Childcare Benefits: A Reckoning for Working Families
It’s not a stretch to say COVID changed everything—including the way working families think about childcare benefits. Before the pandemic, parents struggled with childcare challenges, of course. But the day-to-day realities grew much worse when the pandemic struck.
After the initial shock of schools and childcare centers shutting down, families were left to figure out how to work from home while parenting. Instead of being at school or daycare, children spent the day side-by-side with their parents. In fact, from February 2020-February 2021, the lack of childcare pushed 2.3 million women out of the labor force. And a very long time passed before these women could return to work (if they have returned at all).
While people in some jobs continued to work on-site throughout the pandemic, many workers had to adapt to the new remote work world. This is where many employees still find themselves today, either working remotely or in some form of hybrid schedule—splitting time between home and office.
Today, childcare conditions have improved slightly, but still are far from ideal. Fortunately for some working families, employers are sponsoring more childcare benefits for those who need this kind of support.
Remote and Hybrid Employees Still Need Childcare Assistance
The benefits of remote work are well documented. However, one drawback is often overlooked. I’m talking about the misconception that people don’t need childcare assistance when they’re working remotely. This notion became prevalent early in the pandemic, and unfortunately, employers still haven’t moved on from this line of thinking.
Picture a typical working mother in a remote or hybrid management role.
Compared to her in-office peers, she doesn’t have fewer deadlines, less ambitious KPIs, or a smaller staff to manage. Nor does she have extra hands to hold her baby while attending Zoom meetings or responding to email messages. There are no extra hours in the day when she can feed or play with a toddler.
The workday is still the workday—even when people perform those tasks at home, surrounded by family distractions and obligations, rather than in an office cubicle.
Families With School-Aged Kids Face Unique Challenges
Contrary to what some believe, childcare needs do not stop once kids start kindergarten. I’m a mother, myself, so take it from me! Parents of 5-year-olds are still in the thick of their childcare journey.
Historically, preschool programs (as well as before-school and after-school care) served as a safety net to support a large, productive workforce. But COVID, chronic underfunding, and budget cuts have left these programs with limited capacity, fewer teachers, and reduced hours. The safety net is frayed, at best.
And now, working parents have the added burden of anxiety about COVID risks.
Previously, when children were mildly ill, they still attended school. These days, we know better. Emergency and backup care are must-haves for working parents who are unable to stay home with a sick child.
Even when parents take precautions, they still face the risk of a COVID outbreak at school that can suddenly change the course of a day, a week, or a month—depending on mandated quarantine periods. This is a lot for working families to handle, which is why employee childcare benefits matter so much.
Throughout the pandemic, working parents have been balancing the risks of depriving their children of social interaction or exposing them to a potentially deadly disease. Some families decide to choose individual or small-group professional care, such as a nanny or nanny-sharing arrangement. But this increases overall childcare costs and isn’t affordable enough for some.
The Trouble With Workplace Childcare Centers
Some employers have tried to help working families fill this gap by investing in on-site childcare centers. While an admirable idea and a substantial financial commitment, these large centers fall short for many employees.
These facilities no longer meet many childcare needs, and simply do not work for remote and hybrid workers. For example, how many working parents would want to commute to headquarters for their kids when they may otherwise be working from home? Working families prefer caregivers who are located close to home—which should be good news for employers who don’t want to dedicate massive budgets to build and maintain large childcare centers.
Childcare Benefits Are Key to Employee Retention
No matter which childcare option families choose, it comes at a price. And it’s hard for people to keep in perspective just how unaffordable it has become.
The national average childcare cost has risen to more than $10,000 per year, per child. That’s incredibly steep. How many working families do you know with two or three kids who also have an extra $20,000-$30,000 lying around?
The increasing cost of childcare forces parents (and mothers, in particular) to make a very difficult choice: Stay employed or quit to care full-time for their children. This has pushed record numbers of women out of the workforce.
The reality facing families is stark and alarming:
- Childcare costs increased more than 40% during the pandemic — and continue to rise.
- The Inflation Reduction Act became law without draft provisions to expand childcare access.
- 66% of parents made job sacrifices last summer that compromised their household income or job security due to a lack of childcare.
- 48% of U.S. workers who left a job in 2021 cited childcare issues.
Current and prospective employees value family care benefits more than ever. This means employer-sponsored childcare benefits should play a key role in retention and recruitment strategies.
COVID drastically changed employment and childcare. The status quo is no longer sufficient, for both employees and employers. Forward-thinking business and HR leaders are rising to the challenge and supporting working families with employee childcare benefits that make a significant difference in people’s lives. This is a step in the right direction.