Why Workshare Programs Are a Better Choice Than Layoffs for Your Childcare Center

At Honest Buck Accounting, we know how challenging it can be for early childhood education owners and childcare directors to make tough staffing decisions during difficult times. With changing enrollments and budgets feeling tight, layoffs might seem like the only option. But what if you could keep your valued team members and maintain a stable environment for your children and families—without breaking the bank? That’s where workshare programs come in!

What Is a Workshare Program?

A workshare program allows you to temporarily reduce employees’ hours instead of letting them go. The best part? Employees can make up some of their lost wages through government-supported unemployment benefits. This means your center can cut costs while keeping your dedicated team on board.

How Does Workshare Work in Childcare?

Let’s say you have four teachers, but enrollment drops and you can only afford to pay for two. With workshare, instead of laying off two staff members, you can reduce everyone’s hours. State programs offer partial unemployment support to help cover the shortfall, so each teacher keeps a steady income and their benefits—like health insurance and retirement plans.

Benefits for Childcare Owners:

• Retain your experienced team. When things pick up, you won’t have to scramble to re-hire and train new staff.
• Preserve workplace culture. Kids (and families) see familiar faces every day.
• Financial stability. Lower payroll costs while ensuring your center runs smoothly.

Why Is This Better Than Layoffs?

• Everyone wins: Staff stay employed and motivated, and kids have the consistency they need.
• No long-term disruptions: When enrollments rise, you’re ready to grow again—fast.
• Keeps morale high: No one likes saying goodbye to trusted teachers and friends!
• You save on hiring and training costs down the line.

How to Get Started

Many states have simple application processes for workshare. Typically, you submit a plan showing which staff would have reduced hours and by how much. Programs like Shared Work Ohio or your state’s Department of Labor website are great starting points.

Pro Tip: Consider using a payroll software like Gusto to help track work hours and manage benefit payments seamlessly.

Ready to Give It a Try?

If you’re worried about making payroll but hate the thought of losing your team, Honest Buck Accounting is here to help. We can walk you through the financial side, set up your payroll for workshare, and make sure you’re maximizing every benefit available.

Want more info? Check out Gusto’s payroll management for easy teamwork scheduling and payroll tracking, and visit your state’s labor department website for shared work programs.

Let’s keep your childcare center strong—together!