- Small businesses in the United States are beginning to offer on-site child care to retain employees.
- The United States has one of the most expensive child care systems in the developed world.
- Childcare services provided by the company increase employees’ earning potential and career growth.
It’s no secret that parents in the United States struggle to find, afford, and maintain child care.
Business Insider previously reported that parents in some states spend an average of $10,000 a year to send their children to day care or childcare centers. Some families have had to move across the country in search of more affordable options. In fact, one analysis found that the United States has the second-highest rise in child care costs among developed countries.
Because of these high costs, some parents choose to stay home instead of working, creating a big problem for some small businesses. To solve the problem of high employee turnover, which is costly for small and medium-sized businesses, companies are taking matters into their own hands by providing in-house childcare.
Zach Wiley, 31, of Virginia, told The Wall Street Journal that he had to quit his job at Red Rooster Coffee in 2021 because of the long commute. Now that the coffee shop has a daycare attached, Wiley has been able to return to his former employer and afford to buy a house nearby.
“The number of childcare facilities is huge. I don’t know what we would do without them,” Wiley told the paper. “My son loves it. I’m not worried about him at all. He’s right next door.”
Wiley sends her two young children to the Red Rooster Coffee facility for a fee of $2 per hour per child. The center accepts children from one month old to nearly 13 years old, according to a profile from the Virginia Department of Social Services.
Business Insider previously reported that companies such as UPS and Etsy that offer scholarships, on-site child care, and backup care are seeing increases in employee recruitment and retention, with costs outweighing the cost of providing child care. Reported.
For employees, company-provided child care increases earning potential and career growth, according to a study by the nonprofit organization Moms First. This makes a big difference for families, especially women, who are often forced to leave work when childcare becomes too much of a financial burden.
