Child-Care Programs

Abstract

The best employers provide child-care resources to their employees because it makes good business sense to do so. There are three approaches to providing child-care resources: offer services, supply information (the most popular method), and offer financial support. “Sponsored services” may include on-site day care, after-school care, summer camp, or sick care. Other options include joining a day-care consortium and using governmental and public-agency incentives. Instead of child-care services, a firm may elect to provide information on available resources. Organizations can assist financially by setting up flexible spending accounts and cafeteria benefit plans for employees. Firms may also subsidize employee child-care costs by paying child-care providers directly or by reimbursing the employee an agreed-upon amount. Sometimes the benefit takes the form of a discount that is negotiated between a company and community centers or child-care chains.