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On-Site Company Daycares Urge Workers Back to Office

October 18, 2023

Companies are increasingly offering on-site childcare centers as a way to bring workers back to the office.

The trend has been influenced by the Biden administration’s plan to implement the $53 CHIPS Act for semiconductor manufacturing, which would require chipmakers to ensure access to affordable, high-quality care for employees. Eleven percent of employers across all industries provided on-site daycare between April 2021 and September 2022, double the number of workplaces offering childcare in pre-pandemic years. Companies such as Marriott International, Tyson, Olympus, and Eden Health have expanded their childcare offerings to retain employees and facilitate parents’ return to the office.

The shift is in response to the pandemic’s impact on the workforce, with many parents leaving their jobs or reducing their hours due to lack of affordable childcare. According to a 2022 McKinsey & Co. survey, one-third of women and one-fifth of men who left the workforce during the pandemic cited a lack of childcare or its expense.

However, there are still obstacles to providing on-site daycare, such as set-up and operating costs, potential liabilities, and a shortage of childcare workers. Local regulations may also come into play in some areas, as in Boston, where an executive order requires office developers to build on-site daycare or invest in off-site facilities for projects reaching 100,000 square feet or more.

Nevertheless, on-site daycare facilities have been found to be effective in bringing parents back to the office, with parents using such facilities being the earliest adopters of returning to the workplace.

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