Dow Chemical’s Total Rewards Benefits Program

Dow Chemical addresses childcare challenges with a two-part strategy, combining a Dependent Care Flexible Spending Account (DCFSA) for employee pre-tax savings on expenses with a direct Childcare Assistance Program.

The primary problem Dow's initiatives address is the significant financial burden of childcare, which directly impacts employee financial well-being, focus, and retention. The foundational Dependent Care FSA was created to make care more affordable by providing employees with a substantial tax advantage. However, the post-pandemic landscape intensified this issue into a crisis of access and availability, not just cost. Faced with heightened employee burnout and fierce competition for talent in a market where robust family support became a key differentiator, Dow recognized that a passive tax-saving tool was insufficient. The newer, more direct Childcare Assistance Program was therefore implemented as a strategic response to provide immediate financial relief, helping Dow attract and retain the skilled workforce needed to compete effectively.

Dow Chemical employs a two-part initiative to address childcare costs and accessibility. The foundational program is a Dependent Care Flexible Spending Account (DCFSA), which allows employees to set aside up to $5,000 of their own income pre-tax, generating significant tax savings on their care expenses. To provide more immediate support, Dow also launched a direct Childcare Assistance Program. This newer initiative offers a financial subsidy from the company to eligible employees, directly offsetting high childcare costs. This program is further enhanced by partnerships with caregiver organizations like TOOTRis, which provide employees with resources to find and vet reliable childcare options. Together, the initiatives create a comprehensive support system, blending employee-managed tax advantages with direct company-funded financial and logistical aid to meet the modern challenges of caregiving.

~5-10 months