Small businesses like restaurants and cafés are now offering childcare to prevent employee turnover

The US has one of the most expensive childcare systems among developed nations globally, so companies are beginning to offer on-site childcare.

• Small businesses in the United States are starting to provide on-site childcare to retain workers.
• The US has one of the most expensive childcare systems among developed nations globally.
• Company-provided childcare boosts employee earning potential and career growth.

It's no secret parents in the United States are struggling to find, afford, and retain childcare services.

Parents in some states are spending an average of $10,000 annually to send their kids to a childcare center or day care, Business Insider previously reported. Other families have had to move across the country for more affordable options. Indeed, one analysis found that the US ranks second-highest among developed nations with soaring childcare costs.

Those high costs mean some parents opt to stay home instead of working — a major problem for some small businesses. So to solve the issue of turnover, which can be costly for small businesses, they are taking matters into their own hands by providing on-site childcare.

Zach Wiley, a 31-year-old in Virginia, had to leave his job at Red Rooster Coffee in 2021 because of the long commute, he told The Wall Street Journal. Now that the coffee shop has an on-site day care, Wiley has returned to his old employer and could even afford a house nearby.

"The childcare is just huge. I don't know what we would do without it," Wiley told the Journal. "Our son loves it, and I never worry about him. He's right through the next door."

Wiley sends his two young children to Red Rooster Coffee's on-site facility, which charges him $2 an hour per child. The center accepts kids from one month up to nearly 13 years old, according to its profile on the Virginia Department of Social Services.

Companies that offer stipends, on-site childcare, or backup care — like UPS and Etsy — have seen increased employee recruitment and retention, which they say outweighs the cost of providing childcare, Business Insider previously reported.

For the employee, company-provided childcare increases their earning potential and career growth, a study by the nonprofit Moms First found. That makes a world of difference for families and, in particular, women, who are often forced to exit the workforce when childcare becomes too much of a financial burden.