Supporting Working Parents Through Employee Discount Programs
For the more than 30 million working parents in the U.S., the past five years have been marked by rapid change and adaptation. The COVID-19 outbreak in 2020 dramatically reshaped daily life, forcing a convergence of professional and parental responsibilities within the home. Although this shift presented formidable challenges—balancing Zoom meetings with homeschooling and managing work deadlines amidst family demands—it also offered unexpected benefits. Working parents gained more quality time with their children, and the flexibility of remote work allowed for more adaptable childcare arrangements. For parents of the millions of babies born between 2020 and 2024, this blended dynamic of work and family life is all they’ve ever known.
However, as more companies begin implementing return-to-office plans, this new normal may be coming to an end and many working parents are discovering that the level of support they’ve grown accustomed to is no longer guaranteed. While HR leaders continue to champion enhanced childcare benefits, their efforts are hitting a roadblock at the executive level. According to a recent KinderCare survey, nearly 80% of Fortune 500 CHROs report difficulties convincing the C-Suite to expand employer-sponsored childcare offerings, with the primary obstacle being concerns about return on investment (ROI).
But the data tells a different story.
The ROI of Childcare Benefits
Despite hesitation from the C-Suite, HR leaders strongly advocate for the expansion of childcare benefits, recognizing their critical role in workforce stability and engagement. Findings from the same KinderCare survey highlight just how valuable these benefits can be:
- 86% believe that offering childcare benefits is instrumental in attracting top talent.
- 85% report that these benefits play a critical role in reducing employee turnover.
- Nearly two-thirds identify them as a key component of their talent acquisition strategies.
Beyond expert opinions, quantifiable data reinforces the value of these benefits. An analysis conducted by Moms First and the Boston Consulting Group revealed that childcare benefits can yield an impressive ROI of up to 425%. Drawing on HR data, employee interviews, and surveys from five participating companies, the study demonstrated measurable gains in employee retention, enhanced productivity, and decreased absenteeism. Additionally, these benefits contribute to higher morale among working parents, fostering greater employee engagement and long-term loyalty.
However, even with clear evidence showing the substantial ROI of childcare benefits, HR leaders still face other challenges in their efforts to support working parents.
Other Barriers to Expanding Childcare Benefits
While concerns about ROI remain a significant hurdle, HR teams also face the ongoing challenge of managing limited benefits budgets. With a finite pool of resources, they must make tough decisions about which programs to prioritize, often having to weigh childcare benefits against other pressing employee needs – particularly healthcare.
According to a recent Mercer survey, despite escalating healthcare costs, most employers are committed to maintaining or selectively enhancing health benefits in 2025, with a particular focus on areas such as reproductive health and GLP-1 medications. While these investments are essential for employee well-being, the rising costs associated with healthcare often divert resources away from other critical benefits, including childcare support.
However, benefits teams are not without viable alternatives, and employers can still make a meaningful impact in supporting working parents through creative and cost-effective strategies.
Leveraging Employee Discount Programs to Support Working Parents
For companies unable to expand formal childcare benefits, employee discount programs offer a practical and flexible solution to ease the financial burdens faced by working parents. The U.S. Department of Labor’s National Database of Childcare Prices reports that families spend between 9% and 16% of their median income on full-day care for one child. This can often equate to costs comparable to or exceeding monthly rent. The high costs are a major burden for working parents, particularly those in lower-income brackets, where childcare expenses can consume an even larger portion of their earnings.
Employee discount programs frequently partner with local and national childcare providers, offering significant savings on daycare, after-school programs, tutoring, and babysitting services. These discounts can translate into thousands of dollars in annual savings, making a tangible difference in financial stability for many families. Additionally, the flexibility of these programs allows parents to choose options that best align with their schedules and caregiving preferences, ensuring a personalized approach to childcare support that wouldn’t be possible with one universal offering.
Of course, the financial demands of raising a child extend far beyond daycare and babysitting costs. Parents are faced with a constant stream of expenses that can quickly add up, and employee discount programs can provide much-needed relief by helping working parents manage these ongoing costs more effectively. Let’s look at a few examples:
- Diapers: The annual cost of disposable diapers for one child averages around $840. This recurring expense can quickly add up, especially for families with multiple young children. Employee discount programs can offer partnerships with major diaper brands and retailers, providing bulk purchase discounts or coupons that ease this financial burden over time.
- Formula: With an average yearly cost of $1,700, formula represents another significant financial commitment. For families with infants who rely exclusively on formula, these costs can be even higher. Discount programs often include savings on both regular and specialized formula types, helping families manage the cost while ensuring their babies receive the nutrition they need.
- Toys: Families spend approximately $580 per year on toys, totaling close to $6,000 by a child’s tenth birthday. Beyond just entertainment, toys contribute to a child’s cognitive and social development. Discount programs can help manage these costs effectively by offering deals on educational toys, seasonal items, and even subscription services that deliver age-appropriate toys regularly.
- Essential Gear: High-cost items like car seats and strollers, which can exceed $500, are non-negotiable for safety and mobility. These items also need to meet strict safety standards, often making the most reliable products the most expensive. Employee discount programs can provide exclusive deals on trusted brands, bundle offers, or seasonal sales, offering significant savings without compromising on quality and safety.
Maximizing the Impact of Discount Programs
To fully leverage the benefits of employee discount programs, employers should take a strategic approach that goes beyond simple implementation. This involves actively promoting the program, regularly evaluating its effectiveness, and ensuring it aligns with the evolving needs of working parents. A well-managed discount program can significantly enhance employee satisfaction, reduce financial stress, and contribute to a more supportive workplace culture. Let’s go over a few tips:
- Promote Awareness: Proactively raise awareness among working parents about the availability and advantages of the discount program. Often overlooked in benefits communications, these programs can be underutilized simply because employees aren’t aware of them. Use targeted communication channels, regular reminders, and onboarding materials to keep the program top of mind.
- Gather Feedback: Actively seek feedback from employees to pinpoint the areas where support is most needed. Conducting regular surveys or focus groups not only helps tailor the discount program to better meet parents’ needs but also generates valuable insights that can strengthen the case for broader childcare benefits.
- Measure and Communicate Impact: Consistently track and analyze the program’s effectiveness through key performance indicators such as reduced absenteeism, lower healthcare costs, improved productivity, and higher employee retention rates. Presenting this data clearly and effectively can help build a compelling business case for the C-Suite, highlighting the tangible ROI of supporting working parents.
By creatively utilizing employee discount programs, companies can provide meaningful support to working parents, fostering a more engaged, productive, and loyal workforce.