Working parents are an essential part of the U.S. labor force, and yet companies can vary widely in the support available. But employers who are committed to fostering a
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This drives home the point that even the most traditional benefits can make a big difference. Although, companies will likely fall short of being considered a great workplace without flexibility, says Sadie Funk, national director at The Best Place for Working Parents.
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"Flexibility is key. We hear over and over from the businesses within our network, as well as the employees that work for them, how important this policy is," she says. "It allows employees to have some control when their kid is sick and control over drop-off and pick-up."
Remote work plays a big role in enabling flexibility, and Funk isn't surprised that 96% of the employers on their list had it among their benefits. Surprisingly, remote work was among the policies with a less than 2% change in implementation in the last three years — meaning companies designated by Best Place for Working Parents maintained their remote work benefits despite the wave of RTO mandates. Child care assistance, PTO, flexible hours and employee healthcare have also seen little change since 2022.
On the other hand, parental leave and onsite child care saw a 3% increase in adoption. Dependent healthcare benefits experienced the greatest variance, with an 8% drop among designated companies. Given the rising costs of health plans, it's not too shocking that employers are cutting off coverage for dependents, but it is concerning, notes Funk.
Large businesses (employers with over 1,000 employees) are the main culprits behind this trend, with 8.5% getting rid of medical, dental and vision coverage for dependents in the last year. However, medium and small businesses also decreased coverage; micro employers (less than 25 employees) was the only group to increase coverage for dependents, with a 3.6% jump.
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"You're going to see dependent healthcare become a real game changer within the suite of benefits that employees are considering when they go looking for a new job or are making a tough decision about whether to stay," says Funk. "This creates an opportunity for other employers to step in and fill that need."
Overall, micro businesses designated as 'best place' led the pack when it came to increasing the adoption of family-friendly benefits. Even child care assistance increased by 4% among these companies, while large companies saw a 6% decline in adoption.
"This report really cements for us, and hopefully for working parents, that micro and small businesses are not to be counted out but counted on," says Funk. "They're investing in responsive policies for their talent, and that's ultimately going to be what stands them apart and allows them to compete against larger businesses."
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Between companies designated as 'a best place' and those that didn't make the cut, there are glaring differences. For example, 94% of designated companies have remote work options, compared to 30% of non-designated companies. Across family-friendly policies, there's an average 40% gap in adoption between these groups.
Funk advises employers to examine what portion of their benefits and policies support working parents. Employers do not have to somehow squeeze money out of their budgets for onsite child care, but they can update their PTO policies and encourage flexibility from the top down. Funk suggests employers take a look at Best Place for Working Parents' list of top 10 family-friendly policies and assess.
"Employers who are really thinking about what's going to give us the most productive workforce need to look at these policies," says Funk. "This is about creating a better culture at work and attracting and retaining top talent, which are key things every HR leader is trying to do for their company."
