Child Care Marketplace Subscription Benefits for employees

Implementation Considerations
Employee Affordability
Case Studies
Next Steps

Implementation Considerations

To implement a successful marketplace subscription, employers must focus on key areas such as the evaluation and availability of potential services, defining the service agreement and how the service will be integrated within the organization. By prioritizing these aspects, employers can smoothly roll out a marketplace subscription. Explore different implementation considerations below.

Potential Service Evaluation

Understand Marketplace Capabilities
Evaluate Services & Features
Request Proposals

Understand Marketplace Capabilities

Begin by identifying marketplace subscriptions with a strong reputation and proven track record. Confirm that the marketplace service includes a vetting process for its providers. Understand how the service assesses employer and end user success and determine whether that aligns with the goals that you have for the program. Ask questions about the volume of available care supply, given that many providers lack capacity, especially in serving the youngest children. Confirm how child care providers are background checked by the marketplace service and how providers are added and removed.

Evaluate Services & Features

Compare the features of different licensed child care centers that are offered by the marketplace service. Key considerations might include the range of child care options they cover (e.g., child care programs, after-school programs, in-home care), their network of child care providers and how they are sourced, and a user-friendly platform for employees to access, book, and manage various care options.

Request Proposals

Request detailed proposals from shortlisted marketplace services outlining their offerings, pricing, and implementation plans. Conduct interviews or meetings to assess their customer service quality, responsiveness, and ability to meet your organization’s needs.

Define Service Agreement

Define Scope of Services
Define Costs
Outline Expected Outcomes & Metrics

Define Scope of Services

Clearly outline the types of care the marketplace subscription will provide employees access to, such as child care, back up care, elder care or other care services. It's essential to set clear expectations for service quality, user experience, and any limitations. Additionally, detailing the procedures for accessing the service and booking care ensures employees can easily navigate and utilize the marketplace effectively.

Define Costs

Establish the cost structure, including any setup fees, ongoing service fees, and payment terms. Ensure there are no hidden costs and that the pricing is transparent.

Outline Expected Outcomes & Metrics

Define the expected outcomes of the service, such as improved employee satisfaction and reduced absenteeism. Set clear metrics for measuring the success of the program, such as utilization rates and employee feedback scores.

Organization Integration

Align with Existing Benefit Programs
Empower HR & Benefits Staff
Monitor and Adjust

Align with Existing Benefit Programs

Consider prioritizing a marketplace subscription that integrates seamlessly with your existing employee benefits and HR systems. This might involve coordinating with your benefits administrator and IT department to set up any necessary interfaces or data exchanges.

Empower HR & Benefits Staff

Provide training for HR and benefits staff to ensure they understand the marketplace subscription and can assist employees with any questions or issues. This will help facilitate a smooth rollout and ongoing management of the program. HR and benefits staff can create communication materials to inform employees about the new service, how to access it, and its benefits. We recommend using multiple channels, such as emails and informational sessions, to maximize awareness.

Monitor and Adjust

Regularly monitor the integration process and gather feedback on the satisfaction and effectiveness of the service from employees and HR staff. Be prepared to make adjustments to improve the service’s effectiveness and address any issues that arise.

Employee Affordability: Financial Solutions

Help employees manage child care costs through various financial solutions to lower the burden of child care expenses, making child care more affordable for employees across all income levels. Explore different financial solutions your organization can offer to employees.

Child Care Stipend

Money given directly to employees on a regular basis (such as monthly or annually).

Fixed sum of money provided by employers to their employees to help cover child care expenses. Unlike reimbursements, stipends are given upfront and can be used at the employee's discretion to pay for child care services, including child care programs, nannies, or after-school programs. Funds can be distributed in a variety of ways including through payroll or by funding a Dependent Care Flexible Spending Account, which may offer the employer tax benefits. Here’s a high level guide for implementing child care stipends in your organization:

Conduct surveys or focus groups to understand your employees' child care needs and preferences. This helps determine the appropriate stipend amount and relevant child care services to which it may be applied.
Set a stipend amount that fits within the organization's budget and determine eligibility criteria such as employment status, length of service, and age of children.
Create a clear policy outlining stipend details, payment frequency, eligible expenses, and required documentation. Ensure compliance with relevant labor laws and tax regulations.
Regularly review the program’s effectiveness by gathering feedback and tracking usage. Make adjustments as needed to ensure the program continues to meet employee needs and supports organization goals.

Child Care Scholarships

These credits act as a form of payment that employees can give to child care providers.

Typically distributed as paper certificates or electronic credits, which employees can then redeem with participating child care providers for various child care services, such as child care programs, preschools, or in-home care providers. This solution is beneficial for employers where many employees may use the same child care solution, and to limit the complexity of managing reimbursement of employees. Here’s a high level guide for implementing child care credits in your organization:

Conduct surveys or hold focus groups to understand the child care needs and preferences of your employees. This information will help you determine the credit amount and the types of child care services to include in the program.
Establish the value of the credits, eligibility criteria (such as employment status and age of children), and the types of child care services that can be paid for with the credits. Ensure the program complies with relevant labor laws and tax regulations.
Identify and partner with reputable child care providers who will accept the credits. Negotiate any discounts or special terms to maximize the value of the credits for your employees.
Regularly review the program’s effectiveness by gathering feedback from employees and tracking credit usage. Make necessary adjustments to ensure the program continues to meet the needs of your employees and supports the company’s goals.

Subsidy Navigator

Employers pay for service that helps employees access available public funding for child care expenses.

This service matches employees with appropriate funding opportunities and automates the application process, making it easier for them to receive financial assistance. By using a subsidy navigator, employees can quickly and efficiently find and apply for various subsidies they may be eligible for, reducing the stress and complexity associated with securing child care funding. This program is a good fit for an employer that wants to better support employees with lower household incomes. Here’s a high level guide for providing employees a Subsidy Navigator in your organization:

Conduct surveys or focus groups to understand the child care needs of your employees. This information will help you design a subsidy navigator program that addresses the most critical requirements.
Research and select a reputable subsidy navigator service that can match employees with available funding and automate the application process. Ensure the service has a user-friendly interface and provides comprehensive support.
Establish criteria for employees to access the subsidy navigator service and outline the benefits they can expect, such as personalized matching with funding opportunities and streamlined application procedures.
Regularly review the program’s effectiveness by gathering feedback from employees and tracking the usage and success rates of the subsidy applications. Make necessary adjustments to ensure the program continues to meet employee needs and supports the organization’s goals.

Marketplace Subscription

Key Features

Works Best For

Considerations

Implementation Considerations

Potential Service Evaluation

Define Service Agreement

Organization Integration

Employee Affordability: Financial Solutions

Child Care Stipend

Child Care Scholarships

Subsidy Navigator

Next steps

Understand your employees’ needs.

Research and select potential providers.

Enhance the subscription with a financial solution

Launch partnership to employees