Navigating the child care cliff: Strategies for employers to support working parents

In today’s ever-evolving professional landscape, employers have a pivotal role to play in supporting their workforce. Among the most pressing challenges facing employees, especially working parents, is the “child care cliff.” Despite the urgency of the situation, Congress recently failed to pass the funding needed to avert this impending crisis. So, what does this mean for working parents and employers, and how can the latter navigate this difficult terrain/?

The Child Care Cliff: A Harsh Reality

With government funding falling short, the child care cliff is a reality we must face. As the pandemic child care relief funds—which were a lifeline for many child care centers—came to an end on Sept, 30, 2023, we’re facing a stark reality. This funding, amounting to $24 billion, has been a critical support system for millions of working parents. With nearly 40% of U.S. employees juggling work and parenthood, the implications of this cliff are staggering.

Here are some concerning statistics from the Century Foundation:

• 2 million children at risk of losing access to child care.

• A potential yearly loss of $9 billion in earnings if parents exit the workforce due to child care issues.

• A $10.6 billion drop in overall U.S. economic activity.

In this challenging scenario, showing empathy and taking swift, strategic action is essential to mitigate both economic and social impacts.

Strategies for Employers: Easing the Burden on Working Parents

As employers, it’s crucial to understand the challenges your employees face and take proactive steps to ease their burden. Here are some strategies to consider, backed by date from a research study from this year:

1. Prioritize Child Care Benefits: Child care benefits are a lifeline for working parents. Offering access to trusted child care options or stipends for care can make a world of difference. In fact, according to our research, these benefits are more coveted by working parents than other incentives such as unlimited paid time off, 401(k) matching and performance bonuses.
2. Flexibility Is Key: Flexible scheduling and remote work options empower parents to better manage their work and family life. This support allows them to cover gaps in child care, participate in school activities, go to doctor appointments and choose work hours that align with their family’s needs.
3. Consider a New Work Arrangement: Explore new ideas like a four-day work week, flexible remote work or hybrid schedules where employees come into the office for a week or two each month. This doesn’t just help working parents; it enhances work-life balance for everyone.
4. Broaden Support: Extend your support beyond child care to encompass senior care, pet care, tutoring and household services like housekeeping and errands. This inclusive approach recognizes that caregiving responsibilities extend beyond child care and helps alleviate the spectrum of caregiving burdens that families face.

Positive Impacts: Productivity and Retention

Implementing these strategies isn’t just about meeting the immediate needs of working parents; it can also have a substantial impact on your organization’s productivity and retention rates.

• According to research, parents missed 68% fewer workdays with a caregiving benefit.
• An astounding 87% of the working parents surveyed said they would be more likely to stay with their current employer if caregiving benefits were provided.
• 77% of new parents return to work after childbirth if they are provided with child care benefits, well surpassing an industry average of 57%.

By prioritizing these strategies, you not only provide essential support to your employees but also foster a more productive and loyal workforce. It’s an opportunity for employers to show empathy and strengthen their relationship with their employees during this challenging period.

A Positive Path Forward

While the child care cliff presents challenges, it also offers an opportunity for employers to make a meaningful impact on the lives of their employees. By prioritizing the strategies outlined above, you can help your workforce navigate this challenging terrain with confidence.

Read more: Nearly 75% of parents miss work to address kids’ mental health or academic performance

Remember, empathy and support during tough times can lead to stronger employee loyalty and a brighter future for all.

As we move forward, let’s embrace the opportunity to show that, even in the face of adversity, we can come together to support our working parents and build a better workplace for everyone.

Lynn Perkins is a co-founder and CEO of UrbanSitter, an online service and mobile app that helps families find and book trusted child care options, among other care offerings.