8 Daycare KPI Cards to Track and How to Calculate

A well-run daycare business is profitable. The more you know about the metrics that matter, the better your chances of success. In this article, we’ll cover all the essential metrics for measuring your daycare center’s performance against its goals.

1. Average Daily Prevalence (ADA)

Average Daily Attendance (ADA) is a measure of the average number of children attending daily. ADA is an important metric for child care centers because it is used to determine the number of children that can be accommodated, which in turn affects operational efficiency and profitability. If a calculator or computer program is available, you can calculate your ADA by dividing the total number of children present by the number of days those children were present. If you don’t have access to such technology, however, there are still ways to keep track of this information using pen and paper: simply write down the number of children attended each day before calculating your final average .

The DAAs you calculate should be tracked on a monthly basis so that management has access to monthly reports detailing the number of children who have attended the daycare over time – this allows them to better understand when certain facilities may need upgrade or expand based on increased usage during those months (or years). You can also compare data over several years by keeping past attendance records so management can see if there have been any significant changes over time; These types of comparisons will help inform decision-making regarding budgeting and expansion plans as well as other directly or indirectly related areas.

2. Daycare occupancy rate

To calculate the occupancy rate, you must divide the number of children registered in your care by the total capacity of your establishment.

For example, if there are 25 children in a daycare with a capacity of 30 and they all show up on Monday, their occupancy rate is 83.3%.

The occupancy rate is used as a benchmark for how well your daycare is doing. If it’s too low, it could indicate that demand for your services isn’t as high as expected or that there are issues with some aspect of your business model – for example, if people aren’t unable to afford to enroll because the prices are too high Or if the parents do not trust you enough due to negative reviews from other parents who have used similar programs.

On the other hand, if it’s too high (say 100%), some metrics like revenue per customer will be distorted: because everyone who wants those services has already signed up with no room at all! So make sure you don’t get carried away here – sometimes being full means having more customers than the available space which isn’t always ideal either…

3. Daycare retention rate

As a daycare operator, you want to know how many of your children are coming back for more than a year. This metric is called the retention rate and it is expressed as the percentage or number of children who return for the second year divided by all the children present during their first year:

Retention rate = Number of children returning for a second year / total number of children who attend your daycare during their first year

Let’s say your daycare has 100 children enrolled in its toddler program. If you have students moving away or deciding not to return after their freshman year, then by the end of next summer (or whichever time period applies) you have 97 toddlers left. in your establishment. To find out what percentage they represent of all those enrolled in their first year (the total here being 100), look at this formula:

97 / 100 = 0.97

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4. Parent Satisfaction Score

A parent satisfaction score is one of the most important metrics to track in daycare. It tells you how your customers feel about their experience with your business, so knowing where to improve and what factors are making your customers unhappy is crucial.

To calculate a parent satisfaction score, simply take the number of positive reviews minus negative reviews on each platform and add them together (positive reviews + negative reviews – 0).

For example, if there were three positive reviews out of five total ratings on Google My Business and four negative on Yelp, we would have:

Parent satisfaction score = 3 + 4-0 = 1

It is also important to note that this metric can change over time as well as by platform. For example, if a business has a majority of bad reviews across all platforms, but then starts improving customer service or adding new features for parents via social media updates like Facebook Live Videos on new promotions or events at their location then this metric will go After a while as there will be more positive than negative customer feedback posted online now versus earlier when there were no efforts to improve yet things here!

5. Child to teacher ratio

The child to teacher ratio is one of the most important daycare metrics you can track. The relationship between the number of children and the number of teachers in your center impacts how well your staff can care for each child, as well as the time they spend outside of the classroom learning from new things.

The ideal ratio of children to teachers is 6:1 (or 3:1 if you’re only looking at infants). This means there are six toddlers or three infants for one adult caregiver at any time, but it does not mean that a group with two toddlers will have two adults caring for them! The way it works is that each class has its own set of adults who are responsible for cleaning up after snack and nap time, monitoring behaviors throughout class, helping kids with their art projects or experiments. scientists.

There are many benefits to keeping your child-to-teacher ratio low: the first is that lower ratios lead to higher test scores in all subjects, including reading comprehension skills; Another is that young children tend not to be alone when there’s someone around all day who cares about what’s going on in their head too (meaning better behavioral outcomes).

6. Employee turnover rate

The employee turnover rate is the percentage of employees who leave within a given period. In other words, it is the number of employees who left during a given period divided by the average number of employees during this period.

To determine your employee’s turnover rate, follow these steps:

• Calculate your total number of employees per month (EPM). EPM is simply calculated by adding up all new hires for each month and subtracting any retirements or terminations from that group.
• Divide the EPM by 12 to get an average monthly number of employees (AMEC). For example, if you have 5 new hires and 3 retirements in January, AMEC would equal 8; However, if there were no new hires, but 4 people retired instead, the AMEC would equal 6/12 = 50%.

7. Economics of the daycare unit

The daycare unit economy is a measure of the cost of operating a daycare centre. It is important to understand this measurement as it can help you make the right decisions.

For example, if your daycare economy is positive, you are making money in the short term. But if it’s negative (or even firmly), you need to figure out how to cut costs or increase revenue until it turns positive again.

Here’s how to calculate your daycare savings:

Gross Profit (G) = Total Revenue – Cost of Goods Sold

Earnings before interest and taxes (PBI) = G – operating expenses

8. Daycare break point

The breaking point is the point where your daycare business is no longer losing money. The equation to calculate the even break point is:

• Fixed costs (monthly expenses) divided by average attendance = breakage of cash Point in sessions
• Average revenue per session (average session price minus average discount) multiplied by average attendance = total revenue needed to reach breakout even

Breakpoints in sessions divided by average attendance = average revenue per session needed to reach the break even

Understanding your business and how it works will help you make better decisions.

The most important thing to remember about KPIs is that they are a tool, not the end goal. Your goal should always be to make better decisions, whether that means hiring more staff or firing them, changing your marketing strategy, or keeping things the same.

To do this effectively, you need to measure and monitor your business performance on an ongoing basis. Here are some tips for doing so:

• Understand your model – what makes your business unique? How it works? What are its main strengths and weaknesses? If you can’t answer these questions (or at least give an educated guess), you’ll never know if something unexpected is happening in your business – and therefore how best to answer. This will also help with benchmarking (see below) and identifying areas where performance needs improvement so that they can be addressed appropriately.

Conclusion

In this article, we’ve outlined six key metrics you can use to track the performance of your daycare business. As you can see, there are many different types of KPIs that can help you understand what’s going on in your business. The important thing is to figure out which ones will be most useful for tracking progress towards your goals, then measure them regularly so you have a benchmark to compare against.