For many employers, childcare becomes visible only when something goes wrong: an employee calls out, a candidate turns down a position, or a valued employee reduces hours (or leaves the workforce altogether) because the cost of care no longer makes financial sense.

These individual situations add up to a much larger workforce challenge.

 

What Employers are Saying

At a recent ‘Employer Roundtable’ convened by the Chamber of Commerce of Eastern Connecticut and the Southeastern Connecticut Childcare Collective, local employers discussed where childcare barriers show up: recruitment, retention, attendance, scheduling, overtime, advancement, and even relocation.

The conversation highlighted that the challenge looks different across workplaces. Second- and third-shift employees, single parents, early-career employees, and families relocating to the region may encounter very different barriers. Issues ranged from shift work and scheduling flexibility to cost, communication, advancement, and equitable access to benefits.

The scale of the regional challenge is significant. The Collective reports a 41% gap between family demand and childcare capacity in southeastern Connecticut, while more than 900 additional educators are needed to close the early-childhood workforce gap. For ALICE households (Asset-Limited, Income-Constrained, Employed), childcare consumes over 27% of household income.

But there is encouraging momentum. Governor Lamont has announced an additional $320 million investment in Connecticut’s Early Childhood Education Endowment, a dedicated effort to strengthen the state’s early childhood education system.

This investment positions Connecticut as a national leader in developing sustainable solutions that support children, families, educators, and the employers that depend on a stable workforce. Employers do not need to solve the region’s childcare shortage on their own, but they do have meaningful ways to help.

 

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41% gap between family demand and

childcare capacity in southeastern Connecticut

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Start by understanding what your employees actually need

Before developing a benefit, changing a policy, or committing funding, ask employees where the problems are.

A simple survey can help determine whether the primary challenge is affordability, finding an available provider, hours of operation versus work shifts, school vacations, transportation or something else entirely. It can also expose where childcare barriers are influencing your workplace, such as attendance, willingness to work additional hours, or decisions about remaining with the organization.

Employers should also consider what information their leadership will need to evaluate a potential response: anticipated cost, likely employee participation, administrative requirements, tax treatment, or accessibility across different employee groups.

The Childcare Collective offers a short, anonymous survey that employers can use to assess their needs before exploring solutions. To utilize this in your workplace, email Kathleen Hollister, SECT Childcare Collective, Facilitator.

 

Consider whether Tri-Share could work for your organization

New London County employers have exclusive access to a particularly promising tool: New London County Tri-Share.

Tri-Share divides eligible childcare costs equally among three parties: the employee pays one-third, the employer pays one-third, and the State of Connecticut pays one-third. Its objective is straightforward: significantly reduce a working family’s childcare expense while allowing an employer to provide a meaningful benefit.

Employees must live in Connecticut, work principally in New London County for a participating employer, and not already receive another public childcare subsidy such as Care 4 Kids. Families can use licensed childcare providers anywhere in Connecticut. There is no minimum headcount to enroll; employers can begin with one or several employees and determine how broadly they want to offer the benefit.

To avoid adding to limited HR capacity, LEARN administers the program by coordinating eligibility, payments, and provider verification without placing those responsibilities on the employer.

This all makes Tri-Share worth investigating, even for an organization that has never offered a childcare benefit before. In the words of one service business in Salem, Connecticut:

“As a small business, we see the struggles with hiring anyone, tech or office…I felt very strongly toward this program for our small business; having “younger” techs [especially], I can see how daycare may be part of their lives and by offering this benefit, I can only see it as a win-win for all.”

Learn about the New London County Tri-Share Pilot

 

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I felt very strongly toward this program for our small business; having “younger” techs [especially], I can see how daycare may be part of their lives and by offering this benefit, I can only see it as a win-win for all.

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Help employees find resources that already exist

Employers can also provide value simply by making reliable information easier for employees to find.

211 Child Care provides a free statewide childcare search and referral service. Families can search for licensed childcare centers, family childcare, school-age and summer programs, and referral specialists can help parents understand available options and considerations when choosing care.

Adding these resources to onboarding materials, an employee assistance webpage or an HR resource guide can make it easier for employees to know where to start.

For employers that already offer childcare-related information or benefits, low uptake might reflect limited awareness, not limited need. Make resources easy to find and repeat them often: remind employees through internal channels, equip managers to point team members to the right benefits contacts, and ask employees if the information is clear and helpful.

 

Review the tax tools available to employers

Employers may also benefit from federal tax incentives for supporting childcare.

The expanded Employer-Provided Child Care Credit (Section 45F) now covers 40% of qualifying expenses, or 50% for eligible small businesses, with maximum credits of $500,000 and $600,000, respectively. Qualifying costs can include certain arrangements with licensed childcare providers, and resource and referral services. Ask your accountant, benefits adviser or tax professional whether your organization could qualify.

A Dependent Care Flexible Spending Account (FSA) offers another option without requiring the employer to subsidize care directly. Employees can set aside pre-tax earnings for eligible dependent-care expenses, with the federal limit for employer-sponsored Dependent Care Assistance Programs now increased to $7,500. Talk with your insurance broker, bank or credit union about adding this benefit.

 

Affordability is only half the equation – we still need more space

Reducing the cost of care is one important approach, but the whole solution will require increasing capacity to meet demand.

The region is beginning to add capacity. In 2025, Groton, Lisbon, New London and Norwich were among the Connecticut communities where new state-funded early childhood spaces were added.

In 2026, with support from United Way of Southeastern Connecticut and General Dynamics Electric Boat, the SECT Childcare Collective launched a Family Childcare Provider Capacity Pilot. The dual effort supports existing licensed home-based childcare businesses with updated technology, training, and operational resources, and it is also fostering a pipeline of new family childcare businesses. The pilot is one of the only programs in southeastern Connecticut offering startup resources to prospective providers pre-licensure, helping them cross the finish line successfully. For more information, email Jacob Todd, Childcare Pipeline Specialist.

For employers, supporting childcare capacity may mean sharing the opportunity with colleagues or community members interested in starting a home-based business, participating in regional planning conversations, or simply relaying information about where employees are struggling to find care.

 

There is no single employer solution, and that’s the point

A small business with 12 employees will approach childcare differently than a hospital, manufacturer, or larger entity. Some employers may be ready to contribute directly toward care, while others can provide flexible scheduling, strengthen dependent-care benefits, connect employees with existing resources, or simply begin gathering better information.

What matters is recognizing childcare as part of the workforce infrastructure that allows people to participate fully in our economy.

Regional partners like The Chamber of Commerce of Eastern Connecticut, The SECT Childcare Collective, LEARN, CTAEYC, and others will continue to explore, advocate, and connect employers with resources, ensuring the voice of the business community is always part of the conversation.