Child care and early learning company Vivvi, in collaboration with The Fifth Trimester, released their latest research report, “The R.O.I. of Caregiving Benefits.” This study reveals two significant findings: caregivers prioritize child care benefits over a 401(k), and every dollar invested in caregiving benefits yields a return on investment of nearly 18 times.
Conducting a survey involving over 300 caregivers, the report examines the impact of family-friendly practices on earnings and productivity. Also included are 10 unique case studies illustrating the return on investment for employers. These cases highlight how caregiving benefits positively affect productivity and output, emphasizing the benefits for both employees and businesses.
Child care benefits have become a top priority for caregivers in their job searches, rivaling perks like vacation days and surpassing traditional offerings like 401(k) retirement plans. One working mom and survey participant, Johanna Sim, encapsulates this sentiment, stating, “I’m not going anywhere. But if I were looking, I’d be like, forget the 401(k). I’ve got to be able to take care of my family now before I can take care of my future old self.”
Lauren Smith Brody, CEO of The Fifth Trimester, shares her thoughts on why caregivers prioritize child care benefits over a 401(k): “Without child care benefits, many parents are faced with leaving their careers entirely. And no earnings means no retirement savings at all. With child care and other family-supportive benefits in place, they can stay in and do so much more than just tread water. They want to stay and grow, our research found, specifically because of their kids.”
The research highlights caregiving support as a crucial driver of organizational success, demonstrating its profound impact on productivity. By offering remote work and flexible hours, employers empower working parents to balance their responsibilities effectively, thereby reducing absenteeism and enhancing motivation. Smith Brody hopes that the numbers uncovered in this report—quantifying the business success generated—will encourage more employers to provide access as soon as possible.
Ultimately, she aims for it to also drive the push for federal support. Basic needs like paid family leave and affordable child care are indeed standard public policy in nearly every other wealthy country in the world, owing to their evident economic necessity. In the U.S., while legislation has been slow to catch up, there is growing bipartisan support for implementing these policies.
“These businesses have provided proof of concept and are efficiently and effectively rewriting cultural norms for the better. And all the while they’re keeping productive, motivated workers in their careers so we all feel the benefit, normalize that care, and vote folks into office who support it.”
The findings emphasize the significant impact of caregiving support on both individuals and companies. External business engagements present challenges for caregivers, hindering their participation in travel or community activities beyond standard work hours. However, proactive measures such as backup child care provisions and flexible work schedules enable employees to manage their responsibilities effectively, resulting in increased productivity and job satisfaction.
Furthermore, caregiving benefits not only support employees’ professional endeavors but also serve as a catalyst for career advancement. Policies accommodating caregivers reaffirm the organization’s commitment to its workforce, fostering a culture of inclusivity and support.
It’s essential to note that while the case studies in the report represent working parents and caregivers with access to family-friendly benefits, these benefits remain out of reach for many Americans. Smith Brody believes it’s not sufficient for these benefits to be exclusive to corporate employees; forward-thinking employers recognize this and ensure they are universally available, including to their hourly wage earners.
The enormity of the child care crisis is undeniable, and no singular solution can fully meet its complex demands. However, within this challenge lies a significant opportunity for the private sector to step up and make a substantial impact. While it’s encouraging to see parental leave gaining recognition as a fundamental need, the reality remains that the majority of companies have yet to offer meaningful child care benefits, leaving countless families in search of viable solutions.
Lauren Hobbs, Chief Marketing Officer at Vivvi, summarizes: “Employers need to realize that child care (and other family-friendly benefits) is not an all-or-nothing investment. As our report shows, there are so many ways to address caregivers’ needs, from backup care to care reimbursements to workplace flexibility and more. If every private company could even dip its toe into the pond of caregiving benefits, the impact would be momentous.”