Wealthy countries, excluding the United States, contribute on average $14,000 per year for toddler care. In the U.S. this drops to a startlingly low of $500.
In Denmark a 2- year old attends childcare during the day giving parents peace of mind, freeing them up for endeavors such as work or education. And the toddlers are guaranteed a space. Parents pay 25% of the cost. That guaranteed spot remains in place until children are in place at an after-school program at the age of 10. In the U.S> there I no guarantee of a spot, making getting in quite completive. Parents pay the full cost which averages $1,100 per month.
The U.S. , embarrassingly is the glaring outlier in terms of “developed” countries spending a mere 0.2 percent of GDP (gross domestic product) or $200 per – in the form of a tax credit. Denmark’s spending per toddler is over $23,000 and Norway nearly $30,000 compared to $500 for the U.S. Even at the low end Hungary and Australia spend $7,000 and $8,000, respectively.
Of the top 12 family/child friendly policy practices implemented by U.S. companies of all sizes; including dependent healthcare, paid time off, flexible hours, remote work, maternity leave, paternity leave and childcare assistance on-site childcare has the lowest company commitment.
According to a 2024 study by care.com 1 out of 5 workers left their job because to insufficient childcare benefits to seek better options. And 1 out of 5 said they would switch jobs for better childcare support
From The Society of Human Resources Management, the Herbs and spices company Frontier Co-op’ long experience with providing on-site childcare is a clear example of on-site childcare as a company benefit. Several decades ago the company, located in Norway, Iowa, became the company where workers brought their kids. Many farming families worked for the company.- with the men out in the fields and women, the primary child care providers, wanting and needing to work but not knowing what to do with their children. “In order to work they needed to bring their kids. So they just started bringing their kids, with them. ” says Megan Schulte VP of Human Resources Forty years later the informal program has grown into a formal program and a major attractor of employees for the company. The center is located at the company headquarters and is open from 7 a.m. to 6 p.m. And price to employees? $2 – $3 per hour. In addition to the center the company offers subsidized off-site childcare.
In the U.K. Clara Ryan’s 4 year old son makes the drive to work with her every day. She’s worked for the communications technology company Cisco for 18 years. She drops her son off at the company’s on-site day care at 8 a.m. and is at her desk by 8:15. She has the option of toing her job remotely. But the convenience of the company day care center which has been open since 2015 give her the incentive to work in the office most days. And in the U.K. The center works on a “salary sacrifice scheme.” Meaning the cost is deducted from her before tax earnings and she only pays taxes on the remaining earning—reducing her taxable income. This generally saves employees 30% – 50% of what it would normally cost. The company also provides emergency child care at home for example if a child stays home sick.
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In a survey sighted by journalist MaryLou Costa for Reasons To Be Cheerful, 34% of working moms said they’d be more inclined to work in the office with on-site day care provided. Also per Ms. Costa globally organizations World Bank’s Group Gender Strategy and the International Finance Corp, a global development institute, are lobbying to get employers to provide more child care benefits and on-site facilities. Apparently the movement is the strongest in the United States with companies like Kindercare partnering with organizations to provide on-site care. And with Bright Horizons facilitating on-site centers at employers like Kwik Trip, Home Depot, Patagonia, Hormel foods and others.
In the same care.com survey mentioned earlier 56% of employers say they are prioritizing childcare as an employee benefit. This is up 10% from 2023.
Given how far behind the U.S. is, and how little we’ve been investing in employer on-site day care, we have a long way to go.