If you’re deciding between working for a large corporation or a small business, your choice could significantly impact the benefits you receive—especially regarding family-friendly policies. According to the latest Best Place for Working Parents National Trends Report, small and micro businesses are leading the way in investing in policies that support working parents, while larger companies are scaling back on key benefits like childcare assistance and dependent health care.
Larger Companies Are Cutting Back
In 2022, the report found large companies offering robust healthcare and childcare support. Now, they’re reducing these benefits. The report shows that childcare assistance has dropped by 7% and dependent health care coverage by 8.5% among big businesses. Economic pressures have led some corporations to prioritize cost-cutting measures, and family-friendly policies have taken a hit.
However, according to Sadie Funk, national director of The Best Place for Working Parents, “Many business leaders are looking for ways to stand out in the competitive labor market and are leaning into family-friendly policies, as evidenced by the 40% gap between those that earned the designation and those that didn’t. Family-friendly benefits are no longer a nice-to-have, but a must-have for business leaders in all industries.”
A major reason for this pullback is the expiration of pandemic-era policies and incentives. Many companies expanded dependent care support in response to heightened needs, aided by government programs like the American Rescue Plan, which provided temporary tax credits for dependent care assistance. Funk says we’re in a “great shake-out” period as companies reassess which benefits truly provide a return on investment. With these incentives gone, some businesses have reverted to pre-pandemic benefits, treating the enhanced offerings as temporary measures rather than permanent changes.
Additionally, the shift toward mental health and wellness programs has inadvertently deprioritized dependent care support. While these new benefits address critical workforce needs, they don’t always provide direct solutions for employees managing caregiving responsibilities. “Prior to making any policy or benefit changes, we recommend (and even urge) companies to survey their employees to understand which benefits they value,” Funk says. “Utilizing tools such as caregiver employee resource groups (ERGs), employee surveys, and open discussion sessions will help determine employees’ unique needs.”
Small And Micro Businesses Are Stepping Up
Large companies with younger, child-free employees may not see strong demand for family benefits, while micro (defined as companies with 24 employees or less) and small (defined as companies with 25-200 employees) businesses catering to mid-career professionals are prioritizing these offerings.
The report highlights that nearly 60% of small businesses now offer backup childcare, helping employees balance work and family obligations.
Some companies assume employees can revert to pre-pandemic childcare arrangements, but many childcare providers shut down during the pandemic, leaving fewer options and higher costs. Funk highlights this issue: “This is one reason why regularly surveying employees is so critical! Employee needs and the childcare landscape are constantly evolving.”
Similarly, while many companies believe that flexible work arrangements lessen the need for childcare support, Funk argues that’s not the case: “Flexibility is not a form of childcare, but it can make childcare challenges easier for working parents. Seventy percent of highly credentialed women who have left the workforce would have opted to stay if greater flexibility was provided.”
What This Means For Job Seekers
If you’re weighing job offers, consider what benefits are most important to you. A large corporation may offer prestige and structured career growth, but a small or micro business might provide better support for your family life.
Companies that prioritize childcare assistance, flexible work arrangements, and dependent health care benefits are gaining a competitive edge in attracting and retaining top talent. If family-friendly benefits matter to you, it may be worth considering whether a small business is actually the best place for you as a working parent.