The Business Journals: Why Businesses Are Scaling Back Child-Care Benefits Offerings

G&A Partners’ Director of Recruitment Process Outsourcing Eleesha Martin offers insights on why companies are opting out of providing child-care benefits to their employees in The Business Journal’s article, “A Popular Benefit is Increasingly on The Chopping Block.”

The article, available to subscribers, discusses a current benefits trend in which working parents face escalating child-care costs, while employers pull back on direct child-care support, and how this impacts both groups.

Martin emphasizes that businesses are struggling to see the value in providing child-care benefits to employees.

“Companies are increasingly cutting back on or eliminating child-care benefits due to a combination of financial pressures, operational complexities, and shifting priorities,” says Martin. “These financial burdens, along with challenges in establishing and maintaining partnerships with child-care providers, have led many employers to reconsider providing this type of offering.”

Martin recommends that employers reevaluate cutting such benefits despite the cost and certain challenges associated with them.

“While eliminating child-care benefits may reduce immediate costs, it can negatively impact recruitment and retention, particularly among working parents,” says Martin. “Companies need to find ways to balance cost-effective perks that match the needs of their employees.”

Read the full article here.