Woodville, Wisconsin - OEM Fabricators, a manufacturer based in Woodville with three locations around Wisconsin, announced in January that they would begin contributing $2,500 annually to dependent care FSAs to help defray child care or eldercare costs for their Team Members. 

“This benefit demonstrates the important role employers can play in addressing the impact care access has on our workforce,” said Neil Kline, Executive Director of Family Friendly Workplaces.

A recent analysis by the Federal Reserve Bank of Minneapolis shows the impact caregiving has on workforce participation. Following the COVID-19 pandemic, the number of dual-participant couples has dropped when compared to pre-pandemic levels, particularly among less-educated couples. The primary reason cited for this workforce participation reduction is caregiving, either for children or for elderly family members.

“As Wisconsin employers struggle to attract and retain talent, it is important for all economic development partners to critically consider the role caregiving plays in the decisions families make about workforce participation,” said Neil.

In addition to elder care, child care plays a significant role. While Wisconsin’s child care slot shortage is an obvious constraint to child care access, the cost of child care further constrains access. A typical family in Wisconsin would spend over 33 percent of its income on child care for a 4 year old and infant, spending on average over $10,000 a year to care for the 4 year old, and over $12,000 a year to care for the infant.

“It is rational for a family to consider the costs dual-workforce participation would incur against the benefits,” said Neil. “As the Minneapolis Fed points out, some have, and they are concluding that the benefits do not outweigh the costs.”

OEM Fabricator’s new contributions to dependent care FSAs helps make the benefits of participating in the workforce stronger relative to these costs, and demonstrates that employers are not without tools to help address this cost constraint.

“OEM’s new benefit simultaneously strengthens families while also making a concrete effort to attract individuals back to work,” said Neil. “We encourage all employers to consider what they can do to help bring folks off the sideline, and back into the workforce.”

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Family Friendly Workplaces is an independent, 501(c)3 nonprofit that works to address western Wisconsin's workforce shortage, and strengthen western Wisconsin families, by certifying businesses as Family Friendly, and encouraging the adoption of Family Friendly practices. For more information, visit www.familyfriendlyworkplaces.org or follow us on Facebook at www.facebook.com/familyfriendlyworkplaces.