Small Businesses and Childcare:
Difficult, But Increasingly Necessarily

Small business owners are increasingly hearing that childcare issues are a major impediment to attracting and keeping high quality staff.

There are a lot of reasons for this, some you may not agree with. But not recognizing the problem and at least offering some help is increasingly not an option. For too many workers, that’s a growing dealbreaker.

Yet operating an in-house day care or similar investments are not realistic for many small businesses. While it’s possible for larger firms and especially corporations, similar turnkey solutions are difficult or impossible for small businesses and entrepreneurs.

But while such easy solutions are out of reach, many smaller steps are not. Here are some ideas that you might consider with your own situation in mind. Even if only one can help, you’ll contribute to a solution and show workers you appreciate their challenges:

Offer flexible work schedules, remote work options, or compressed workweeks. These allow parents to adjust their work hours to accommodate childcare responsibilities.

Provide financial assistance or subsidies for childcare expenses. This can include reimbursement for daycare costs or partnering with local childcare providers to offer discounted rates for employees.

On-Site Childcare Facilities may be more achievable than you think. If feasible, consider establishing on-site childcare facilities or partnering with nearby daycare centers to provide convenient childcare options for employees. Likewise, you might partner with other nearby businesses to provide option for employees of

Parental Leave Policies can make a big difference in some cases. By implementing generous parental leave policies, you can allow both mothers and fathers to take time off to care for their newborn or newly adopted child.

Employee Assistance Programs (EAP) can provide resources and support for employees managing childcare responsibilities, such as counseling services, parenting workshops, or referrals to childcare providers.

Flexible Spending Accounts (FSAs) or Dependent Care Assistance Programs (DCAPs) offer employees an option to contribute pre-tax income to FSAs or DCAPs to cover eligible childcare expenses, reducing their financial burden.

Workplace Support Networks or employee resource groups for parents within the company are virtually free to the company but can make a big impact. These networks offer a place where employees can share advice, tips, and resources related to childcare.

Offer workshops or seminars on parenting skills, time management, and work-life balance to help employees navigate their dual roles as parents and professionals.

Even Backup Care Services can help. Partner with backup care providers to offer emergency childcare services for employees when their regular arrangements fall through.

Flexible Sick Leave Policies are another option. These allow employees to use sick leave to care for sick children or attend to childcare emergencies without facing negative repercussions.

By implementing these measures, small businesses can demonstrate their commitment to supporting employees with childcare responsibilities, ultimately fostering a more productive and loyal workforce.

Some recent perspectives are increasingly big news. Here are a couple of articles that talk about a recent survey on this topic and another that looks at the issue in Greater Kansas City (may be subscriber only).