HR directors often wrestle with ways to increase employee attendance, reduce tardiness, and improve productivity. However, many employees are also parents, grandparents or caregivers of young children. As much as they may want to, employees may not be able to separate their caregiver identity from their role as a worker. For many of these employees, childcare is essential.
As you think through how to support your employees, ask the following questions:
- What do your employees need when it comes to childcare?
- Do they need help finding childcare or paying for it?
Knowing the answers to these questions can help you design the right benefits package for your staff. Here are examples of benefits businesses can offer:
- 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.
As you think through what to offer remember to provide what you can: Not every business can provide every benefit. Provide what fits your business’ budget and your employees’ needs the best.