THE range of topics likely to feature “on the doorsteps” when the next general election comes round is rising every day, but top of the list for an increasing number of people is the cost of childcare. For small business owners, however, it is already a hot potato.

A new study by Isme, a small business lobby group, indicates that at €180 per week on average, the cost of childcare in this country is now some three times higher than the rest of Europe. Looking after children now accounts for more than a third of a typical worker’s take-home pay.

Given these figures, it is no surprise that Isme has identified childcare as a stumbling block to recruitment at a time when small businesses are already struggling to fill vacancies. The organisation says that until such time as a comprehensive childcare policy is introduced, there is little prospect of attracting significant numbers of additional women into the workforce.

Like many business owners, the Dublin jeweller Mark Appleby sees the issue as a significant challenge for employers. The 50-year-old family firm reckons the best way to retain staff with parental responsibilities is to think long-term.

“The majority of our staff are women and we have a very low staff turnover,” said Appleby. “We rarely lose members of staff to a competitor. However, there does come a time for many when they feel they have to leave for childcare reasons.”

The company’s greatest achievement has been its success in encouraging female staff to return to the workplace when their circumstances change, regardless of how long that may take.

“We invest an awful lot in staff in terms of training, so we always let them know we’d like them to consider coming back,” Appleby said. “In fact, the very first employee we took on 50 years ago left for many years to raise her family and is now back with us.”

The Organisation for Economic Co-operation and Development (OECD) predicts that 220,000 childcare places will be needed in Ireland by 2010. That is the equivalent of an additional 15,200 places every year for the next five years. Nor is the problem confined to urban areas. Research commissioned by Mayo county council’s childcare committee found that not only was lack of quality childcare a barrier to labour market entry, but it was also retarding promotion prospects. Many women reported avoiding career advancement for fear of incurring greater hours and, consequently, childcare costs.

“Employers need to recognise the importance of childcare, not only for their employees but also for their businesses,” said Ciara Kane, the author of the Mayo report. “Good childcare policies increase productivity and reduce absenteeism.”

One UK survey found that 49% of companies that introduced family-friendly initiatives reported an increase in productivity. Other advantages include reduced staff turnover, less absenteeism, improved customer service and greater employee motivation.

An emphasis on the work/life balance also aids recruitment. One poll of 4,000 job-hunters found a third would prefer flexible hours to an extra €1,000 a year. Just under half chose flexible working as the benefit they would most look for in their next job.

“Large-scale public- and private-sector companies find it a lot easier to implement family-friendly policies, but in our experience small firms often feel it is impossible,” said Jim Power, the co-ordinator of Mayo’s childcare committee.

Noreen Fitzpatrick of Education and Training Services, an organisational development trainer specialising in work/life balance initiatives, is more optimistic. “My own company is a small firm that employs 15 people, but we have a comprehensive set of flexible working practices open to us. The problem is that too many small firms simply don’t think outside the box.” She said the tightening labour market will encourage more companies to do so, and added that family-friendly initiatives don’t have to be costly.