Michigan’s child care professionals do some of the most important work for the least amount of pay and benefits. The
Small Business Association of Michigan (SBAM) is administering a program to help:
Nurture Benefits.
Thanks to a
$4.4 million investment from partner
Michigan Department of Lifelong Education, Advancement, and Potential (MiLEAP), Nurture Benefits will expand access to health insurance, life insurance, and retirement options for child care providers.
“SBAM’s mission has always been the success of Michigan's small businesses, which includes child care providers,” says Julie Molenda, SBAM childcare benefits program manager. “Many of our members are small, independent providers who face the dual challenge of running a business while meeting the high standards of early child care. We advocate for them, because when those child care providers succeed, so do the families and the businesses that rely on them.”
SBAM researches and negotiates products and services to help all Michigan small businesses grow and succeed. Using group buying power, SBAM offers small Michigan businesses access to life insurance and disability coverage and savings on various business services.
“Our members understand that access to affordable, reliable child care is essential for keeping employees at work and businesses open,” Molenda says. “Without it, parents, caregivers, guardians — they can't work, and small businesses lose valuable staff. We’ve made it a priority to support that infrastructure not only as a social good, but as an economic necessity.”
SBAM is designing the platform to help small child care businesses stay open, competitive, and rooted in their communities. When these businesses can offer affordable health care, life insurance and retirement benefits, they are better able to attract and retain staff.
“You’ll have fewer closures, more consistent care for families, and more working parents, guardians, and caregivers who can stay in the workforce,” Molenda says. “When they keep those businesses open, we keep the dollars circulating locally.”
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SBAM Senior Director of Products and Services Kellie Neirynck
Traditionally, child care providers are self-employed or work for small businesses that lack access to affordable employer benefits. As a result, many independent providers burn out and Michigan’s small child care businesses experience higher turnover –
25 to 30%.
“Our plan is to scale the platform statewide in a way that ensures equitable access for all child care providers, regardless of their geography, size, or business model,” Molenda says. “We’re designing the rollout to really be inclusive and responsive to the needs of both rural and urban communities. Over time, as more providers join in, we expect to see some cost efficiencies that will allow us to offer even more robust benefits at a lower per-user cost.”
According to the
MIchigan League for Public Policy (MLPP), Michigan’s child care workforce includes more than 28,000 providers caring for pre-school and school-age children, including 333,798 infants and toddlers. In 2019, their median wage in the state was $11.13, among the lowest wage earners in Michigan. And the younger the child, the lower the wage. Early child care education teachers with bachelor’s degrees earn 22% less than their colleagues in the K-8 system. MLPP reports, “Nearly 1 of every 5 early educators lives in poverty, and many are eligible for public assistance.”
“Nurture Benefits is all about making benefits accessible, affordable, and sustainable, so that small businesses can thrive and Michigan's economy can grow,” Molenda says.
By increasing earnings though added benefits, Nurture Benefits will also increase access to affordable, high-quality child care and enable parents, caregivers, and guardians to enter or remain in the workforce. This, in turn, can lead to more stable incomes for families and a stronger labor force for Michigan businesses.
“Child care is essential to Michigan's economic competitiveness. It supports and expands the labor pool and supports business attraction and retention,” Molenda says. “By supporting small child care providers and home-based businesses, we're investing in local economies across the state.”
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SBAM Communications Coordinator Olivia Covey
Nurture Benefits will be available to any licensed or license-exempt child care provider in Michigan working 30 hours or more per week. Open enrollment is expected to begin in fall 2025, with benefits effective starting January 1, 2026.
“Child care professionals are the workforce behind the workforce. This pilot recognizes their value and responds to a long-standing need, helping ensure those who nurture our youngest learners have access to the essential benefits that support career growth and security,” said MiLEAP Director Dr. Beverly Walker-Griffea in a MiLEAP
media release announcing Nurture Benefits.
“Access to affordable health, life, and retirement benefits is one of the biggest barriers facing child care professionals — and it’s a barrier that directly impacts Michigan’s small businesses,” added Brian Calley, SBAM president and CEO. “When child care providers can offer robust employee benefits, they’re better able to attract and retain staff, which in turn helps working parents stay in the workforce. Through this partnership, we’re proud to support the people who make it possible for small businesses to thrive.”
Estelle Slootmaker is project editor for the Early Education Matters series. She is also the author of a fun, new children's picture book, Places Where the Sun Don't Shine. You can contact her at [email protected].
Photos by Doug Coombe.
Early Education Matters shares how Michigan parents, child care providers, and early childhood educators are working together to are working together to create more early education opportunities for all little Michiganders. It is made possible with funding from the W.K. Kellogg Foundation.