It’s obvious what working parents gain from on-site day-care programs: reliable, safe, and convenient care for their children. But what do the employers get out of it?
Let’s start with happier and more productive employees.
In a report by the National Conference of State Legislatures, employers cite child-care issues as causing more problems than any other family-related issue in the workplace, with increases in absenteeism and tardiness reported in nine out of 10 companies. And 80% of the companies surveyed said that work days were cut short because of child-care problems.
Child care benefits the employers who sponsor it by improving employee morale, reducing turnover and absenteeism, and increasing productivity.
And pampering bottoms might just help the bottom line. A cost-benefit study conducted by Cynthia Ransom and Sandra Burud at the Union Bank in Pasadena, Calif., showed the institution’s on-site day-care program saved it $138,000 to $232,000 in annual operations costs, due to the reduction in both turnover and absenteeism.
Child-care services enable employers to gain wage savings, too. For the book Kids at Work: The Value of Employer-Sponsored On-Site Child Care Centers, authors Rachel Connelly, Deborah S. DeGraff, and Rachel A. Willis studied hundreds of employer-sponsored child-care programs and interviewed some 1,000 employees. Their research demonstrates on-site day care is not only affordable but also profitable. The researchers estimated savings in wages of $150,000 and $250,000 for just two companies that provided on-site day care.
A majority of workers were willing to pay, on average, $125 to $225 per year to subsidize on-site day care—whether or not they had young children. That’s right—even nonparents said they’d chip in, because they believed it would help raise morale and increase productivity.
"It shouldn’t be so surprising that people who work with one another for five or more years should care about one another and that that actually translates into economic behavior," says Connelly. Kids at Work, she notes, offers some models for calculating the benefits.
"Maybe your CEO or HR person can take a risk," adds Connelly. "It can be a case of, ‘If you build it, they will come.’"
Employer-provided on-site day care won’t solve the child-care problem for working families, and in many cases is unrealistic. Let’s face a relevant fact: The real burden of caring for children falls disproportionately on women, who in the U.S. still perform twice as much child care and domestic work as men.
How many working women have employers who could consider providing such services? In the U.S., professional managerial women make up only about 8% of the female workforce, whereas 27% of women hold low-wage blue-collar jobs.
A third of all families with children have incomes not far above the federal poverty level. In New York City, single working mothers (many of them employed in the service sector) suffer the highest rates of poverty. Do we really believe their employers will take up the expense of caring for their children?
Besides, large or small, no employer should be in the business of child care, any more than it should run on-site hospitals, dental clinics, or high schools. On average, children under the age of 5 with working mothers spend 36 hours per week in some type of care. In an era when fewer Americans receive health insurance through work (only 55% now, and the numbers are declining), tying essential child-care services to employment is unrealistic, a poor strategy that doesn’t serve the interests of either working families or businesses.
Families need flexible work schedules, including longer, paid maternity leave for mothers and fathers; access to quality part-time jobs; pre-K and afterschool programs; universal health coverage; and an end to the gender discrimination that privileges men’s work and careers at the expense of women’s earning power.
Evidence suggests paid maternity leave keeps women in the workforce, increases their productivity, and ultimately contributes to the overall competitiveness of the U.S. workforce.
Publicly financed European models offer gender parity, flexible time that’s responsive to the changing needs of maturing families, and increased competitiveness for companies freed from the high 30% benefits load typically carried by U.S. businesses.
On-site day care would seem to promise the best of both worlds—employees working away at maximum productivity while their children are safe and sound—but that’s an illusion. Infants must be nursed. Sick children need to go to the doctor. Eighth-graders need supervision after school.
Nearly all parents, mothers and fathers, wish they had more time for their kids. But the answer isn’t to bring them to work.
Opinions expressed in the above Debate Room essays are for the sake of argument and do not necessarily reflect the views of BusinessWeek, BusinessWeek.com, or The McGraw-Hill Companies.Every little bit helps. Yes, it's not a cure-all. But it helps. Stop whining about needing a Big Picture fix and bashing anything that's not Big Picture. Just implement as many fixes as possible and get it done already. Jeez!
As Ms. Adams correctly points out, "Infants must be nursed. Sick children need to go to the doctor. Eighth-graders need supervision after school." Will the day-care people nurse the infants, and will they take them to the doctor? It sounds like a good idea, but I wonder how workable it is. Kids need their parents to take care of them, not some day-care worker. Flexible work schedules and extended maternity leaves are better choices. It seems to be working in Europe and Scandinavia.
The pro and con sides aren't mutually exclusive. Even with longer maternity leaves and flexible work hours, sooner or later most of us have to go back to work, be it the office or the assembly line. Having affordable day care at work would solve a lot of problems, including the cost of care and the double commute&emdash;to the day-care center and then on to work.
If the business can afford it as a benefit, then by all means. But most businesses can't afford it. That's the bottom line. Might as well talk about full medical insurance, nap rooms, cafeterias, driving ranges, and half-pipes on company premises. Some ideas just cost too much.
There's a worldwide labor glut, so American companies don't need to provide these costly services. Just hire someone with no kids, and cut costs. The savings can be passed on to shareholders.
It's one more benefit that helps some employees at the expense of others. I've seen enough places where benefits designed to be family-friendly instead make the company very single- or childless-unfriendly.
I have a friend whose employer has a point system. The employees can then choose which benefits (insurance coverage and premiums, parking, concert tickets, etc.) are worth it to them.
I do not shop at Wal-Mart any more, because every time I go there and find a product that I think is a good buy, when I get it to the register, it is another price.
Let's get real. We don't need either on-site child care or flexible schedules; we need both on-site child care and flexible schedules.
On-site child care is beneficial primarily to parents with younger children. Once they're at school, however, flexibility is key.
It's true that babies need to be nursed, and older kids need after-school care. Mothers can pump their milk, or have time to nurse their kids if they're in an office day-care setting. If a company can have a care facility for infants and young kids, then it could also have an after-school program for older kids. Having a day-care center or after-school program close to office parks or factories would be another solution. Yet another solution would be for some people to work from home, if their job allows it (obviously this isn't an option for an assembly line worker).
All kids get sick, so all parents need flexible schedules.
As a full-time working mother, I would love to see any benefit for kids and work. Unfortunately, we live in a society where both parents (if there are 2) have no choice but to work full time in order to make ends meet. So, I would love to see any benefit come my way. I currently work at a job where I get no paid maternity leave, and no benefits of flexibility when my child is sick, etc. I would much rather take job flexibility over on-site daycare. But then again, I will take anything at this point!
I was a working mother of young children, and I would have paid a premium to have my children in care close to my office. By premium, I mean I actually would have paid more than I did at a private pre-school. I'm sure I'm not alone. I would have eliminated at least 30 minutes of pick-up and drop-off time every day, and I also would have had the added benefit of getting to know my co-workers with children better, which would have been a big morale booster. I don't think companies need to make this a "benefit." They simply need to facilitate it.
My wife and I are both working full time. Hence the challenge for both of us has always been to work out the 30-60 minutes transit time and the unpredicatable traffic during the peak period. The problem is even worse when one of us is away for a business trip.
If nothing else, having on-site day care would sure help to reduce the traffic issue.
Special benefits should not be given to people with kids. How about those taking care of sick parents? Pets? Why should those with kids get preferential treatment? Working from home is a good solution for everyone whenever possible. This protects the environment and helps those who have to care for others.
Having on-site day care would also in the long run shorten the length of maternity leave and save employers money there. I know I'd be willing to go back sooner, because my child would be so close and I could schedule nursing breaks (think about all those smokers taking smoke breaks!) into my day.
My name is Richard Fletcher, and I am attending the University of Phoenix. I am writing a final project on convincing my company of a new service that they need, and I am choosing to write about a new day care in the company. Any information on how to convince the owner, manager, two employees, and building facilities manager that we need a new day care would be very helpful.
I am currently enrolled at the University of Phoenix and working on my final project on convincing my company of my new proposal to add day care, and I have been doing a lot of research. I myself have kids, and to have day care inside my workplace would definitely be a benefit for me. It would help me with the traffic and save money on gas. I live in California, and the traffic is horrible and the gas prices are high as ever. I wouldn't have to worry about sitters during the school breaks and taking time off during the summer to watch or arrange day care. That right there is a big benefit as when the kids are out of school, it's very hard to find day care. My kids are in middle and elementary school.
My name is Natalie, and I am also attending the University of Phoenix. I have chosen the same topic for my final project. I think that child care should be a benefit option that companies offer. I was working full time and had my one-year-old in day care, I spent almost as much in day care as I made, and I had to drive across town to pick up my daughter after I got off. I ended up quitting, because it would be better for me to take care of my daughter and make a little less money than to work to pay for day care. If I would have worked for a company that would have offered day care, I would have been happy to pay as much money for day care, because I would have saved money in the long run not having to drive back and forth all over town. I would like to say good luck on your presentation to the two people who are attending UOP.
I am also doing my project on day care in the workforce. I have two children, and one of them is in day care. I think that it would benefit so many people to have day care within the workforce.
I am also attending the University of Phoenix and am using this topic for my final presentation. I have four children, and I would love to have the opportunity to bring my daughter to a day-care facility within my workplace. This would save countless hours of drive time. With the economy the way it is and gas prices so high, think of the cost effectiveness of having such an opportunity.
Many are stuck on the "some companies just can't afford it" kick. But did you miss the part where it said companies have saved up to $225,000? Hello. Don't you think that children deserve to have their parents close and vice verse? No, the child care worker won't take that child to the doctor or nurse the child, But that's what breast pumps are for. It is safer and less stressful on the hard-working mother. If the child gets sick, that child-care worker can call the parent's extension, and the mother doesn't have to worry about traffic or getting to the baby on time. She or he is less stressed about his or her child's wealth fare, thus more focused on his or her own duties at work.
I feel that the companies that can afford it should have on site day care. If not, then there's nothing that can be done. Yet to start a new trend, always bring in benefits for employers and workers. I feel that it is a start to help with the problems both employees and workers face. And there can be an on-site nurse if the child gets sick who would help out greatly.
I am attending Axia College of the University of Phoenix. I thought my idea for a final project of opening a day care was original. Guess great minds think alike. Hope you all did well on your projects, and hope that I get an A.
I myself attend the University of Phoenix, and I am also doing day care in the office as my final project. Guess others were on the same page as me. Oh well, may we all get A's!
Wow, I am really surprised that so many of us have the same idea. I also attend University of Phoenix, Axia College, and this is what I chose for my final project.
I am also at the University of Phoenix doing the same type of project. I am really thrilled to hear that so many people feel the same need for an on-site child care facility. I have two children and have been out of work for seven months because I am trying to find a job that constitutes the cost of child care.
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