Frequently Asked Questions

Research consistently shows that child care benefits strengthen workforce stability and improve business performance. A study by Moms First and Boston Consulting Group found that employers offering child care benefits saw measurable improvements for working parents:

• 85% of working parents were more likely to stay with their employer.
• 78% reported positive impacts on their careers.
• Working parents avoided up to 16 absences each year.
• Employers reported stronger workplace culture, higher morale, and increased goodwill.

Similarly, a study by the U.S. Chamber of Commerce Foundation found that child care solutions reduced missed workdays by 30% and employee lateness by 60%.

Each child care solution includes an estimate of its potential impact on employees, the organization, and the employer brand, along with the typical level of investment and time required for implementation. These assessments are informed by decades of experience in the child care sector, emerging trends in employer-supported child care, and insights from employers that have implemented similar strategies.

The information provided is intended as a planning resource. It is based on the best available information at the time of analysis and should not be interpreted as a guarantee of specific outcomes, a prediction of future results, or a substitute for professional advice.

Because employer-supported child care is a rapidly evolving field, comprehensive research on many strategies is still developing. Some assessments are informed by practitioner experience and employer observations rather than large-scale scientific studies. Actual outcomes will vary based on an organization’s workforce, goals, and implementation approach.

As new research and employer data become available, we will continue to refine these assessments. Employers should use these metrics to inform decision-making and support internal discussions, not as guaranteed measures of success.

On-site child care is often associated with large employers, but organizations of many sizes can make it work. Smaller employers may partner with nearby businesses to create a shared on-site or near-site program or implement a scaled solution that aligns with their workforce needs and budget.

Visit our Resources page for tools to develop your strategy, engage company leadership, and conduct an employee needs assessment. If more tailored support is needed, reach out to Excel by 8 to see if their services are a fit for your needs.

The most effective child care solutions are built through collaboration. Businesses, community organizations, and policymakers each play a role in strengthening the child care system that supports the workforce.

While some large employers may choose to invest in on-site child care, many solutions are more practical and cost-effective when developed together. Employers of all sizes can partner with other businesses, chambers of commerce, or community organizations to support shared or near-site child care, expand local supply, and improve access for working families.

Businesses can also strengthen their child care strategy by offering dependent care benefits, flexible workplace policies, or by taking advantage of available tax incentives. By working together, employers can help build a stronger child care system that benefits employees, businesses, and the broader economy.

A successful child care strategy starts with understanding the barriers your employees face. Consider whether access, affordability, or workplace policies have the greatest impact on your workforce. Then identify the solutions that best align with your employees’ needs, your organization’s goals, and available resources.

As you move from planning to implementation, engage key stakeholders, build organizational support, and use the available tools and resources to guide your decision-making. Taking these steps can improve implementation, increase employee participation, and help ensure your child care strategy delivers long-term value.

We have tools to help you. 

The cost of implementing a child care solution depends on the type and scope of the investment. Many employers, however, begin to see measurable benefits within the first year, particularly through improved employee retention and productivity. Research from Moms First and Boston Consulting Group (BCG) highlights the business benefits organizations can achieve by investing in child care solutions.

Measure success by tracking business outcomes such as employee retention, absenteeism, productivity, employee satisfaction, and use of child care benefits. Regular employee feedback and participation data can also help identify opportunities to improve your program over time. The Moms First ROI tool provides a framework for measuring the business impact of your child care investment across these key metrics.

Employer experience and available research suggest that child care benefits create value across the workforce—not just for parents. When employees have reliable child care, they are less likely to miss work or require colleagues to cover their responsibilities. This helps improve team productivity, reduce workplace disruptions, and strengthen morale.

Research from Moms First and Boston Consulting Group found that employers offering child care benefits reported higher productivity, with working parents avoiding up to 16 absences each year. As a result, the benefits extend beyond employees with young children, helping create a more stable and productive workplace for the entire organization.

Yes. Excel by 8’s Business Coalition provides support to employers who want to better understand and address their workforce's child care needs. Through the coalition, businesses can access guidance, peer learning, and practical tools to explore solutions that fit their size, industry, and community.

Whether you’re just getting started or looking to expand existing efforts, reaching out to E8 is a great first step. The business coalition brings together employers across Arkansas to share best practices, learn from one another and advance solutions that strengthen both businesses and working families.

Yes!

Employers may qualify for meaningful federal and state incentives that offset the cost of child care benefits.

Federal: Section 45F Employer-Provided Child Care Credit Businesses can claim up to 40% of qualified child care expenses — 50% for small businesses — plus a portion of resource and referral costs. Eligible expenses include facility costs, operating support, and contracts with licensed child care providers.

Eligible Dependent Care Account (DCAP) expenses are detailed on the FSA Feds website.

Excel by 8 is actively working with business leaders and policymakers to expand and strengthen state-level tax credits to better support employers and working families.

These incentives can be complex to navigate. We recommend consulting a qualified tax professional and connecting with Excel by 8’s Business Coalition to identify state-specific programs and align available resources with your workforce strategy.

Local Lead Organizations (LLOs), created in 2025, help coordinate early childhood solutions and can guide employers on available local options.

Find your LLO here, or contact us.

These case studies highlight leading Arkansas businesses who are addressing their employers’ or community’s specific child care needs. 

The right child care strategy depends on three variables: workforce size, on-site versus remote work patterns, and schedule predictability. Use the 3-minute questionnaire to assess your situation and get a matched recommendation.

Where most employers start

Tax credits and pre-tax benefits require no infrastructure and can be implemented immediately. The federal Employer-Provided Child Care Credit (Section 45F) offsets direct child care investments, while Dependent Care Assistance Programs (DCAPs) — typically offered through a cafeteria plan — let employees set aside pre-tax dollars for child care expenses. Flexible scheduling and child care stipends layer on top of these at relatively low cost.

When a child care partnership makes sense

Two situations point toward a partnership with an existing provider rather than a new facility:

•Your workforce is large but schedules are unpredictable. Employees need flexibility in when and where they access care — a fixed on-site center won’t serve them.

•Your workforce is smaller. Even five-day-a-week on-site employees may not generate enough children to justify a new center. A partnership with an established local program gives employees access without the capital commitment.

A dedicated facility requires sufficient, consistent on-site headcount and a stable early childhood education workforce. Connect with Excel by 8’s Business Coalition or your Local Lead Organization (LLO) to evaluate feasibility.