Cost: The high cost of child care is a significant financial burden for many families. Child care expenses can quickly consume a family's budget, leaving little room for other essential expenses like housing, food, and transportation. The price of child care has gone up 41% over just two years, which for some is up to 20% of the family's annual income.

Child care costs also vary widely depending on the type of care that is needed. For example, infant care is typically more expensive than care for older children, and full-time care is usually more costly than part-time care. As a result, families often have to make difficult choices regarding care services. Some families may choose to have one parent stay home to care for the children, while others may rely on family members or friends to help with child care costs and responsibilities. Roughly 28% of women and 10% of men do not return to work full-time after having a child.

Availability : Child care is a vital service helping parents balance work and family life. However, child care availability is often a struggle, especially for working mothers. Compared with pre-pandemic, 46% of families say that finding a child care provider is more difficult now. The pandemic permanently closed the doors to many child care programs. While some providers have been able to reopen, they are operating at reduced capacity due to COVID-19 restrictions. Residents in small towns or rural areas find it particularly difficult to find a provider. This has placed a significant burden on working parents struggling to find affordable and reliable child care.

How employers can help

Child care is often viewed as a personal expense that is not worth the investment for employers. Child care costs are typically paid upfront, and the benefits usually do not manifest until later. However, employers should consider the cost of not investing in child care. It can cost employers 150% of their employees' salaries to replace an employee. In addition, employers are hiring recruiters at unprecedented rates for 30% of an employee's salary to find talent.

The investment in child care can be a game-changer over time, saving employers money in the long run. Child care allows employees to balance their work and home responsibilities better, leading to increased productivity and decreased absenteeism. In addition, child care can help to attract and retain high-quality employees. Consequently, employers who invest in child care can reap significant rewards over time.

Here are solutions to this crisis that employers can implement now.

Sponsoring in-home services for employees: One of the most beneficial ways employers can support employees is by sponsoring backup care in the form of in-home services. Work with companies that offer a massive number of vetted in-home providers. Services like these allow employees to view available babysitters and caregivers. These companies will also provide quick responses to backup care. This not only limits the time employers spend searching for quality child care, but it also provides them with peace of mind knowing their family is in good hands.

Related: How to help your employees with summer childcare planning

Typically, when you sponsor these services, you're only required to pay for the number of hours used. Essentially, it is all upsides. You get a productive and focused employee, and you're not taking on the risk of employees using significantly more time off or losing them altogether.

Dependent care FSAs: A Dependent Care Flexible Spending Account (DCFSA) is a benefit that allows employees to set aside a portion of their paycheck to cover dependent care expenses. Eligible expenses include child care, elder care, and special needs care. Dependent Care FSAs are tax-advantaged, meaning the money contributed is deducted from an employee's taxable income. This has the potential to result in significant savings, especially for families with high dependent care expenses. Moreover, dependent care FSAs can be used to cover a wide range of expenses, including tuition, fees and after-school programs. As a result, they can provide valuable support for working families. If you don't currently offer a dependent care FSA for employees, maybe it's time to consider adding one during Open Enrollment.

On-site child care centers: On-site child care centers are a benefit that is becoming increasingly popular in the workplace. These centers are funded through tuition paid by employees and tax credits. The benefits of on-site child care are numerous:

1. It allows parents to have peace of mind knowing that their child is close by and safe.
2. It saves parents the time and hassle of finding and dropping their children at a child care facility.
3. It can help increase productivity by reducing the time employees need to take off for child care-related activities.
4. It can help create a sense of community among employees with children.

On-site child care centers are a win-win for both employers and employees.

Win the war for talent

Child care benefits are an increasingly popular employee benefit, as they can help offset the cost of child care and make it more affordable for employees. Employers that can find a way to address the child care crisis will win the battle against the Great Resignation and become top employers to attract new talent.