Challenges
Access, Worker Issues
Location
Nationwide
Stakeholders
Businesses
Beneficiaries
Children, Parents
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 Impact82% 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
