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Trends in Childcare Benefits


Humans need to feel a sense of belonging among social groups, which was provided previously by close knit communities. With the decrease in these kinds of communities, companies should strive to promote community culture by helping employees with childcare. The HR over Coffee podcast mentions that parents spend an average of USD 28,000 every year on childcare expenses and is one of the largest expenses that families incur. An SHRM article, mentions that companies like American Express, Credit Susie Bank started offering out of box childcare benefits for their employees such as paying for nannies who accompany their employees when they bring their children on business trips, offering recognition program where employees can earn points that they can redeem for merchandise, gift cards etc The same podcast mentions the following as some of the childcare benefits that companies can offer:

Flexible work options and generous Paid time off
Parents have to balance work and personal life with their children medical appointments, unexpected medical illness, school events etc. so flexible work hours can be an excellent option. This has become a common expectation among millennial parents.

Onsite childcare and subsidies
Although offering an onsite childcare can be an expensive option, there is research evidence that supports the impact of onsite daycare on increased employee’s performance. Smaller companies located near each other can probably join together to open a nearby day care. A good option is companies can partner with a local day care to accept employee children at a discount or paying part of daycare costs for employees.

Childcare Support and EAP
Offering resource network for employees with children and making it available for parents is another option for companies that cannot afford onsite day care and subsidies. Companies can offer EAP or Employee Assistance Programs through vendors and they can tailor programs that fit their workforce. These programs offer free consultations, follow-ups and counseling to deal with emotional stress for new parents or those that find it difficult to balance work and life.



Many companies are taking initiatives to promote gender equality by taking initiatives for paid parental leaves. Regardless of gender, if one could have a baby, they should be eligible for paid time off. These changing trends will have enormous impact on women in workforce. Microsoft implemented this and also made sure that it works with only those vendors/suppliers that offers employees minimum 12 weeks of paid parental leave. 

While most of American company employees are enjoying these changes, there are still discussions about framing parental leave policies for LGBT families and nontraditional families without any gender biases according to a Forbes article. This also raises question about policies for part time and consultant employees.

At age 25, college educated woman are paid 90% as much as their male colleagues. But they are earning only 55% by the age 45 according to NY times article. The pay gap widens because of motherhood. Even for women that catch up lose significant amount of pay in pay, raises and savings. Good news is right childcare benefits can help reduce gender pay gap and create equal workplace for all.

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