Paid leave for parents to take care of their children is a benefit that extends beyond making your company more family-friendly. There are many other benefits that can come from offering this type of benefit. Some of these are increasing recruitment and retention rates. In conclusion, offering paid childcare benefits will make your company feel more attractive to prospective employees and their families.
According to the Bureau of Labor Statistics, there were an estimated 1.7 million employed childcare workers in the United States in 2016. The median hourly wage is $11.03 per hour working for private employers only. This statistic is especially important when considering that the single largest workforce demographic is adults with children.
Let’s take a closer look at how to offer this benefit.
What is Paid Childcare?
This is a benefit that allows an employee the ability to take paid time off from work. This will give time to care of their child during times of illness, adoption, or other special needs. There are two types of paid childcare: short-term and long-term. Short-term leaves from work typically range between two and twelve weeks. It can be used intermittently throughout the year while long-term leaves allow an employee the ability to use the benefit up until their child reaches kindergarten age or until their own retirement permit, whichever comes first.
How to Offer Paid Layoff Leave for Childcare
Make sure your benefits include these as a benefit that your employees can take as a way to lessen the impact of their layoff. In addition, if your employees are eligible for government assistance, you may want to work with them to try and secure a portion of this benefit. By this, each employee won’t have to pay a portion.
How to Offer Paid Family Leave for Childcare
Employers should take the time to work with their employees to make sure they know how much leave is available and when they can use it. Some companies may allow an employee to take the benefit as it is earned. Others may require that all of the leave be accrued before taking it. This benefit may also include additional benefits such as additional pay and even continued health insurance coverage. Your company should outline these rules and also offer information about how much paid family leave their employees can receive.
How to Offer Paid Parental Leave for Childcare
One way employers can do this is by offering paid leave of absence for each parent. This benefit may include the option of providing a percentage of your employee’s salary while on leave or paying an additional amount. If you choose to offer this benefit, it is important that you work with your employees to determine if they qualify. By this, they aren’t bummed when they receive further derogatory information from their own government agencies.
Although there are benefits from offering childcare benefits, many companies have been hesitant to add them. Reasons include fear that they will be seen as not family-friendly enough. However, this is not true. Many states are even passing legislation to require employers to offer paid family leave for childcare.
Benefits of childcare in the business-
But what are the benefits that will come from offering this benefit? First, you stand to gain an increase in recruitment rates. According to a study conducted by Consumers Digest, almost two-thirds of new parents say they are more likely to apply for a job with employers who offer childcare. Offering childcare is also beneficial for employee retention. According to the same study, 54% of parents with paid time off for their children are more likely to stay with their current employers.
In addition, offering this benefit can improve your company’s overall image and brand recognition while showcasing your company as one that cares about its employees.
A benefit received by the employee and their family is a benefit for your company as well. Not only will you have a more productive employee, but you will have something else to offer your current employees as well.
Another important thing to keep in mind is that providing childcare benefits can be costly. In order to cover this cost, look into the increased recruitment and retention rates from offering this benefit. Also, consider increasing your matching program contribution or increasing the amount of paid leave you offer.
According to the Bureau of Labor Statistics, “Families today are undergoing major changes. The American family has evolved into a more multi-generational society. Children are spending more time with their parents and grandparents. The rise of dual-earner households is only going up, not down.”
In conclusion, offering paid childcare benefits will make your company feel more attractive to prospective employees and their families.
Childcare is an important aspect of modern-day families that any company should incorporate to value its employees. It is important to work with your employees to make sure that they understand their benefits, how they are qualified for them, and when they can take them.
To add this benefit to your organization, please reach out to Nannies & Kids United at 770-284-6090 or [email protected].