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The Business Benefits of a Workplace Nursery

have a substantial impact on both their wellbeing and your organisation.
Increased engagement, productivity and focus are just a few of the areas which can be improved, and forward-thinking employers are already putting the wheels in motion and getting ahead of the curve. These employers are not only seeing business success but also winning the war on talent, retention and recruitment.

The business case is clear:

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An Employer of Choice

With the highest employment rates recorded, today’s parents are making up a large proportion of our workforce. An increasing number of those are women too, with a falling number staying at home to look after the house and family. There’s also a growing number of dads wishing to be more involved in family life and striving to balance work commitments with family responsibilities.

For working families, finding the right organisation which understands the challenges and nurtures the aspirations of modern families will be a top priority. Almost 90% of families rate their workplace nursery as the best or among the best benefit offered by their employer, and 100% of employers say it makes them an “Employer of Choice”.

Increased Retention

Employers who recognise caring responsibilities will reap the benefits in retention and loyalty, with research highlighting a growing number of mothers considering their childcare options before applying for a promotion or considering a job change.

Workplace nurseries are located on-site or close by, delivering childcare tailored to the employee. They provide an incentive for working parents to return to work and prosper, with peace of mind that their children are happily playing and learning only moments away.

Greater Productivity and Engagement

At the heart of every organisation lies its people and we know from extensive research that the engagement and wellbeing of our people is key to our organisation’s success.

Engaged employees, who know their family responsibilities are supported, are better placed to deliver excellent customer service and improve business performance, while also creating a positive work environment.

94% of employers state that a workplace nursery impacts their employee engagement levels.

Reduced Absenteeism

We know working families are juggling work with caring for those who depend on them and parents naturally experience breakdowns in their care arrangements. 

A sustainable, high-quality solution for our employees’ childcare needs has the potential to reduce absence in the workplace – a costly challenge for employers. Employer-sponsored childcare is ideally located too – giving parents additional flexibility and a childcare provision they can trust and rely on.

Financial Savings: Workplace Nursery Exemption

Workplace nurseries provide employers and employees with financial savings too through HMRC ‘Workplace Nursery Exemption’. Workplace Nursery Exemption is an exemption which has been designed for organisations offering childcare facilities.

In addition to significant tax and National Insurance savings for employees, the exemption allows an employer to save on their Employer’s NI contributions through implementing a salary sacrifice scheme for parents paying their nursery fees. 

As the fees are taken directly from the employees’ gross salary, employers do not pay any Employer’s NI contributions and the employee saves on their tax and NI contributions too!

Benefits to the Employer

For employers looking to support their working families and achieve maximum employee engagement, a workplace nursery represents a win-win solution. Productivity and employee engagement are boosted through employees' increased ‘peace of mind’, and in the longer term a workplace nursery is a ‘sticky benefit’ - a proven benefit which assists with recruitment and retention of talented staff.

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Working parents make up a large proportion of our working population, and for the majority of parents and carers, family comes first. 

Enabling parents to integrate their work and personal commitments has a great impact on their motivation, and in turn their performance. In a recent study, more 90% of employees said a workplace nursery helps them to succeed at work and 80% agree that a workplace nursery has a positive impact on their productivity.

Employees who are supported in all aspects of their lives will feel motivated, engaged and valued, and able to reach their potential.

Peace of mind

For many parents, and particularly those who are new or returning to the workplace, leaving their child – the most precious thing in their lives - can be a challenge. Workplace nurseries provide peace of mind for employees, knowing their children are only a stone’s throw away, supporting the employee with the ability to concentrate on work.


Organisations which embrace the challenges and aspirations of working families will see the results in working parents who are confident in their role and feel valued and secure. 

The lasting impact of this is retention and loyalty from employees who appreciate the long-term benefits of being with the organisation: A job is for the moment but a career is for the future.

Financial Savings: Workplace Nursery Exemption

It’s no surprise that the cost of childcare has a significant impact on a parent’s decision to return to work following the birth or adoption of their child.  With over a third of parents paying for childcare, and over half using childcare vouchers to save money, parents are eager to find solutions.

Workplace Nursery Exemption, a government initiative solely for employer-sponsored childcare, provides families with significant tax and National Insurance savings. Parents are able to pay for their childcare directly from their gross salary, with benefits for both the employee and employer. We would always recommend employers seek their own specific tax advice. 

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