Working parents form one of the most significant and skilled groups in the modern workforce. Their ability to balance work and caregiving directly impacts productivity and team stability. Forward-thinking companies are recognizing this. By prioritizing childcare support, they are strengthening engagement, deepening trust, and shaping cultures where people can bring their best every day.
A resounding 86% of HR leaders believe childcare benefits are critical for attracting top talent. This signals a clear path for employers: build support systems that reflect the realities of working families and drive engagement-led business value.
The triple win: Driving engagement, performance, and growth
Employees who feel secure in their caregiving responsibilities bring sharper focus and greater energy to their roles. For businesses, this translates into higher retention and stronger commitment across teams.
A lever for engagement & retention
Engagement thrives when employees feel supported in the moments that matter most. For working parents, reliable childcare solutions are a powerful expression of that support. A recent report shows that 85% of HR leaders have seen lower turnover where childcare benefits are in place. The connection is clear: when people feel that their organization values their life beyond the workplace, they stay committed to contributing their best.
Recent workplace research further reinforces this trend, noting that employees aged 25 to 44 are increasingly seeking stronger parental and childcare support as they balance careers with family responsibilities. This insight highlights how employee benefits strategy must evolve with employees’ life stages to sustain engagement and retention.
Childcare support also plays a key role in advancing gender inclusion. The World Economic Forum’s 2025 report notes that women’s estimated earned income parity in India has reached 29.9%. Progress like this gains momentum when organizations make it easier for parents, especially women, to continue growing in their careers. Childcare support helps retain skilled talent and strengthens leadership pipelines furthering the business’s collective capability.
The link between feeling valued and high performance
A workplace culture that prioritizes well-being naturally inspires higher performance. Employees deliver their best when they feel recognized as individuals with full lives beyond their roles. A Mercer study found that 58% of employees feel cared for when their organization offers benefits that help them balance work and family. That feeling of care translates into measurable outcomes — greater focus, stronger engagement, and higher productivity.
Childcare benefits are a practical way to demonstrate this care. They help employees stay focused, knowing that their families are supported. This confidence builds a sense of partnership between people and the organization, driving sustained performance over time.
Fueling diversity and economic growth
Access to childcare directly influences workforce participation. According to the United Nations Development Programme (UNDP), 44.5% of women outside the labor force cite childcare responsibilities as the primary reason to be unable to work. Expanding childcare access can bring millions of skilled professionals back into the economy, creating a measurable impact for both businesses and society.
The economic situation is equally compelling. CNBC (2024) highlights that to achieve India’s $30 trillion GDP goal by 2047, the country will need to integrate 145 million women into its workforce. Organizations that enable parents to remain active contributors are supporting this national ambition while strengthening their own growth potential. Each step toward inclusive childcare access builds a more diverse, resilient, and future-ready workforce.
Modernizing benefits for a flexible world
The needs of working parents are changing rapidly. With hybrid and distributed work models becoming standard, traditional childcare approaches often fall short. Employees expect flexibility, transparency, and choice. At the same time, businesses need reliable systems that maintain compliance.
Modern solutions are bridging that gap. Digital benefits platforms allow organizations to offer childcare support that is both flexible and compliant. Employees can access verified childcare providers, manage reimbursements digitally, and choose the options that fit their circumstances.
Some key elements of this approach include:
Digital childcare platforms for approved childcare expenses
Systemic verification and reimbursement systems
Customizable benefits tailored to different employee needs and geographies
For HR teams, these tools simplify administration and compliance management. Centralized tracking and reporting enhance accountability, while freeing teams from manual oversight. It’s a smarter, more efficient way to deliver a benefit that truly matters.
The way forward
Childcare support is now a defining feature of an engaged and inclusive workplace. Organizations that integrate it into their people strategy signal a deep commitment to their workforce and to sustainable growth. The next step is to strengthen this commitment with technology-driven flexibility — enabling employees to access benefits that fit their lives, and businesses to manage them with clarity and compliance.
Investing in modern childcare solutions builds stronger employer brands, attracts diverse talent, and reinforces a culture of trust. When working parents succeed, the organization succeeds with them. Prioritizing their needs creates a workforce that is not only more engaged, but also more capable of leading the future of work.
Disclaimer: Views of the author are personal and do not necessarily represent the website’s views.
Author of the above article Ketika Kapoor is the co-founder and CEO of ProEves, a company that provides childcare and parental support services by aggregating daycare and preschools in India. She co-founded the company with the goal of helping working parents and mothers find reliable childcare after experiencing this challenge herself. In September 2025, Pluxee signed an agreement to acquire ProEves.