Finding and paying for childcare is a parent’s biggest stressor.
As HR leaders look to expand their financial wellness programs, they should consider how childcare benefits fit into the picture. The Center for Retirement Research at Boston College found that households raise their total spending when they have children and may be headed for trouble in retirement because they have not saved enough to maintain the standard of living to which they have grown accustomed.
A well-designed childcare benefit program can help every single parent – those looking for providers, the ones who already have a provider they like and even parents with older children. Robust childcare benefits not only improve the financial wellness of an entire workforce, employers can clearly demonstrate that they care for working parents because it is the right thing to do.
Here’s what every childcare benefit program needs to have be a comprehensive financial wellness solution for employers and parents:
More people are working remotely, so an on-site childcare program is not going to help every parent. Arvorie allows parents to choose the childcare that best meets their needs and family’s financial goals.
Retaining parents can be a significant workforce issue for many organizations. In fact, a National Women’s Law Center analysis estimates that 865,000 women have been pushed out of the labor force between August and September, a number that is four times higher than the 216,000 men. Center researchers say that many of those women are not returning to work to make sure their children receive adequate care and education during the pandemic.
Every parent struggles with finding good childcare providers. In fact, 47% of households earning more than $100,000 per year also had difficulty finding quality childcare, according to a study by the Center for American Progress.
Online tools, like Arvorie Connect, can help parents search for the right childcare setup that works best for them. The platform also offers special rates at some providers.
Employers can save up to 70% on program costs by optimizing federal and state tax incentives, but many HR departments don’t have the capacity to take advantage of those tax breaks.
Many organizations miss the tax opportunity, but it can be substantial. For example, Patagonia recouped 91% of its childcare benefit costs through the effective use of tax credits. The tax benefits to employers can be extended to primary childcare, backup care and summer care in some cases.
Financial wellness programs only work if parents use them. Arvorie creates an open and distributed system where every parent can find high-quality options. A tailored solution from Arvorie can support referral programs for excellent providers.
Adding childcare benefits to a financial wellness program is not only the right thing to do, it can make your organization more efficient. Arvorie’s platform can manage complexity for employers and will free HR leaders from operational tasks such as finding and connecting new providers, scheduling and processing payments, managing benefit programs and employer contributions, and documenting events in compliance with tax authorities directives.
Make childcare a financial wellness priority and improve childcare affordability for working parents.