Study: Childcare Benefits Have Up to 425% Return on Investment

A new study has found that the employee benefit pays for itself if you retain an additional 1% of your employees.

Retaining employees might be easier than you think, as a new study found that childcare benefits have an unreal return on investment for keeping employees happy.

It’s been hard for businesses to hold on to good employees in recent years. Between the Great Resignation following the pandemic and return-to-office mandates rolling out left and right, workers have been hard pressed to stay in particular roles for very long.

There are, however, strategies that can help you establish retention as a priority, and one strategy involves making life a lot easier for parents.

Childcare Benefits Pay for Themselves

According to a new study from Mom’s First — titled The Employee Benefit that Pays for Itself — childcare benefits can see as much as 425% return-on-investment, contributing to everything from retention and morale to productivity and progression.

On a basic level, though, childcare benefits really do pay for themselves almost immediately. In fact, the study found that if your business improves employee retention by just 1%, you will have covered the cost of childcare benefits.

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The data showed a number of other undeniable trends that show the benefits of providing childcare benefits for employees. 88% of employers agree that childcare benefits boost productivity, and 90% of employers say that it improves talent recruitment and retention. Suffice to say, it’s a no-brainer.

The Childcare Crisis

Taking care of your employees is a sure-fire way to ensure success in the long run and tackling the childcare crisis is a great place to start, particularly for employees that you want to stick around for a long time.

One study from Motherly found that 52% of mothers are considering leaving the workforce, specifically due to their inability to find adequate childcare. Imagine if half your workforce had to quit because they wanted to start a family.

It won’t be cheap, either. The cost of childcare is generally in the five-digit range, with many parents paying annual dues in the $10,000 and up range. However, as this study shows, those kinds of investments in your employees will be returned tenfold in the long run.

Employees Benefits for the Win

Childcare is just the tip of the iceberg when it comes to retaining employees. The reality is that, to attract the modern worker, you have to do more than pay a salary.

Employee benefits and perks are an excellent way to show your team that you and that you value company culture. Everything from free lunches to education stipends should be considered, if only because other companies are offering them, and it can be hard to compete.

If all else fails, the tried-and-true method of offering remote work can go a long way. People got used to this flexible option during the pandemic, and with so many businesses offering remote jobs today, you’ll need that flexibility to compete.

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Written by:
Conor is the Lead Writer for For the last six years, he’s covered everything from tech news and product reviews to digital marketing trends and business tech innovations. He's written guest posts for the likes of Forbes, Chase, WeWork, and many others, covering tech trends, business resources, and everything in between. He's also participated in events for SXSW, Tech in Motion, and General Assembly, to name a few. He also cannot pronounce the word "colloquially" correctly. You can email Conor at
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