2020 has demonstrated that childcare is not a nice-to-have perk, but a must-have requirement for parents to return to the workforce.
Parents are struggling to balance their work with childcare. The amount of time required for childcare duties since the pandemic began has increased for 58% of parents, according to a recent S&P Global/AARP survey.
Employers have taken notice. Childcare benefits have increasing relevance in the current economy as 42% of employers are likely to offer additional childcare assistance if more than 20% of employees cannot return to work due to childcare concerns.
Here’s why parents require more resources to find and afford a childcare setup that works for their families:
Many Working Parents Can’t Find Childcare That Fit Their Needs
Any parent of an infant or toddler can tell you how difficult it is to find accessible, affordable, quality childcare. More than 60% of parents have a hard time accessing quality childcare.
Childcare providers are struggling to recover from the economic effects of COVID-19. More than 70% of parents surveyed reported that their childcare program has either closed or operates at reduced capacity. The Center for American Progress estimates that about 40% of the providers might not survive the 2020 financial crunch.
On-site childcare provided by employers is rare, costly, and doesn’t help every working parent.
Childcare Costs Threaten Employee Financial Wellness
With limited supply and rising demand, quality, affordable childcare can be out of reach for many working parents, leading some to quit work for that reason. The yearly cost of childcare is higher than that of public college in 30 states, according to Child Care Aware of America.
More dollar-efficient childcare benefits can help employers with program costs and give parents more buying power. Every net dollar invested in childcare benefits can generate up to three times more in value to working parents because of federal, state and local tax incentives.
Employers can leverage their scale to help parents save on childcare costs. Arvorie’s Connect plan can offer exclusive rates at high-quality providers to parents.
Tailored Benefit Programs Can Soothe Pain Points for Parents
Employees, regardless of income, need help and tools to find the best setup. Nearly half of households earning more than $100,000 per year had difficulty finding quality childcare.
Arvorie’s platform reduces the operational complexity and improves the dollar efficiency of childcare benefit programs.
Our Connect plan can support working families with finding the best childcare set up for them. Leveraging the platform’s scale, working parents can access a childcare search engine and special discounts at high-quality providers.