Challenges

Access, Worker Issues

Location

North Carolina

Stakeholders

Businesses

Beneficiaries

Parents, Children

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Overview

Cakes Body, an e-commerce undergarment company founded in 2022 by working mothers, launched a groundbreaking employee benefit by covering up to $36,000 per year in childcare costs for employees with children under six years.

Key Impact Metrics

  • 20%
    of employees enrolled in the program
  • $3K
    provided per month per employee

Problem

Cakes Body’s co-founders experienced firsthand the crippling burden of childcare expenses—after paying for care, Taylor Capuano, cofounder of Cake Body, was left with only $200 each month after paying her bills. In the U.S., childcare costs often consume over 20% of household income and serve as a significant barrier to maternal workforce participation. Employee turnover risk, stress, and workforce disengagement stem from childcare unaffordability. Cakes Body aimed to turn this crisis into an opportunity to retain talent, especially working mothers.

Solution

On May 1, 2025, Cakes Body announced it would cover up to $36,000 in childcare costs for employees with children under six. This includes daycare, nanny, or babysitter costs. “This amount is designed to support care for up to two children, based on national cost averages,” remarked Capuano in an interview. This childcare offering is expected to benefit 20% of Cake Body’s 30-person workforce.

Results

  • Beneficiary Impact6 employees served
  • Financial Results$500,000 committed in the first year for childcare funding

Replication Tips

  • Scope your budget smartly: Align the annual care ceiling based on local childcare costs and your workforce size; for smaller employers, setting a percentage of salary or a tiered cap may work better.
  • Promote the benefit authentically: Publicize the story behind the benefit—emphasize that it’s an investment in staff, not a perk, to inspire candidate interest and internal pride.
  • Monitor value: Track retention, applications, engagement, and absenteeism trends post-launch to build the internal business case.

Suggested Implementation Timeline

~4-6 months

Sources