Imagine this scenario: a hospital interpreter receives an unexpected call informing her that her son's preschool teacher quit and they need to keep him home for the foreseeable future. She loved her job, it paid well, and she was essential in bridging communication gaps between patients and healthcare providers. But she had to leave that great job, and her son had to leave the school he loves, because the teacher couldn't afford to remain in the profession.
This scenario is far from isolated — many of the readers of this article have great former employees who left for similar reasons. It reflects a broader, systemic issue impacting countless families and, by extension, businesses across the nation. As business leaders, it underscores a critical question: how can we prepare to address our teams' childcare dynamics? How can we support our families and — in the process — build the economic resilience of our businesses?
The link between inadequate child care and economic strain is well-documented but bears repeating due to its substantial impact. A report by the Council for a Strong America reveals that the U.S. loses an estimated $122 billion annually due to childcare challenges that affect parents' ability to work effectively. This figure encapsulates lost earnings, diminished productivity, and reduced tax contributions. But the cost is not solely monetary — it also manifests in reduced workplace diversity and stifled professional growth, particularly among women who disproportionately bear the brunt of childcare shortages.
And as the US Chamber Foundation notes: businesses are already paying for the lack of sufficient childcare. A survey highlighted in the report shows that 62% of employers cited child care as a reason they had lost employees from the workforce, and that doesn't even capture the costs of absenteeism or related stress. Beyond individual businesses, these disruptions ripple through every sector of the economy.
So how can we strengthen our teams in this context?
The opportunities for businesses investing in child care are robust. The U.S. Chamber of Commerce Foundation published a toolkit demonstrating how businesses can support child care for their employees (they have a lot of options), noting that businesses see very tangible benefits including reductions in absenteeism and increases in productivity. These benefits represent a fundamental improvement in the quality of work-life for employees, fostering a more committed and content workforce.
Moreover, employees are just more likely to remain with an employer who actively supports their work-life balance, reducing recruitment and training costs associated with high turnover. An additional layer of benefit comes from enhanced company reputation. Businesses recognized for their supportive practices attract top talent and often see increased consumer favorability, which can drive sales and increase market share.
The benefits of child care support also extend into fostering a more inclusive workplace. By alleviating one of the key barriers to full workforce participation — especially for women and single parents — businesses promote diversity and equality. This not only enriches the workplace culture but also introduces a broader range of perspectives and skills into the organization, strengthening its adaptability and innovation capability.
It isn't just about our own businesses.
So far we've focused on the short-term effects of child care on our teams. Investments in early childhood care and education also generate remarkably high long-term returns — ranging from enhanced educational achievements to longer-term economic productivity. Supporting the brain development of the next generation through evidenced-based 'serve-and-return' practices is not only an investment in children's potential but an integral strategy for securing a robust future economy.
This is all to say: our influence is not limited to our own companies. When business leaders share their perspectives on child care in the public sphere, they not only contribute to the policy debate but often steer it toward meaningful reform. Ever seen a legislator vote against something that is supported by both the Chamber of Commerce and Early Learning teachers? Me neither.
While we may have influence, we also have competing priorities demanding our attention. If you want help from folks who make it easier to engage in this work, the Council for a Strong America has a coalition called Ready Nation, which is a group of business leaders advocating for early childhood investments.
Our hospital interpreter's experience is not just a personal ordeal for her; it is a narrative echoing across the business landscape, calling for a reevaluation of how child care is integrated with workforce management. By recognizing the extensive benefits and acting on the business case for childcare support, companies can transform these challenges into strategic opportunities.
In doing so, they not only assist their employees and fortify their operations but also pave the way for a more resilient and thriving economic future. We have both a significant opportunity and a profound responsibility to advocate for and implement effective childcare support, rallying not just for the well-being of our enterprises but for the betterment of our communities.
Uncommon Knowledge
Newsweek is committed to challenging conventional wisdom and finding connections in the search for common ground.
Newsweek is committed to challenging conventional wisdom and finding connections in the search for common ground.