Challenges

Access, Worker Issues

Location

Iowa

Stakeholders

Businesses

Beneficiaries

Parents, Children

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Overview

Frontier Co-op, a natural products wholesaler in Iowa, operates a generously subsidized on-site childcare center that charges employees just $2 per hour per child.

Key Impact Metrics

  • 110
    childcare slots created
  • ~$620
    in monthly childcare cost savings by employees

Problem

Norway, Iowa, faced a scarcity of affordable and accessible childcare. This forced many potential or existing employees, particularly mothers, to choose between work and family care. Moreover, manufacturing employers like Frontier Co-op experienced high turnover—up to 30% annually. Frontier recognized that inconsistent or unaffordable childcare was causing absenteeism and talent loss in its workforce.

Solution

Frontier Co-op opened an on-site childcare center at its headquarters in Norway, Iowa. The company subsidizes most of the childcare costs, with employees paying just $2 per hour—a fraction of the market rate. By covering about $300,000 of childcare costs each year, Frontier keeps quality care affordable for staff. This benefit directly tackles the cost barrier and gives employees peace of mind with convenient on-site care.

Results

  • Beneficiary Impact
    20% of Frontier’s workforce uses this solution
  • Employee Impact
    50% lower turnover than industry average
  • Financial Results
    ~$620 in monthly childcare cost savings by employees

Replication Tips

  • Find the ideal subsidy amount: High subsidies—like $2 per hour—greatly ease the burden on families. If $2 per hour isn’t feasible, determine a sustainable subsidy that still significantly lowers costs. Some employers start with a smaller subsidy or sliding scale and expand it once results are evident.

Suggested Implementation Timeline

~12-16 months

Sources