It’s the ultimate Catch-22 situation: you know your processes are outdated, take too long and cost too much—but you don’t have the time or money to do anything about it.
Lucky for you, there is an answer. Child care management software can both streamline your processes and give you more time to focus on building your ECE business. Plus, it’s easy to set up and if you use it right, the return on investment (ROI) is through the roof!
Ask any ECE business that’s already taken the leap, and they’ll tell you that once you’ve found the right software solution, the benefits are easy to see.
But what if you want to know whether it’s worth the investment *before* diving in?
We’ve created this in-depth guide to give you the numbers behind the need for child care management software. Whether you’re a math lover or hater, it’s time to grab your calculator, pull up a seat and get down to business!
Child care management software makes life simple.
From automating processes to helping you keep everything in one place, having great software on your side can be a game changer. Here’s why:
We all know paperwork takes precious time away from quality time with young children.
In fact, first-year kindergarten teachers spend almost a quarter of their 50-hour work weeks on admin duties. With average contract hours at 35 hours per week and so many teachers working more, it’s little surprise that today's educators have twice as much work stress as other US employees.
But there is good news. With the right child care management software, you can create streamlined systems that minimize that stress and let teachers do more of what they love, and less of the other stuff.
So, how much time and resources can you save, you ask? Let’s figure this out.
Assuming an average cost of $3 per child per month with a program like MomentPath’s, you’ll spend just $7.50 a week on the software for 10 kids.
Now, let’s say a smart child care management software program could also help reduce the child care worker’s admin duties by up to 75%.
This means a weekly savings of $91.50 ($366 per month!) or an ROI of 1220% for just one teacher using the new system. We’re not mathematicians, but that’s a pretty significant return!
We’ve all heard that happy employees = a happy business.
And with early childhood workforce turnover rates now as high as 25%, supporting teachers is more important than it’s ever been. From minimizing workloads to maximizing efficiency, the right child care management system can make employees’ lives easier, reduce teacher burnout and bring that turnover rate way down.
Let’s take a look at the math:
Let’s imagine a school has 10 classes with 10 children per class, and the cost of a child care management software subscription is 100 children x $3 per week. That’s around $15,600 a year.
Let’s say the school also has 20 employees with a 25% annual turnover rate.
ND = 5
Maybe the school spends $2,000 per person on hiring, $1,000 per person on onboarding, learning, and development, and loses $3,000 in productivity from the time it takes to refill a role.
C = $6,000
The school’s annual cost of turnover = $30,000.
By reducing teacher burnout with smart child care management software and retaining just an extra 20% of its teachers, that center could save $6,000 per year. That’s an ROI of 38%!
If you’re an ECE pro, you know a successful school is all about parent buy-in.
That’s why it’s SO important to get parents on your side by creating a great school experience for them and their children.
A huge 73% of millennial parents interact more with each other digitally than in real-life, and 81% have shared a photo of their child on social media. In other words, millennials and tech go hand-in-hand.
So how can we break the benefits of high parent engagement down into hard numbers?
First, we’ll assume an average annual revenue per child. Let’s say it’s $3,000.
Next, we’ll need to know the potential revenue per family, or the average number of children per family. The current US average is 1.779 children, but let’s round it up to 2 children per family.
$3,000 x 2 = $6,000 per year
With just these simple numbers it’s easy to see that, by building great parent engagement, a child care management software investment of $3 per child, per month ($156 per year) could double your revenue and almost 20X your investment. That’s an ROI of 1923% for just one child.
If you’ve crunched the numbers with us up to this point, you’ll see that child care management software offers a substantial return on investment—and that’s only considering your time cost savings, reduced employee turnover rates and boosted enrollment.
Child care management software is all about helping you do everything in one place—and every minute/cent you save adds additional ROI.
For your final calculations, make sure to add up the time/cost of each business area and compare it to the time/cost savings with software. No matter what child care management software you choose, it will almost definitely beat the clock. And, if you include measurements for things like how long it takes to enroll a new student, sort payroll or bring in unpaid tuition fees, the numbers will just keep adding up. 📈👍
The cool thing about child care management software is that it does every job in one place. From enrolling students to paying your employees, you only need to invest in one tool, instead of twenty.
Of course, one tool also means just a one-time software set-up and one-time employee training. And, with a tool like MomentPath, setup’s quick and easy, and the features are tailored to your ECE business’s most important functions.
It’s hard to deny the impact investing in early childhood education can have on your budget and your bottom lines. With child care management software on your side, you can minimize your costs to maximize your time. It’s win-win. 👌