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BCG & Moms First: Child Care Benefits Pay for Themselves
ByTOOTRiS
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The 2024 report titled “The Employee Benefit That Pays for Itself“ highlights the substantial returns companies can achieve by investing in Child Care Benefits. Conducted by Moms First and Boston Consulting Group (BCG), the study emphasizes that Child Care Benefits not only boost productivity, retention, and recruitment but also offer a significant ROI—up to 425%—for businesses. The report outlines the various challenges employees face, such as Child Care shortages and parental burnout, and provides examples of how companies like Steamboat, Fast Retailing, and UPS have successfully implemented these benefits. Key findings include:
- Impact on Retention: Companies experience up to an 86% improvement in employee retention rates when offering Child Care Benefits. By reducing turnover, organizations save on recruitment and training costs, which can equal two times an employee’s salary.
- Boost to Productivity: Working parents report avoiding up to 16 absences per year when they have access to reliable Child Care. This decrease in absenteeism directly enhances overall productivity.
- Positive ROI: BCG analyzed data from five companies and found that all reported a positive ROI, with the highest reaching 425%. Even a small increase in retention (1%) can cover the costs of providing these benefits, making it a valuable investment for employers.
- Career Growth: 56% of non-working or part-time parents stated they would return to full-time work if they had access to affordable, quality child care. Additionally, 78% of employees with access to Child Care Benefits reported positive career impacts, including promotions.
- Enhanced Employee Satisfaction: Providing Child Care Benefits fosters loyalty, with 90% of employees at some companies indicating they are more likely to stay. These benefits also contribute to a positive workplace culture and morale.
The document encourages companies to see Child Care Benefits as a strategic investment that improves the bottom line, boosts productivity, and fosters a supportive corporate culture. You can download the full child care employee benefits report here or if you’re having trouble, we’ve included the slides below:
