Business Study Suggests: Effective Childcare Support Boosts Corporate Performance
The COVID-19 pandemic has prompted a significant shift in corporate practices across Germany, with family-friendly policies emerging as a key focus. According to Federal Minister for Family Affairs, Franziska Giffey (SPD), this trend is crucial for the success of the German economy.
Giffey stated that the government will invest in improving childcare infrastructure to support families and boost productivity. She also highlighted that family-friendly corporate policy is a real competitive advantage in attracting and retaining skilled workers.
The Nuremberg Institute for Labor Market and Vocational Research (IAB) calculated that there was an average of one day of work lost per employee due to the lack of childcare in the first half of 2020. Enzo Weber, head of the research department for forecasts and macroeconomic analysis at the IAB, calculated that this amounts to over 40 million lost workdays.
A study conducted by the consulting firm Prognos, commissioned by the Federal Ministry of Family Affairs, suggests that employers are increasingly becoming family-friendly due to the coronavirus crisis. The study revealed that 32 percent of companies have introduced remote work options as a response to employee requests for family-friendly policies. Furthermore, 68 percent of companies have developed solutions for childcare in response to these requests.
The study also showed that 20 percent of companies have introduced paid parental leave extensions, while 14 percent have established on-site childcare facilities. Additionally, 26 percent of companies have implemented flexible working hours to accommodate family responsibilities.
These family-friendly policies are not just beneficial for employees but also for the economy. Enhanced family-friendly policies contribute to higher workforce participation, particularly among women, reducing gender gaps in employment. Flexibility helps retain skilled employees, lowering turnover and associated recruitment costs. Such policies boost productivity by reducing employee stress and absenteeism, as workers manage familial responsibilities better.
At a macroeconomic level, improved work-life balance supports demographic stability by making it easier for families to have children without sacrificing career goals. Companies benefiting from these policies can strengthen their employer brand and attract top talent, improving competitiveness in a tight labor market.
The government may also see long-term benefits from a more inclusive labor market and increased economic resilience. Giffey emphasized that the government will continue to support family-friendly corporate policies to attract and retain skilled workers.
In summary, Germany’s experience during COVID-19 has shown that family-friendly corporate policies are critical enablers of economic stability and growth, supporting both social cohesion and labor market efficiency as part of broader recovery and equality efforts. This trend aligns with EU-wide moves to embed equality and inclusion into employment practices during and after the pandemic.
Giffey further announced that the company day "Success Factor Family 2021" will focus on the topic of digitalization and its impact on family-friendly policies. The study also revealed that 12 percent of companies have provided financial support for childcare expenses, underscoring the growing importance of these policies in the German corporate landscape.
- The Federal Minister for Family Affairs, Franziska Giffey, announced that the government will invest in improving childcare infrastructure as part of their focus on family-friendly corporate policies, aiming to boost productivity and economic competitiveness.
- Enhanced family-friendly policies, such as remote work options and childcare solutions, are not only beneficial for employees but also for the economy, as they contribute to higher workforce participation, particularly among women, and reduce employee stress and absenteeism.
- Financial support for childcare expenses is emerging as an increasingly important aspect of family-friendly policies in the German corporate landscape, with 12% of companies providing such support.
