A large portion of your workforce are parents, grandparents, or caregivers of young children. When childcare is unavailable or unaffordable, families struggle — and so do the businesses that depend on them.
Supporting childcare isn’t just the right thing to do — it’s a proven way to solve real workforce challenges like turnover, absenteeism, and stalled productivity. By addressing these issues, employers can attract talent, retain employees, and boost performance.
Workforce Challenges
Looking to strengthen your workforce, reduce turnover, and increase productivity? Childcare is a key factor.
Affordability presents a significant challenge for many families in Virginia and nationwide. Childcare costs have surged over 30% in the past five years, often becoming the largest expense in a family’s budget and far exceeding the recommended 7% of income. This strain affects workforce stability, costing Virginia businesses over $1 billion annually in employee absenteeism and turnover.
Why Childcare Matters to Your Bottom Line
Childcare gaps don’t just affect families — they impact your bottom line. Employees with reliable childcare are more engaged, focused, and productive, potentially driving a 2–5% increase in productivity. That’s why forward-thinking companies now view childcare support as a strategic business advantage, not just a perk.
Two key barriers prevent working parents from accessing childcare:
- Affordability
- Availability
Both directly affect workforce participation — and your bottom line.
The good news? Businesses can influence both.
✅ Tackle affordability by becoming an employer of choice with competitive childcare benefits.
✅ Improve availability by supporting or creating access to childcare slots for employees.
Supporting working families isn’t just the right thing to do — it’s a smart investment in workforce strength and long-term profitability.
Childcare Solutions That Boost Your Workforce
Dependent Care Flexible Spending Accounts (FSA):
Allow employees to set aside pre-tax dollars for childcare expenses, up to $5,000 annually through establishment or expansion of Dependent Care Flexible Spending Accounts. This is a low-cost option for businesses.
Childcare Subsidies:
Reimburse employees or directly pay providers to offset childcare costs. This option has an initial cost to employers but will result in less absenteeism and greater productivity of employees.
Reserved Childcare Slots:
Partner with local childcare centers to reserve slots for employees’ children. This is a low to no-cost option for employers.
On-site or Consortium Childcare Centers:
Establish on-site facilities or collaborate with other businesses to provide shared childcare centers. This option has the greatest cash outlay but often has the greatest return with improved employee retention, increased ability to recruit, and overall increase in productivity.
Employer Benefits
Investing in childcare pays off — it drives productivity, reduces turnover, and gives your business a competitive edge, all while offering potential tax savings.
Tax Savings
- The Employer-Provided Childcare Credit allows businesses to claim up to $150,000 annually for childcare-related expenditures.
- IRS guidelines: https://www.irs.gov/businesses/small-businesses-self-employed/employer-provided-childcare-credit
Increased Productivity
- Employees with reliable childcare are more focused, potentially increasing business productivity by 2-5% of annual salaries.
Recruitment Edge
- Offering childcare support attracts top talent, reducing recruitment costs and accelerating the hiring process.
Support Childcare, Strengthen Your Business
Supporting your employees with childcare solutions directly strengthens your bottom line — helping you retain top talent, reduce costs, and boost overall performance.
Contact us to get expert guidance on offering childcare benefits that save money and drive measurable results. We’ll help you implement a strategy that works for your business — delivering real impact within your budget.
Help Your Employees Succeed—and Your Business Will Too
Resources for Employers
Infographic
This infographic highlights the critical link between early childhood care and workforce stability, showing how limited childcare access in Danville and Pittsylvania County impacts families, local businesses, and long-term economic growth. It’s a useful tool for helping employers understand why investing in childcare support for employees benefits both their bottom line and the broader community.
HR Guide
This guide offers practical ways HR professionals and businesses can support employees facing childcare challenges, helping to reduce absenteeism, improve retention, and boost overall workplace productivity. It’s a valuable resource for creating a more family-friendly and resilient workforce.