It all seems so simple: Drop your child off, go to work, pick your child up, go home. Repeat, Monday through Friday.

But what happens when you cannot find a quality childcare option? Or one you can afford? Or when a global pandemic forces classrooms to close and people to quarantine. How can you continue to be a high-performing employee? How can companies expect to maintain their workforce?

Childcare in this country, state, and Rapid City community needs to be addressed. When it comes to access, affordability, and quality, the current system is not meeting the needs of families. Furthermore, these gaps begin to have a major impact on employers. These are problems those in the industry have been aware of for years but have only been amplified with the pandemic.

At the March critical issues luncheon, attendees were able to learn firsthand the ramifications the childcare situation is having on the economic development of the community. A study by ReadyNation concluded that the lack of reliable childcare could come to an estimated $146 million in annual costs in South Dakota. Insufficient childcare results in reduced revenue and increased hiring costs. Parents worrying about their children because they are unable to afford a quality childcare setting are likely less engaged and productive.

But there are things that can be done.

As employers become more aware of the struggles their employees are having, creative solutions are being created in the community. Pioneer Bank & Trust is a great example. When schools were operating through e-learning during COVID, they set up boardrooms and conference rooms so parents could bring their children to the office and still work on their schoolwork. This allowed those employees who were unable to work remotely to still come to the office and know their children were in a safe environment and getting schoolwork done.

More than that, they realized that the cost of childcare was an incredible burden on their employees – especially those in the more entry-level positions. (Infant care in a center in SD averages $6500 annually) In an effort to retain their employees, and remove that stress, they established a childcare assistance program that provides a portion of funds to the employee to help offset the expense. The results were incredible, as it improved retention, while also ensuring stability for the parents and children.

The childcare industry faces many unique challenges. For one, the business model does not lend itself to easily increased profits. Childcare facilities incur the same expenses as most businesses: rent, utilities, insurance, supplies, etc. The revenue, on the other hand, is far less flexible than traditional business models. The number of staff determines how many children can be legally in a program. And the cost of revenue is solely on the parents, which is already a high burden. Furthermore, because of the limited income, it’s nearly impossible to stay competitive with other hourly-wage jobs available in the community. (The average wage for childcare workers in Rapid City is $9.25-13/hour)

The Federal government did recently offer some financial assistance for childcare programs. However, across South Dakota there are nearly 2,000 unregistered providers (primarily in-home daycares) – as such they were not eligible for those dollars and many were forced to close.

There are things that can be done.

• First of all – if this is an issue you care about, it is important to contact lawmakers. This year HB 1333 was proposed that would have allowed American Rescue Plan Act moneys for child care grants – even for non-registered providers. The Bill was tabled on February 17. They need to know this issue is important to our business community.
• Early Learner Rapid City has a complete guide of resources available in our community.
• On April 7, the Early Childhood Education Conference is hosting a special session for businesses. CLICK HERE for more details.
• April 21 – attend the Early Learner Rapid City quarterly update. It is free to attend and includes dinner. CLICK HERE to register.
• Lastly, if you are interested in continuing the discussion and finding creative solutions for our business community, email Kayla Klein to be a part of a business focus group.

These critical issues luncheons continue to bring people together around a topic impacting our business community. And while the solution may not be found, we know that great things happen in our community when people come together and meet face to face.

To view upcoming events and register for the next luncheon, click here.