Talking on-site childcare with Mother’s Monday and Vivvi
If you’re an employer considering opening an on site child care center, make sure you do it right.
By Abby Kreckel
Amidst a worsening child care crisis in the US, many employers are looking to offer the ultimate work perk: a childcare facility. Access to childcare is as necessary an infrastructure item as a road; afterall, without it many employees cannot get to work. Having stable, subsidized childcare is proven to vastly increase employee satisfaction and retention, as well as boosting recruitment. In a competitive job market where many employers are tragically cutting benefits, being known as a standout employer for caregivers is both the right thing to do and it makes business sense.
But there are many things to consider when opening a childcare center, and getting all the details right will not only save headaches later, but will give new hires peace of mind to take full advantage of this benefit. Mother’s Monday spoke with a subject matter expert in the field of on-site childcare, Vivvi, to get the scoop on everything related to on-site childcare centers, public investment in childcare, and more!
In case you haven’t heard of them, Vivvi is a company that partners with employers to provide high quality childcare programs on or near site. Every dollar invested in childcare has a high ROI, with some studies indicating a return of $4-9 for every $1 invested. Not only are these quality programs, but Vivvi also knows how to navigate government subsidies, grants, and tax breaks to reduce the cost of every dollar invested by “up to 75%,” according to their website, making this investment even more attractive.
One crucial aspect of on-site childcare gives thought leaders pause. Consider how the American healthcare system is often (rightfully) criticized for tying health insurance to employment. Even as the current childcare crisis threatens to affect employers’ bottom line, many still hesitate to tie childcare to employment because of questions such as: What happens to an employee’s child if their parent gets a new job?
Julia Steele, mom of two and Senior Marketing Director of Vivvi, said that the answer is simpler than you would think. “A student’s classroom spot would always be held,” she said. “It’s just a matter of transferring tuition responsibility from the employer to the family. Typically, the family will have 90 days from the benefit ending to either keep their seat at the community tuition rate, or to offboard from Vivvi.” In other words, the center is still a separate entity from the workplace, albeit with a strong partnership. Parents and caregivers can breathe easy if a new opportunity comes up because it doesn’t mean a loss of stability for their child, and employers only shoulder the cost while the parent is in their employ.
But Steele flipped the question on its head. Employees who take advantage of this benefit are so happy with it, it’s downright rare that they’d look for another job in the first place. “I’ll note that child care is an extremely sticky benefit,” Steele went on. “80% of employers who offer it see a correlation with talent retention. So we’ve seen that it’s less likely that a parent with a child care benefit would leave their job in the first place.”
Every community has different needs, with the varying urban, rural, and suburban landscapes all offering unique challenges and solutions to the childcare crisis. In more populous cities, caregivers find frustration in sitting on a dozen waitlists to secure care. In less populous areas, centers may have availability but be nowhere near the worksite or home. Many companies building childcare on their corporate campuses, such as Walmart, Hormel, and Marriott, are located in towns with well under 100,000 people (26,000 to 65,000 people in these cases).
One of the greatest benefits of offering on-site care is saving hours in commuting time for their working caregivers. It also virtually eliminates caregiver difficulties with return-to-office policies, since drop off and their desks are under the same roof. For breastfeeding employees, they can visit their infant in person rather than spending time navigating the equipment and space required to pump. Employees can also be more present and focused at work and perhaps even find a little extra time for a visit to an on-site gym or a lovely midday lunch with their child. Talk about work life balance!
On-site care is a gold star benefit for a reason: it also requires a massive cost to operate. But an investment in on-site childcare also comes with some massive advantages, such as tax breaks, through the Employer-Provided Childcare Tax Credit. And, as we highlighted in our 2023 Mother’s Monday event, the US Government is requiring US technology companies who take advantage of CHIPS Act funding to invest in childcare benefits. Feel free to rewatch our Fireside Chat with US Representative Jennifer Wexton and Mother’s Monday founder Gayatri Agnew to refresh your memory.
Given that less than 7% of US employers offer on-site childcare, any employer looking to implement this benefit has the chance to become an industry-leader and employer of choice. And in many places, this kind of investment is becoming a reality. Mother’s Monday asked Vivvi for their take on New York City’s new universal pre-K guarantees for all 3 and 4 year olds. “We win when parents can work,” Steele answers. “We support any program or organization that allows that to happen.” Some employers are even taking things a step further and acknowledging that the need for care doesn't end when “full-time” school begins. Not all schools offer after school programs and summer breaks create stress as parents struggle to bridge the gap in coverage, so some companies are addressing the needs of parents with older children as well. Patagonia, which has long been known for their on-site childcare, includes an after-school program that buses children from nearby schools to engage in exciting programs while their caregiver finishes their workday. Consider opening a wing of your childcare center for a state-of-the-art after school program. Imagine the peace of mind your employees will have being able to be fully present at a 4 or 5 pm meeting, then walking down the hall to see their child in the middle of a kickball game or eager to show off an art project. As an added bonus, this would also turn the commute into family time to connect rather than a rush to avoid late fees at pickup.
While some private companies act to fill in the gaps, there is still much to be done to secure the changes and funding needed to build out our childcare infrastructure. Vivvi is involved in many advocacy groups to lend their voice and support to all movements to build coalitions and lobby for more positive change. When people think of government investment, they often think of big checks and complex programs, but that isn’t always the case. Sometimes lobbying for slight tweaks to rules and regulations can make a big impact on the childcare crisis. Steele gave some examples. “Little-known (and largely outdated) rules, such as the NYC regulation prohibiting child care for infants on the second floor, often prevent new child care locations from opening, constricting supply and contributing to long wait lists.” Advocating with local and state governments to solve the childcare crisis doesn’t always have to mean an influx of taxpayer funding (although we could probably use that too).
There’s a lot to think about when a company is ready to tackle the project of opening an on-site childcare center, but hopefully this demystifies the process and gives you a lot to think about. To learn more about Vivvi’s mission and business model, head over to vivvi.com, and dive into our growing resource bank and articles here at mothersmonday.com.