Food Company Hormel Plans $5 Million Daycare

Countless parents have been barred from entering the workforce due to the ongoing childcare crisis, but now some employers are offering it as a benefit. Come late April, SPAM-maker Hormel is set to build a $5 million facility catering to up to 130 children of employees and community members in Mower County.

What’s going on:

In an effort to attract and retain working parents, SPAM-maker Hormel is building a $5 million daycare center in its hometown of Austin, Minnesota.

Scheduled to start construction by late April, the facility will be capable of accommodating 130 children, as well as a few spots for non-employee residents.

Why it matters:

The childcare crisis has kept countless parents from entering the workforce, and while employers are increasingly offering childcare as a benefit, it is still a challenge to secure affordable care.

“You don’t have a workforce if you don’t have childcare that they’re able to rely on,” Angie Bissen, Hormel’s manager of HR business partners, told Axios.

How it’ll impact the future:

Hormel is the latest to join the increasing number of companies that are providing childcare facilities to appeal to parents in the highly competitive labor market. With the recent tax incentives, some of the initial expenses and likely losses associated with the launch of these centers can be covered.