RTO impact | Majority of Fortune 500 HR leaders struggling to convince C-suite on value of childcare benefits, report reveals

Majority of Fortune 500 HR leaders struggling to convince C-suite on value of childcare benefits, report reveals

As companies push employees to return to the office, many workers are grappling with childcare challenges, leaving HR leaders to advocate for benefits that could ease the burden.

A new study by KinderCare and The Harris Poll, however, reveals a significant disconnect between HR priorities and C-suite decisions.

According to the research, 78% of HR leaders at Fortune 500 companies report difficulties convincing executive teams of the long-term value of providing childcare benefits. Budget constraints and uncertainty about employee needs are cited as the biggest obstacles to adopting such assistance.

“Some CEOs are likely betting that pushback against returning to the office will fade, but I think childcare challenges will persist into 2025 and 2026,” said Dan Figurski, president of KinderCare for Employers and Champions. “Companies that address these issues proactively will be the ones to succeed.”

The data highlights the impact of return-to-office (RTO) mandates on childcare benefits. A striking 85% of HR leaders say the policies have influenced their organization’s approach to childcare support.

Despite the challenges, 83% of HR professionals believe such benefits improve employee mental health, while 82% see them as a way to mitigate negative impacts from RTO policies.

“There’s a new workforce emerging, and for them, childcare must be one of the core benefits offered,” Figurski said.

Selling to the C-Suite 

While HR teams recognize the advantages, the C-suite often remains unconvinced. The study found that 71% of HR leaders feel management doesn’t fully understand how quality childcare boosts productivity for working parents. Another 70% believe executives overlook the fundamental reality that employees have families to care for.

HR leaders do, however, have some compelling statistics to support their case. According to the study, 85% of decision-makers agree that childcare benefits reduce employee turnover, and 86% believe the programs help attract top talent. Figurski advises HR professionals to focus on the potential consequences of neglecting childcare benefits when making their pitch to executives.

“Tell CEOs that if they want the best and brightest talent entering the workforce, they need to offer childcare support for employees with families,” he said.

Changing employment scenarios

As the conversation around RTO policies continues, the pressure is mounting on employers to align worker-friendly benefits with broader organizational goals. For HR leaders navigating ever-changing employment scenarios, finding a way to bridge the gap between employee needs and executive priorities remains key.

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