Employer Roadmap for a Stronger Workforce
Child care is not just a family issue – it is a workforce solution and essential economic infrastructure.
More than 70% of children under age 6 in Virginia have parents in the workforce. 1 When child care is unreliable, unavailable, or unaffordable, businesses absorb the cost – through absenteeism, turnover, and reduced productivity.
In Virginia:
- $3.1 billion in economic productivity is lost annually due to child care gaps
- 81% of employers report child care impacts hiring and retention 2
- 65% of employers report workers reduce hours due to inadequate child care options 2
- 86% of employers report employees struggle with child care expenses 2
- It costs families an average of $17,004 to access child care. To meet the Department of Health and Human Services’ 7% affordability threshold, a family of 3 would need to earn approximately $243,000 to afford care for one child at this cost. 2
Employers are not only affected by the child care crisis; they are uniquely positioned to be part of the solution. Offering child care support is a powerful talent recruitment and retention strategy with measurable return on investment — in some cases, up to 425%. 3
The question is not whether child care impacts your workforce.
The question is: What level of solution makes strategic sense for your business?
Read more about the benefit that pays for itself – child care:
[1] Ready Regions ECCE Supply/Demand Dashboard, 2024, [Dataset], Virginia Early Childhood Foundation.
[2] Virginia Early Childhood Foundation, Virginia Chamber Foundation, & Federal Reserve Bank of Richmond. (2025, December). Child Care is the Foundation of Virginia’s Economy.
[3] Moms First & Boston Consulting Group. (2024). The Employee Benefit that Pays for Itself
Strengthen Your Workforce Competitiveness through Strategic Child Care Investment
Not every employer needs an on-site center. Child care supports can vary based on workforce size, geography, and budget.
| Strategy | Description | Employer Cost | Employer Effort | Employer Impact |
|---|---|---|---|---|
| Resource & Referral Service | Funding for services for employees to receive support and guidance when searching for child care | $ | Low | Low |
| Child Care Cost Share | Employer contribution toward cost of employee child care | $ – $$ | Medium | Medium |
| Guaranteed Slots | Employer underwriting tuition costs of child care slots at local operator for employee use | $ – $$ | Medium | Medium |
| Employee Dependent Care Flexible Savings Account (FSA) | Employer offering of and contribution into Flexible Savings Account for employees to use for child care | $ – $$ | Low | Medium |
| Child Care Pooled Fund or Regional Trust | Employer contribution of funding and/or real-property into pooled fund or regional trust to build child care supply for region’s workforce | $ – $$$ | Medium | High |
| Co-located Child Care | Employer repurposes existing or develops new facility space for on- or near-site child care for employees | $$ – $$$ | High | High |
| Employer Consortium Model | Multiple employers within the region funding a shared child care center for their employees | $$ – $$$ | High | High |
Source: Virginia Business Roundtable for Early Education (VBREE). (2026). Playbook for regions.
Business Spotlights
Child Care Partnership: Virginia Tech
Challenge: As the university’s population size increased, 76% of employee and student respondents said they needed or used some form of childcare.
Solution: The university utilized a multipronged approach: 1) partnerships with 5 local child care centers to reserve spots for children of employees 2) offering backup child care 3) advancing the early educator workforce pipeline 4) providing a caregiving portal for families to find resources and sign up for programs.
Result:
- 247 children enrolled at child care centers
- 707 employees enrolled with a backup care partner
- Reported improvements in employee satisfaction and positive feedback on the increase in resources available to employees
Key Takeaways:
- Leverage existing local child care centers to partner with your business
- Mixing and matching solutions can be the best option for your workforce and business
Learn more: Community Child Care Partnerships at Virginia Tech
Child Care Partnership: Virginia Tech
Challenge: A 48-employee company in rural Virginia struggled with workforce retention due to child care shortages.
Solution: The small business created an on-site child care provider, Yellow Hen Child Care, with the employer covering 70% of costs.
Result:
- 16 children served, with 65% of employees utilizing the benefit
- Recruitment and retention advantage in rural labor market
- Stable workforce operations
Key Takeaways:
- Small businesses can lead innovative solutions
- Rural child care investment is possible with the right partnerships
- Employer cost-sharing dramatically increases retention
Learn more: Red Rooster Case Study: On-Site Child Care for Securing Staff Loyalty
Innovative Programs
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