It’s already known that the benefits a company offers play a huge part in the employees they attract and retain. Before accepting a job, candidates take a lot of things into consideration besides just salary. In our blog “What Makes a Job Desirable”, we discuss an array of benefits that attract top talent, but now we are digging deeper into a benefit not many companies offer but is highly sought after.
Childcare benefits have become a huge factor for many working parents when deciding on their next job. Jobs that offer child care benefits have a leg-up when competing against those companies that offer none. Lower turnover rates, improved attendance, and overall better morale are some key benefits that companies offering childcare see. While it is not the easiest thing to implement and there are different ways to go about it, it’s worth it in the long run!
Offering childcare onsite creates several perks for the company and employees. While only 7% of companies offer onsite childcare to their employees, the ones who do can claim 20 percent of the childcare center’s expenditures as well as 10 percent of any referral expenditures throughout the year. Together you can claim up to $150,000 a year.
Additionally, employees who can send their children to onsite daycare tend to be more productive because they are not worrying about where their child is. They also find comfort in knowing that if anything goes wrong, their child is just a few minutes away. When a company offers childcare options, it makes the employee feel like they are truly cared about.
Paid leave isn’t only valid for mothers giving birth. Maternity and Paternity leave gives parents the ability to take a certain amount of time off to be with their young child(ren), while still being paid. This is a super attractive benefit to both working and expecting parents.
Offering a combination of both paid and unpaid leave can also be a good option if the company is strapped financially. This still gives parents a chance to receive some paid time off but also go on leave without fearing that they will lose their job.
Flexible Spending Accounts
Flexible Spending Accounts, also known as FSA’S, are savings accounts that accumulate money taken out of your pre-tax pay. While the set aside money must be used within a year or it is forfeited, this is a great option for parents who want to have childcare funding already put away.
This money can go towards day-care, after-school care, pre-school and summer camp. Companies that offer Flexible Spending Accounts for their employees help families save up to $2,000 a year on childcare expenses.
Similar to the way that certain companies offer assistance with college tuition for the children of employees, they can offer a one-time payment of aid to cover childcare or even reoccurring bonuses.
Typically the employee will see this money with their paycheck, but they are granted up to $5,000 in subsidies before it is added to their taxable income. 5,000 dollars can make a huge difference in the long-run as childcare costs more than college over time. If a working parent is looking at multiple job offers, subsidies are a huge benefit and will likely make a difference in their choice.
The final way that companies can assist their employees with childcare is by providing backup care. This can be done in different ways but is a huge asset to offer as it is difficult to find last-minute care if an employee’s child is sick, school is canceled, or another sudden event occurs.
One of the most common ways that companies provide backup childcare is by reserving spots at a local daycare or childcare center. Obviously, this comes at some sort of set cost, but it ensures that your employees have somewhere to send their child god forbid something comes up.
Similarly, companies can work with third-party childcare providers that will send a nanny or babysitter to your employees’ home if something comes up. Many businesses offer this type of service and have caretakers that have been pre-screened. Employees who are parents will find a sense of comfort in knowing that they have childcare in place for emergencies, so offering this kind of service can set your company apart big time.
Deciding to offer childcare options to employees is a great way to attract and retain more employees but it is also a huge step to take as a company. When doing so, consider all of the options and weigh the pros and cons.
Depending on your staff, one of these options may be better than the other. You can even ask employees what they think would make their lives easier as working parents! This shows that you care and are willing to help which will set you apart from other companies.
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