Study: Providing Parents With Support Makes Businesses More Profitable

Being a working parent in the United States isn’t always easy. The US remains one of the only six countries in the world without a national paid parental leave policy and mandates only 12 weeks of protected unpaid leave. Because of this, a growing return to the office and lack of affordable childcare, some parents can find themselves either frantically piecing together time off or inevitably quitting their jobs amid growing demands from their little ones.

But there is hope on the horizon, over the past 10 years, more and more companies have instituted paid leave policies and crafted more flexible workplace policies to support parents and one new study shows that it’s really paying off. Not just because these policies have been shown to keep more employees in the workforce but because parenthood motivates workers to be more productive profit drivers.

The report, put together by working parent advocate The Fifth Trimester and Vivvi, which partners with employers to offer affordable childcare solutions, compiled information and statistics based on several surveys, case studies and personal testimonies from parents.

Overall the report identified five key findings:

1. Caregiving benefits drive an inclusive culture and increase retention for all. According to the survey, while 67 percent of respondents considered leaving their job in the last year, 42 percent of those said that they stayed specifically because of their employer’s support of their caregiving. And, overall, 59 percent of respondents say that if they had backup or subsidized childcare they would be likely to stay put for at least four years (that’s 14 months longer than the average Millennial tenure).

This retention is important because losing a worker is pretty costly to a company. Studies show that the cost of losing a worker is a minimum of 33 percent of their salary (or as much as 213% of salary for $100,000+earners); retention saves far more money than the benefits cost.

2. Family benefits are now a hiring imperative. As childcare costs increase, so does the search for employers willing to provide it or subsidize it. When we asked what benefits job prospects were looking for, childcare support ranked in the top three most-wanted benefits, right alongside standards like vacation days and ahead of more traditional benefits like a 401k. Doubling down, when respondents were asked whether they would rather have an immediate cash bonus of $10,000 or an ongoing childcare subsidy of $10,000 per year? An overwhelming 9 out of 10 people chose the latter.

3. Parents are business development heroes. “Flexibility may get a lot of headlines, but our research showed that there’s something else working parents are seeking: money. And they’re motivated to put in the work to earn the bonus, get the commission, close the deal,” the study concluded. When asked which of their goals are most influenced by their caregiving responsibilities, respondents ranked “earning more money” as 4.2 out of 5.

4. Parent-friendly practices boost productivity. Flexibility sure doesn’t hurt though! The study found that parents who were able to work remotely or at odd hours reduced their absenteeism, applied commute time to work or timed their work sprints to match the hours they had care, increasing their productivity.

Contrary to the notion that caregiving hampers performance, individuals often find themselves more driven when balancing work and caregiving duties. Survey respondents say that their caregiving responsibilities motivate them to be “more productive and efficient”—not less—ranking that goal as a 4.2 out of 5.

And when they have support for their caregiving, they can more easily meet their goals. “Any day that I use our childcare benefit for coverage is a day when I can sign the contract, take the call, and keep our mission moving forward. Every day is important,” noted one Marissa, an in-house attorney and one of the parents interviewed for the study.

5. Care benefits unlock parents’ leadership potential. “Our research shows that parents are far more ambitious than the current cultural narrative suggests: 57 percent say that if their employer had backup or subsidized childcare, they would take on higher-level work.

More parents taking on leadership roles once again is a big win for companies. Filling roles internally increases productivity and team morale. Internal hires cost 18 percent less, are 21 percent less likely to leave and create a ripple effect that makes other employees stay 41 percent longer, too. Keeping moms in a position to reach for leadership positions is especially profitable. Fortune 500 businesses with a higher representation of women in leadership show a 34 percent higher return to shareholders.

Recognizing the unique challenges faced by working parents and providing resources and benefits like flexible work arrangements, childcare, or paid leave for family emergencies can help ease their worries and create a more supportive and profitable work environment.

Balancing work and family life isn’t always easy, but we’ve got some tips to help you manage.