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The Benefits of Employer-Sponsored Child Care Benefits

The Benefits of Employer-Sponsored Child Care Benefits

Employee Benefit Plan Review

October 07, 2009

Additionally, employers with a distributed workforce, less available space at their headquarters or less ability to provide capital investment, may look at a resource and referral program or prioritized access to assist parents in sourcing and enrolling in child care within their local communities.

Other options include backup child care, which offers parents resources for times when their usual care arrangements are disrupted, or in some cases when their children are mildly ill; and tuition subsidies or discounts to increase availability and affordability of child care for all employees. In fact, backup child care was cited in a recent Society of Human Resource Management study that showed the increase in utilization particularly of emergency backup care programs.

Their study found that 14 percent of employers offered emergency or sick child care, up from six percent in previous years.


Offering employees access to quality child care programs results in numerous and wide reaching benefits. It is well known that these programs are good for employers – helping them to achieve goals in attraction and retention of key employees, increasing productivity and generating a positive organizational image. Similarly, these programs help working parents spend less time worrying about the affordability or accessibility of child care and more time focusing on their careers.

Employer-sponsored child care can benefit employees, and thereby benefit employers, by making employees:

    • Feel they are more productive at work
    • Feel their company is supportive of them and their work/life balance
    • Be less likely to leave their job to pursue other opportunities
    • More likely to return to work after the birth of a child because of the benefit
    • Consider the benefit as a factor in a decision to join the organization
    • Feel more involved in their child’s day due to the proximity of the center to their workplace.

In addition, supporting quality early childhood education in preschool and pre-kindergarten helps to lay the foundation for future success in school, benefiting not only the children but also employers and the greater community through development of the future workforce.


By assisting working parents in sourcing child care benefits, employers provide a benefit that not only increases workers’ productivity through reduction of stress, but offers a solution that helps create happy, loyal employees. Benefits can be designed to meet the needs of a particular group of employees who have trouble accessing care because of their work schedules, such as those in health care or academia, or assist with their cost.

Poll: How do you feel about crying at work?

Poll: How do you feel about crying at work?