Home Depot’s Suite of Childcare Initiatives

Challenges

Scalability, Worker Issues

Location

Georgia

Stakeholders

Businesses

Beneficiaries

Children, Parents

Overview

Home Depot partnered with Bright Horizons to offer employees on-site childcare, backup care, and financial assistance subsidies. This comprehensive support significantly reduced employee turnover and absenteeism by directly addressing parents’ childcare needs.

Key Impact Metrics

30%
decrease in absenteeism directly linked to childcare challenges
$5,000
in allowed contribution to a Flexible Spending Account
20%
of the annual salary is retained in savings for each avoided employee turnover

Problem

For parents, limited childcare options and high costs often force them to leave the workforce prematurely or lead to increased absenteeism and turnover. Industry survey data suggests that employees who leave for better benefits cost their employers upward of 20% of their salary in hiring, training, and productivity losses. When the Home Depot leadership team was approached about childcare by a group of interested parents, the Home Depot benefits team believed they must look at the spectrum of care solutions. The inherent appeal of the idea was obvious, but the question was: Could some of the common roadblocks, such as finding space, financing, and liability, be overcome?

Solution

To meet a range of employee needs, The Home Depot created a suite of childcare support services, including on-site childcare, backup childcare, and dependent care through a partnership with Bright Horizons. Employees gained access to reliable, subsidized childcare services, significantly alleviating the daily challenges faced by working parents. The financial assistance enabled workers to choose preferred local childcare providers, increasing flexibility and satisfaction.

Results

Beneficiary Impact278 childcare slots available
Employee Impact60% reduction in voluntary turnover among parent employees
Financial Results$13,200 in annual childcare savings by employees

Replication Tips

Flexible childcare options: Offer multiple childcare solutions (on-site, backup care, subsidies) to accommodate diverse employee needs, ensuring broad usage.
Target high-impact groups: Prioritize departments or roles with high turnover rates related to childcare to demonstrate rapid ROI and gain organizational buy-in.