Is it possible that childcare for employees benefits companies as much as the parents who work there?

The answer – according to a survey of 1,300 small business owners conducted by Goldman Sachs in April – is a resounding yes. Results from the June survey showed that more than half of the businesses surveyed – 55% – believe that the issue of affordable child care has not been adequately addressed in this country and that the lack of such care is a barrier to their growth. They also cite that there are not enough affordable child care programs in their communities.

More than a third of survey respondents said that childcare issues are forcing employees to reduce their hours or skip work altogether. They also believe that offering childcare to employees could boost talent recruitment and retention.

“Small business owners have made it clear that the child care crisis is exacerbating their biggest challenge today: hiring and retaining quality employees,” said Jill McCarthy of Goldman Sachs.

Another study published by the U.S. Chamber of Commerce – the 2022 Parent Confidence Report – showed that demand for employer-sponsored child care is increasing and that 68% of working parents believe employers should cover the cost.

“We’ve reached a point where child care is no longer an optional benefit,” said Dan Figurski, president of KinderCare at Work, in the Parent Confidence Report. “Child care is as important as health or dental insurance when it comes to an employer’s ability to retain current employees and attract new ones.”

The expiration of the child tax credit — which is credited with lifting millions of children across the country out of poverty — hasn’t helped matters. Nor has the end of the American Rescue Plan’s $24 billion child care subsidy, which benefited three million children, Forbes noted last September. Although Congress has introduced a bill to reinstate the tax credit, it is stalled in the Senate.

But without government-funded child care, millions of parents could be forced to give up their jobs. According to the Century Foundation think tank, the economic consequences of this would cost $10.6 billion in economic output annually and reduce family income by $9 billion.

Parents who pay for child care shell out an average of $293 for one toddler and $556 for two, according to 2024 figures from provider Care.com. However, the actual cost of care for a family varies widely depending on the zip code, the child’s age and whether a parent wants in-home care or care at a child care center.

Figures from the U.S. Department of Labor, shared with CNN, show that the annual cost of caring for a single child – infant, toddler, preschooler or school-age child – can easily reach 15 to 20 percent of the average family income in many counties across the country. And even those who can afford care struggle to find providers.

But COVID, of all things, has sent the message that growth-oriented companies without childcare for their employees are at a disadvantage.

“COVID has been a godsend,” said Jessica Chang, CEO and co-founder of Upwards, which advocates for better child care. “Employers are realizing that child care is no longer just a social issue, it’s a business issue,” she told CNN.

“If you have trouble attracting and retaining employees, it affects your bottom line.”