Millennials make up one-third of the workforce and many have entered parenthood. This group will have more mothers who are the primary breadwinners and more double-income households than any previous generation. They will drive the benefits conversation for many organizations and they will want reliable, high-quality childcare.
Employers' challenge is how they can redesign their benefits strategy to meet the needs of this large and valuable group of employees. As families are waiting longer to have children, working parents become more critical to attract and retain, especially in talent competitive industries where experience and knowledge largely define business results.
Companies can do the right thing for millennial parents and gain a competitive advantage in the marketplace by improving their childcare benefits by understanding these three issues.
Finding affordable childcare is a top priority for young workers. Nearly 3 in 4 millennial and Gen Z employees identified the lack of high-quality childcare programs and their cost as a barrier to achieving their professional goals, according to a recent survey by Next100 and GenForward. This is an economic fact and true of employees across gender, race, ethnicity and political affiliation.
The childcare affordability gap is so large that it determines whether workers want to start families. Next100 and GenForward found that nearly 9 in 10 millennials and Gen Zers say that the cost of childcare is an important factor when determining whether to have children. The annual cost of childcare is higher than that of public college in 30 states, according to Child Care Aware of America.
Our assessment of parent-friendly companies also found that millennial parents value childcare benefits even more than their retirement plans.
Millennials highly value childcare benefits regardless of gender. Next100 and GenFroward found more than 7 out of 10 men and over 8 out of 10 women say that access to affordable, high-quality childcare is important.
Young Democrats, Republicans, and independents all agree on the importance of child care, with 86% of Democrats, 79% of Republicans, and 76% of independents identifying childcare as an important issue.
Even singles recognized how childcare could be a benefits gamechanger. Over three-quarters of employees without children told Next100 and GenForward childcare was an important issue.
Childcare benefits should be a part of an overall financial wellness program. Seventy-three percent of millennial employees said that having student loans was an important factor when determining whether to have children. Even among those with comparatively higher incomes (those earning at least $75,000), 87% say cost was important, with more than half saying it was very important.
Arvorie's platform can help employers save up to 70% on childcare benefit program costs while delivering a flexible solution to every millennial parent and their children. Take our assessment to find out if your organization is parent-friendly.