Challenges
Access, Worker Issues
Location
Nationwide
Stakeholders
Businesses
Beneficiaries
Children, Parents, Job Seekers
Overview
Starbucks partnered with Care.com to offer employees up to 10 days per year of subsidized backup childcare and eldercare.
Key Impact Metrics
-
170K+
employees eligible
-
$1
per hour subsidized cost
-
99%
reduction out-of-pocket costs for employees
Problem
Starbucks employees often lack predictable hours and cannot afford full-time daycare. Unexpected closures of usual care arrangements—such as sick babysitters, closed daycare—sometimes resulting in employees missing work. This was costly for the company (lost productivity and turnover). Starbucks identified that unstable childcare was a continuous challenge facing the company.
Solution
In 2018, Starbucks announced its Care@Work program, an initiative providing employees at all U.S.-based stores with an online service—through care.com—connecting families and caregivers. The solution provides employees with the ability to schedule last-minute care for their dependents at the subsidized rate of $1 an hour for in-home backup child and adult care or $5 per day for in-center childcare for up to 10 days.
Results
- Beneficiary Impact$22/hour saved in childcare cost for employees
- Employee Impact~60,000 employees have used the program
- Financial Results~$5million gained in employee retention savings
Replication Tips
- Clear communication: Promote the benefit at store meetings and onboarding. Starbucks sees it as a recruiting perk—highlight it to working parents when hiring.
- Leverage vendors: Partner with a national care provider (Care.com, Bright Horizons, etc.) to quickly deploy backup care in multiple locations without building a center or relying on in-house expertise.
- Include part-timers if possible: Unlike some firms, Starbucks extended this benefit to part-time workers, which greatly broadened its impact. Design your eligibility broadly to maximize uptake.
Suggested Implementation Timeline
~6-10 months
