Saturated childcare market – what changes does this bring for employers?

The Swiss childcare market is a dynamic and complex issue. This is partly due to there not being one single Swiss perspective - the market must be viewed in federal structures, i.e. at cantonal or, depending on the canton, even local level.

The fact is that childcare has become a major public issue over the last two decades, and politicians are making great efforts to address it. Not all political solutions work equally well, and unfortunately, not everyone is willing to look beyond their own cantonal borders. As a result, this market is also characterised by a patchwork of childcare solutions across the cantons – a typically Swiss consequence. For national employers who are committed to equality among their employees, interpreting and implementing these policies across Switzerland is a fine art. Here is a summary of the most important facts for employers:

• In the cities of Zurich, Basel, and probably also in Berne and Lucerne, the market is saturated, meaning that there are enough facilities and it is not a problem for parents to find a place in a childcare centre. Employers who still finance "guaranteed places" would be well advised to save these costs.
• In all other areas, the proportion of households with children under the age of 13 who attend supplementary childcare facilities is well below 60%. Here, it is much more difficult to find a suitable place.

https://www.bfs.admin.ch/bfs/de/home/statistiken/bevoelkerung/familien/familienergaenzende-kinderbetreuung.html

• In more saturated regions, parents who need childcare are becoming more selective. Choosing the right childcare days and the perfect location for their workplace is given very high priority.
• Daycare costs are rising faster than inflation. In certain regions, the biggest concern is not obtaining a daycare place, but the cost. Households with two children in daycare in the canton of Vaud who do not receive subsidies can expect to pay an average of CHF 170 per day per child. In this example, the annual expenditure for childcare is CHF 48,960 (for a 60% workload, without a sibling discount), compared to a tax-deductible allowance of CHF 15,000. In other regions of Switzerland, the daily rate is lower. However, even there, the costs for families are so high that there has been a decline in the desired number of hours worked.

 Our tips for employers :

• Set up financial support for external childcare or regularly review the effectiveness of existing models.
• Implement recurring employee surveys to check whether the current measures are still appropriate.
• Benefit from our knowledge in this area and book your next available consultation appointment