A report from Moms First, developed in partnership with Boston Consulting Group, finds that employer-provided childcare benefits deliver strong financial returns while improving workforce outcomes. The analysis shows companies can see returns on investment of up to 425%, with even minimal improvements in employee retention—such as retaining just 1% of workers—covering the cost of benefits.
The report highlights the widespread impact of childcare challenges on employees and employers, including lost productivity, increased absenteeism, and workforce attrition. As shown in the data on page 3, nearly 70% of working parents experience disruptions when childcare falls through, 58% of parents who leave jobs cite childcare as a reason, and inadequate childcare costs businesses billions annually in lost productivity. These challenges directly affect recruitment, retention, job satisfaction, and career progression across the workforce.
Findings also show that childcare benefits—such as stipends, backup care, and on-site centers—lead to measurable improvements in employee performance and engagement. According to the chart on page 5, up to 86% of employees are more likely to stay with their employer, absenteeism can be reduced by up to 16 days per year, and a majority of parents report positive career impacts. The report positions childcare benefits as a high-impact investment that strengthens both business performance and employee well-being.