“It costs 75% - 150% of the average annual salary to replace a working parent.” Source: Friedman, Dana, et al., Parental Leave and Productivity: Current Research, Families and Work Institute, 1992

In the 1998 Business Work-Life Study conducted by the Families and Work Institute, many firms, both small and large in size, reported that they are making substantial investments in child care. In addition to work flexibility, half of employers offer dependent care assistance plans; more than one-third offer child care resource and referral services. One in ten firms offer on-site or near-site care.

Child care is crucial to the economic well-being of families, businesses, and communities. A 1997 national survey of employers by Work & Family Connection, together with Whirlpool Foundation and Working Mother Magazine, summarizes the workplace improvements and bottom-line savings from businesses that directly sponsor on- or near- site child care programs:

Boosting Recruitment: Eighty-five percent of employers report that providing child care services improved employee recruitment. About one in three working parents is willing to change employers or trade salary and benefits for work-family programs that fit their needs.

Reducing Turnover: Almost two-thirds of employers found that providing child care services reduced turnover. Depending on the type of child care program offered, businesses reduced turnover from 97% to 60% -- a 37% change.

Lowering Absenteeism: Child care breakdowns leading to employee absences cost businesses $3 billion annually in the United States. Fifty-four percent of employers report that child care services had a positive impact on employee absenteeism, reducing missed workdays by as much as 20% to 30%.

Increasing Productivity: Forty-nine percent of employers report that child care services had helped boost employee productivity.

Strengthening Public Image: Communities value and support businesses that address the needs of their employees and the larger needs of the community in general. In one national survey, 85% of employers that offered child care programs reported more positive public relations.

According to the research conducted by Work and Family Benefits, Inc., an employer will realize a $3-13 return on every $1 invested in child care benefits, depending on the number of employees who use the benefits. This is accomplished by reducing the "hidden costs" that result when employees try to balance their work and family responsibilities: unplanned absences; turnover; recruiting/retraining; extended caregiver leave; and workday interruptions. Work and Family Benefits, Inc. estimates that these "hidden costs" can add up to between 5-12% of a company’s payroll.