Challenges

Access, Worker Issues

Location

North Carolina

Stakeholders

Businesses

Beneficiaries

Parents, Children

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Overview

SAS Institute, a large software company, has provided comprehensive family-friendly benefits for decades, including an on-site daycare center at its Cary, North Carolina, campus. This program offers high-quality childcare to employees at a highly subsidized rate.

Key Impact Metrics

  • 260
    childcare slots
  • 15%
    lower turnover than industry average
  • $1.8M
    in employee savings

Problem

SAS Institute recognized that talented employees, especially those with young children, might leave if they could not balance family and work. The cost and difficulty of finding reliable childcare were a major stressor. High turnover would hurt SAS through lost expertise and recruiting costs. The challenge was how to keep employees—and their families—supported and engaged.

Solution

SAS Institute opened an on-site childcare center at its headquarters, charging employees roughly a third of the normal daycare cost. The center has extended hours to accommodate standard workdays. Importantly, SAS didn’t stop at childcare: it built a holistic suite of benefits, including an on-site health clinic, free snacks, and flexible 35-hour work weeks that complement the childcare program.

Results

  • Beneficiary Impact
    260 children served
  • Employee Impact
    Reduction in employee turnover to 5%
  • Financial Results
    $38 million in company savings attributed to the childcare program

Replication Tips

  • Integrate with broader benefits: The impact of childcare benefits can be multiplied if paired with other benefits like flexible hours and healthcare.
  • Calculate and communicate return on investment (ROI): SAS’s example shows massive savings from retention. When pitching a childcare benefit, use internal data to estimate how reduced turnover and absenteeism will save money. Present this to executives to justify the upfront costs. Seeing a potential multi-million-dollar ROI can win over decision-makers.

Suggested Implementation Timeline

~12-18 months

Sources