This employee benefit returns five times its cost


But there is one type of pricing that, if done right, can bring companies four times their returns, according to new data. Boston Consulting Group report. That money? Helping staff with child care.

Reshma Saujani, CEO of Moms First, said: Chance.

But only 11% of large employers provide this support in some way, whether it’s through subsidies, back-up care services or permanent child care facilities, according to the welfare advisory. Mercer. In the US, it’s a small profit that doesn’t seem like money, and it’s often the first thing on the chopping block when companies tighten their belts.

But it’s clear that providing childcare can bring significant benefits to workers and employers. A report produced by the Boston Consulting Group and led by Moms First examines the early return on investment in child care. They found that, for every dollar spent on benefits, companies return between $1.90 and $5.25 in the form of more workers, fewer days missed, and increased retention.

“This is the easiest way to choose money talent you ever,” is report they read.

BCG surveyed hundreds of employees and dozens of working parents for several benefit programs; it also presented five case studies of companies that introduced child care services and documented the results for employees. These include Fast Retailing (the parent company of Uniqlo, Theory, and Helmut Lang), which offers employees $1,000 a month for childcare; UPS, which tested an emergency child care facility at one warehouse; and Steamboat Ski Resort in Colorado, which opened two years ago childcare center to its employees and local residents.

For example, at UPS, hourly warehouse worker retention increased to 96% from 69%. They are also known for better attendance, because, with child care measures, workers avoid between 11 and 16 absences per year, according to a BCG study.

“That’s more than most Americans get in annual vacation time,” Kos said. “For an hourly worker, that’s a good wage for their family that they still get.”

It’s a bit of a change to see childcare as an expense that companies treat as a cost. Kos said Chance that even parent-friendly employers couldn’t tell BCG how they were benefiting from childcare programs. “Companies could tell us how much profit to spend, but they didn’t have a solid way of looking at returns,” he said.

Because of the high cost of firing good employees and the productivity gains, a company can make the childcare benefits pay for themselves by keeping only 1% of the employees who would otherwise leave, according to BCG.

To be sure, independent research should be done – and it is not possible for businesses to fill the gap on their own, which means that the government should intervene – in providing financial support to poor families, such as New Mexico has done recently, giving incentives to private organizations, or even raising taxes and providing direct care. But it says that, since the epidemic, the problem of care has attracted attention, while traditional business organizations such as the Chamber of Commercial waiting for the update.

Saujani hopes that reframing these social needs as capital will encourage more employers to step up and fill the gap.

“Traditionally, we’ve always put child care at the forefront of personal problems that families have to solve,” he said. “It still seems like a social issue, not an economic issue.” But its importance to the workforce — and its potential as a recruiting tool for employers — is related to health care.

He said: “You can’t work for a company that doesn’t pay for your hospital. It should be the same with family support, he added: “Many people pay more for childcare than they do for their mortgage.”

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