Child Care WAGE$: A Salary Supplements Program

Low wages are a major cause of high turnover among childcare workers. Childcare workers in North Carolina earned significantly less than other professions, with median starting wages of $10.50/hour in 2020, compared to $15.28/hour for Walmart cashiers or $16.50/hour for Amazon delivery associates. Uncompetitive wages, coupled with COVID-19, led to the childcare sector facing persistent labor shortages. Furthermore, research showed that the quality of childcare is lowered by inadequate education for teachers, often due to financial barriers preventing them from pursuing further credentials. Many childcare programs, constrained by thin margins and the need to keep parent fees affordable, could not fund professional development or offer competitive salaries to reward education, leading to a less qualified workforce.

The Child Care WAGE$ Program was introduced in 1994 to show the link between teacher education, retention, and childcare quality. The program provides financial awards to eligible educators based on their education level, ranging from a Child Development Associate (CDA) credential to associate or bachelor's degrees in early childhood education or related fields. Participants must commit to working in the program in order to receive bonus payments every six months. The program is open to teachers, directors, and family childcare providers earning at or below certain income thresholds.

• Customize the supplement scale to your context: Determine the tier levels and payment amounts based on local teacher wages and budget. Even modest supplements can help, but they should be meaningful enough to incentivize participation.
• Maintain simplicity and consistency: The application for caregivers should be straightforward. In North Carolina, teachers apply once and then just remain eligible by staying at their job and meeting education criteria.
• Evaluate and adjust: Track metrics like turnover rates, provider feedback, and child outcomes if possible. Use this data to advocate for continued or increased funding. Adjust supplement amounts as needed to keep pace with inflation or to target critical shortages.