Company Performance Enhanced by Quality Childcare Services
In the wake of the COVID-19 pandemic, German companies are adopting family-friendly corporate policies to improve work-life balance, support young workers, and attract and retain skilled employees.
According to a study conducted by Prognos, commissioned by the Federal Ministry for Family Affairs, 90% of companies have offered support for childcare arrangements, such as financial assistance or referral services. Additionally, 94% of companies have provided flexible working hours to accommodate family responsibilities, and 96% have introduced or expanded remote work options.
The study, conducted in preparation for the company day "Erfolgsfaktor Familie 2020", found that 72% of companies have worked with their employees to develop solutions for eldercare issues. The findings suggest that family-friendly policies are not only beneficial for employees but also for the overall productivity of companies.
Enzo Weber, head of the research area Prognoses and macroeconomic analyses at the IAB, calculated that this would equate to over 40 million lost working days due to lack of childcare in the first half of 2020. Weber also stated that this level of absenteeism is noticeable for the economy.
Franziska Giffey, Federal Minister for Family Affairs, emphasized that a good balance between family and work is system-relevant for the success of the German economy. Giffey also stated that family-friendly corporate policy is beneficial, as it is no longer just a "nice-to-have", but a real location advantage for attracting and retaining skilled workers.
The study recommends that the German government should provide financial incentives to companies that implement family-friendly policies. This includes enhancing child rights and family considerations in corporate due diligence, as well as offering certification and recognition for family-friendly companies.
The trend towards family-friendly policies is not only driven by social responsibility but also by government regulations. The new 2025 BAFA guidance emphasizes child rights in corporate due diligence, urging companies to consider how parents’ working conditions impact children’s welfare and to implement non-discriminatory, family-supportive practices.
While the direct post-pandemic data for Germany is still emerging, these trends are consistent with wider European shifts emphasizing family welfare as central to corporate strategy. For example, the "Family-Friendly Spaces" program in Southeast Asia, while not directly applicable to Germany, exemplifies a global trend likely influencing European companies in expanding childcare support to reduce employee stress and turnover.
The implementation of family-friendly policies also helps to address ongoing challenges with demographics and workforce retention. Despite these policies, Germany faces a fertility gap and a declining birth rate, suggesting that corporate and public measures are critical to retaining skilled workers and encouraging family formation.
The benefits of family-friendly policies are clear. They improve employee satisfaction, reduce turnover, help attract skilled workers prioritizing work-life balance, and reduce absenteeism and stress, leading to better focus and productivity. Certification as a family-friendly company also enhances reputation, making firms more attractive employers amid skilled labor shortages.
In sum, post-COVID-19 Germany sees a convergence of corporate family-friendly policies bolstered by regulatory guidance and social pressure, aiming to improve productivity and maintain a skilled workforce in a challenging demographic environment.
- In light of the study conducted by Prognos, most German companies are now supporting health-and-wellness by offering financial assistance or referral services for childcare arrangements.
- Securing the future of their businesses becomes an essential part of corporate strategy, as leading German companies are expanding remote work options and providing flexible work hours to enhance workplace-wellness and family-friendly policies.
- These initiatives not only improve employee health and well-being but also aim at reducing finance-related issues, such as absenteeism and employee turnover, in the post-COVID-19 era.
