Enhanced Childcare Benefits Promote Economic Growth

By Sherri Edwards, Dubuque County Empowerment

The Greater Dubuque Development Corporation has surveyed Dubuque-area businesses on benefits offered to employees. Of those identified, childcare assistance often ranks last. Increasing childcare assistance benefits could offer a significantly positive economic development results. It’s not only good for children, families, and businesses but would enhance our entire community.

Businesses that address employee’s childcare needs show progress in recruitment, turnover, absenteeism, productivity, and business image (U.S. Department of Health and Human Services). Quality childcare helps parents and caregivers to find and keep jobs and also provides optimal learning experiences for the future workforce.

Businesses can consider their employee’s needs, and then based on those, investigate differing types of childcare benefits. Some benefits can be implemented at little or no cost. Here are some examples:

• Supporting community initiatives.
• Providing information through resource agencies.
• Establishing flexible job schedules and leave policies.
• Providing financial assistance to employees through benefit plans and childcare reimbursements.
• Creating and supporting childcare services like before- and after-school programs, back-up care, odd hour care, on-site centers, and partnerships with other employers or existing childcare centers.

Right now in Dubuque County, a consortium of employers is addressing how to identify and enhance childcare benefits. Convened by the Dubuque County Empowerment Board, the group is called the Human Resources/Business Links Consortium. It includes representatives from Finley, John Deere, Dubuque Greyhound Park and Casino, Diamond Jo Casino, McGraw-Hill, Honkamp & Krueger, and Woodward Communications.

The consortium is examining childcare issues for employees and considering possible benefits. Each business in the consortium is free to pursue benefits customized to the unique needs of their employees. Consortium members are creating partnerships with existing childcare centers and solutions through new projects. The consortium is open to any employer in greater Dubuque.

Further development of childcare benefits would enhance continuing community and economic development for our area. Iowa ranks second in the nation with 71.3% of children under age six living in families where both parents work (U.S. Census Bureau, 2002). Here in Dubuque, many families use childcare in centers, homes, and preschools. There is a real need to support parents and caregivers with advances in accessible, affordable, quality care for children.

Quality care better prepares children to start school, score higher on tests, and require less special education. It also increases high school graduation rates; increases the likelihood of college education; improves employment opportunities; reduces crime; and enhances quality of life (Early Care and Education Collaborative, Communications Consortium Media Center). Finally, it helps parents and caregivers get to work and stay there with the knowledge that their children are in good hands.

Supporting employees who need access to quality childcare should be top priority. The economic benefits are real. For every $1 invested in early childcare, over $7 is returned to the community (Federal Reserve Bank of Minneapolis). Enhanced childcare benefits would improve the productivity of working parents and also strengthen quality of life in our whole community.