London, September 27, 2017—Companies
around the world that offer childcare services for their employees found
that the benefit had a significant positive impact on their businesses,
improving recruitment, retention, and productivity of workers, according
to a report released today by IFC, a member of the World Bank Group.
The report—titled Tackling
Childcare: The Business Case for Employer-Supported Childcare—comes
amid rising recognition among policymakers globally about the business
and development impact of childcare. In 11 of 50 economies examined recently
by the World Bank Group’s Women,
Business and the Law, employers
are required by law to support or provide childcare. Even without the need
for regulatory compliance, many employers are looking to offer childcare
support and achieve better business outcomes. The governments that have
enacted legislation requiring childcare services are Brazil, Chile, Ecuador,
India, Iraq, Japan, Jordan, The Netherlands, Turkey, Ukraine, and Vietnam.
“Without the full and equal participation of women and men, no country,
community, or economy can achieve its potential or meet the challenges
of the 21st century,” said Nena Stoiljkovic, Vice President of Blended
Finance and Partnerships at IFC. “Childcare is part of the solution, and
while many companies want to support their employees’ childcare needs,
they often lack information on what they can do and how they might benefit.
IFC’s Tackling Childcare report fills that gap.”
The report draws on 10 case studies of companies around the world offering
various childcare options, from on-site childcare to subsidies for employees.
The companies profiled in the report include the South Africa-based fresh
produce company Afrifresh; U.S.-based software firm Akamai; Turkey-based
heavy manufacturing firm Borusan; Japanese financial services firm
The Bank of Tokyo-Mitsubishi UFJ, Ltd.; Turkey-based automotive component
maker Martur; Jordanian garment manufacturer MAS Kreeda Al Safi-Madaba;
Indian IT services firm Mindtree; Brazilian baked goods producer Pandurata
Alimentos Ltda. (Bauducco); Kenyan telecommunications company Safaricom;
and German healthcare group Schoen Klinik.
The case studies showed that employers that offered childcare found that
it led to a substantial reduction
in employee turnover; improved the quality
of applicants and the speed at which vacancies can be filled; increased
productivity through reduced absences, greater focus, and enhanced motivation
and commitment; and improved gender diversity and the advancement of women
into leadership positions.
Better and affordable childcare is increasingly seen as a critical driver
of economic growth. When working mothers and fathers participate equally
in the workforce, they are more likely to increase their household incomes,
and have a greater impact on the growth of companies and economies. In
general, children with access to early-childhood education and care are
healthier, perform better in school, and become more productive adults.
To produce the report, IFC relied on the expertise of its strategic partners,
including Care.com; the Institute for Women’s Policy Research; the International
Labour Organization; Kidogo; the UN Global Compact; and UN Women; as well
as companies in IFC’s Tackling
The private sector, which accounts for about 90 percent of jobs in developing
countries, is a critical engine for creating more and better jobs. Tackling
Childcare is part of IFC’s broader effort to not only address gender
gaps in employment but also to identify how the public and private sectors
can better collaborate to create markets for childcare.