Providing daycare in the workplace can have many benefits for companies, including improving employee morale, lowering turnover and attracting a wider variety of applicants. Although providing workplace daycare can be expensive, many companies find that it actually saves money in decreasing employee absenteeism and turnover. Several options exist, from bring-your-baby-to-work programs to on-site daycare and cooperatives between small companies.

Employee Benefits

Improves productivity

In a 2007 survey, Bright Horizons, a provider of employee-sponsored child care, found that 90 percent of parents using a full service, on-site daycare center reported increased concentration and productivity on the job. An employee’s attention is on work and not elsewhere.

Helps retain and attract employees

In that same Bright Horizons survey, 23 percent of parents turned down a job change offer or refrained from pursuing employment options due to the benefit of having on-site child care. In addition, 90 percent of new parents stated that on-site daycare was a deciding factor in returning to work.

Convenient

Finding quality child care can be very difficult, thus a workplace option offers parents a chance to meet their personal needs, check on their children throughout the day and work with less separation anxiety. In addition, it allows parents to commute to work with their children and spend lunch and break time together if they choose. This minimizes their time spent apart.

Creates good morale

When an employer offers child care, it shows employees that they are valuable enough to deserve the convenience of having an on-site babysitter. Employees feel valued and appreciated and, most importantly, motivated.

Offers emotional security

Parents who are able to check in on their child during a lunch break, or when the workload permits, report less separation anxiety. In addition, their child is cared for by someone who is associated with the parent’s company.

Company Benefits

Workplace daycare can improve employee morale and lower absenteeism and turnover because fewer employees need to take time off to look after their children, according to an article in Bloomberg Businessweek. This leads to lower company costs. The same article cites a study in the book “Kids at Work: The Value of Employer-Sponsored On-Site Child Care Centers” in which two large companies saved $150,000 and $250,000 in wages through providing on-site daycare. Another big savings is realized in bringing new mothers back to work sooner, allowing companies to save in hiring and training replacements.

Source: Michigan State University Research