Cork businesses losing employees due to shortcomings in childcare

Report by Cork Chamber found that two-thirds of surveyed members did not consider the Irish childcare system as 'fit for purpose'

The report draws on insights from Cork Chamber members, HR professionals, and childcare providers, and identifies structural issues across affordability, availability, and staffing capacity. These constraints are contributing to recruitment difficulties, reduced working hours, and retention challenges for employers.

More than a third of Cork businesses have lost staff due to challenges and shortcomings in childcare, pointing to a need for employer-supported childcare models and corporate crèches.

That is according to a new report by Cork Chamber, which highlighted how gaps in childcare provisions are creating sustained operational challenges for employers across the region. 

It noted that over two-thirds of surveyed members did not consider the Irish childcare system as "fit for purpose."

The report also found that 36% said childcare challenges have directly resulted in employees leaving the organisation or declining roles, with 57% saying shortcomings in childcare had a "moderate" or "significant" impact on their workforce. 

In addition, three-quarters of respondents have seen an increased demand for flexible working arrangements as a result of childcare challenges, with 69% confirming they would consider supporting childcare through models such as corporate crèches or tax-incentivised partnerships with providers if appropriate Government incentives were introduced.

The report draws on insights from Cork Chamber members, HR professionals, and childcare providers, and identifies structural issues across affordability, availability, and staffing capacity. These constraints are contributing to recruitment difficulties, reduced working hours, and retention challenges for employers.

"Cork’s economy is growing strongly, but childcare is increasingly impacting workforce participation," Cork Chamber president Susie Horgan. "Over a third of employers are seeing staff leave or turn down roles due to childcare pressures, and 88% report a disproportionate impact on women’s participation and progression. These are real operational constraints affecting productivity, retention and talent development.”

Citing the report findings, Cork Chamber is calling for several measures to strengthen childcare provision and support workforce participation. These include encouraging employer-supported childcare such as tax credits for corporate crèches, fee caps based on a percentage of income to ensure affordability, public sector pay parity for early years educators comparable to primary school teachers, and support for registered home-based childcare to expand accessible options.

"The solutions proposed in this report are practical, focused on affordability, capacity and workforce stability, and can deliver meaningful improvements for both employers and employees," said Fiona O'Donovan, public affairs manager at Cork Chamber. 

“There is strong appetite among employers to support solutions, particularly where policy frameworks enable it. Nearly 70% would consider engaging in employer-supported childcare models if incentives were in place."