Do Employee Childcare Benefits Help With Hiring?

Employer-sponsored childcare benefits help with hiring because childcare is essential and employees are searching for care benefits at their new jobs. In order to compete for the best talent, employers are increasingly offering more family incentives, including employee childcare benefits.

Employees seek childcare network benefits to:

  • Feel supported at work
  • Improve their work/life balance
  • Afford childcare

Employers offer childcare benefits for employees because these programs:

  • Increase employee productivity
  • Foster more employee engagement
  • Help retain and attract top talent

While it was often overlooked, we’ve realized throughout the pandemic that without suitable childcare in place, working families cannot work effectively, or in many cases, continue working at all.

The Great Resignation empowers employees

Rarely have we seen ongoing economic trends with as much impact as the Great Resignation, or the Great Reshuffle. with millions of Americans quitting their jobs en masse. Initially, there was a surge caused by a backlog of resignations by workers who didn’t leave throughout the height of the COVID-19 pandemic, according to organizational psychologist Anthony Klotz, who coined the term Great Resignation.

These employees left their jobs because they were unhappy, completely burned out, and reassessing their lives. In the U.S. in 2021 alone, more than 47 million people quit their jobs.

With so many employees voluntarily resigning over the course of the pandemic, we are in uncharted territory where job candidates have more power than before and are demanding better family benefits.

Employers are trying to lure talent with more hiring incentives like flexible work schedules, hybrid/remote options, mental health days, and family planning services. One incentive that still gets overlooked at times is employee childcare benefits.

Why do employees want childcare benefits?

Employee childcare benefits are an attractive selling point for working families and employers have started to take notice of late, with 42% planning to introduce or expand childcare benefits programs over the next year.

Employees covet childcare benefits so much because they:

  • Improve the quality of life in the workplace: When workers feel supported and childcare is crossed off their list of concerns, they feel better about their employers and their own role in the organization.
  • Demonstrate an employer’s commitment to work/life balance: Working parents will have a hard time focusing at work if their childcare situation is unsettled. If they can utilize childcare benefits to help ensure their kids are being taken care of while they’re at work, employees can strike a healthier work/life balance.
  • Provide financial relief for families: The high cost of childcare puts a financial strain on the average working family and causes hardships that can be long-lasting. A comprehensive childcare benefits program from their employer can be a game-changer for families struggling to afford the care they need in order to stay at work.

What types of childcare are parents seeking?

With working parents demanding more family-friendly childcare benefits and employers exploring their employee childcare benefits options, what types of childcare are parents looking for?

  • In-home daycare: Also called home daycares or family childcare providers (FCCs), in-home daycare is a form of childcare where licensed caregivers provide care from their own homes. Typically, family childcare providers offer smaller class sizes, more flexible and after-hours schedules, convenient neighborhood locations, and better affordability for families.
  • Nannies: Some working parents prefer a full-time nanny to care for their children at home. Nannies often have experience with kids of different ages and can be a huge asset to working families who can afford their personalized childcare services. Families may seek a nanny share arrangement, where multiple families share the same nanny in an effort to better afford this specialized type of caregiver.
  • Babysitters: Similar to nannies, babysitters offer families childcare at home or on the go. Babysitters bring experience and flexibility to working families who need a compassionate caregiver for their kiddos so they can maintain their career.

What top 3 types of benefits do parents want?

If home daycares, nannies, and babysitters are popular forms of childcare, what kind of employee childcare benefits do working parents want most?

  1. Backup care: For some families with an existing childcare plan in place, having emergency/backup care is the most pressing need. Backup care is childcare that can’t be planned for in advance — when an employee’s typical childcare falls through (daycare is closed, the babysitter is out sick, etc.) at the last minute, for instance, they can still find care. Employers can offer a specified number of backup care credits for employees, with each credit equal to a full day of childcare.
  2. Childcare stipends: For parents struggling to afford childcare, an employer-sponsored childcare stipend can be the lifeline that finally lets them balance their books and work their way out of the red. Organizations can specify full or partial childcare stipends, in monthly or annual amounts, for employees to utilize as a way to offset their exorbitant childcare costs.
  3. Childcare assistance: Simply finding quality, affordable childcare remains the biggest challenge for many working parents. A childcare assistance program supports employees by providing a large childcare network and 1:1 care manager to help them discover and access the best local childcare options available in their area.

How do employee childcare benefits also benefit employers?

It’s no secret among HR and benefits circles that adding childcare benefits is a win-win for employers. This is the case because employee childcare benefits:

  • Encourage engagement: Employees supported with employer-sponsored childcare benefits feel more positive and engaged at their organizations.
  • Improve productivity: Working parents can be significantly more productive when they are not distracted by managing childcare issues during their work hours.
  • Help attract and retain talent: In a very tight labor market, employers are competing for the best candidates and offering incentives in the form of care benefits like childcare can make the difference in retaining current employees and hiring the best new talent at your organization.

Clearly, childcare benefits for employees help employers with hiring. The specific type of employer-sponsored childcare benefits needed is what each organization is figuring out, however, the biggest takeaway is that you can get a hiring boost by offering these valuable care benefits that job seekers are looking for.

As the largest childcare network in America, WeeCare is a leading provider of employee childcare benefits. The core of our childcare network is made up of over 5,000 licensed in-home daycare providers and 30,000+ nannies and babysitters. Our carefully vetted caregivers offer high-quality, affordable childcare that works for both employees and employers.

WeeCare’s employee childcare benefits programs include offerings from childcare assistance and stipends to backup care.

Our Childcare Assistance program helps working families find and access affordable, high-quality childcare. WeeCare’s full and partial childcare stipends enable employers to assist employees with childcare costs. We also provide backup and emergency care to support families when the unexpected happens and their regular childcare plans change at the last minute. Employers are able to mix-and-match these program offerings to create the customized childcare benefits needed that best fit each unique workforce.

We are always here to answer any questions, begin the conversation, or schedule a call at

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