Why Do I Have to Pay for Your Time-Off?


A common complaint echoed amongst parents is having to pay for child care even when their child is not in attendance or their child care facility is shut down. The problem is that most parents are not aware of how the licensed child care industry operates. Licensed child care providers are businesses and not government employees. They are responsible for their own pay, benefits, retirement, and are completely self-supporting. The only way a child care provider can ensure continuity of income is to create contracts with parents that allow them to have time-off and vacation pay.

Parents on the other hand are left stranded. When their child care facility shuts down they have to pay and find back-up care or take the day off. It is a double loss of income for them. What is the alternative though? Providers are also entitled to a break, and to take time off when they get sick. Why should they not be awarded the same rights as other working professionals in other industries? The other issue that confuses parents, is the lack of consistency in child care policies, amongst different facilities. Parents are often eager to compare daycares with other daycares or babysitters and nannies who operate on a on-demand basis. This lack of understanding between parents and providers and creating a growing rift in the child care community.

So how do providers get paid for their time-off and keep parents happy? By offering parents flexible child care options that allows them to take time-off as needed and charging them more on a daily basis for that option. The concept is simple, instead of having a vacation pay or time-off accrual that you collect when on break, you collect a daily amount instead, thereby avoiding any issues, terminations, or complaints. By collecting time-off pay on a daily basis most facilities can earn more by having parents pay more for the option of not being in a contract.

How does it work?

We will first we have to do some math. Let's look at the following example of ABC daycare:

ABC Daycare’s License allows for 8 children, on average they books 6 children for the year. Each child pays $300 per child/ per week, that is $60 per day/ per child.

If we break that down into hourly ($60 per day/10 hrs) it’s only $6 per hr/ per child. ABC Daycare takes 20 days off in a year. Each family pays $60 per day, and they usually have 6 children in attendance.

ABC daycare accrues $7,200 (20 days x $60= $1200 x 6 children)in vacation and time-off pay annually. ABC daycare generally operates 252 days in a year. If we divide $7,200 into 252 days, that is only $28 per day increase.

This $28/ increase would be split amongst the 6 parents, which equals $5 increase per child (rounded up). Let's check the math: $5 per day x 6 children= $30 $30 x 252 = $7,560

This means for an additional $5 per day per child ABC daycare could take their time-off as needed, not charge the parents in their care, and earn $360 more for the year by allowing flexible care.

Formula to calculate rates and vacation pay:

Weekly amount per child/ days open= Daily cost per child per day

$300/5= $60 per day

Daily / total hours open per day = Hourly Cost per child

$60 per day/10 hrs= $6 per hr/ per child

(Days off in a year x daily rate) x total number of children.

20 days x $60= $1200 x 6 children= $7,200

Formula to calculate daily vacation pay:

Vacation pay / days worked in a year = Per day increase

$7,200/ 252 days= $28 per day

Daily increase/ total number of children= Per child daily cost increase

$28/ 6 children = $4.666, approximately $5 increase per child (rounded up).

By charging parents a few dollars more per day, child care facilities can avoid vacation-time turn-over, arguments with parents, and earn top dollar.


About Daycare Owl

Child care rates are soaring, yet most providers struggle to fill their daycares. How can that be? We have the answer and the solution. Parents and providers simply cannot find each other. The parents demanding child care cannot find the supply offered by child care providers, and Daycare Owl is going to fix this socio-economic issue with technology. Daycare Owl’s goal is to bridge the growing gap between parents and licensed child care providers. Parents can expect to find much lower hourly rates for child care on Daycare Owl. The Daycare Owl platform has given daycares the capability of segmenting the full week into hourly slots. Daycares can now offer weekend care, date night care, overnight care, evening care, and so much more. Daycares are the most affordable choice when it comes to outside care. Daycares operate on the concept of economy of scales, a proportionate saving in costs gained by an increased level of production. Licensed childcare providers are trained, equipped, and legally allowed to have multiple children in their daycares. Economy of scales keep daycare rates low. The world of affordable and available child care has just expanded, and we can’t wait to see the difference it makes in the lives of children, mothers, fathers, providers, employers, and the economy as a whole. Welcome to the child care revolution.

Providers can create free online profiles with bookable spots. Sell recurring spots on a weekly, daily, and hourly basis. Set your own prices and timings. Sell extra services such as date-nights, weekend care, and more. Accept, deny, cancel reservations as needed. Daycare Owl helps keep your daycare booked to max capacity, but never exceeding it. Get paid in full on every transaction. Automated receipts for each transaction and year end reporting. 100% free for providers.

Parents can search and contact daycares for free. Create a free account to see daycare phone numbers and more. Book flexible child care at licensed facilities on a daily, hourly, weekly basis. No more contracts, no more deposits book recurring care that meets your schedule. Favorite Daycares you like, and share with other parents. Receive automated receipts for FSA processing and child care tax credit. Share Daycare Owl to get daycares in your area to register.

Available nationwide www.daycareowl.com


Are unemployment benefits or lack of affordable child care options keeping parents home?



As things open back up, employers are struggling to fill positions. Is this because people don’t want to come off unemployment benefits or because parents are unable to find child care that fits? 

     

Tens of thousands of child care facilities across the country have shut down due to the pandemic. Covid-19 rendered most child care facilities empty. Unlike schools, licensed child care facilities are business entities, either operating from a provider’s home or from a commercial center. Licensed child care providers are considered essential workers; however, most parents no longer needed child care services as they were either laid off or got to work from home. Most facilities were not able to offer online programs, with their younger children, and had no means of staying afloat. 


Those providers who did manage to weather the Covid storm, have spots open now, but most parents are not looking for full-time child care. Parents who are working from home or in a hybrid model, don’t need or want to pay $300-$400 a week for full-time care. Licensed child care providers have traditionally offered weekly contracted care for standard work hours to accommodate parents, Covid has changed everything. Parents only need a few days of care a week or a few hours a day. As more and more companies adopt post pandemic policies to include the hybrid work week model, the demand for part-time child care will spike. This means 1 weekly spot could be split-up between multiple children, allowing child care facilities to accommodate more children at their facilities for a higher daily or hourly rate then they would normally charge. 


Parents will flock to child care facilities that are offering part-time, daily, and hourly schedules. The Daycare Owl platform allows child care facilities to segment their time into hourly, daily, part-time, and full-time spots. Economy of scale keeps hourly rates low on the platform. In the San Francisco, CA area, (where child care rates average $25/hr) the average hourly rate at licensed daycares on Daycare Owl was below $10/hr.


Businesses are struggling to bring employees back. Unemployment benefits, coupled with the child care credit, no overhead cost of child care, and more time with their families, why would parents be in a rush to go back to work? Unemployment benefits will run out, the future of the child care credit is unknown. Take advantage of it now. $300 a week may not be enough for a full-time contracted child care, but it is enough for a few hours of care a week or a few days of care a week. 


About Daycare Owl 


The Daycare Owl platform allows licensed facilities to segment their weekly spots into recurring part-time, daily, or hourly spots. Parents use Daycare Owl search and book full-time and flexible care. Daycare Owl is free to register for licensed facilities. Daycare Owl is free for parents to register, search, favorite and contact child care facilities.


Providers set their own prices on Daycare Owl, they can accept, deny, or cancel any reservation. Parents pay providers via stripe when booking through the Daycare Owl platform. Stripe fees are paid by parents.


Providers can also sell add-on services such as date-nights, overnight care, weekend care and more. Daycare Owl’s secure payment gateway is powered by Stripe. Providers will never miss a payment or write a receipt. Providers keep 100% of what they make. 


Register your licensed facility for free: 

https://www.daycareowl.com/daycare/register/