Employers who choose not to offer childcare benefits for entire workforce is short-sighted thinking, argues CEO
For working parents, stress is a baseline, not a seasonal spike. After all, Lynn Perkins, CEO and co-founder of UrbanSitter, sees it firsthand every year when the organization conducts its annual Working Parent Stress and Benefits Report.
While the latest data shows a modest improvement in absenteeism due to childcare issues, Perkins doesn’t see that as an outright win.
“Last year, I think it was over eight [missed days], and now we're at about five for this year,” she said. “That's still a lot of days of work to miss, especially if you have to use PTO.”
She pointed to past data showing that when childcare benefits are provided, specifically back up care, missed workdays can fall dramatically, from eight days a year down to just two. More striking, however, is the impact on retention.
“The return on investment on a backup care benefit is substantial. Eighty-one percent of employees say that they would remain at a job if they had a childcare benefit,” she said, clarifying that respondents were specifically referring to backup care support.
“Parents tell us that this is their number one benefit that they’re looking for. This flexibility would be game changing for them,” she added.
Perkins emphasized that flexibility isn’t just a perk but a practical necessity for working parents. Unexpected responsibilities, like a weekly therapy appointment or a last-minute class, can disrupt a rigid schedule, she said, referring to the dual demands of professional performance and caregiving. She believes flexibility enables parents to structure their work around family needs, whether that means shifting hours between days or working at night when necessary.
She believes employers often hold back from offering backup care because of cost, or at least the perception of it. Some companies hesitate because the benefit might only serve a portion of the workforce, namely parents, rather than the entire employee base. But she argues this thinking is short-sighted.
She painted a detailed picture of the daily grind working parents face, emphasizing that even the most organized days are packed with logistical hurdles. Managing drop-offs at school or daycare, arranging after-school care, and coordinating transport for activities or tutoring is just the baseline.
She identified two major pain points for parents: the difficulty of balancing work and caregiving, and the financial burden of childcare. These challenges often intersect, she explained, especially when parents are caught without backup care options.
Despite knowing they need support, nearly half of parents report that securing childcare is still “incredibly tough.” Perkins added that for many families, the situation is compounded by high costs, with some spending “about 20 per cent of [their] salary on childcare.”
Consequently, childcare benefits are just as essential, particularly when access is limited. Nearly half of the parents UrbanSitter surveyed reported difficulty finding care. Perkins noted that even helping families locate vetted providers or nearby daycare options can make a significant difference by easing the burden on working parents and gives them back valuable time.
Perkins believes that effective childcare benefits need to address both emergency needs and long-term planning. Backup care is designed to support parents during last-minute disruptions, whether that’s a sick child who needs in-home care the next day or a one-day opening at a nearby daycare.
Still, Perkins acknowledged that many employers hesitate to address childcare support simply because it seems overwhelming. But she stressed that building care-related benefits doesn’t have to be an all-or-nothing proposition, noting that one of the simplest actions employers can take is giving employees access to a vetted care platform, a relatively low-cost way to immediately ease some of the logistical burden working parents face.
Another low-barrier step is establishing an employee resource group (ERG) for working parents. Connecting employees facing similar challenges fosters a sense of solidarity.
Beyond that, she believes employers can begin offering stipends - typically around $500 per year - to help offset the cost of last-minute care. It’s not about covering everything, she said, but rather easing the financial hit when disruptions arise, like a sudden school closure or a sick nanny.
The most comprehensive support - what Perkins called “the granddaddy of all care packages”, includes multiple days of backup care, reimbursements for out-of-network providers, and flexible options that span both US and Canadian workforces.
Perkins emphasized that employers don’t need to launch a full-scale benefit to make an impact. Even if workplaces aren't ready to adopt fully flexible schedules, there are still meaningful ways to accommodate working parents.
One option she highlighted is to set boundaries around meeting times. For example, not scheduling any meetings after 5 p.m. so that parents can manage responsibilities like daycare pickups without added pressure.
She also stressed the importance of leadership setting the tone. When executives speak openly about their own caregiving challenges, whether it’s finding a new daycare or balancing home demands, it normalizes the experience for everyone else.
By modeling empathy, leaders help reduce the isolation many working parents feel and foster a culture where personal responsibilities are respected rather than hidden, she noted.
Additionally, she argued that employers should begin by listening to their own people. Too often, she explained, organizations rush into offering care subsidies or flashy perks without understanding what employees actually need.
That’s why she encourages plan sponsors to think less about being competitive in the marketplace and more about being relevant to their workforce. That means assessing what other employers in their sector are doing, particularly those recognized for strong workplace cultures and understanding which employee groups are being overlooked.
Perkins emphasized that ultimately offering these benefits sends a powerful message to employees: their employer understands the realities they face.
“Even just offering the benefit really endears people to their employer,” she said, adding that whether an employee is caring for a young child or an aging parent, it signals recognition and empathy. According to Perkins, these are qualities that “humanize employers in a way that employees really appreciate.”
