Black Hills Energy’s On-Site Child Development Center

Challenges

Access, Worker Issues

Location

South Dakota

Stakeholders

Businesses

Beneficiaries

Parents, Children

Overview

Black Hills Energy, a utility company headquartered in Rapid City, South Dakota, operates an on-site child development center at its corporate campus, available to its 750 headquarters employees.

Key Impact Metrics

75
children enrolled and on the waitlist
6%
increase in job acceptance rates
11%
decrease in employee turnover with children

Problem

Rapid City, like much of South Dakota, has limited childcare slots, and quality centers often have long waitlists. Black Hills Energy found that some prospective hires were hesitant to relocate or accept offers due to concerns about finding childcare. So, when Black Hills Energy decided to build its new headquarters in 2017, including a childcare center was a key consideration.

Solution

In 2017, Black Hills Energy established an on-site childcare center in its new headquarters, making drop-off and pick-up seamless for employees. It serves infants through preschoolers and operates on a full workday schedule. While childcare fees is at the local market rate, the convenience and priority access of the childcare center makes it highly valuable to employees. The company ensured the center met high quality standards-- leveraging national accreditation guidelines-- to satisfy parents’ demands.

Results

Beneficiary Impact48 children enrolled
Employee Impact90% of employees with children noted they would “strongly recommend” Black Hills to others
Financial Results$300,000 avoided in estimated turnover-related expenses

Replication Tips

Ensure quality to get buy-in: Employees won’t use on-site care if they doubt the quality. Hire reputable caregivers and meet high standards so parents are confident.
Use it as a model for other locations: If your company has multiple sites, pilot at HQ and then assess if other large offices could support a center or partnership with nearby centers.