The following is a guest post from John Dorer, CEO of eb3.work. Opinions are the author’s own.
The practice of employers offering child care benefits to their workers dates back decades. This family-friendly offering has only increased over time as the economy has transitioned, making single-earner families less sustainable.
Today, with more dual-income households and single parents joining the workforce, the need for child care is as urgent as ever. Unfortunately, a severe lack of accessible and affordable care is leaving parents struggling to balance their work responsibilities with care for their children.
In response, more and more businesses, competing in a near historically tight labor market, are offering child care benefits to attract and retain employees. This presents an opportunity for hotel operators, too.
What’s at stake
The child care crisis is a significant barrier to parents who want or need to work. Parents who can’t find, afford or rely on child care may be distracted and otherwise unable to meet their responsibilities in the workplace. Studies show, for example, that about 70% of working parents’ workdays are impacted when child care falls through.
Sometimes, parents leave the workforce altogether. Those who leave their jobs often cite their inability to find child care as a reason. That is a loss for those families, and it’s a loss for employers trying to cope with severe labor shortages.
Seventy-six percent of hoteliers surveyed in May by the American Hotel & Lodging Association said they are experiencing a staffing shortage. At the same time, some 86% of respondents said that they’re increasing pay, more than half said they’re offering perks such as greater flexibility with hours and one third said they’re providing greater benefits.
Some 13% of respondents said their understaffing issues were “severe,” meaning the shortage is affecting their hotel’s ability to operate. The most critical staffing need is housekeeping, with 50% ranking it as their top hiring need.
Investment in people and productivity
Forward-thinking companies are recognizing that, in addition to attracting and retaining workers, providing child care support for employees enhances worker satisfaction, engagement and performance.
By offering on-site child care facilities, subsidized child care services or flexible child care arrangements, hoteliers can help alleviate the emotional and financial burdens associated with finding quality care.
While long-term return on investment is positive, costs can be hefty in the short term, especially for on-site day care. But there are ways for employers to address those costs.
Employers could consider partnering with a third-party provider to offer off-site child care services. Third-party providers can negotiate lower rates with child care facilities, making it more affordable for companies to subsidize the cost for their employees.
They can also utilize tax credits and deductions. The federal government offers several tax incentives to companies that offer child care benefits, including the Dependent Care Assistance Program and the Child and Dependent Care Tax Credit.
Additionally, employers can consider shared services. Pooling resources with other companies to offer child care services can eliminate the need to build and maintain on-site facilities.
Benefits that outweigh costs
The rising demand for reliable and affordable child care has made it a vital component of the modern employee benefits package. These employer-provided benefits can enhance employee retention, performance and overall satisfaction.
Companies that prioritize their employees’ well-being by providing this family-friendly benefit are more likely to attract and retain workers.
While the short-term cost of providing child care benefits can be significant, the long-term benefits of a happier and more productive staff can far outweigh the initial investments.
By embracing these strategies, hotels can foster a supportive and inclusive workplace culture that values employees, boosts productivity and enhances guest satisfaction that builds customer loyalty and drives revenue.
