The U.S. is in the midst of an ongoing childcare crisis as costs continue to skyrocket. Many working parents, especially mothers, face pressure to leave the workforce or scale back to part-time positions to take care of their family. In an attempt to attract and retain employees with children, more employers are now offering benefits including flexible work arrangements and backup or emergency care support. 

And although it’s still an uncommon benefit, some employers are also providing on-site childcare to eligible employees. Around 13.02% of all businesses affiliated with Best Place for Working Parents, a business network aimed at supporting companies and caregivers, had an on-site childcare policy in 2023—a 47% increase since 2019, according to new research based on input from more than 2,000 companies. Businesses join the network after earning a “best place for working parents” designation.

Currently, large businesses employing 1,000 or more workers are most likely to offer onsite child care, with 15.8% doing so, according to the study. But so-called “micro businesses” with one to 24 workers were second most likely, followed by 10.02% of small businesses employing 25 to 200 workers, and 7.58% of medium-sized businesses with 201 to 999 employees. The top two sectors with business most likely to offer in-house care services were education, as well as agriculture, forestry and wildlife.  

“It’s exciting to see employers across the country leaning into onsite childcare,” says Sadie Funk, national director at Best Place for Working Parents. “We see a variety of industries leaning in, and…showing that it can be available for everyone.”

While opening a care center can be costly—startup rates for an independent center accommodating 76 children typically cost $95,000, according to childcare management software provider Procare—employers can access government funding to do so, including the Federal employer-provided childcare credit which gives companies a tax credit of up to $150,000 annually to cover qualified costs related to operating a childcare facility.

Businesses offering on-site childcare have seen an impressive improvement in employee engagement and attrition rates. A previous Best Place for Working Parents report found that companies offering on-site care saw 7.4 times higher worker retention rates and 8.9 times more loyal employees. 

But opening an on-site care center isn’t the only option available to employers who want to support working parents, Funk says, noting that 75% of all U.S. employees have some form of caretaking responsibilities, including for their children or parents. Working parents-friendly benefits, including flexible work arrangements like remote work or the ability to make hourly schedule accommodations, and parental leave are also ways that companies can hold onto workers with care responsibilities.

“Whether that means [employees are] caring for the young children, or maybe their aging parents, this is such a critical role in thinking about: How do we offer a wider range of options for parents that supports their ability to really bring their whole selves to work and still have enough to bring their whole selves home?” says Funk.

Paige McGlauflin
paige.mcglauflin@fortune.com
@paidion

Around the Table

A round-up of the most important HR headlines.

- Deutsche Bank plans to cut 2,700 jobs through 2025, citing the need for cost discipline and improving its stagnant share price. —Wall Street Journal

- In response to a shortage of luxury artisans, fashion conglomerate LVMH is training 700 new apprentices this year—and they want to recruit in the U.S. —Bloomberg

- Unlike their male counterparts, when women network with high-status people they lose status among coworkers. —Wall Street Journal

- Any firing process is hard and emotional—but by handling terminations in-person and keeping it brief, employers can make it better for workers and avoid regrets. —Marketwatch

- Employers added more than 350,000 jobs last month, more than expected, in a sign of a resilient economy and a strong labor market. 

Watercooler

Everything you need to know from Fortune.

Hustle halt. Millennial workers are over the grind work culture—most would sacrifice 20% of their paycheck for a better work-life balance. —Orianna Rosa Royle

RTO toll. Employees spend over $500 a month on necessities needed to return to office, and are resentful of the extra costs and commute. —Christine Carter, Erin Eatough, Kristi Leimgruber, Khoa Le Nguyen

Remote rebellion. German software company SAP demanded workers return to the office after encouraging them to work from home, prompting 5,000 employees to threaten leaving the company altogether. —Brody Ford, Agatha Cantrill, Bloomberg

AI feud. Bytedance CEO Liang Rubo complained his workers are “not sensitive enough to external changes” because they’re not learning AI fast enough, and their slowness makes for a “mediocre organization.” —Lionel Lim