Childcare vouchers can benefit companies
News from the grapevine online
Childcare allowance organisation Early Years Vouchers has identified the major benefits childcare vouchers can bring to companies, following the The Telegraphs report that only 2% of parents currently claim vouchers.
Vouchers can save parents up to £1,195.56 on childcare, but companies can also realise savings and related benefits.
1. Tax and NI savings: Childcare vouchers from Early Years Vouchers can be bought by employers for 5% of their value, but the cost can be offset by Nationall Insurance savings of 12.8 per cent.
2. Productivity: Employees are likely to be more focussed and less distracted if they know their children are being cared for while they are at work.
3.Retention: Childcare vouchers help improve the relationship between staff and employers, increasing retention levels. CIPD research put the cost of hiring a new employee at up to £8,200, so improving retention can have significant cost saving.
5. Lower absence levels: In the absence of professional childcare, some parents rely on informal arrangements such as family and may need to take a 'sick' day if these arrangemetns fall through.
"There is an assumption that implementing a childcare vouchers scheme will be very complex and employers are afriad that they will have to dedicate a section of their HR department to deal with the running of it," explains Amanda Ward, Director of Early Years Vouchers Ltd. "I believe that if employers knew how simple it really is, including how much of the leg-work is done by us, plus the financial and social benefits to them as a business, they wouldnt think twice about signing up."