Challenges

Access, Worker Issues

Location

Nationwide

Stakeholders

Businesses

Beneficiaries

Children, Parents

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Overview

The e-commerce firm Etsy offers eligible working parents an annual $4,000 childcare stipend to offset the cost of childcare centers.

Key Impact Metrics

  • 82%
    of surveyed Etsy working parents said childcare benefits influenced their job choice
  • 20%
    of Etsy’s employees participating in the program

Problem

Early-career and part-time workers often struggled to afford quality childcare in New York City. High costs—often 20% of income—meant some parents struggled in affording childcare. Etsy needed a way to make the total compensation package more family-friendly, beyond salary, to maintain its workforce.

Solution

Etsy implemented a childcare subsidy benefit allowing parents to receive up to $4,000 per year per child to spend on approved care. The program was designed to be easy to use: eligible employees submit receipts from licensed providers (including daycares or home-based providers) to receive reimbursements. The subsidy is available year-round and can cover various care types (daycare, nursery, etc.).

Results

  • Beneficiary Impact
    ~290 employees served
  • Employee Impact
    82% of surveyed Etsy working parents said childcare benefits
  • Financial Results
    ~1.2 million in childcare funding disbursed

Replication Tips

  • Allow flexibility: Permit employees to use funds for center care, family daycare homes, or a nanny, so parents choose what fits their needs.
  • Communicate value: Publicize how many employees use it and include anecdotal success stories.

Suggested Implementation Timeline

~4-7 months

Sources