Ann Silver: Propping up childcare a wise investment (voices)

In April 2021, while pandemic uncertainties were still making waves in local and global economies, a collection of authors writing for the Harvard Business Review (HBR) dove into the ramifications of childcare needs among the workforce.

Modestino, Ladge, Swarts, and Lincoln reviewed data taken from HBR’s national panel survey of 2,500 working parents and found evidence that reinforces childcare as both vital and vulnerable, threatening the financial stability of parents and businesses alike. At that point, an estimated 20 percent of parents had to leave work or reduce work hours solely because a child in the home needed care, a high percentage well before our current labor challenges began. And data put together by UNICEF, an organization working in more than 190 countries and territories to protect the rights of children, flagged the United States as one of the five most expensive countries for raising a child, joining Switzerland, Cyprus, Slovakia and Australia.

Starting a family is considered an individual or partners’ decision, so it’s not a mystery why employers delete childcare when evaluating benefits for employees. But the act of supporting parents with childcare costs through employment benefits correlates to business profits, particularly in Nevada.

A lack of sufficient childcare solutions stands to affect the Silver State more than we know. Even prior to our population boom, the number of affordable, early childcare facilities were minimal. Today, in Northern Nevada, with a swelling population and the adoption of remote technologies making our state even more attractive for those who can relocate, these facilities are even harder to find. Employees continue to forgo employment when childcare is not available.

Back in June, the Governor’s Office launched a one-time infusion of $50 million to help tackle childcare accessibility and affordability issues. The Nevada Child Care Fund did several things: it opened up eligibility for more families to obtain financial assistance for this rising expense and routed much-needed dollars to early childcare facilities that needed ways to attract credentialed talent and renovate or expand their facilities to meet increased demand. But it also did something more subtle: it reinforced the notion that addressing this need has the ability to positively impact our economic outlook for decades to come.

At the heart of it, my role is to help businesses succeed in our region. Watching employers struggle with the loss of team members who have had no choice but to stay home after surmounting COVID-19 is tough.

Subsidizing childcare costs may seem a line item completely separate from an employer’s responsibility, but in the same way employers have embraced the benefits of mental health and wellness, greater workforce satisfaction and productivity, removing the doubt of whether an employee’s child is in safe hands during working hours stands to benefit the corporate bottom line.

American workers hold a powerful voice, one that employers would be wise to listen to and consider when assessing what is valuable compensation for time and talent. The demand for trusted childcare workers and facilities has been compressed; Northern Nevada workers will respond to those companies and organizations that recognize childcare as a vital employee benefit and integrate that into their budgets.

The Reno + Sparks Chamber of Commerce is set to introduce a pre-tax dependent care program for employees of our members. Whether or not an employer chooses to match dollar for dollar or some portion of the employee’s contribution, dependent care contributions will decrease both the employee’s taxable income and the employer’s payroll taxes.

The Chamber believes this program mirrors the belief that an investment in childcare is an investment in our future workforce, its productivity and capabilities, and also for the parents and caregivers who want to work and sustain their families in today’s economy.

For information about the program, available to members with any number of employees, contact the Reno + Sparks Chamber of Commerce: 775-636-9550 or asilver@thechambernv.org.

Ann Silver is chief executive officer of the Reno + Sparks Chamber of Commerce