BENEFITS OF CHILD CARE FOR EMPLOYERS
Discussions of child care nearly always center on the desired benefits of such programs for working parents and their children. But some analysts believe that employers can also reap significant benefits from good child care arrangements. This accounts for the steady growth in the percentage of companies that offer some manner of child care assistance to their employees. In 1999, for instance, Hewitt Associates conducted a survey of U.S. employers that indicated that 90 percent of respondents offer child care assistance to workers.
This increase in child care assistance can be directly traced to concerns that employees who are grappling with child care issues are less productive than those who are unencumbered. These workers spend sometimes large amounts of company time on the issue (calling about possible providers, checking on the well-being of sick children, etc.), may fall victim to tardiness, and typically miss several days of work each year due to child care situations. Indeed, studies conducted in the early 1990s indicated that one out of three sick days taken by a working parent is actually due to child-related illnesses that preclude the child's presence at school or his or her usual day-care provider, and that other child care problems can siphon off another seven or eight days of employee attendance on an annual basis.
Some businesses, meanwhile, allow parents to occasionally bring their children to work with them when child care plans fall through. In some business environments, this may not result in dramatic reductions in productivity, but in other settings—such as office environments—this can result in significant productivity downturns for both the parent (who has to divide his or her time between work and child supervision) and co-workers, who are often distracted by the presence of the youngster. Finally, some businesses permanently lose valuable workers who decide, after having a child, that the expense and hassles associated with day care make returning to the workplace a questionable strategy.
Given the above factors, many experts believe that small and large businesses alike should investigate ways in which they can help their employees secure acceptable child care arrangements. By doing so, they may well reap increased benefits in the realm of worker productivity. In addition, they are likely to find that having a program of child care assistance in place can be a tremendous boon in recruiting efforts, and that child care provisions can help companies retain employees who might otherwise stay at home or leave for a competitor that offers meaningful child care benefits.
Finally, companies may find that providing child care programs to workers is not nearly as expensive as they believed, since the provision of child care assistance is tax-deductible to employers. From a company standpoint, assisting employees with their child care needs is good business. A well administered child care program can save a company more money than any other employee benefit. It allows a company to recruit employees more effectively, to reduce turnover and absenteeism, and to increase the productivity of employees.
RESEARCHING EMPLOYEES' CHILD CARE NEEDS
Prior to settling on a methodology by which to help working parents in their employ, businesses should first do some research to learn which alternatives will do the best job of meeting the needs of both the company and its workers. The first step in establishing a sound child care plan is to determine what a company's goals are, what type of corporate culture exists, and how much money it is willing to spend. A child care plan that does not adequately integrate these considerations will almost certainly perform inadequately or fail. In addition, small business owners should make sure that child care is a pressing issue before investing time and money into finding solutions for it. "Make sure that you have a problem in the first place," wrote Dayton Fandray in Workforce. "And if you find that a problem exists, measure its dimensions in terms that you can quantify—before you try to fix it."
Employers should consider disseminating a questionnaire or find some other means of assessing the needs and desires of their work force. In addition, business owners and managers should take a good look at the demographic make-up of their employee roster. After all, a company that employs relatively few people under the age of 40 is far less likely to need a comprehensive child care assistance plan than is a business that employs large numbers of women under the age of 35. "Ask how many would be involved in some kind of child care arrangement, the ages of their children and their current arrangements for having those children taken care of," one management consultant told Nation's Business. Employee impressions of various child care options and the amounts they are willing to contribute to employer-assisted child care programs should also be solicited.
From there, businesses should investigate the community in which they operate. By checking out what programs the surrounding communities already have to offer, as well as determining both the resources and barriers to starting new ones, a company can be sure not to overlook existing services. Taking advantage of existing services and possibly subsidizing those services is a more economical solution than try to start from scratch. Finally, companies should try to find ways to accurately evaluate return on investment in their child care policies. This return on investment can take many forms, from increased loyalty and productivity to growth in employee retention rates.
CHILD CARE ASSISTANCE OPTIONS FOR SMALL BUSINESSES
In the past, business enterprises have associated child care almost exclusively in terms of on-site centers, which have been viewed as excessively expensive to build and operate. But proponents of such facilities contend that those opinions are based partly on misconceptions. In addition, child care experts and business consultants alike point to several other options that may be viable for employers, including those of small size. These options include company consortiums, outside referral services, salary reduction plans, and reimbursement plans.
