Childcare isn’t an expense—it's an asset
Childcare is no longer just a personal concern for working parents—it’s a business and economic imperative.
Half of employees with children have considered leaving their jobs due to a lack of childcare benefits. If this issue remains unaddressed, the US could face an annual loss of $290 billion in GDP by 2030 (Boston Consulting Group), driven by shortages of care workers and absenteeism as employees manage caregiving responsibilities.
This burden disproportionately affects women. Nearly 44% of women report they may need to change jobs to balance work and childcare demands, compared to 37% of men. The impact is substantially greater on parents of color, with half of Black and Latine working parents saying they will need to change jobs, compared to 34% of White employees with children.
As Reshma Saujani, CEO and Founder of Moms First, noted at the 2024 Catalyst Awards, “The truth of the matter is that women can't work without childcare—it’s simply an economic reality.”
It’s time to reframe childcare from a cost center to a strategic investment. By supporting caregivers, companies can attract, retain, and empower talent while addressing one of the most pressing workplace challenges of our time.
Childcare benefits deliver measurable ROI
A joint report by Boston Consulting Group and Moms First shows that childcare benefits yield returns of up to 425% of their cost for US companies.
The reasoning is simple: retaining employees is far less expensive than replacing them. The break even point for childcare benefits—where the investment pays for itself—is remarkably low. In many cases, retaining just 1-12% of eligible employees annually can cover the full cost of these benefits according to Boston Consulting Group.
Chobani provides a compelling example. By investing in childcare support and raising wages, the company improved employee retention and morale. As Nishant Roy, Chief Communications and Impact Officer at Chobani explained at the 2024 Catalyst Awards, these investments aren’t simply expenses—they’re competitive advantages in recruitment, retention, and productivity.
Women bear the “invisible load” of caregiving
During 2024 Catalyst Honours, Moira Klein-Swormink, Principal of Branch Development Canada, Edward Jones took a personal approach and described the “invisible load” that she and other women carry as they balance careers, childcare, and elder care. These extra burdens not only strain their mental wellness but also disrupt professional growth and financial stability, often forcing women out of the workforce entirely.
For many women, the high cost of childcare (US Census Bureau) exceeds their take-home pay, sidelining countless women and reducing overall workforce participation.
This imbalance hits GDP directly, but companies that invest in childcare benefits can help close the gender gap. Supporting women in caregiving roles improves career outcomes, strengthens talent pipelines, and contributes to economic growth.
As Klein-Swormink said, “Creating inclusive workplaces isn’t just good for women—it’s good for everyone.”
Broadening the definition of caregiving
Caregiving is often associated with parenting young children, but the reality is far more complex. As Charles Bonello, Co-Founder and CEO of Vivvi, explained at the 2024 Catalyst Awards:
“Caregiving is a catchall phrase for an infinite number of things—circumstances across ages, geographies, and neurodivergent needs. Seventy percent of employees identify as caregivers. That doesn't just mean you're a parent; it might mean you have an elder parent, a family member with special needs, or other caregiving responsibilities.”
This broader perspective underscores a critical gap in how companies design benefits, especially for frontline workers. Although frontline employees make up 70% of the US workforce, only one in four companies consider their specific caregiving needs when creating childcare programs, according to Awards speaker Nicole de Santis, Principal at Boston Consulting Group. Long, volatile, and unpredictable shifts, often misaligned with school and childcare schedules, are the norm in frontline work, requiring ten- to twelve-hour days, six-day workweeks, and regular weekend shifts, while rigid policies disproportionately burden women caregivers.
For industries like healthcare and manufacturing, onsite childcare centers can serve as essential infrastructure. However, with many of these centers shutting down (Fast Company) the challenge grows. Bonello highlighted the importance of adaptable solutions: “We need to develop programs that support families across life and career stages and address diverse caregiving needs.”
How to get started
For organizations hesitant to act, the risks of inaction are greater than taking the first step. As Bonello noted, “There’s more to be lost by indecision than by trying something imperfect.” Employers can take three immediate steps:
Understand your workforce: Survey employees to identify caregiving needs. Solutions will vary depending on industry and demographics.
Measure impact: Develop a plan to evaluate the ROI of caregiving benefits in terms of retention, productivity, and employee satisfaction.
Take action: Begin with small but meaningful initiatives, such as flexible hours, subsidies, or partnerships with childcare providers.
The time to act is now. Let’s recognize childcare for what it truly is: the backbone of the workforce and a cornerstone of economic growth.