Worried about working parents? Explore these childcare options to support your team

Due to inadequate childcare, more than half of all working mothers are considering leaving the workforce, and the childcare crisis costs the U.S. economy an estimated $122 billion every year. According to the U.S. Chamber of Commerce, care responsibilities continue to be the leading reason mothers don't participate in the labor force after giving birth.

This exclusion and exodus of working mothers is not only bad for diversity and inclusion in the workplace—it also impacts workplace productivity and employee well-being. HR leaders can play a valuable role in providing supportive, reliable childcare solutions for their employees. Read on to learn how to better support working parents and improve work outcomes, productivity, and morale.

Why childcare options for working parents should be top of mind for employers

Not having access to reliable child care is costly for working parents and employers alike. According to a 2023 study, inadequate childcare costs individual parents more than $5,500 each year, or more than $78 billion in total. However, working parents are not the only ones faced with these steep costs—on average, businesses lose $1,640 for each working parent they employ due to lost revenue and hiring costs, totaling $23 billion annually.

Understanding traditional childcare options

Daycare centers

Daycare is a common childcare provider for many working parents. At a daycare center, young children can benefit from the structured environment and have opportunities for more socialization. Daycare can also help with cognitive development and academic achievement down the line.

However, these cognitive and social-emotional benefits come with costs. The average wait time to get into a daycare facility is 6 months, with many parents waiting over a year. This means many people must get on daycare waitlists in the early days of their pregnancy, and even then, the care is not guaranteed.

Often, the daycare centers with the shortest waitlists are the most expensive. Full-time childcare costs the average family over $1,100 each month, with those costs getting significantly higher in bigger cities or in rural areas that are child care deserts. In fact, 14% of families spend more on monthly child care than they do on rent or mortgage payments. Even with these high costs, daycare centers often have limited, inflexible hours and strict sick policies, leaving many parents in need of patchwork system childcare.

In-home childcare

One alternative to daycare is in-home childcare, most commonly with nannies or au pairs. While in-home care can offer more personalization and a more flexible schedule, they can also be even more expensive than daycare. In the U.S., the cost of a full-time nanny can range from $2,300 to $4,300 per month. Some families choose to offset some costs with a nanny share, but it can still be quite costly. With nannies or au pairs, children also have fewer opportunities for socialization with other kids, potentially missing out on important social-emotional and cognitive development. 

Family and friend care

Some working parents are lucky enough to live close to family members and friends who can help with child care. In addition to being trusted caregivers, these relatives and close friends can offer significantly lower costs than in-home or daycare alternatives. However, they might have more limited availability, and the burden of childcare can strain those interpersonal relationships. Moreover, this option is not available to many working parents who live far from any family member or those who have similar schedules to their friends.

Alternative and modern childcare solutions

Employer-sponsored childcare

As an alternative to traditional childcare options, some companies offer employer-sponsored childcare, where employers partially or fully subsidize childcare for working parents. Employer-sponsored childcare can look like on-site childcare facilities or partnerships with local providers, and can lead to increased employee loyalty, retention, and morale. However, working parents may run into similar issues of limited availability and inflexible schedules. In addition to potential regulatory challenges, employer-sponsored childcare is often only available to white-collar employees, with these benefits remaining rare and inaccessible for part-time or hourly employees.

Flexible work arrangements

Flexible work schedules can reduce strain on working parents by reducing the need for traditional or back-up childcare. Flexible work arrangements can include remote work options, flexible or alternative work hours, or job sharing. In addition to lowering childcare costs, these options can improve work-life balance and morale for working parents. However, this flexibility is not feasible for many roles, and employees may experience productivity challenges if working different hours than their teams.

Childcare stipend

If employer-sponsored childcare is not feasible, many companies can offer childcare stipends to cover a certain portion of childcare expenses for working families each month. These stipends can be used toward daycare tuition, nannies, or babysitters, and a recent study shows these stipends effectively pay for themselves by boosting employee productivity and retention. While this customizable benefit can help both remote and in-person employees, it doesn't solve the problem of childcare availability, and many working families still struggle to find reliable care options, even when subsidized.

Digital platforms and technology-driven solutions

Family health benefits

As an intermediary solution to the childcare options mentioned above, companies can use different apps and websites to support their employees in finding childcare while working. Maven offers a Parenting and Pediatrics benefit that offers on-demand support for parents when they need it. In addition to specialized pediatric care available virtually 24/7/365, Maven also provides working parents with support, resources, and community, including help finding local childcare options that best met their needs.

The role of HR in supporting working parents

Offering childcare benefits

If you're an HR leader considering offering childcare benefits, you can choose from a variety of options. Subsidies and childcare stipends can allow employees to customize childcare solutions that fit their needs, but they don't solve for the availability problem or national childcare shortage. While it's not as helpful for a remote or dispersed workforce, partnerships with local childcare centers or on-site employer-sponsored childcare can greatly help your employees, making childcare more accessible and convenient.

 Employers can provide a directory of back-up care options as well to help employees in a lurch when their primary childcare provider falls through. Sometimes referred to as "the benefit that pays for itself", reliable and affordable childcare increases employee well-being and retention, with 86% of working parents more likely to stay at their company if they offer childcare benefits.

Creating a family-friendly workplace culture

Regardless of the childcare benefits offered, HR leaders can facilitate a family-friendly workplace by promoting work-life balance and encouraging compassion and understanding. When possible, offer flexible work options for employees. Virtual care options like Maven can help parents access resources, find community, and get support when they need it.

Childcare success stories

More and more companies are implementing childcare benefits in different shapes and sizes. Etsy, for example, offers a $4,000 stipend for back-up childcare specifically, while companies like USAA reimburse 50% of childcare costs. Adobe's childcare benefits include priority waitlist access to certain daycare centers, discounted day camps and after-school programs, and backup childcare options.

As a customer success manager and mother of three living in London, Heba has found Maven's parenting and pediatrics tools particularly helpful. Through working with a parenting coach, nutritionist, and career coach, Heba has been able to access resources and support for both herself and her children.

How Maven can help

Amidst rising childcare costs and the international childcare shortage, HR leaders can play a valuable role in facilitating support for employees and their families. From stipends to backup care options to support networks, employers can help their working parents improve their work-life balance, job satisfaction, and company loyalty.

Maven is the leading digital health platform for reproductive and family health, helping companies support employees through the everyday challenges and joys of the family-building journey, from planning to pediatrics. Our global network of providers is accessible 24/7 through our virtual care platform, offering advice and support from experts in parenting, career coaching, and much more. To find out how Maven can help your employees find their work-life balance, contact us today.