Challenges
Access, Worker Issues
Location
Iowa
Stakeholders
Businesses
Beneficiaries
Parents, Children
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 Impact20% of Frontier’s workforce uses this solution
- Employee Impact50% 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
