the workforce is working exclusively remotely, while 55% are still working from home one or more days per week. This enhanced flexibility has allowed parents of young children to work as needed while taking care of their households.
However, employers are awakening to the benefits of in-person work. According to many, it fosters a better sense of belonging and collaboration and has the potential to spark innovative ideas through spontaneous conversation. As more employers ask their teams to come back, parents must figure out what to do with their young children.
For most, the obvious answer is childcare. Still, there is much discussion on who should be providing that childcare. From the perspective of some employers, it’s a parent’s sole responsibility to ensure their children are well cared for while they’re away at work.
Conversely, many parents believe that their employers should offer some help as they now need to retool their lives and schedules to accommodate requests for in-person attendance. If you’re an employer, you may be wondering whether it’s wise to acquiesce.
The Benefits of Offering Childcare Support as Part of Your Employee Compensation Package
There are some benefits to offering childcare support to employees. As childcare costs continue to soar, employer-sponsored childcare benefits can relieve some of the financial burden. Additionally, this benefit can help parents avoid quitting their jobs or taking significant time away to care for their children. It allows them to earn a living and maintain a sense of work-life balance.
Your employees aren’t the only ones who benefit from childcare support. It can also boost your organization in ways you may not realize. For example, offering this perk can help you attract and retain talent, as it is a distinguishing factor for small to mid-sized companies that establishes you as a family-friendly and supportive employer.
It can also help your employees maintain engagement and productivity in their work. If you have been searching for additional ways to improve morale and job satisfaction among your workforce, this may be a viable avenue.
The Challenges of Providing Childcare Support for Your Team
Though employee compensation packages that include childcare can be a boost for both employers and their teams, offering them does come with its own set of challenges.
Depending on the type of childcare support you offer, it’s possible that it could come with high operational costs. If employers don’t feel that there’s room in the budget, they may have significant difficulty with this decision.
There are also logistical challenges to offering childcare in your employee benefits package. For example, employers will need to understand the tax implications of the Employer-Provided Childcare Credit. You may also need to figure out how to ensure equitable access for all employees. This can get trickier the more locations your business operates.
Considerations for Employer-Sponsored Childcare Support Programs
If you’re thinking about offering childcare support as part of an employee compensation package, it’s crucial to consider the following:
• Assess Employee Needs: Determine how many employees are requesting support and what type of help they may need
• Determine Your Budget: Figure out how much you can allocate to this benefit if you decide to offer it
• Explore Your Options: Consider whether you wish to provide on-site childcare or offer vouchers or subsidies for parents to find their own
You’ll also want to develop a working knowledge of laws that govern employee benefits like childcare, as this will be essential to mitigating any compliance risks that accompany your decision.
Find the Balance Between Supporting Your Employees and Growing Your Business
The decision of whether to add childcare to your employee compensation package isn’t one that you can take lightly. It can be a costly venture with a lot of operational challenges.
However, it can be worth it to avoid high turnover and decreased productivity — all of which can affect your bottom line.
It’s crucial to weigh the potential benefits and drawbacks to make an informed decision about what’s right for your business and workforce.
If you need help making the right choice, Benefits Advisory Group can provide you with the insights and solutions you need. Contact us today to learn how we can help you balance your business needs with a competitive employee benefits package that attracts and retains top talent.