Why Childcare Benefits Matter

The childcare crisis in the U.S. is profound, affecting millions of families. With the cost of childcare skyrocketing, many working parents—particularly mothers—are forced to make impossible choices between their careers and their families. According to Moms First, 40% of working families are in debt due to childcare expenses, and 58% of parents who left their jobs cited the inability to find adequate childcare as a primary reason​.

Reshma Saujani, the founder and CEO of Moms First, highlighted this crisis in a recent statement: “Our economy depends on care—without it, women cannot work.” This stark reality has made it more urgent than ever for companies to recognize the importance of supporting working parents. The joint report by Moms First and BCG finally provides hard data to show that offering childcare benefits isn’t just about doing the right thing—it’s a smart business decision.

Key Findings: Childcare Benefits Create Business Gains

The report’s findings are hard to ignore. Here are the major takeaways:

• 📊 Significant ROI: Businesses that invest in childcare benefits are seeing returns ranging from 90% to 425%. This wide range demonstrates that different approaches to childcare support yield varying financial gains, but all generate positive outcomes. One company even saw an ROI as high as 425%, with others trailing closely behind at 385% and 375%​​.

• 💸 Cost Savings on Employee Retention: Retaining as few as 1% of eligible employees can cover the cost of providing childcare benefits for all employees who qualify​. Given that replacing an employee can cost up to twice their salary, this is a game-changer for businesses looking to minimize turnover costs.

• 📉 Reduction in Absenteeism: Childcare benefits help employees avoid more than two weeks of absences annually. Employees who have reliable childcare miss fewer days, arrive on time more consistently, and are more focused at work. For example, one company saw a shift supervisor avoid up to 16 days of missed work per year due to access to childcare​.

• 📈 Boost in Employee Retention and Satisfaction: The report shows that as many as 86% of working parents are more likely to stay with their employer due to childcare benefits. In addition, 78% of parents reported that these benefits have positively impacted their career growth​. Parents are not only staying with their companies longer, but they’re also more engaged and open to taking on leadership roles.

• 🙂 Recruitment and Job Satisfaction: Childcare benefits are becoming a crucial factor in recruiting top talent. About 82% of employees at Etsy, for instance, said they considered childcare benefits when deciding to join the company​. These benefits also significantly improve job satisfaction, fostering a more loyal, committed, and productive workforce.

Case Studies: How Childcare Benefits Impact Companies and Employees

The report highlights several companies that have reaped the rewards of offering childcare benefits, demonstrating both the financial benefits for businesses and the positive impact on employees’ lives.

Steamboat Ski Resort

At Steamboat Ski Resort, the introduction of a near-site childcare center allowed employees like Meg, a national sales manager, to return to work after maternity leave while continuing to nurse her child​. With consistent, high-quality childcare available, Meg avoided 13 absences per year and stepped into a new leadership role, benefiting both her career and the company. Steamboat also experienced near-perfect retention rates, with 90% of working parents stating their intention to remain with the company​.

Fast Retailing

In another example, Fast Retailing offered a monthly childcare stipend to employees, including a store manager named Suleyka. This stipend allowed her to afford childcare and remain in the workforce after the birth of her twins​. As a result, Fast Retailing avoided 11 absences per year from hourly employees and improved overall morale. More importantly, 86% of employees said they were more likely to stay with the company because of the childcare support​.

UPS

At UPS, the introduction of an emergency onsite childcare program drastically reduced absenteeism among hourly workers. One shift supervisor, who nearly lost her job due to unreliable childcare, was able to turn her situation around thanks to this benefit. She went from being on the brink of losing her job to receiving a promotion, with UPS seeing a 96% retention rate among its hourly shift workers​.

Synchrony

Synchrony Financial, a leading financial services company, offers 60 days of backup care annually for employees, allowing them to manage childcare disruptions without losing focus at work​. This benefit has enabled employees like Gleydis, a senior specialist, to avoid unexpected absences and pursue career growth opportunities. Synchrony saw a 45% reduction in absences and significant improvements in employee loyalty​.

Beyond the Bottom Line: Childcare as a Cultural Investment

While the financial benefits of providing childcare are undeniable, companies also reported improvements in workplace culture and employee morale. Childcare benefits communicate that a company is invested in its employees’ personal lives, not just their professional output. As one employee at Fast Retailing put it, “It’s not just the money; it’s the principle. It feels like a ‘thank you.’ It’s an incredible morale booster”​.

Companies like Etsy, which offer up to $4,000 in backup care credits annually, have created an environment where employees feel supported, reducing stress and improving productivity. One senior director at Etsy said, “Even if another company offered me more money tomorrow, I wouldn’t even consider it, given how much this company has invested in my personal life”​.

The Business Case for Childcare: It’s Time to Act

The report from Moms First and BCG provides a clear call to action for companies that have yet to embrace childcare benefits. The data shows that these benefits not only support working parents but also pay for themselves in terms of retention, productivity, and recruiting. In a time when companies are struggling to attract and retain talent, childcare benefits represent one of the most impactful investments businesses can make.

Moms First and BCG urge companies to view childcare benefits as an investment, not just a cost. With evidence from a range of industries—from retail to financial services to hospitality—the report demonstrates that investing in childcare is not just good for employees but is also a financial win for companies. Childcare benefits can unlock the potential of working parents, allowing them to focus on their jobs while knowing their children are safe and cared for.

Conclusion: Investing in the Future of Work

As the workforce continues to evolve, so must the benefits that support it. Childcare is a critical issue that affects not only working parents but also the businesses that employ them. The report by Moms First and BCG highlights that companies investing in childcare benefits are setting themselves up for success, with improved retention, enhanced productivity, and a stronger, more satisfied workforce. For businesses looking to thrive in a competitive labor market, childcare benefits are no longer a luxury—they are a necessity.