New analysis of KinderCare's 2023 Parent Confidence Report uncovers generational differences, with Gen Z ranking child care above health insurance as a benefit
LAKE OSWEGO, Ore.—(BUSINESS WIRE)—As Gen Z ages into parenthood, data from a recent survey reveals they see child care as the most important benefit from employers, above health insurance. Once a niche perk, child care benefits are now key in employer’s efforts to attract and retain employees, especially Gen Z talent (those born between 1997 and 2012), who seem far more willing than older generations to switch jobs, move away, take a pay cut or even pause their career if it means finding affordable, quality child care.
Data from KinderCare Learning Company’s 2023 Parent Confidence Report: Gen Z, conducted by Harris Poll, shows:
- 30% of Gen Z parents rated child care benefits above health insurance (29%) — when considering whether to stay or leave their current job; all other generations (Millennial, Gen X, Baby Boomer) rated child care benefits just behind health insurance as most important.
- Nearly half (43%) of Gen Z parents would switch jobs for financial assistance to cover child care costs, far more than Millennials (33%), Gen X (26%) and Boomers (21%).
- More than half (52%) of Gen Z parents say they would switch jobs for on-site child care.
- Citing difficulties finding or affording child care, 36% of Gen Z parents surveyed said they have accepted a job that pays less but has more flexibility, far more than Millennial (26%), Gen X (26%), or Boomer (19%) parents.
- Nearly a third (29%) of Gen Z parents said they have moved to a new location to find child care, far more than Millennial (19%), Gen X (17%) or Boomer parents (14%).
- 19% of Gen Z said they are casually looking for new opportunities, a significantly higher percentage than Millennials (12%), Gen X (13%), or Baby Boomers (2%).
KinderCare partners with more than 600 employers around the country to offer employees a suite of employer-sponsored child care benefits, and has seen a shift away from on-site child care and toward flexible solutions better suited to meet the evolving needs of workers, whether they’re remote, hybrid or on-site employees. KinderCare works with clients like Walgreens, Tyson Foods and an array of employers from across the country to answer their working parents' call for quality child care in the communities where they work and live nationwide.
“The quickly evolving world of work is affecting Gen Z in ways we’ve never seen before,” said Paul Thompson, President of KinderCare Learning Companies. “The shift to remote and hybrid models of work has been nothing short of seismic, and it's affecting not only how, when, and where Gen Z is working but also in what they expect from employers for the work that they do.”
Thompson added KinderCare is “hearing loud and clear” that this generation of parents expect employer-sponsored child care as part of their benefits package, and that employers should recognize this need can be met in many different forms, “whether that’s back-up care, subsidized care, or on-site centers, there is always a way for any employer to find a way to better recruit and retain working parents.”
To help prepare to meet the needs of their workforce’s shifting priorities, KinderCare partners with organizations across the U.S. to assist in the development of custom employer-sponsored child care benefits packages, with options ranging from tuition benefits, on-site centers, back-up care, before and after school care, and more to meet the needs of diverse workforces.
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About KinderCare Learning Companies®
A leading provider early childhood and school-age education and care, KinderCare builds confidence for life in children and families from all backgrounds. KinderCare supports hardworking families in 40 states and the District of Columbia with differentiated flexible child care solutions to meet today’s dynamic work environment:
- In neighborhoods, with KinderCare® Learning Centers that offer early learning programs for children six weeks to 12 years old and with Crème de la Crème®, which offers a premium early education model using a variety of themed classrooms;
- For work, wherever employees work, offering customized employer-supported child care benefits at more locations than any other provider, and
- In local schools, with Champions® before and after-school programs.
KinderCare programs meet the highest standards, validated by independent, third-party evaluation including:
- Gallup, measuring workforce engagement,
- National Association for the Education of Young Children, ensuring individual early learning center quality,
- Cognia, accreditation for before- and after-school programs
- BRIGANCE® and TerraNova® assessments of children’s academic progress and achievement, and
- WELL Health-Safety Rating™, validating health and safety practices in our facilities.
Headquartered in Lake Oswego, Oregon, KinderCare operates more than 2,000 early learning centers and sites. In 2023, KinderCare earned its seventh Gallup Exceptional Workplace Award – one of only four organizations worldwide to achieve this milestone for six consecutive years. To learn more, visit KC-Learning.com.
FAQs
Mental health support is vital to this generation, who is more likely than any previous generation to admit their mental health is poor and to seek assistance. Flexibility in health benefits is key, with 70% of Gen Z employees expressing that they value the option to choose their own health benefits.
How are companies benefiting by providing child care benefits? ›
US companies that have added childcare benefits to their employment packages are seeing quick and lasting rewards in recruiting, retention, and productivity, according to a study we conducted in fall 2023.
What does Gen Z want from work? ›
Above all, Gen Z employees want paid leave and flexible working hours. They prioritise the opportunity to decide their own ways of working and expect employers to understand and accommodate this dynamic.
What does Gen Z care about in a company? ›
Gen Z has more social awareness than any other generation and cares deeply about authenticity, activism, and values. These employees are interested in working for ethical companies that believe solving today's societal issues is just as important as making a profit.
What Gen Z cares most about? ›
Gen Zers are known for their social responsibility, dedication to social and political issues, and their demand for authenticity when it comes to brands and advertising. 53% of US Gen Zers want brands they shop at to support mental health, more than any other cause, according to a survey from ICSC and Big Village.
Does Gen Z care about salary? ›
A recent GOBankingRates.com survey found that 46% of Gen Z respondents care more about salary than they do about their work-life balance. This was the highest percentage of any generation. So why is salary such an important factor for so many Gen Zers? Keep reading as we dig into some of the potential reasons.
What percentage of US workers have childcare benefits available to them from employers? ›
12% of workers in the U.S. have access to child care benefits from an employer — a number that falls to 6% for part-timers and those in the lowest income quartile, per BCG. Yet those are the workers who typically lose out on pay because of a child care emergency.
What are dependent care benefits provided by employers? ›
Reported on a W-2 form, dependent care benefits allow employees to withhold pre-tax money from each paycheck to help them pay for costs related to caring for a child, spouse, or another dependent adult living in their household.
What are the disadvantages of onsite daycare? ›
The result is childcare that is often unaffordable for the average worker. Too much liability for employers: By bringing a childcare center on-site, organizations also absorb liability for the facility. Companies risk serious financial losses in the event of an accident or adverse situation that unexpectedly arises.
What is Gen Z most passionate about? ›
Top causes include Black Lives Matter/Race Relations (63% of 13-17-year-olds, and 55% of 18-25-year-olds), Environment and Climate Change (44% of 13-17-year-olds, and 45% of 18-25-year-olds), Animal Rights (45% of 13-17-year-olds, and 42% of 18-25-year-olds), Bullying/Cyberbullying (49% of 13-17-year-olds, and 39% of ...
Work-life Balance and Flexibility at Work
According to SHRM, 55% of employees cited work-life balance and flexibility as important aspects of their job satisfaction. Gen Z values their personal lives as much as their professional lives because they've grown up in an era of constant connectivity and change.
What are the differences between Millennials and Gen Z in the workplace? ›
In one survey, 29% of Millennials said they chose their new job because the employer offers learning and development opportunities. Millennials tend to be more collaborative and team-oriented, whereas Gen Z values independence and individual achievement more.
Who does Gen Z trust the most? ›
Members of Gen Z who are 18 and older tend to trust social media companies far more than the average adult, with TikTok leading the way. The short-form video app has a 20.5 net trust score among Gen Z, which is higher than the app's minus-3.3 net trust score among all adults surveyed.
How do you keep Gen Z happy in the workplace? ›
96% of Gen Z employees say it's important they feel valued, included, and empowered at work. 80% want a job that allows them to explore and develop new skill sets, rather than focus on one skill. 79% would like their manager to care about their personal development as much as their professional development.
Does Gen Z care about work life balance? ›
Gen Z seeks a work-life balance while prioritizing their well-being, personal fulfillment, and time for creative pursuits.
What generation cares most about health? ›
For one thing, Gen Z has more exposure and access to information about health and wellness at an earlier age than other generations have had (FitTok alone, a corner of TikTok where people share workouts, food plans, and other fitness-related content, has amassed more than 64 billion views).
Does Gen Z care about wellness? ›
As the CEO of a digital mental health service, what I find most impressive of all is that much of Gen-Z cares deeply about their mental health and well-being. They're arguably the first generation to be this committed to it and to speak so openly about it.
Does Gen Z care about saving money? ›
Some 45 percent of Gen Z and millennial workers feel like they're on track with retirement savings, compared to 26 percent of Gen X and 34 percent of boomers, according to a Bankrate survey. Over a third (35 percent) say they'd need more than $1 million to retire comfortably – the highest percentage of any generation.
