Healthcare businesses are no strangers to labor scarcity. Mercer predicts the nationwide shortage of clinical healthcare workers will reach six figures by 2028.
The negative impacts of this recruitment crisis reach beyond the roles and institutions that treat patients directly. The American Health Information Management Association reports that as many as two-thirds of health information professionals have experienced ongoing staffing shortages in their workplaces in recent years.
One barrier that healthcare companies and institutions face in recruiting and retaining employees is the need for (and high cost of) quality childcare services. The U.S. Chamber of Commerce estimates that childcare for one child costs between 8% and 19% of the median family income, which often makes it cost-prohibitive.
An inability to find or afford childcare has negative impacts on both employees and businesses. If you’re looking for help in solving the talent crisis, offering childcare benefits is an excellent place to start.
How Childcare Benefits Enhance Business Goals
According to a 2020 U.S. Chamber of Commerce study, 58% of working parents have admitted to leaving work due to an inability to find suitable childcare. For those companies in which employee absenteeism is on the rise, offering childcare benefits can help day-to-day operations move more smoothly.
Additionally, offering help with childcare can increase morale, engagement, and productivity among your workforce. Lacking the resources to ensure their children are well cared for can take a toll on your employees. It adds to their stress and is a potential contributor to burnout.
The crisis surrounding infant and toddler childcare may cost employers a collective $23 billion annually. Childcare benefits not only decrease stress and increase focus but can also enhance your overall employer brand, which makes it easier to attract the top talent you need to stay ahead of your competitors.
Childcare Solutions That Relieve the Employee Burden
There are many ways to offer childcare benefits to your employees. Consider which of these solutions may be right for your organization.
On-Site Daycare
On-site childcare services help struggling parents make it to the office on time and support new mothers who need to balance breastfeeding with job responsibilities.
While you must meet strict state licensing, safety, and space requirements, you can mitigate these costs by taking advantage of the Employer-Provided Childcare Credit, which offers a credit of up to $150,000 per year to offset 25% of your expenditures.
Childcare Subsidies
Subsidizing off-site care is a viable alternative to operating an on-site daycare. Offering to reimburse parents for childcare fees and tuition or to help pay for at-home care can decrease employee absenteeism and prevent costly turnover.
If it’s not practical to subsidize daily childcare for employees, you can offer back-up care benefits. These might involve providing intermittent at-home care or reserving spots in a childcare center for those instances where parents need emergency support.
Direct Payments
A stipend is yet another way that you can help families afford the cost of childcare. Instead of paying fees directly to a childcare center or at-home caregiver, you would simply provide additional funds in the employee’s paycheck as a way to help them cover necessary expenses.
Paid Family Leave
While the FMLA offers job-protected leave to many parents, it can create a significant financial burden when that leave is unpaid. Consider going above and beyond the FMLA by ensuring that parental leave is paid. This can ease employees’ minds and make it easier to focus when they do return to work.
Flexible Scheduling
Flexible scheduling enables parents to manage their schedules and complete tasks without constant worry, leading to a better work-life balance and increased focus. It provides your employees with the opportunity to balance their work with their child’s care needs, reducing stress and burnout without compromising productivity.
Offering Childcare Benefits Is a Sound Business Decision
Just 15% of full-time and 8% of part-time private industry employees receive company-sponsored childcare benefits. Unfortunately, this lack of access often costs companies dearly, leading to increased absenteeism, decreased engagement, and difficulty recruiting the top talent needed to compete in today’s business landscape.
By offering childcare solutions to your employees, you’ll not only enhance their personal well-being and ability to build a thriving family, but you’ll also accelerate the achievement of your business goals.
