Challenges

Access, Worker Issues

Location

Montana

Stakeholders

Businesses

Beneficiaries

Children, Parents

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Overview

Zoot Enterprises sectioned off a part of its headquarters to create an on-site childcare center for employees who wish to continue working while starting a family.

Key Impact Metrics

  • 250+
    employees served
  • 33
    children taught at max capacity
  • 25%
    annual tax credit

Problem

When Chris Nelson founded Zoot Enterprises as a single dad, he recognized the importance of childcare for working parents. Many women take 10 to 15 years off to raise their children, according to Rebekah Nelson, Director of Employee Benefits. This results in a drain of women in executive positions, as their professional development is ultimately halted when they have children, in many cases. A lack of on-site childcare also results in hiring issues and reduced productivity when mothers have to drive off-site to feed their child.

Solution

Rebekah Nelson successfully launched Zoot’s learning center in May 2018, hiring a childcare director, getting a state license, and opening the center. The childcare center was built on-site at Zoot’s headquarters because the estimated cost of opening a new center was nearly $3 million. The program offers many benefits to employees—giving them 25 percent of tuition as a scholarship in pre-tax dollars, serving its 250 own workers, and allowing a membership program for neighboring businesses in the area. Despite the high cost of $250,000 per year, executives claim it is well worth the money—it is seen as a benefit like medical or dental insurance that helps with employee retention.

Results

  • Beneficiary Impact33 children served
  • Employee Impact250 workers employed
  • Financial Results25% annual federal tax credit on the deficit resulting from the childcare center

Replication Tips

  • Assess demand in your organization through polling and surveys.
  • Design flexible programs that offer discounted offers for employees and serve many different age groups.
  • Gather regular feedback from employees to continuously improve the program.

Suggested Implementation Timeline

~12-24 months

Sources