Employers that provide child care programs as an employee benefit gain from this for a few key reasons, making this an asset for companies worth considering.
Child Care Promotes Employee Retention
The availability of safe, affordable child care is a barrier for many women who would like to return to work after having a baby. An on-site nursery is one way that companies like Goldman Sachs have been able to retain more new parents as employees. In addition, a 2014 study in the Journal of Managerial Psychology notes higher performance and lower absenteeism among employees who can take advantage of on-site child care.
Employee Retention Saves Money
A national survey of employers conducted by the Center for American Progress in 2012 found that an average of 20% of the cost of an employee’s salary would be spent to hire and train a new person for a position. Another study from the Society for Human Resource Management placed the amount even higher, at 50-75% of an employee’s salary for an average employee making around $60,000 annually.
Tax Benefits of On-Site Care
Businesses that open an on-site child care center for employees can claim a tax credit of up to 25% of the annual cost of running the facility with a maximum credit of $150,000. Additionally, they can claim 10% of any resource and referral spending for that year. However, the facility must operate for ten years to retain these savings.
Child care programs not only promote family time, but they also have unique benefits to the organizations that implement them. They help retain employees, resources, and money.