5 Biggest Challenges for daycare operators.

This article covers the 5 biggest challenges facing day care operators today. 2025

Here are the 5 biggest challenges daycare operators face in 2025, based on recent industry reports and expert insights

1. Staffing Shortages & High Turnover

  • 68% of childcare leaders cite hiring and retaining staff as a top challenge.
  • Many centers report turnover rates above 30%, with some exceeding 60%.
  • Low wages, burnout, and lack of training contribute to this issue.

Solution: Competitive compensation, professional development, and automation tools to reduce staff workload.


2. Enrollment & Family Retention

  • Nearly 70% of centers struggle to meet enrollment goals.
  • 42% of providers say fewer than half of families re-enroll after the first year.

Solution: Strong onboarding, personalized parent engagement, and centralized enrollment systems.


3. Administrative Overload & Inefficient Processes

  • Staff spend 7–9 hours per week on paperwork, lesson planning, and reporting.
  • Manual processes for billing, attendance, and licensing slow down operations.

Solution: Automation and integrated childcare management software to streamline operations.


4. Financial Sustainability

  • Rising operational costs and low profit margins are squeezing budgets.
  • Many centers lack visibility into their financial performance.

Solution: Digital billing systems, expense tracking, and data-driven decision-making to improve profitability.


5. Regulatory Compliance & Licensing

  • Frequent inspections and complex licensing requirements create stress.
  • Poor organization can lead to missed renewals or non-compliance.

Solution: Use digital tools to track compliance, licensing deadlines, and safety protocols.

Liked this post? Share with others!

Subscribe to our newsletter

Collect visitor’s submissions and store it directly in your Elementor account, or integrate your favorite marketing & CRM tools.

READY TO WORK WITH US?

Commercial Resources has created this special division to support the Child Care Industry. Our “My Day Care Success“, team is build from experts in each side of the industry to ensure your Day Care Success!

 

Learn how we helped 100 top brands gain success