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The Conterence Board
Volume 5, Number 4
Winter 1995
Work-Family Roundtable
Child Care Services
A survey of work-family professionals finds:
child care resource and rejerral services and dependent care flexible
spending accounts are the child care services most commonly offered
over one-third of responding companies sponsor on-site or near-site
child care centers
on average. employees pay less than 20 percent of the operating costs
for child care services
almost half of respondents' firms offer adoption assistance
Serving Business and Sociery Since 1916
FROM THE EDITOR
METHOD
A significant percentage of Americans believe that
employers should play a major role in providing child care
For the purposes of this report. "child care" is defined as
assistance to employees. This is not surprising given the
the daily supervision of and responsibility for infants.
number of dual-income households in the labor force.
preschoolers, and school-age children inside or outside the
home.
Senior executives are having to decide whether to imple-
ment child care services and to what extent. in light of the
fact that child care-related absences result in substantial
The sample for this study consists only of organizations that
costs to companies.
have experience implementing work-famiiv/life programs. It is
This issue of Work-Family Roundtable revisits child
not intended to be a representative sample of all companies.
care services as a significant component of work-family
This report is based on the Fall 1995 survey of The
initiatives and presents the current status of such programs
Conference Board's Work-Family Research and Advisory
as reported by our panelists. Panelists discuss child care as
Panel. The questionnaire consisted of open- and closed-ended
a corporate issue in general and report on the child care
questions about the availability and utilization of a variety of
services most offered. consortium arrangements. and
child care services. The survey included specific questions
employer-sponsored services. The Roundtable describes
about on-site and near-site child care. consortium membership.
the benefits of offering child care services. the difficulties
the benefits and difficulties encountered in offering child care
in implementing such programs. and current trends. An
services. and child care options that may be added in the future
international perspective on child care practices is
The 139 responding companies are diverse in terms of size.
presented for the first time.
with 28 percent having under 5.000 empioyees. 40 percent havir
As part of an overall work-tamily strategy. child care ser-
up to 25.000. and about one-third ranging from 25,000 to more
vices continue to be an important human resource issue and
than 200.000 employees. The organizations included represent
present challenges in implementation for most companies.
financial services firms. manufacturers. consultants. academi-
cians. and government agencies. Additional information was
provided through follow-up interviews with panel members.
The Work-Family Research and Advisory Panel is compose
of a select group of individuals throughout the United States.
Louis Csoka
Australia. Canada. and Europe who have had experience imple
Editor
menting work-family/life programs. (A list of organizations
represented on the panel can be found on page 15.) Members
selected from companies with a demonstrated commitment to
ABOUT THE AUTHOR
work-family issues and established programs in this area. The
Deborah Parkinson IS a research analyst in the Human
panel is surveyed four times a year on different work-family
Resources/Organizational Effectiveness division of The
topics.
Conference Board. In addition to her roie as principal researcher
and author for Work-Family Roundtable. Ms. Parkinson writes
ACKNOWLEDGMENTS
for HR Executive Review. represents The Conference Board on
the Work-Life Strategies Council. and recently contributed to a
A special thanks to Michael Wheeler and Kay Worrell for
report entitled Individual Incentive Programs.
their assistance in developing the questionnaire. and to all of
the panelists and child care professionals who participated in
WORK-FAMILY ROUNDTABLE (ISSN 1060-930X is published
follow-up interviews.
quarterly by The Conference Board. Inc.. 845 Third Avenue. New York. NY
Research Support: Rosemary Branciforte. Jennifer LoNano,
10022-6679. Printed in Alpha. NJ. Second-class postage paid at New York. NY
and Sangeeta Ramcharan
and other mailing offices.
Editorial and Production: Norman Eng and Andrew Ashwell
POSTMASTER: Send address changes to Work-Family Rounatable.
The Conference Board. 845 Third Avenue. New York. NY 10022-6679.
Correction
Subscriptions: 589 for one year. Complimentary subscriptions are available
The last issue of Work-Family Rounatable. entitled Employee
to individuals at Associate companies. For information on how your company can
Assistance Programs. estimated that smokers cost employers
become a Conference Board Associate. call (212) 759-0900.
$38 million annually. This figure should have read $38 billion.
Copyright D 1996 by The Conterence Board. Inc.
The Conterence Board. 845 Third Avenue. New York. NY 10022-6679
All rights reserved.
The Conterence Board Europe. Chaussee de La Hulpe 130. bte 11. B-1050 Brussels. Belg'
Printed in the U.S.A.
The Conference Board of Canada. 255 Smyth Road. Ottawa. Ontario K1H-8M7, Canada
This document IS printed on recycled paper.
E-mail: [email protected]
Child Care as a Corporate Issue
A
n estimated 6,000 U.S. employers provide child care
The benefits provided range from direct services, such as on-
benefits for their employees. out of a possible six million
site child care. to financial assistance including vouchers and
(approximately I of every 1,000), according to the
flexible spending accounts. Employee contributions for these
Families and Work Institute. A recent Gallup poll revealed.
programs average less than 20 percent of operating costs. This is
however. that "68 percent of Americans think employers should
not surprising. however. since the two most commonly offered
play a role in providing child care assistance to employees."
services-child care resource and referral services and flexible
This expectation is not surprising considering the number of
spending accounts (see Chart 1)-are usually maintained at
parents from dual-income households represented in the labor
minimal administrative cost. Fees are significantly higher for
force. According to the U.S. Bureau of Labor Statistics. almost 58
on-site child care (see Chart 2 on page 51. which is a much more
percent of married women with children under one year old were
expensive provision. Specific programs and their features are
employed in 1993 (with only 17 percent of fathers caring for
described below. beginning with those programs that are most
infants). an indication that most parents must seek external child
commonly offered within respondents firms.
care providers while their children are still infants.
Child Care Services Offered
While some employers have not implemented child care
services because they think they are too costly. many believe they
Child Care Resource and Referral Services
are losing more by not providing them. The Child Care Action
These programs communicate the features and services of
Campaign. a New York-based advocacy group. reports that child
different child care arrangements to parents and employers.
care-related absences cost employers $3 billion annually. These
including information about the availability of programs. ages
costs are incurred from breakdowns in regular child care arrange-
of children accepted. hours of service provided. and the number
ments. children's illnesses. and difficulties in finding affordable
of years that centers have been in operation. Other services
quality child care. Therefore. organizations that provide child care
include the recruitment and development of child care providers.
services not only meet the needs of a vast number of employees.
the provision of parent guidelines for choosing child care. and
but report saving money by reducing absenteeism rates and stress
advisement to employers who are developing their own programs.
levels. thereby strengthening morale and enabling employees to
Resource and referral services are commonly offered because
be more productive. These programs can improve the public
start-up costs are low and because they serve the needs of many
image of companies. thereby enhancing their recruitment efforts.
parents. Additionally, statistical summaries can tell employers
which types of child care provisions are most needed within
1
"Most Favor Employer Role in Child Care. Survey Finds." National
their companies. Employers. however. may want to emphasize
Underwriter. Vol. 98. No. 3. January 17. 1994. pp. 17-18.
that these resources provide suggestions. not endorsements.
Chart 1
Child Care Services Offered
Child Care Program
Child Care Resource and Referral
78%
Flexible Benefits
72
Parenting Seminars
69
Adoption Assistance
47
Back-Up/Emergency Child Care
34
On-Site Child Care
31
Summer Camp
29
Near-Site Child Care
25
Employee Discounts
23
Sick Child Care
21
After-School Program
14
Family Day Care
12
Vouchers/Subsidies
7
School Holiday Program
6
0
20
40
60
80
100
N = 139
% of Companies Offering Programs
Work-Family Roundtable-Child Care Services
3
Child Care Services Offered
Dependent Care Flexible Spending Accounts/
recently been reported that 21 percent of major employers
Salary Reduction Plans
provide this type of assistance at an average cost of about
Under the Dependent Care Assistance Plan (DCAP). parents
$2,000 per adoption.
are able to set aside up to $5.000 annually for dependent care
Back-Up/Emergency Child Care
expenses tax-free. Many companies manage and contribute
to these funds by implementing flexible spending accounts.
These arrangements are used on occasions like school
holidays and snow days. weekend work days. and instances
Termed the most popular form of child care assistance"- due to
when the regular sitter IS ill. Children are usually pre-registered
its low start-up and administrative costs. a 1995 survey of over
and can then use a company-reserved space on a first-come.
1000 maior employers reports that over 80 percent of companies
first-served basis. A 1993 study by Hewitt Associates revealed
set up these accounts. and that in many firms. it was the sole
child care benefit offered. Employers are not required to pay
that 12 percent of companies offer this service. Back-up centers
reduce absenteeism and stress for parents who are suddenly
Social Security. unemployment. state and local taxes or worker's
without their usual providers. Reserving the right number of
compensation premiums on the amount.
spaces. however. can be difficult. Employers usually reserve one
A few restrictions apply to the use of dependent care accounts.
space per 200 to 250 employees since use of this service is
For instance. only services that involve actual child care. such
sporadic." Parents sometimes end up competing for space during
as day care centers. family day care. and nanny services. are
covered. while programs like resource and referral services and
popular periods like school vacations.
parenting seminars are excluded. Additionally, participants must
On-Site/Near-Site Child Care Centers
estimate the amount to be set aside at the beginning of the year
While employer-sponsored child care centers are often the
and funds that are not used within that year are forfeited. Also.
most recognized corporate child care provision. they are among
children have to be under 13 years old to be covered.
the least offered services. Companies should carefully weigh the
Dependent care plans "can fav or low-income employees and
costs and benefits of implementing this resource. On-site centers
provide extra subsidies for those parents who have the hardest
time paying for child care."⁴ Eligible families. however. may save
can greatly decrease absenteeism and turnover while improving
morale. productivity. and recruitment. But they can also be
more by applying for a child care tax credit than by participating
underutilized. evoke feelings of inequity among employees. and
in a salary reduction plan. Information should be available to help
incur tremendous costs for employers.
employees determine which option is best for them.
One issue to consider is that many parents prefer a home
Parenting Seminars
environment to an organized facility. and therefore place their
children in the care of a relative or in family day care. Fewer
This resource enables parents to exchange information about
than one-third of the 9.9 million U.S. children under age five
work-family issues while learning about such subjects as pre-
attended day care centers and nursery schools in 1994 (U.S.
natal care. child development. homework assistance. and
Bureau of Labor Statistics). Additionaily. some parents are
conflict resolution. Some programs also inform parents about
reluctant to put their children through long commutes to urban
community services and offer guidelines for choosing appropri-
areas. Therefore. before sponsoring an on- or near-site child care
ate child care options. Seminars are typically offered during
center. employers should evaluate several factors including
lunch breaks and after work. They are often an added service of
employee interest. operational costs. staff requirements. educa-
resource and referral agencies.
tional goals. and the number and ages of children that may be
Adoption Assistance
served. Further considerations are discussed in the box entitled
"Steps for Implementing an On-Site/Near-Site Child Care
This benefit covers such expenses as the legal fees. medical
Center" (page 71 and in the Panelists' Perspectives section
costs. travel expenses. and agency fees incurred during
(pages 8-9) highlighting why some organizations have chosen
adoptions. It is not considered a very costly benefit. however.
to implement this service while others have not.
because it is used by relatively few employees. Adoption aid.
say its advocates. also promotes equity within the workplace
Summer Camp/School Holidav Programs
by recognizing the needs of nonbiological parents. It has
Summer and holiday programs are important resources for
parents with school-age children when classes are not in session.
10
Joseph E. Benson and Arthur A. Whatley. "Pros and Cons of Employer-
Programs are sometimes operated on-site or in spaces leased for
Sponsored Child Care." Journai of Compensation and Benefits. January-
February 1994. PP. 16-20.
Hewitt Associates. Work and Family Benefits Provided by Maior U.S.
5
Hewitt Associates. Work and Family Benefits Provided by Major U.S.
Employers in 1993. October 1994.
Employers in 1994 October 1995.
+ Warren. Gorham & Lamont. "Child Care Services." HR Series: Policies and
6 Christine Many. "Working Parents Get Needed Back-Up Relief When
Practices. Vol. 3. No. 20. 1991 P :02: 1506.
Child Care Breaks Down." Business Insurance. July 31. 1995. p. 3.
+
The Conference Board
Child Care Services Offered
such occasions. Employers can also utilize established programs
school activities for children to alleviate the stress and distrac-
in community organizations such as recreational facilities.
tion that parents experience during the latter part of the workday.
religious institutions, and day care centers.
Experts advise that these programs should not be solely acade-
mic or an extension of the school day, but be "flexible enough
Discounts
to accommodate the different ages. needs. and moods of the
Employers sometimes make arrangements with specific day
kids. offering stimulating and interesting activities but not
care centers/chains to provide services for a lower fee to their
insisting on participation. They should provide space for
employees. The center gains a promotional advantage while the
physical exercise as well as a quiet area to do homework and
needs of employees may be met within their own communities
quiet activities. along with nutritious snacks.
at reduced rates. Employees. however. can only save at the
Unfortunately. a national study of 1.034 sites by the Education
designated centers. Additionally. companies risk being assoct-
Department investigating school-age programs revealed that
ated with problems that arise at these establishments.
many after-school programs do not provide adequate space for
quiet and physical activities or remedial help for children.
Sick Child Care
Providing quality programs through established community
These programs provide care for children who are mildly
organizations. however. can be a cost-effective way of serving a
ill with such ailments as colds or low grade fevers since "most
critical employee need and developing a positive public image.
day-care centers and schools send ill children home. fearing they
Family Day Care
will infect others and lacking the proper facilities to care for
them." Arrangements can be provided through hospital
Family day care describes child care that takes place in the
programs. sick care centers. family day care. and at special care
home of the provider. Sixteen percent of pre-school children.
rooms within regular centers. These programs are different from
including 22 percent of infants. are placed in this type of
other child care services in that more stringent sanitation policies
arrangement with a nonrelative (U.S. Bureau of the Census.
are required. more caregivers are available per child. specialized
1993). Interestingly. a 1994 Families and Work Institute study
training is necessary. and recordkeeping is more complex.
found children to be more securely attached to unrelated
caregivers than to relatives who cared for them. Family day care
After-School Programs
is the preferred choice of many parents because their children
The Bureau of Labor Statistics' (March 1994) reports that
are in a home environment. Additionally. they generally provide
over 75 percent of working parents have children between the
more flexible hours than child care centers and are usually more
ages of 6 and 13. placing 1.7 million children in before- and
willing to care for mildly ill children.
after-school programs. More companies are supporting after-
Fudith Berezin. The Complete Guide 10 Choosing Civid Care. The National
Dee Moran. "Saving Money as Curing for Children." The Wall Street
Association of Child Care Resource and Reterral Agencies in cooperation
Journal. August 22. 1991 n. A10.
with Child Care. Inc. Random House New NY, 1090. D 154
Chart 2
Employee Contributions Toward Child Care Costs
% of Operating Cost
Paid by Employees
47%
None
4
10
1 to 5
All Child Care
3
Services
2
6 to 10
0
(N = 121)
11 to 20
2
21 to 40
222
Employer-Owned
4
41 to 50
Centers
11
8
(N = 52)
51 to 60
13
61 to 75
8
11
17
76 to 100
56
0
10
20
30
40
50
60
% of Companies Requiring Employee Contributions
Work-Family Roundtable-Child Care Services
v,
Child Care Services Offered
Family day care providers are not always licensed or regulated
Additional Services
by the state. Variations exist in the number and ages of children
Several additional services that are becoming increasingly
that can be supervised. inspection requirements. and provider
popular were also mentioned by our panelists. One respondent's
qualifications. A popular option for businesses is the use of a
organization pays for overnight child care expenses incurred for
family day care network in which participating providers are
business needs. Other companies have even provided child care at
"required to comply with specific educational. developmental.
meeting sites for traveling parents. indicative of a trend reported
nutritional. health. and safety standards." In exchange. providers
by the U.S. Travel Data Center. which revealed that children ac-
receive such benefits as workshops. newsletters. and access to
companied their parents on over 13 million business trips in 1994.
toy-lending libraries. Additionally. they can participate in the
Lactation rooms. private areas "providing mothers with a
government's Child Care Food Program. which provides nutri-
stress-free environment in which to express milk. 10 are also
tious meals and snacks or reimbursement for them.
being provided by panelists' companies. These programs comply
with reports by the Surgeon General and other leading health ex-
Vouchers/Subsidies
perts that an infant's chances of developing illnesses and allergies
Companies sometimes give employees the option or choosing
are reduced by drinking breast milk during his or her first six
their own child care providers. for which the organization covers
months of life. Los Angeles' Department of Water and Power
a percentage of costs or all fees. or pays subsidies at a flat rate.
found that parents of bottle-fed babies were seven times more
The provider may be paid directly or the amount may De given
likely to be absent than parents ot breast-fed babies following im-
to employees. While employers risk incurring high costs
plementation or a lactation program: savings amounted to almost
through these arrangements. they are not charged with research-
$5 for each one spent on this service. Additional child care services
ing the child care programs and are less likely to be perceived
reported by panelists include family care libraries. Saturday day
as endorsing any particular providers.
care. flexible scheduling. and guaranteed loans to start-up centers.
9
Warren. Gorham & Lamont. "Child Care Services." HR Series: Policies and
10 Leslie Faught. "Lactation Programs Benefit the Family and the Corporation."
Practices. Vol. 3. No. 20. 1994. p. 102: 1311.
Journal of Compensation and Benetits. September-October 1994. pp. 44-17.
Consortium Arrangements
Consortium arrangements are joint ventures formed by
Chart 3
two or more employers to meet common work/life needs. It is
an increasingly popular method for addressing child care
Child Care Services Offered Through Consortium
concerns because many companies individually do not have
Child Care Program
enough employees with children to necessitate offering
Back-Up/Emergency
48%1
desired services. By joining a consortium. companies can
Child Care
provide a variety of child care programs while sharing costs.
Summer Camp
48
resources. liability. and administrative responsibilities with
Near-Site Child Care
42
other firms. Employers should anticipate a longer start-up
After-School Program
35
time to enable participants to confer about specific features.
such as goals. fees. enrollment procedures. and utilization
Family Day Care
19
rates.
Sick Child Care
13
Twenty-three percent of respondents offer child care
Employee Discounts
13
services through a consortium. The most popular consortium
program is back-up/emergency care (see Chart 3). a
Parenting Seminars
10
commonly shared service because of the random nature of its
On-Site Child Care
10
use. Near-site child care centers. utilized by 42 percent of this
Child Care
group. are also a popular consortium arrangement because
10
Resource & Referral
participating companies are able to offer all of the benefits of
Flexible Benefits
7
a child care center with fewer costs and enrollment require-
School Holiday Program
3
ments. Panelists report that consortium membership increases
available funding to begin and expand projects and makes
0
10
20
30
40
50
parents aware that the company is concerned about the
N 31
% of Consortium Companies Offering Program
quality and availability of child care options.
A Closer Look at Employer-Sponsored Child Care
E
mployer-sponsored child care centers may operate
children get older. While at least 90 percent of employers
through various arrangements. including hiring a com-
provide care for infants and toddlers. only 79 percent have
pany employee to run the center. using an established
kindergarten students. and fewer than one-third serve school-
provider to operate a company-owned center. creating a non-
aged children. These ratios may be attributed to the increase in
profit company to run the center. and contracting with an exist-
the availability of federally funded child care as children reach
ing owner and provider. Conditions that apply to each arrange-
kindergarten and grade school levels.
ment are listed in Table 1.
The majority of centers provide child care for 10 to 12 hours
daily. Only 2 percent of centers operate daily for more than 18
hours. extending care to second shift workers and employees
Table 1
Operating Structures for
with long work days. Additionally. only 8 percent provide sick
child care at these facilities.
Employer-Sponsored Child Care Centers
Thirty-one percent of these companies determine fees on a
OPERATOR
CONDITIONS
sliding-scale basis. Parents are paying the greater portion of the
tuition in most cases. Almost 80 percent of parents pay at least
A company employee
The company has the right to
50 percent of the tuition and operating costs at these facilities
hire and fire the operator:
(see Chart 2 on page 51.
more company control versus
greater liability.
Steps for Implementing an
An outside person or firm
Quick start-up time: the com-
On-Site/Near-Site Child Care Center
such as a local provider.
pany avoids daily management:
1. Conduct a needs assessment to determine the best
a branch of a chain. and/or
the contractor has liability:
a child care consultant/
child care workers are not hired
child care approach for your organization.
management firm
as company employees.
2. Establish a management-employee task force.
3. Determine program features (e.g., number of children,
A nonprofit company
The center may qualify for tax-
age groups, hours of operations. child/staff ratios).
established by the employer
exempt status. in which case the
4. Develop the educational program (e.g., philosophy,
through which the child
company can make charitable
age-relevant curriculum. goals).
care center is operated
contributions to the center: the
5. Determine the type of facility (e.g., new vs. renovated).
center is eligible to receive
6. Select the site.
grants/donations and participate
in the USDA's Child Care
7. Make financial projections that include the following
Food Program: federal funds
start-up costs: construction costs. consultation fees.
may be available for low.
training costs. licensing fees. permits. insurance cover-
income families.
age. marketing costs. and operating losses due to initial
underenrollment.
A contract with an existing
Little or no start-up time is
8. Estimate operating costs. including salaries and benefits
organization that owns and
required: not as many employ-
for teachers and administrators. staff development costs.
operates a center.
ees' children need attend the
facilities maintenance. equipment and supplies. and
center.
food services.
9. Plan a marketing strategy.
10. Plan for administration. considering such factors as
Panelists' Trends
staff management. resource development. parent
Fifty-two panelists report having a company-owned on-site
involvement. record management. and community
or near-site child care center. Only 21 percent have a company
relations.
employee operating the center. In almost two-thirds of cases.
11. Develop quality standards.
a contracted child care provider runs the center: 21 percent
12. Prepare the curriculum.
employ nonprofit providers. while another ++ percent have for-
13. Procure a license.
profit child care specialists. The remaining respondents use
14. Develop an evaluation mechanism that takes into
combined services. such as company employees who work with
account children's needs. the center's philosophy. and
a child care consultant and/or parent committees.
the extent to which the program meets the company's
In over 70 percent of cases. less than 5 percent of the com-
goals.
pany workforce is utilizing the child care center. In any single
company. no more than 40 percent of employees have children
Source: Warren. Gorham & Lamont. "Child Care Services." HR Series:
attending these centers. Enrollment seems to diminish as
Policies and Practices. Vol. 3. No. 20. pp. 1304-1306.
Work-Family Roundtable-Child Care Services
-.J
Panelists'
Why has your organization chosen not to implement an on-site child care center?
Ann Andreosatos
Heidi Kahl
Director. Work Family
Manager.
Programs and Benefit Services
National Human Resources
Fidelity Investments
Coopers & Lybrand LLP
Although the desire for an on-site center has been expressed.
On-site child care is a great idea for some organizations. but not
when employees were asked to compare the child care arrange-
ours. In order to be successful. a program like this must first and
ments they would ideally prefer with those that they could
foremost meet the real needs of your people. At Coopers &
actually utilize given their current situations. a prevalent need for
Lybrand. on-site child care wouldn't work because people do not
this service was not identified. The majority of our employees
come in to a central location every day: they commute to and
on Boston) commute via mass transportation. and most would
from chent sites over a wide geographic area. Also. since most
not be comfortable traveling with their young children on a daily
of our offices are located in the center of large cities where
basis. There would also be the matter of providing enough space
commuting IS often difficult. this service would not be appealing
for the facility to meet state regulations.
to most parents.
Additionaily. we have many large sites across the nation. so
We have found that back-up child care better meets our
equity between the sites is a concern. Access is also an issue
employees' needs. Saturday child care is also useful during our
because providing a high quality on-site center may lead to
busy season when our auditors and tax accountants need to
higher costs for parents than they are currently paying in some
spend time in the office on the weekend. In the work-family
areas. For these and other reasons. we would more likely
arena. there is rarely a "one size fits all" solution. and certainly,
consider supporting the development of a nearby center or
this is the case with on-site child care.
participation in a consortium.
Paul Zapka
Director. Employee Relations
Thomas J. Lipton Company
We hired an outside consultant to explore implementing an on-
transportation could be shared with their spouses instead of
site child care center. Their findings indicated that the return on
always being their own. Also. they were concerned about the
investment would take more than 10 years. At the headquarters.
problems that could occur when traveling on business.
employee demographics showed that there were not enough
We were also undergoing a TQM process that emphasized
people in need of this service to support a center. and therefore.
team building throughout the organization. Therefore. we did
participants from other firms would have been required. It would
not want to send the message that employees at other sites were
not have been a cost-effective investment.
being treated differently. especially in manufacturing units
In addition. we ran focus groups of our professional women
where many people work shifts that could justify a greater need
and found that a majority felt that even if we could cost justify.
for an on-site center. It would have run counter to our cultural
they did not want an on-site or near-site center. They felt that a
change process.
center closer to home was better because the responsibility for
8
The Conference Board
Perspectives
Why did your organization choose to implement an on-site child care center?
Scott Mies
Sharon Saunders
Director, Work-Life Benefits
Manager, Employment Services
Fel-Pro, Inc.
JCPenney Co., Inc.
In 1983. state and federal cutbacks on funding for day care led to
Through pre-planning research. we learned that child care wa
a shortage of affordable child care in our region. Additionally.
one of the most important needs for our associates. This neec
there were few quality child care programs available in our
coupled with senior management's support of programs to hel
community. Had this not been the case. providing subsidies
balance work and family. brought about the inclusion of a state
would have been an adequate solution: we would not have tried
of-the-art child care center in our new home office.
to reproduce what was already obtainable. This was not an
The center. which opened in 1991 with 10,000 square fee
option. however. so we decided to create our own facility.
has now been expanded to a 17.000 square foot accredited cent
Another important factor influencing the decision to imple-
serving the needs of 250 children. ages 6 weeks through kinde:
ment an on-site center was our human resource philosophy. We
garten. Feedback from parent surveys shows great satisfactic
have a long tradition of caring about our employees and their
with the center. Parents say they feel more productive and le:
families and felt that providing this service was the right thing to
stressed due to the convenience of the on-site location and tt
do. We also know from experience that this philosophy makes
high quality of service. Many of them appreciate the fact th:
good business sense. It makes for a better. stronger. and there-
they can see their children during the work day.
fore more productive workforce.
The center has brought a feeling of warmth to the facility an
shows our employees that the company is concerned about the
needs. This child care center is an example of how JCPenne
supports work/life initiatives.
Josephine Biosca
Consultant. HR Support Service
Sears Merchandise Group
When Sears moved its headquarters from the city to the suburbs.
may have been different because most of our city employe
we had the opportunity to build a state-of-the-art facility that
used public transportation and traveling probably would ha
could support the workforce in balancing their work and family
been difficult and expensive for them. The center. however. t.
needs. This was a drastic move for our employees and we
been very successful. We feel that II is helping us to achieve (
wanted to provide everything we could for them. including an
goal of becoming a world-class employer.
on-site center.
All of our slots tover 200) are now filled and we have had to
create a waiting list. Had we not moved from the city. the results
Work-Family Roundtable-Child Care Services
Benefits of Offering Child Care Services
P
anelists cite numerous ways in which their companies
Improved Public Image and Enhanced Recruitment
have benefited from offering child care services. Over
Efforts
half of them have found that these programs improve
employee morale and enhance the company's public image and
They enhance the sense of community and family.
recruitment efforts. while reducing absenteeism (see Chart 41.
They serve as a litmus test for an organization's family
Examples of comments are reported below.
friendliness.
Filling hard jobs can be facilitated by offering these
Higher Morale
services-even if the person doesn't intend to use them.
Programs have been a greater benefit with the public and
Employees know that these services are available 11 the
prospective employees than with active employees.
need arises. decreasing stress and positively impacting
Having a near-site child center is a great recruitment tool.
morale.
On-site child care center users report higher overall life
Increased Productivity
satisfaction.
Employees who utilize the near-site center have
Sick child care programs contribute significantly to
commented that having their children so close relieves
productivity. with a benefit-to-cost ratio of about 3:1.
their minds.
Resource and reterral services help people find child care
There IS J general feeling that family issues are tine to talk
more easily. enabling them to come to work feeling less
about and that the company cares about families.
stressed about the whole child care issue.
The peace of mind that comes from using our child care
Parenting consultations and seminars empower employees
resource and referral services has lead to happier. less
to manage problematic behavior and create a more
stressed employees.
balanced life. which has a beneficial effect on productivity.
Centers have helped to humanize the workplace.
Services have lead to happier. less stressed employees
Less Absenteeism and Decreased Tardiness
who can better concentrate on work.
Employees estimate that child care resource and referral
Services allow employees to attend work when they would
services save them 10 to 15 hours per use.
not normally be able to. such as when regular child care
breaks down: they literally put employees back on the job at
Lower Turnover
times when they would otherwise be required to stay home.
There is no question that both back-up day care and
We now have 3 92-percent retention rate of women who
resource and referral services are clear contributors to
take parental leave.
decreased absenteeism.
Providing near-site child care has lowered turnover.
Chart 4
Benefits of Offering Child Care Services
Benefit
Higher Morale
62%
Less Absenteeism
54
Improved Public Image
53
Enhanced Recruitment
53
Increased Productivity
52
Lower Turnover
37
Decreased Tardiness
35
0
10
20
30
40
50
60
70
N = 139
% of Companies Citing Benefit
Board
Difficulties in Implementing Child Care Services
W
hile less than half the panelists reported difficulties
Perceived Inequity
with offering child care programs. several mentioned
specific concerns. At least one-quarter have encoun-
It is difficult to provide equitable treatment for field and
tered cost concerns on the part of both employees and their
headquarters employees; some field offices are not large
companies, as well as perceived inequity among employees. low
enough to warrant the same arrangements.
utilization rates. and communication gaps (see Chart 5).
Much of our population is young with no dependents and
Examples of difficulties cited are as follows:
we feel our benefits package should be equitable for all.
Transforming child care from a specific "parent benefit" "
Organizational Costs
part of a larger "life cycle" strategy is still a challenge that
conflicts with corporate culture.
Start-up costs exceeded our expectations.
We run an extremely high-quality center and operating
We were concerned that our field office employees and
employees without children would question our decision
costs are high.
to build a back-up child care center at the home office.
When costs rise and tuition costs increase. employees
One major problem has been providing on-site child care
sometimes expect the company's subsidy to increase
services to all employees regardless of income.
rather than absorbing the difference in their annual
tuition.
Rumors started that one site was getting free child care.
An external consultant advised us that we could not cost-
Low Utilization
justify building and operating an on-site center.
Dependent care spending account utilization is low
Employee Costs/Affordability
because of concerns over "use it or lose it" provisions
Even with discounted fees and the company paying the
and the time lag between payroll deduction and
balance for center-based infant and toddler care. employ-
reimbursement.
ees find the care very expensive for these age groups.
Some employees are reluctant to use emergency back-up
Many of our clerical staff members use family or friends
care that requires leaving a dependent at home with a
to provide child care because they simply cannot afford
stranger.
even subsidized day care or family care programs.
Many of our employees use extended family members to
Higher-salaried employees use on-site child care services
provide child care services. and so do not utilize the
more because they can pay.
voucher program.
Chart 5
Difficulties Encountered in Offering Child Care Services
Problem
Organizational Costs
41%
Employee Costs
39
Perceived Inequity
33
Low Utilization
27
Communication Gaps
27
Limited Availability
26
Monitoring Quality
13
Liability Protection
5
Inadequate Staffing
4
0
10
20
30
40
50
N = 139
% of Companies Citing Problem
Work-Family Roundtable-Child Care Services
Difficulties in Implementing Child Care Services
Communication Gaps
Infant care is so much in demand that waiting lists have
We experienced some communication gaps with the
become a normal practice.
former management of the near-site center. Now we have
established a parent council and hold regular meetings
Monitoring Quality
with the new management.
Referral programs allow the nsk for lower quality.
There IS a need for constant promotion and communica-
The quality of our referral program was not consistent.
tion. which doesn't always happen due to lack of time and
funds.
Liability Protection
We have had some difficulty communicating the programs
that are available to all of our people: although they know
It is challenging to ensure a risk-free environment for
that we offer various resource and referral programs. they
our employees' children. especially in an office setting.
are not aware of all the different services that these pro-
Our biggest issue has been liability protection: lawyers
grams can provide.
want providers to have plenty of insurance.
Limited Availability
Inadequate Staffing
The back-up service has been successful. which now
There is a shortage of trained child care workers in this
means that not everyone can utilize the service when
industry in Australia: they are poorly paid and providing
they need it.
child care IS not seen as a profession.
Slots are not open for certain age groups when needed.
We had problems with a contracted provider.
Child Care Services to be Added
Chart 6
Despite the concerns reported. half of our panelists plan to
Are You Planning To Add Any
Child Care Services?
implement more child care services (see Chart 6). They are
especially interested in establishing programs that address
Yes
child care breakdowns such as back-up child care. sick care
50%
programs. and services for holidays. Some panelists are
considering opening on-site/near-site centers. mainly
through consortium arrangements. Several respondents
also proposed adding adoption assistance and nanny refer-
Not Sure
9%
rat services. Other programs mentioned included a lacta-
tion room. Saturday care. and affordable child care
No
N = 139
41%
provisions for part-time employees.
12
The Conference Board
International Child Care Practices
F
ourteen respondents were from countries outside of the
Chart 7
United States. including Australia. Belgium. and Canada.
Child Care Services Offered in Non-U.S. Companies
These companies ranged in size from under 100 employ-
ees to 50,000. Although this sample is not very large. a compari-
Child Care Program
son of U.S. child care programs with programs abroad yields
Child Care
79%
Resource & Referral
some interesting findings. For example. resource and referral
services. parenting seminars. and emergency child care are
Parenting Seminars
58
Near-Site Child Care
50
among the top five programs offered within both groups (see
Back-Up/Emergency
Charts I and 7). The use of flexible spending accounts and the
33
Child Care
provision of adoption assistance. however. appear to be much
On-Site Child Care
29
more prevalent in the United States. and after-school programs.
Summer Camp
25
vouchers. and employees discounts were not offered at all abroad.
Family Day Care
17
A recent study by the High/Scope Educational Research
Sick Child Care
8
Foundation in Michigan explored child care practices in 11
Adoption Assistance
8
nations. One major finding was a trend toward nonparental
Flexible Benefits
8
care once children reached age 4 (see Table 21. Similarly in
School Holiday Program
8
Australia. where "preschools and kindergartens have an educa-
Vouchers
tional rather than care tradition. 11 the greatest use of formal
After-School Program
0
preschool care occurs when children are four years old.
Employee Discounts
High/Scope found that this trend is stronger in urban areas than
0
20
40
60
80
rural ones. In China, Nigeria. and Thailand. countries with large
N 14
% of Companies Offering Programs
rural regions. the majority of preschool children are still cared
for at home by their parents.
The study also revealed that corporate-sponsored child care
dubbed "railway station nurseries" based on their proximity to
was rare or nonexistent in most countries: only 2 percent or
train stations. This is said to be in response to "the substantial
fewer companies in Finland. Spain. and the United States
increase in the number of working mothers and the recent
sponsored child care. A significant amount of corporate support
dwindling birthrate. "12
was only found in China. where 28 percent of sponsorship came
Additionally. the researchers found that over 90 percent of
from the workplace. Government and religious organizations are
parents in each country were "somewhat satisfied" or "very
major sponsors of child care throughout the nations studied.
satisfied" with the care their children were receiving. Childrer
This trend is demonstrated by Japan's Health and Welfare
cared for outside of the home generally spent long hours with
Ministry. which recently subsidized 12 new nursery schools
their child care providers.
11
Gay Ochiltree and Don Edgar. Today A Child Care. Fomorrow Children
Australian Institute of Family Study (AIFS) Paper No. AIFS Melbourne
12 Yoko Hani. "Railway Station Nurseries Help Commuting Moms." Japan
National Library of Austrahaj). p. 3.
Times Weekly International Edition. Vol. 35. No. 19. May 15-21. 1995. P.
Table 2: Percentages of Four-Year-Olds in Various Types of Care/Education Settings
Number of
Parent Care
Home-Based
Organized
Country
Children
Only
Care
Facility
Belgium
424
2%
5%
93%
China
12.835
55
10
33
Finland
576
25
40
35
Germany
509
18
33
49
Hong Kong
947
0
0
100
Italy
1,000
15
5
80
Nigeria
1.295*
65
25
8
Portugal
581
29
41
30
Spain
480*
21
10
69
Thailand
2,466
63
24
12
United States
432
39
26
35
Source: David P. Weikart and Patricia P Olmstea. eds.. Families Speak: Early Childhood and Education in 11 Countries. High/Scope Press
Ypsiianti. MD. January 17. 1995.
Not necessarily a representative sample
Work-Family Roundtable-Clhila Care Services
Lessons Learned
Panelists' Comments Offer Advice and Guidance on Providing Child Care Services
Providing child care benefits has improved morale in over
Employers in urban areas may need to consider parents'
60 percent of respondents' companies.
reluctance to commute by mass transportation to on-site
child care centers.
Employee contributions for child care services average
less than 20 percent of operating costs: fees increase
Child care services are being offered through consortia
significantly. however. when on-site services are rendered.
by almost one-quarter of responding companies.
In over 70 percent of responding companies that sponsor
Fifty percent of respondents' companies plan to add
child care centers. fewer than 5 percent of the employee
other child care services. especially to address child care
population utilize this provision: nonetheless. most centers
breakdowns.
are filled to capacity.
Resources
American Child Care Foundation
Families and Work Institute
McLean Hilton Office Complex
330 Seventh Avenue. 14th Floor
7918 Jones Branch Drive. Suite 400
New York. NY 10001
McLean. VA 22102
(212) 465-2044
(703) 442-7532
High/Scope Educational Research Foundation
An Employer's Guide to Child Care Consultants
600 North River Street
The Child Care Action Campaign (CCAC)
Ypsilanti. MI 48198
330 Seventh Avenue. 17th Floor
(313) 485-2000
New York. NY 10001
National Association of Child Care Resource and Referral
(212) 239-0138
Agencies
Board on Children and Families
2116 Campus Drive. SE
National Research Council
Rochester. MN 55904
2101 Constitution Avenue. NW
(800) 424-2246
Washington. D.C. 20418
National Association for the Education of Young Children
(202) 334-3965
1834 Connecticut Avenue. NW
Child Care Information Exchange (Journal)
Washington. D.C. 20009
P.O. Box 2890
(800) 424-2460
Redmond. WA 98073
National School-Age Care Alliance
206) 883-9394
P.O. Box 676
Child Care Law Center
Washington. D.C. 20044-0676
22 2nd Street. 5th Floor
(202) 737-6722
San Francisco. CA 94105
School Match: A School Research. Data and Consulting
(415) 495-5498
Service
DCC/The Dependent Care Connection. Inc.
Blendonview Office Park
P.O. Box 2783
5027 Pine Creek Drive
Westport. CT 06880
Westerville. Ohio 43081
(800) 873-4636/2680
(614) 890-1573
E-mail: [email protected]
The Complete Guide to Choosing Child Care. by Judith Berezin
Family Resource Coalition
The National Association of Child Care Resource and
230 North Michigan Avenue. Suite 1625
Referral Agencies in cooperation with Child Care. Inc.
Chicago. IL 60601
Random House (New York. NY). 1990
312) 726-4750
14 The Conference Board
Organizations Represented on The Work-Family Research and Advisory Panel
3M
AT&T
ALCOA
Abbott Laboratories
Aetna Life and Casualty
Air Products and Chemicals. Inc.
Alliance of Businesse
Child Care Development
AlliedSignal. Inc.
Allstate Insurance Company
America West Airlines
American Express Compa
American Greetings Corporation
American Institute of Certified Public Accountants (AICPA)
Amoco Corporation
A'
Computer, Inc.
Arthur Andersen Company
Association of Junior Leagues International. Inc.
Association of Part-T
-
Professionals
Atlantic Richfield Company
Australian Institute of Family Studies (Australia)
Automatic
ita Processing, In
Avon Products. Inc.
BDO Seidman
BE&K
BP Australia (Australia)
Baker & Hostetler
Bank of Americ
Bank of Montr
Bankers Trust
Baptist Hospital of Miami
Baruch College
Bausch & Lomb
Baxter Healthcare
Bechtel C
-ation
BellS
Corporation
Beneficial Management Corporation
Bergen Brunswig Corporation
Blue Cross/Blue Shield of the Rochester A.
Boeing Company
Boston University
Bristol-Myers Squibb Company
Brown Richards & Associates
Browning-Ferris Indust:
Inc.
Bureau of National Affairs. Inc.
Burroughs Wellcome Company
Burud & Associates. Inc.
CIBA-GEIGY Corporati
CIGNA Corporation
CIT Group, Inc.
Caltex Oil Pty Ltd. (Australia)
Cedars-Sinai Medical Center
Central Intelligence Agen
Champion International Corporation
Charlotte Observer
Chevron Corporation
Childcare at Work (Australia)
Child Care. I.
Chubb Group of Insurance Companies
Citicorp
City University of New York (CUNY)
Coca-Cola Company
Colgate-Palmol
Condé Nast Publications. Inc.
Consolidated Edison Corporation
Consolidated Rail Corporation
Continental Bank Corporati
Continental Insurance Company
Coopers
&
Lybrand
Coors Brewing Company
CoreStates
Cornell University
Corning I:
Council for Equal Opportunity in Employment
County of Alameda. California
Dansk Industri (Denmark)
De Warande (Belg:
Dean Witter. Discover Card & Co
Deloitte & Touche
Digital Equipment Corporation
Dow Chemical Company
Du
Company
Duke Power Company
Eastman Kodak Company
Eli Lilly and Company
Equitable Life Assurance Society
Em
Young
Esso Australia Ltd. (Australia)
FMC Corporation
Families and Work Institute
Family Policy Studies Centre (Englar
Federal Express Corporation
Fel-Pro Inc.
Fidelity Investment Companies
Fireman's Fund Insurance Company
First Chi
Corporation
First Interstate Bancorp
First Tennessee Bank
GTE
Norwest Inc.
Gannett Company. Inc.
General Ele
Company
General Mills. Inc.
Ginsburg-Kershner Associates
Glaxo Inc.
Goldman Sachs
Goodyear Tire and Rubber Comp:
Hallmark Cards. Inc.
Harris Trust & Savings Bank
Harvard Community Health Plan
Heath
&
Company
Helene Curtis Indus
Inc.
Hewitt Associates
Hewlett-Packard Company
Hoechst Celanese Corporation
Home Box Office. Inc.
Honeywell
I
Household International. Inc.
IBM Corporation
ICI Americas. Inc.
ICN Pharmaceuticals. Inc.
IDS Financial Services. I
Illinois Power Company
Imperial Oil Limited (Canada)
Initiatives. Inc.
J.C. Penney
J.P. Morgan
John Alden Life Insural
John Hancock Financial Services
Johnson & Johnson
KPIX-TV
KPMG Peat Marwick
Kemper National Insurance Compan
Knight-Ridder. Inc.
Kraft USA
Kwasha Lipton
Lancaster Labratories
Lend Lease Corporation Ltd.
Leo Burnett Co., Inc.
Strauss & Co.
Levi Strauss & Co. Europe (Belgium)
Lincoln National Corporation
Los Angeles Department of Water & Po:
Los Angeles Rapid Transit District
Lost Arrow Corporation
Lotus Development Corporation
Managing Work and Fam
Manulife Financial (Canada)
Marriott Corporation
Massachusetts Institute of Technology
Massachusetts Mutual Life Insur
Company
Mattel Toys. Inc.
Merck & Company. Inc.
Merrill-Palmer Institute
Mervyn's Stores
Metropolitan Life Insu:
Company
Midland Bank PLC (England)
Mobil Corporation
Morgan Stanley
Mount Sinai Medical Center
Mutual of New
NC Equity
NYNEX Corporation
National Australia Bank Ltd. (Australia)
National Council on the Aging
National Ft
Association
NationsBank
New England Medical Center
New Ways 10 Work
New York Life Insurance Company
New
Power Authority
New York State Department of Economic Development
Newsday
Northern States Power Company
/
Company
Norwest Corporation
OHS Publishing Company (Australia)
Occupational Health Services. Inc.
Office of Pers
Management
Ohio Bell
Ohio State University
Olivares Publishing Society
One Small Step. The Bay Area Employer Wor
Family Coalition
Ontario Hydro (Canada)
Pacific Bell
Pacific Stock Exchange. Inc.
Partnership Group
PepsiCo. Inc.
Pt
Petroleum Company
Polaroid
Portland Aluminum Australia)
Price Waterhouse
Principal Financial Group
Procter & G.
Company
Providence Hospital
Putnam Investments
Quaker Oats
RJR Nabisco. Inc.
Resources for Child Care Manager.
Royal Bank of Canada (Canada)
S.C. Johnson & Son. Inc.
St. Paul Companies
SAS Institute. Inc.
Scholastic. Inc.
Sea-
Service. Inc.
Shell Australia (Australia)
Skadden. Arps. Slate. Meagher & Flom
Silicon Graphics Inc.
Smith Barney Shea
Social Security Administration
Southern New England Telephone
State University of New York. Buffalo
Steelcase Inc.
Rite Corporation
TIAA/CREF
Tandem Corporation
Telecom (Australia)
Tenneco. Inc.
Texaco. Inc.
Texas Instrum
Thomas J. Lipton. Company
Times Publishing Company
Time Warner Inc.
Toronto Dominion Bank (Canada)
Towers P
Trammell Crow Company
Transamerica Life Companies
UNUM
U S WEST. Inc.
U.S. Air Force
U.S. Coast Guard
Department of Agriculture
U.S. Department of Defense
U.S. Department of Housing and Urban Development
U.S. Departm
Justice
U.S. Department of Labor
U.S. Department of Transportation
U.S. Navy
Union Pacific Corporation
1
Technologies Corporation
University of Groningen (Netherlands)
University of Michigan
University of San Francisco
L
Company
Wal-Mart Stores. Inc.
Warner-Lambert Company
Wells Fargo Bank. N.A.
Western New York Child Care C
Inc.
Westingnouse Electric Corporation
Whiripool Corporation
Work and Family Connection
Work and Family
Work/Family Directions. Inc.
Workplace Options. Inc.
World Bank
Xerox Canada Ltd. (Canada)
Xerox Corporation
Community Mobilization:
Strategies to Support Young
Children and Their Families
Amy Laura Dombro
Nina Sazer O'Donnell
Ellen Galinsky
Sarah Gilkeson Melcher
Abby Farber
Families and Work Institute
Chapter 4
Involving Business
E
mployers are increasingly becoming in-
employed parents in ways that allow them to be
volved in community mobilization efforts
more productive at work;
in early education and care. They have
done so for two main reasons: concerns for work-
greater potential for the emergence of a compe-
place productivity and concerns about adequately
tent workforce of the future. These efforts are seen
educating tomorrow's workforce. They have taken
as improving local education and better prepar-
four approaches:
ing a competent workforce;
sharing information among companies on mak-
increased effectiveness for internal policies. Com-
ing companies more family-friendly;
munity mobilization efforts make businesses'
internal work-family programs and policies more
developing and contributing to "funds" for com-
effective (e.g., their child care resource and re-
munities that help increase the supply of quality
ferral assistance works better when the supply of
dependent care;
community child care is increased and when the
quality of that care is improved);
participating in community mobilization; and
satisfaction from making a meaningful contribu-
using their business expertise to develop systemic
tion. There is so much to be done that business
change with a special focus on strategies to fi-
leaders who become involved in community mo-
nance the early childhood system.
bilization feel a true sense of accomplishment.
They are not just other players on the field, but are
In this chapter, we illustrate each of these four ap-
making a unique difference where and when it
proaches using program descriptions, some brief and
matters most-at a time in children's develop-
some more detailed.
ment when there are opportunities to prevent
When the business community becomes involved
rather than to correct problems; and
with the early childhood community, both groups
reap the benefits.
media attention. The publicity businesses re-
ceive is equivalent to free advertising to their
Benefits for the business community include:
consumers.
increased productivity. Businesses can work on im-
proving systems and programs that support
INVOLVING BUSINESS
109
Benefits for the early childhood field include:
Work and Family Council. Begun in 1983, this Coun-
cil brings together business leaders to learn from
stopping power. This is a term used in the field of
each other. Many of these leaders have now become
photography that means the photograph is unex-
the champions for nationwide efforts.
pected, makes you stop and look, and helps you
Business coalitions also exist at the state and local
see things in new ways. Business leaders often play
levels. Sometimes, the early childhood community
this role in community collaborations-they can
plays a convening role, as in One Small Step in San
garner attention for these efforts and they can
Francisco; at other times, there is governmental as-
help community groups gain new perspectives on
sistance or employers come together on their own.
the issues facing them;
new contacts and connections. Business leaders
are connected to other community leaders who,
working together, can make things happen-
One Small Step
often in new ways; and
San Francisco, California
greater availability of business leaders' expertise.
Just as early childhood leaders bring expertise to
the table, so do business leaders. They are knowl-
One Small Step (also known as the Bay Area Em-
edgeable about how to use data in planning, how
ployer Work & Family Coalition) is a regional
to have a results orientation, and how to bring
membership association that promotes the develop-
about change. Furthermore, business leaders have
ment of family-supportive policies and programs in
specific skills and knowledge that are useful in col-
Bay Area workplaces. Founded by the United Way of
laborations-such as knowledge of financing,
the Bay Area in 1986, One Small Step serves as a
public relations, and management.
forum for Bay Area employers (typically represented
by human resource managers) to regularly exchange
ideas and information on how to support their em-
ployees in balancing work, family, and personal
responsibilities.
Participating employers agree to make a good-
faith effort to take at least "one small step" to respond
to their employees' family and personal life needs
APPROACH 1
with a new or expanded program, policy, or practice.
Examples of steps taken by members include plan-
Sharing Information Among
ning for an employee child care center and designing
Companies About How to Make
a paid time-off policy using lessons learned from
Companies More Family-Friendly
other members. One Small Step facilitates education
and collaboration on work-family issues through a
variety of activities, including conferences, publica-
tions, trend reports, research projects, and referrals.
The One Small Step membership includes nearly
S
ome employers have formed councils or coali-
100 public and private sector employers, ranging in
tions to share information on work-life issues.
size from under 50 to over 10,000 employees and col-
The first national example is The Conference Board
lectively represent over 300,000 employees in the Bay
110 INVOLVING BUSINESS
Area. One Small Step also has an affiliate member-
APPROACH 2
ship comprised of over 60 work-family service
providers.
Developing Funds to
Increase the Supply and
Quality of Dependent Care
Points of Accomplishment
One Small Step joined with the San Francisco Bar
Association to spearhead an employer consortium
that began offering in-home emergency child care
T
he success of quality child care cannot ride on
and elder care services to their employees in six
knowledge and information alone. Financial
Bay Area counties in early 1995.
resources are essential to implementing any effective
program. By the very nature of its existence, business
As of the fall of 1995, One Small Step and the Cen-
can offer the child care community much valuable
ter on Work and Family at Boston University are
information on fund development, and even be a
jointly producing "Balance Sheets," a series of in-
provider of financial resources.
formation sheets on work-family program options
This section will describe how AT&T develops de-
that feature model programs from the San Fran-
pendent care community funding within its own
cisco Bay Area and New England.
organization. Then, it shows how Corporate Cham-
pions is funded through a collaboration with
One Small Step actively supports local employer
businesses in the Fort Worth community. The third
participation in national initiatives such as the U.S.
and fourth program descriptions in this section show
Department of Labor's Working Women Count
how companies in a nationwide collaboration get
survey and the Ms. Foundation's Take Our Daugh-
funding for their employees' dependent care needs,
ters to Work program.
and how public and private partnerships are collab-
orating in New York State to offer child care support
One Small Step is regarded as a model commu-
to help parents get back into the workforce.
nity effort, and has provided assistance to similar
groups in other areas of the country-such as
in various cities throughout New England and
Texas, as well as Washington, DC, Philadelphia,
Texas, Portland, Santa Barbara, Minneapolis, and
1.
Cincinnati.
Fund Development Within
the Company
Contact
Judith David, Director
A number of companies have developed funds to
One Small Step, The Bay Area Work & Family
support an increased supply of dependent care. They
Coalition
include AT&T, IBM, Nations Bank, and Corning.
50 California St., Suite 200
AT&T's Family Care Development Fund is profiled
San Francisco, CA 94111-4696
below. As the oldest fund of its kind in the country,
(415) 772-4315
it has accomplished a great deal.
(415) 391-8302 Fax
INVOLVING BUSINESS
111
Points of Accomplishment
AT&T Family Care Development Fund
The Fund committed $25 million through Decem-
Morristown, New Jersey
ber 1995 and has funded 1,278 projects since its
inception. These projects have:
increased the supply of child care by funding
Overview
nearly 13,000 new slots-in centers (6,392 slots),
The Family Care Development Fund was created in
in school-age programs (4,207 slots), in family
1989 through a bargaining agreement between
child care (1,400-3,200 slots), and in backup care
AT&T and the unions representing its employees:
(220 slots);
CWA and IBEW. This was the first project of its kind
in corporate America. Since then, a total of $25 mil-
improved care for 24,000 children with equip-
lion has been allocated by the Fund. The goal of the
ment, supplies, curriculum, and facilities;
Fund is "to increase the supply and improve the qual-
ity of community child care and elder care where
trained 6,155 providers;
AT&T employees live and work."
provided extensive quality improvement-on-site
The Fund can be accessed through:
training and consultation-to 100 child care
centers;
employee sponsorship. With an AT&T employee
as a sponsor, a community group can apply to the
paid NAEYC fees to accredit 91 child care centers,
Fund.
and supported 342 programs working toward
accreditation;
targeted cities. With a labor/management com-
mittee, communities are identified; an employee
helped to create an accreditation and national
task force is convened within those communities
training program for school-age programs;
to provide input on employee need and priorities;
focus groups, surveys and/or community needs
provided quality educational materials and re-
assessments are conducted to assess need; a strat-
sources to 2,330 providers through resource
egy is developed for addressing the identified
rooms and vans;
needs; and community agencies in the best posi-
tion to carry out the strategy are asked to write a
provided quality mini-grants to 199 programs;
proposal for funding the proposed project.
provided innovative violence prevention programs
In addition, the Fund promotes National Associa-
to 45 school-age programs;
tion for the Education of Young Children (NAEYC)
accreditation by encouraging AT&T employees to
supported professional development programs,
nominate their children's centers. If selected, the
including compensation, for providers at 45
Fund awards the program funding to cover the cost
centers;
of accreditation fees.
offered video training on health and safety stan-
dards to 3,500 programs;
added services for 7,024 elders;
112 INVOLVING BUSINESS
improved services for 507 elders;
Corporate Champions
trained 729 elder care providers; and
Fort Worth, Texas
helped to create accreditation and national train-
ing programs for adult day aides.
The First Texas Council of Camp Fire's Work/Fam-
ily Program (WFP) is a "comprehensive community
Contact
development plan for family support through high-
Skip Schlenk, Director
quality child care systems. "WFP has gained employer
Family Care Development Fund
support through its Corporate Champions program.
AT&T
Corporate Champions consists of a pool of compa-
One Speedwell Ave. West, Rm. 414
nies that provide both volunteers as well as financial
Morristown, NJ 07962
support to increase the availability, affordability, and
(201) 898-2856
accessibility of high-quality child care in the Fort
(201) 898-2890 Fax
Worth area.
E-mail: sschlenk @ attmail!
Ten companies have made a three-year commit-
ment to the Corporate Champions program. Their
commitment includes a monetary donation as well
as the involvement of a high-level decision-maker,
e.g., a Chief Financial Officer (CFO) or Vice Presi-
2.
dent of Human Resources. These individuals were
Fund Development Within
asked to work on a task force, to attend monthly
meetings, and often to chair subcommittees aimed
the Community
at improving early childhood delivery systems
throughout the Fort Worth area.
Sometimes companies within a community join to-
The Camp Fire organization provides staff and vol-
gether to fund quality improvement efforts, such as
unteers to facilitate the work of Corporate
Corporate Champions in Fort Worth, Texas. This ini-
Champions.
tiative is based on the Corporate Champions in
Charlotte, North Carolina. We describe the Fort
Worth version to show that the Charlotte model can
History
be replicated. In Fort Worth, this fund is a part of a
The impetus for establishing WFP (and Corporate
larger quality improvement strategy.
Champions) was concern about the quality of child
care in Tarrant County. There were very few accred-
ited programs or family child care providers in all of
Tarrant County and no formal training to help
providers gain accreditation. Thus, WFP began as a
fundraising effort to build a training facility and start
a training program for child care providers.
Shortly after the fundraising campaign began, the
First Texas Council of Camp Fire realized there were
additional needs within the community beyond the
training facility. In 1990, Phyllis Jack Moore was hired
INVOLVING BUSINESS
113
as the child care consultant to develop programs. She
ness leaders are setting up a meeting and want you
gathered together all local professionals who had
to come and listen.'"
anything to do with training and early childhood
Now that the Corporate Champions Task Force is
care. This network began to meet, and has been
gearing up to find the next set of companies to make
meeting every month since then. Over the years, the
a three-year commitment, she believes the recruiting
group has expanded its activities and formed four
process will not be as difficult: "The second ten [com-
subcommittees representing the areas of activities in
panies] will be easier to recruit because the first ten
which the group is involved: Professional Develop-
companies that have gotten involved are very com-
ment, Family Support, Research, and Community
mitted and are recruiting this second group of
Education/Awareness.
companies for us."
To get things started, Moore invited some national
early childhood experts to speak to community lead-
ers at a luncheon. This event not only helped to
Points of Accomplishment
energize the group but also gave them information
Moore credits Corporate Champions with influenc-
they needed to influence the business community.
ing the passage of revised standards for child care.
A second step was to identify a number of key busi-
Before the standards were revised, Texas ranked 47th
nesses as likely to participate in the Corporate
in the nation in terms of quality. The business lead-
Champions program. Three key people were se-
ers devised a plan to bring together lobbyists from
lected as "honorary leaders": the mayor of Fort
each company to work together. "We had a business
Worth, a leading businessman, and a leading busi-
person who went to the hearing before the State De-
nesswoman. They sent letters and made phone calls
partment of Protective and Regulatory Services
personally inviting each of the other potential busi-
(DPRS) Board. We even had the mayor and a couple
ness representatives to a luncheon.
of other executives write personal letters to different
As committed as these leaders were, they were also
people on the Board," says Moore.
very busy and pressed for time. The Camp Fire staff,
Similarly, the business leaders also brought in their
therefore, did most of the legwork and backup work.
public relations people to work on consumer educa-
At the same time, the group had chosen individuals
tion. Together, they have created a brochure entitled
with a strong interest in the cause. "The key busi-
A Few Things You Should Know About Quality Child Care.
nessman, for example, read, reread, and then
The first 30,000 copies will be distributed to the com-
rewrote our brochure for the campaign," says Moore.
panies' employees with their paychecks. These
At the kickoff luncheon, Duke Power's Bob Allen,
leaders have also been interviewed on local TV about
a business leader from Corporate Champions in
quality child care issues. In addition, a Speaker's Bu-
Charlotte, helped to make a case for Corporate
reau has been formed.
Champions in Fort Worth and helped the invited
The ten founding member companies pledged
business representatives understand how they would
$360,000 over the first three-year membership pe-
benefit from being involved. After the luncheon, the
riod. Money was designated to support:
three leaders again called each of the business rep-
resentatives and personally asked them for a
centers working toward NAEYC accreditation;
commitment to the program.
Reflecting on the process, Moore believes that
family child care providers preparing for NAFCC
what made the program so compelling to the com-
accreditation;
panies was that they were contacted by influential
people. "We send out a message that says 'Fellow busi-
resource and referral services for member com-
panies' employees;
114 INVOLVING BUSINESS
training in high-quality child care;
Week and the Wall Street Journalso they could see these were
business issues.
work-family seminars;
equipment grants and scholarships for centers
Next Steps
and family child care providers; and
After having helped to improve the standards of child
care in Texas, the lobbyist group of Corporate Cham-
development and distribution of materials pro-
pions is now working to maintain those standards.
moting quality child care and work-family issues.
Moore explains: "Unfortunately, those who have op-
posed these revisions have made this a legislative
Member companies have also provided in-kind
issue. The state legislature now has the opportunity
support-including printing, public relations,
to overturn the revised standards. So, the Task Force
clerical personnel, video production, private trans-
is working to educate legislators in order to keep the
portation, and the hosting of Task Force and
revised standards intact."
community meetings.
Consumer education is on the agenda. Having
created A Few Things You Should Know About Quality
Child Care, the public relations group is now work-
Challenges
ing to expand its distribution to the wider com-
When Corporate Champions first started, the em-
munity, targeting pediatricians' offices and other
ployers who initially got involved did so because they
places where there is likely interest in Corporate
were asked to-not necessarily because they believed
Champions.
that there were business reasons to do so. According
to Moore:
They thought, as a good citizen in the community, it was a
Advice
philanthropic thing they were doing. At the initial meet-
Businesses expect activities they are involved with to
ing, Bob Allen had helped them to think, 'Yes. It is a
be well-managed. As Moore explains:
business issue.' As the education went on, and they saw the
[Companies] respect careful organization. Successful busi-
ramifications of development in the early years, they
ness leaders function with clear goals. They come to
started to sincerely believe that it is a business issue. And
meetings wanting to know what the outcome of the meet-
now we really have a group of passionate people who can
ing is and where we will go next. So, you have to function
say, 'We know this is a business investment.'
like that and be prepared like that.
This change in attitude is largely due to WFP's ef-
Moore also advises others to think through how
forts to educate company representatives. "We
best to provide groups such as Corporate Champions
showed videos, invited child care providers as an in-
with the staff support they need. She suggests being
formational resource to attend meetings, organized
prepared to do a lot of background work noting that
site visits (either individually or through a tour), and
the executives involved in Corporate Champions are
distributed a lot of materials." These efforts to help
volunteers, and are very busy:
them understand was not a short-term project, but
They wouldn't be who they are today if they had a lot of
one that extended over time, says Moore:
free time, but what has happened for children and fami-
Every time we would discuss an issue, we would have
lies in Fort Worth would never have happened without
backup materials for them to read. As much as we could,
them.
we would try to use articles from publications like Business
INVOLVING BUSINESS
115
Resources Available
organizations participated in the collaboration. Their
Few Things You Should Know About Quality Child Care,
joint efforts resulted in programs that have helped
a brochure for parent employees looking for child
more than 275,000 individuals to date.
care.
In 1995, the companies launched the second
phase of this project by increasing their number to
21 lead companies, or champions-including Aetna
Contact
Life & Casualty, Allstate Insurance, American Ex-
Phyllis Jack Moore
press, Amoco, AT&T, Bank of America, Chevron,
First Texas Council of Campfire
Citibank, Deloitte & Touche LLP, Eastman Kodak,
2700 Meacham Blvd.
Exxon, GE Capitol Services, Hewlett-Packard, IBM,
Fort Worth, TX 76137
Johnson & Johnson, Mobil, Nynex, Price Waterhouse
(817)831-2111
LLP, Texaco, Texas Instruments, and Xerox.
In a joint statement signed by the chief executive
officers of these 21 corporations, they say:
We believe that supporting the diverse dependent care
needs of our employees is critical to our success as it en-
3.
ables our companies to attract and retain a productive,
Fund Development in Communities
competitive, committed, and motivated workforce
We do this because the availability of quality dependent
Across the Country
care programs enables our employees to do their best at
work by helping them manage their work and personal
Some of the companies that have pioneered fund de-
responsibilities.
velopment within their own companies came
In addition to increasing the number of champion
together to create one business fund in communities
companies, the American Business Collaboration in-
across the country when they realized that they could
creased the amount of funding to $100 million over
"accomplish more by working together than by work-
a six-year period. The American Business Collabora-
ing alone."
tion is managed by Work/Family Directions in
Boston, Massachusetts.
Points of Accomplishment
American Business Collaboration for
To enhance the numerous accomplishments of the
Quality Dependent Care
first phase of the project, the companies involved in
the second phase have added a research and devel-
opment component to invest in National
Championship Model Programs. The first four pro-
Overview
jects are:
In 1992, eleven corporations throughout the United
States joined together to pledge $25.4 million to im-
voice technology. To improve communication be-
prove the supply of quality dependent care to assist
tween parents and teachers, a school-based voice
their own employees. These funds-soon totaling
messaging system will be piloted in 97 schools in
$27 million-were invested in 45 communities in 25
10 cities;
states and the District of Columbia. Some 156 busi-
nesses, governmental entities, and non-profit
116 INVOLVING BUSINESS
school-age accreditation. The collaboration is sup-
porting a two-year project that is expected to lead
Early Childhood Investment Fund
to the accreditation of school-age programs;
New York State
middle School Youth Program. The collaboration
will support the development of innovative after-
school and summer programs for children ages 10
Although the Early Childhood Investment Fund
to 14, a time when children typically drop out of
(ECIF) ended in 1996 because of a change in state
after-school programs; and
government administration, we describe it briefly be-
cause we think it is a viable model. It fostered public
backup care. A series of backup child care and
and private partnerships throughout New York State
elder care programs will be evaluated across the
to improve the delivery of early childhood services.
country.
The state set aside a pool of money available through
a Request for Proposals (RFP) process that was
matched by individual, foundation, or corporate con-
Contact
tributions. Private sector dollars also support the
Work/Family Directions
Fund's administration. Thus, ECIF required private
930 Commonwealth Avenue West
sector investment.
Boston, MA 02215
Although there were specific guidelines for pro-
(800) 767-9863
posals, they were flexible enough to encourage
grassroots problem-solving and bottom-up innova-
tion in improving the delivery of child care services.
A grantee had to demonstrate the need for the
proposed project and the commitment of local pri-
4.
vate sector funds. In general, a $2 to $1 match was
Public/Private Partnerships
required, except in low-income communities, where
the match was $1 to $1. A match was not required for
planning grants.
There were many attempts to create public and pri-
A statewide Policy Board, comprised of business,
vate partnerships in the 1980s. As planners of the
labor, and foundation leaders, government officials,
Early Childhood Investment Fund in New York State
and early childhood experts, reviewed proposals and
found, the typical government approach was: the gov-
made funding decisions. The United Way of New
ernment will design and operate the partnership; the
York State administered the Fund.
private sector's role is to provide financial support.
The companies that convened to create New York's
Fund wanted none of that kind of approach. They
Points of Accomplishment
wanted a true partnership. And they wanted funding
Since grant-making began in January 1994, ECIF re-
that supported ongoing community mobilization ef-
ceived 81 requests for funding and supported 40
forts. For that reason, their grants require a process
community-based projects. The government invested
of community planning and the involvement of the
$552,052 in programs bringing in $1,577,273 of pri-
private sector, as well as other stakeholders commit-
vate sector funds.
ted to systemic change.
INVOLVING BUSINESS
117
The projects funded by ECIF include:
APPROACH 3
developing a loan strategy for child care providers
Participating in Community
to meet their credit needs;
Mobilization Efforts on the
Local and State Levels
creating 500 child care spaces in existing and
newly constructed facilities;
enabling 30 child care centers and 87 family child
care providers to achieve accreditation;
T
here are many initiators of community mobi-
lization efforts including business,
providing college scholarships for child care
government, and foundations. In one sense, it makes
providers;
no difference who or what organization originates
the effort. What matters is whether the convenor is
enhancing training programs for family child care
perceived to be fair and impartial and whether the
providers;
quality of the process of the established collaboration
is credible.
expanding and enhancing school-age child care
In another sense, however, the originator of the
services;
community mobilization effort is very important.
When an elected official such as a governor or mayor
aiding in the creation of an early education and
establishes a community mobilization effort, his or
care program for low-income families; and
her successor may try to disband it and set up some-
thing new. However, having substantial involvement
purchasing a van to assure access to services for
from the business community can help such efforts
children in low-income families.
to endure even when elected officials change.
In this chapter, we profile Success by Six, one of
the most widespread community mobilization efforts
Contact
undertaken by the business community. We also pro-
Mary A. Shaheen, Project Director
file Smart Start, an example of community
Susan K. Hager, President
mobilization initiated by government.
United Way of New York State
155 Washington Ave.
Albany, NY 12210
(518) 463-2522
(518) 463-2534 Fax
118
INVOLVING BUSINESS
1.
Points of Accomplishment
Business-Initiated Community
Success by 6 in Minneapolis conducted a public
awareness campaign on the urgent needs of young
Mobilization
children and lobbied with other organizations for a
comprehensive state legislative agenda-resulting in
an increase of $35 million spent on children and
child care. It has also impacted services for children
and families by improving prenatal care, establishing
a school for pregnant teens, creating culturally sen-
Success by 6
sitive child development tools for parents with low
Minneapolis, Minnesota
reading skills, and sponsoring a "Readmobile" that
brings library materials to family child care homes.
There are currently more than 160 United Way com-
Contact
munities that are exploring, developing, or
Karen Smiley, Manager
implementing a Success by 6 project with resources
Success By 6
and technical assistance from the Success By 6 Na-
Mobilization for America's Children
tional Resource Center, Mobilization for America's
701 North Fairfax St.
Children at United Way of America. We describe the
Alexandria, VA 22314-2045
project in Minneapolis where Success by 6 began.
(703) 836-7112 x516
The mission of the Success by 6 is to mobilize com-
(703) 549-9152 Fax
munity awareness, resources, and cooperation to
E-mail: karen.smiley @ uwa.unitedway.org
promote the healthy development of children-par-
ticularly those at risk of academic failure.
It began in 1983 when the Mayor of Minneapolis
and that city's Superintendent of Schools joined to-
gether to address the problem of long-term
2.
unemployment in the city. After months of study, they
Government-Initiated Community
concluded that "the root of the problem starts in
Mobilization
the early years with inadequate social and intellectual
development." In 1988, they launched Success By 6
to develop and coordinate resources for children fac-
ing obstacles to school success. They worked in
collaboration with United Way of Minneapolis and
Dr. James Renier, then CEO of Honeywell, Inc.
Smart Start
Success by 6 coordinates the efforts of business,
State of North Carolina
government, labor, education, health, and human
services to build community awareness about the
needs of young children; improve access to needed
services for families with young children; and expand
Smart Start is a statewide early childhood initiative in
collaboration between the public and private sectors
North Carolina. It is built on the notion of involving
to develop an integrated system of services.
business and other community leaders through the
statewide North Carolina Partnership for Children
INVOLVING BUSINESS
119
and local countywide partnerships. These partner-
dress the child care needs of North Carolina's chil-
ships bring together community leaders, including
dren and families, as well as other services crucial to
business, to collaborate in addressing the specific
the healthy development of children. In March 1993,
needs of children and families. The overall goal of
legislation was passed by the state's General Assem-
Smart Start is to ensure that every child in North
bly to enact Smart Start.
Carolina enters school healthy and ready to succeed."
It mandated that partnerships with business must
More specifically, Smart Start targets children from
be formed at both the state and local levels, and the
birth to five years and aims "to provide every child in
boards of these partnerships must include business
the community with access to quality, affordable child
leaders.
care, health care, and other critical services."
By making collaboration with business a require-
The legislation creating Smart Start began by es-
ment, local communities are compelled to work
tablishing non-profit public-private partnerships.
collaboratively with business. And, because partner-
Business leaders are actively involved, serving on the
ships are formed at the local level, communities are
boards of the partnerships and taking an active role
able to forge solutions that best suit their needs.
in planning and implementing the networks of pro-
One company that took a leadership role in the
grams and services that support young children and
process was Duke Power, a major corporation in
their families.
North Carolina. To support Governor Hunt's efforts,
At the state level, the North Carolina Partnership
the CEO of Duke Power "loaned" executive Bob
for Children convenes leaders across the state from
Allen to the Governor to serve as chair in the Meck-
business, government, education, churches, non-
lenburg Partnership for Children, a local Smart Start
profits, communities, and child and family advocacy
partnership. In addition to his duties as chair, he as-
groups. Working collaboratively, these leaders set
sisted the Governor in recruiting other businesses to
forth plans and goals for the state, providing leader-
form local partnerships in other counties and helped
ship as well as support to the local partnerships.
to lobby the General Assembly to expand Smart Start.
At the local level, similar non-profits are estab-
Although assisting the Governor became a full-time
lished. Each local partnership is governed by a Board
job for Allen, he continued to receive his full salary
of Directors established by legislation. Membership
from Duke Power.
by the business community is mandated.
Based on the needs of the children in each county,
local partnership Boards develop specific plans for
Points of Accomplishment
improving the quality and delivery of services and
Much has been achieved through the collaboration
work collaboratively to implement the plans. Some
of community leaders. Allen believes that the in-
counties find ways to make child care more afford-
volvement of business has been especially helpful in
able for families while others improve existing
achieving goals.
programs with renovations and technical assistance.
First, working with business leaders provides those
not in the business community with a different per-
spective. As Allen explains:
History
It helped people recognize that there are delivery systems
In 1993, North Carolina ranked 39th among all the
that can be adjusted and funding streams to be combined
states on the health and well-being of children, ac-
that would assist initiatives in addressing their problems
cording to the national Kids Count Data Book.
and issues.
Responding to this and other discouraging statistics
on North Carolina's children, Governor Jim Hunt
Second, working with business leaders has led to
proposed a comprehensive initiative designed to ad-
additional support from the business community-
120 INVOLVING BUSINESS
support that entails financial help as well as exper-
we wait. It's hard to convince people that something has
tise, such as communication and technological
to happen right now. There is so much attention on
capabilities. Business participation has also added
other social problems, such as crime and crime preven-
clout to community initiatives that the early child-
tion. People do not realize that helping young children
hood community alone did not have.
can lead to solving a variety of problems (such as crime)
Third, business leaders help other partners to be-
in our future.
come more customer-oriented and adapt to change.
Allen explains:
Those in the business community have been forced to go
Next Steps
through many different changes. They've gone through
In order to continue and expand the efforts of Smart
downsizing and increased their focus on serving the cus-
Start, business leaders will be working with the Gov-
tomer. As a result, they have become willing to change the
ernor of North Carolina to lobby the state legislature.
way they do business in order to deliver better services
Allen describes the plans:
Many of the [child-serving] organizations and institutions
The Governor will host a reception at the Mansion for
have not been through excessive change. So [in partner-
about 150 business people to talk about Smart Start. The
ships], you have people who have not considered changing
idea is to have them cross the street and talk to elected
their delivery systems all of a sudden working with people
officials.
who have had to change and have survived. These business
people, therefore, provided a perspective, a willingness to
He also plans to place a one-page ad in the news-
find more effective and new ways of doing things.
paper, which, he says:
will be an open letter to the General Assembly, which en-
Fourth, the participation of business leaders facil-
courages expansion of Smart Start, entitled 'North
itates collaboration and teamwork. Business people
Carolina Business Leaders for Smart Start.' At the bottom
have acted as "neutral partners" and helped others
will be signatures of all of the business leaders who are sup-
to cooperate. In one situation, Allen recalls having to
porting this.
help people stay focused on the issues and work to-
gether: "I had to say to them, 'Look, I don't have a
dog in this fight. However, we all have something at
Advice
stake here, and we don't need to be worrying about
Allen advises others to help companies understand
turf."
that it is in everyone's best interest to help promote
Finally, business people help find solutions when
quality child care. Businesses need to be convinced
obstacles seemed insurmountable. Allen says:
that "Child care is not a women's issue, not a poor
Some business leaders are not willing to say, 'We can't do
issue, but a business issue." He stresses the impor-
this,' but will say, 'We can do this, and we will find a way.'
tance of communicating and presenting strong
Thus, having people with this sort of persistence and tenac-
business arguments. Here are three arguments he
ity helps to motivate others.
uses:
Avoid losing productivity. "You can help employ-
Challenges
ers look at the workforce and see how [employees]
Even with his business background and experience,
must deal with children's issues and care for chil-
Allen finds that it is often difficult to convince certain
dren on a day-to-day basis." Allen uses hard facts,
business leaders to participate in Smart Start. He says:
telling company executives that 65 percent of
It's difficult to help people understand that helping young
North Carolina's mothers with children under age
children is an urgent issue, and that we're wasting lives as
six work outside of the home-all of whom need
INVOLVING BUSINESS
121
to make child care arrangements before they
Recode early childhood terms for business. Allen
come to work. "If so many in the workforce are
advises early childhood educators not to speak in
worried about child care, they are not going to be
jargon, but in everyday language that outsiders
productive."
can understand.
Improve recruiting and retaining of employees.
Early childhood spokespeople should learn to
Companies are also beginning to understand that
speak business language. In order to explain terms
"Retention of good employees is more important
and ideas to business, the early childhood field
than hiring and retraining new employees all the
needs to know how to speak in a way that makes
time. So, it becomes a recruitment issue." Com-
sense and is compelling to business people.
panies can work with families that are having
Allen provides an example:
problems with finding care. They can help find re-
Businesses do understand training, safety, standards, and
liable quality child care so that parents don't have
cost, but they may have a harder time understanding group
to worry about their children. These companies
size and staff-to-child ratios. The early childhood commu-
can then retain these employees. Allen provides
nity needs to spell it out and relate it to a safety issue. If you
an example:
have seven infants in a room and a fire breaks out, how is
Hotel managers have approached me asking what they can
one person going to get them all out of there?
do for Smart Start. The hotel industry struggles with low-
wage employees and high turnover. And a major part of
In addition to communicating effectively, Allen
the turnover is because employees can't find good care for
also believes that more early childhood organizations
their children.
should take the opportunity to use business people
to lobby elected officials. He says:
Spend less money educating the workforce. "Busi-
Business leaders all over the country are already talking to
nesses understand that the education system isn't
our legislators and our elected officials. But they're talking
working. They are spending millions of dollars
about their own agenda. Those of us who are interested in
each year retraining and providing remedial edu-
children's issues need to help our business leaders under-
cation for their employees." Allen suggests helping
stand that we need their help in convincing our elected
business understand that the earlier you start
officials about policy changes that should take place for
young people learning and give them quality ed-
children.
ucation, the better prepared they are to learn
when they get to school.
Based on his experiences thus far, Allen suggests
the following steps to effective lobbying:
Allen also suggests having an influential business
person, who is educated on the issues, talk to other
Help business leaders understand the issues faced
business leaders. He believes that business people are
by legislators and how those issues relate to their
more likely to respond to solicitation from a peer.
community mobilization efforts.
"Communities should find a business person, get
them on board, educate them, give them their talk-
Find the appropriate spokesperson. Find the most
ing points and turn them loose," he says.
appropriate business person to talk to certain of-
As a businessman who has worked with the public
ficials: "If you can find strong business leaders who
sector, Allen urges anyone who collaborates with the
happen to be from a particular leader's precinct,
business community to communicate effectively.
use them."
This means two things for the early childhood
community:
122 INVOLVING BUSINESS
Give business leaders the ammunition and infor-
a task force in Colorado that consists entirely of
mation they need.
business leaders, with early childhood experts ob-
serving and presenting at meetings.
Contact
Bob Allen, Past Chairman
Mecklenburg Partnerships for Children
Duke Power, District Manager
1.
526 S. Church Street
Business as Chair of an Early
Charlotte, NC 28201-1006
Childhood Task Force
(704) 382-4848
(704) 382-3264 Fax
New York City Temporary Task Force
on Child Care Funding
New York, New York
APPROACH 4
Using Business Expertise To
In 1994, the City Council and the Office of the Mayor
Develop Strategies to Finance
created the New York City Temporary Task Force on
the Early Childhood System
Child Care Funding. As outlined in the legislation,
the group's charge was to:
Submit a report to the Mayor and the Speaker of the Coun-
cil. Such a report shall include, but shall not be limited to:
1) identification of the current public and private funding
M
ore and more businesses today are using
sources for child care facilities and services; 2) analysis of
their expertise to develop strategies for fi-
the allocation and use of public funds provided to such
nancing early childhood programs. Three of these
child care facilities and services; 3) recommendations to
latest initiatives are described below (see also "Fi-
improve the funding of such child care facilities and ser-
nancing Early Childhood Supports and Services").
vices; 4) recommendations to eliminate or reduce the
duplication and fragmentation of child care services and
A task force on child care financing in New York
otherwise enhance the efficiency, effectiveness and econ-
City, which is chaired by a business leader, but
omy of service delivery.
made up entirely of child care experts in the pub-
lic and private sectors;
The Task Force began meeting in March 1995 and
published its final report in early 1996. Its members
Collaborations of business leaders and early child-
were appointed by the Mayor and the City Council,
hood experts in Hawaii and California, who have
and included 14 individuals representing child care
come together to think about financing their re-
and early education constituencies in New York City
spective child care systems; and
and city government. It was chaired by Dee Topol,
President, The Travelers Foundation.
INVOLVING BUSINESS
123
Having Dee Topol as a chair proved invaluable
Automated systems. Develop a comprehensive
during the Task Force deliberations. Because she had
computer system for managing all services, fund-
no vested interest in the specific outcome-other
ing, and family data pertaining to child care.
than a strong commitment to improving child care-
Dee Topol was able to bring the group together to
work toward its goals with greater clarity.
Contact
Abby Farber
Families and Work Institute
Points of Accomplishment
330 Seventh Ave.
The timing of the Task Force turned out to be very
New York, NY 10001
useful in facilitating citywide planning to prepare for
(212) 465-2044
block grants. In order to achieve its goals, the Task
(212) 465-8637 Fax
Force-with grants from The Travelers Founda-
Web Page: www:/familiesandwork.org
tion-hired independent consultants to gather data
and work with Task Force members in developing
recommendations.
The papers commissioned by the task force ad-
dressed the demand and supply of child care services,
2.
the amounts of public expenditures, and the legal re-
Business and the Early Childhood
quirements and restrictions governing funding. The
Task Force was organized into two work groups: 1)
Field Working Together on Financing
Finance and Capacity and 2) Enrollment and De-
mand, to allow for more in-depth research and
discussion of these issues.
The final recommendations of the Task Force call
In California, a retreat that included business, gov-
for reshaping New York City's existing delivery sys-
ernment, and early childhood leaders was the
tems to create a consumer-driven, community-
starting point for determining how to finance early
responsive, high-quality child care system that makes
childhood education and care.
the best use of available funding. To accomplish this
goal, changes have been recommended in four areas:
Service delivery. Implement fundamental changes
in structure to promote expansion of quality child
The Child Care Economic Summit
care in the city's communities.
State of California
Standards. Assist publicly funded programs in
achieving national accreditation as a means of im-
proving quality.
In 1993, eight child care advocates convened a di-
verse group of 40 individuals to create the broad
Public and private collaboration. Create a non-
outlines of a California Plan for funding child care
profit Child Care and Early Education
services. Funding for this two-and-a-half day Child
Development Fund to enable the pooling of a va-
Care Economic Summit was provided by the David
riety of funds, and to leverage New York City tax
and Lucile Packard Foundation, the S.H. Cowell
dollars with funds from the private sector.
Foundation and Mervyn's, a department store. Par-
124 INVOLVING BUSINESS
ticipants included business and labor, legislators, gov-
Parents should be able to choose among a variety
ernment officials, public finance and public policy
of service models.
experts, economists, philanthropists, and child care
experts.
Programs should include parent support services.
Karen Hill Scott, from Crystal Stairs, a resource
and referral agency in Los Angeles, was one of the
An adequate infrastructure is essential to building
organizers, and describes the planning behind the
the system.
Summit that led to its success:
Participants were carefully chosen-they were all
Points of Accomplishment
big thinkers.
The participants in the Summit came up with three
separate financing models:
The organizers hired a third-party facilitator who
could keep the Summit on task.
Model 1: Create a child care trust fund to support
parental leave or early care and education for em-
Individuals were in one of three assigned groups
ployed parents. The financing mechanisms proposed
over a several-day period; thus, they had the time
to support this model are:
to get beyond "show and tell" to think through fi-
nancing models.
one percent employer and employee payroll tax;
Every aspect of the time at the Summit was related
existing categorical funds for child development
to the task, including topics for dinner discussion.
for unemployed parents in training and students;
or
Ground rules were developed, which asked Sum-
mit participants to take risks; to honor past policy
leveraged efficiencies from other child care re-
models, but also to be willing to move beyond
lated funds.
them; to challenge their assumptions and those of
others; and to listen and collaborate with the other
Model 2: Expand the mandate of public educa-
participants. The participants were also taught
tion to include early care and education. The
how to do "mind-mapping."
financing mechanisms proposed to support this
model are:
The overall task for the participants was: How do
we adequately finance child care in California for
general fund education allocation;
birth through age 12 at a cost of $8,500 per child per
year? Rather than spend time debating cost, the
increased efficiency with existing child develop-
Steering Committee chose the $8,500 figure based
ment and ancillary funds; or
on the NAEYC's estimated full cost of quality.
Summit criteria were also pre-established:
payroll tax for paid parental leave.
Quality child care and development services
Model 3: Establish a child care allowance that sup-
should be universally available.
ports purchased care and parental care in the home.
The proposed financing mechanisms are:
Most parents can afford to pay approximately 10
percent of their income for child care.
one percent employer and employee payroll tax;
INVOLVING BUSINESS
125
increased efficiency with existing funds; or
nificant challenge existed in developing a system in
which business, government and philanthropy were
welfare reform job training and education funds
all equal partners in initiating and leading this effort.
for job entry/reentry.
In 1991, the Governor's Office of Children and
Youth (GOCY), the Hawaii Community Foundation
The next steps are to conduct research that elab-
and Hawaii Business Roundtable and others spear-
orates on how the financing mechanisms would
headed Hawaii's Early Childhood Education and
work; to develop alliances in support of these
Care (ECEC) Finance Think Tank involving business
models, including consumer and constituent in-
and early childhood leaders. The project was de-
volvement; to select a model; and to implement a
signed to culminate in new financing strategies to
plan of action.
support a statewide comprehensive ECEC system
serving children from birth to age five in Hawaii by
the year 2000.
Resources Available
The initiative evolved into a four-stage process: 1)
A limited number of copies of the Steering Commit-
describing Hawaii's current ECEC system and costs;
tee report, The California Child Care Economic Summit:
2) defining an optimal, universal ECEC system for
Conference Report are available.
Hawaii; 3) identifying new financing strategies to sup-
port this system; and 4) identifying possible
coordinating mechanisms. Launching the imple-
Contact
mentation of the system and financing mechanisms
Mary Petsche
later became the task of the Hawaii Early Childhood
Child Care Coordinating Council of San Mateo
Education and Care Coordinating Committee es-
County, Inc.
tablished by Executive Order in 1994 and ultimately
700 South Claremont Street
of the Good Beginnings Initiative which followed.
Suite 107
San Mateo, CA 94402
(415) 696-8780 x212
Funding
(415) 343-8719 Fax
Three sponsoring partners-the Hawaii Business
E-mail: [email protected]
Roundtable, the Hawaii Community Foundation,
and the Hawaii Governor's Office of Children and
Youth-funded this initiative. Each partner con-
tributed funding, expertise, and leadership to the
project.
The Hawaii Early Childhood Education
and Care Finance Think Tank
State of Hawaii
History
In Hawaii, as in other states, there is an urgent need
for a comprehensive ECEC system. Addressing this
need became a priority for businesses, early child-
The state of Hawaii was the first state to bring busi-
hood providers, legislators, government, schools,
ness and early childhood experts together to envision
parents, and the community at large in the late 1980s.
the early childhood education and care system it
Although there was general agreement that
wanted, and then to figure out how to finance it using
something had to be done, all efforts at innovation
both traditional and new financing strategies. A sig-
were either slowed or stalled because the price tag of
126
INVOLVING BUSINESS
a statewide accessible ECEC system seemed over-
strategies was such a complex issue, a cross-sector
whelming.
temporary ECEC coordinating committee was jointly
In 1991, several public and private organizations
established in 1994. This temporary coordinating
decided to address the challenge by convening an
committee was charged with completing a master
ECEC Finance Think Tank.
plan for a coordinated system of ECEC to include rec-
At first, it was envisioned as a one-time meeting to
ommendations for a governing mechanism to
brainstorm ways to finance with community leaders
implement the plan by the opening of the 1996 state
known for innovative thinking and expertise in fi-
legislature.
nance, development, taxation, economics, and
public-private funding. The Think Tank's sponsors
hired a consultant to prepare pre-meeting materials,
Points Of Accomplishment
plan the agenda, and arrange for a facilitator. At the
The work of the Hawaii Early Childhood Education
meeting, the seven Think Tank members were
and Care Coordinating Committee resulted in the
briefed on Hawaii's ECEC landscape, and asked to
development of the Good Beginnings Initiative and
identify a wide range of public and private financing
master plan to build coordinated and integrated
strategies.
early childhood education and care programs and
The group was so enthusiastic about this assign-
services. The master plan contains strategies for
ment that, at the close of the first session, they asked
achieving objectives over the next five to ten years
to meet again.
that will move the state closer to realizing an optimal
At the second Think Tank session, they made two
ECEC system as envisioned by those who participated
specific recommendations: 1) to expand the Think
in the multi-year planning process.
Tank to another level-i.e., to be an Advisory Com-
The Good Beginnings Initiative was officially
mittee representing public and private ECEC
launched in June, 1996 and endorsed by the Gover-
stakeholders, and 2) to launch a process to define an
nor through an executive order. A coordinating
optimal ECEC system and determine its cost.
structure has been established and consists of three
The Think Tank convened an Advisory Commit-
interrelated entities: 1) the Good Beginnings Al-
tee represented by a broad range of ECEC
liance, a statewide, private, non-profit, charitable
stakeholders. The Advisory Committee then selected
organization; 2) the Interdepartmental Council of
consultants to:
state agencies; and 3) the Community Councils at the
local level. Together, as a part of the Good Begin-
describe Hawaii's current ECEC system, including
nings Initiative, these entities have begun
supply, demand, costs, funding, and quality;
implementing priority strategies to:
describe an optimal ECEC system for children
engage in joint planning;
from birth to age five, including a recommended
governance mechanism;
forge interagency agreements for improved link-
ages;
estimate the cost of this optimal system; and
coordinate adoption of quality standards;
develop financing strategies to support this system.
share information and resources; and
Because deciding upon a governance mechanism
that would ultimately become responsible for devel-
cooperate in developing an optimal system of early
oping the optimal ECEC system and financing
childhood education and care.
INVOLVING BUSINESS
127
In addition, the pioneering work of the Think
Starting Points Project site with service integration a key
Tank Advisory Committee identified 56 possible new
focus.)
financing strategies organized into seven categories:
In addition, although community forums were
grants, loans, bonds, tax policy, changes in state reg-
held, because this initiative was carried out at the
ulation, equity and reallocation of resources. The
state level, there needed to be more local participa-
financing research has resulted in a broader com-
tion to identify and incorporate local/regional
munity understanding of the complexity of the
financing strategies and resources or to build local
current and future ECEC system.
ownership of and support for its results. (Local dis-
During the course of the Think Tank meetings, re-
cussion and community ECEC planning will be one
lationships and trust developed among the
of the first activities carried out through the Good
participating finance experts, additional financing
Beginnings initiative.)
options emerged. Likewise, as tax policy experts
Another obstacle was trying to choreograph the
learned more about ECEC system needs, they rec-
initiative's pace to accommodate the needs and de-
ommended tax policy changes to increase ECEC staff
sires of private sector partners who were
salaries and to provide incentives for family child care
uncomfortable with a long, drawn-out process, and
providers to register and participate in training.
by government partners who were more comfortable
The Think Tank Advisory Committee helped to
moving forward in a slow, cautious, and deliberate
establish broader public and private sector commit-
way. This dynamic tension between institutions and
ment to building an optimal ECEC system as well as
individuals with a different tolerance for "process" re-
continuing to explore strategies to finance such a
mains a significant challenge that can either serve as
system.
a healthy stimulus for change or block progress.
Greater public support was demonstrated in 1994,
The most challenging obstacle (and opportunity)
when Hawaii's voters overwhelmingly supported a
this initiative now faces is to continue its momentum
constitutional amendment to allow special purpose
in a climate of budget austerity and block grants.
revenue bonds (one of the initiative's recommended
financing strategies) to be used for ECEC facility con-
struction and renovation.
Next Steps
Much careful thought has been given in Hawaii to
what constitutes an optimal system of early childhood
Challenges
education and care. While families of young chil-
One significant and on-going challenge was over-
dren, service providers, and advocates of children
coming turf issues among both public and private
are committed to achieving this vision, most recog-
agencies that fund and/or provide ECEC programs
nize that current limited resources compared with
and services. The vision of an optimal ECEC system
extensive system needs dictate an incremental ap-
called for coordination of funding streams, gover-
proach. To progress, steps will be taken to develop
nance, and service delivery in ways that made sense
even stronger partnerships between state and local
for families with young children, thus eliminating
government, individual communities, and the pri-
traditional categorical thinking and practice. In re-
vate sector.
ality, however, system redesign efforts in health, in
social services, and in ECEC proceeded in a parallel
process, rather than being integrally linked. Initial
Advice
steps toward linkages are now occurring among rep-
If this initiative were to be replicated, its planners
resentatives from a spectrum of reform initiatives in
would recommend several elements that they
the state. (Editor's note: Hawaii is now a Carnagie
learned were key:
128
INVOLVING BUSINESS
Think as inclusively as possible when establishing
media, and legislative partners as other cultures
a stakeholder group. For example, the original
that must be acknowledged and respected.
project advisory committee did not include
United Way or representatives of unions, media,
Use outside (e.g., national foundation) funding
or the military. Although their representation was
to leverage local support.
later added, earlier participation by these groups
would have been beneficial.
Involve outside facilitators and/or consultants to
keep the process moving forward. Hawaii brought
Call on businesses to provide business expertise,
in a think tank facilitator from another state who
rather than funding. This strategy resulted in ef-
was able to make observations and recommenda-
fective business participation in both developing
tions that were well-received.
financing strategies and advocating for system
change.
Create a process and structure that accommodates
both leaders who want to move quickly and those
Establish ways to include system reform efforts fo-
who prefer a more lengthy process of creating sys-
cusing on health and family support for young
tem change.
children and their families with ECEC system re-
design and financing efforts.
Acknowledge and accept that collaboration is by
its very nature a slow process.
Arrange for financing experts and other stake-
holders unfamiliar with ECEC programs and
services to actually visit a variety of ECEC settings
Resources Available
and be able to hear from families of young chil-
All of the project's research, including a description
dren. In Hawaii, this step occurred late in the
of Hawaii's current ECEC system, the vision of an op-
process in response to ongoing confusion about a
timal ECEC system for Hawaii in the year 2000, and
perceived difference between "early childhood ed-
financing the system and a series of technical ap-
ucation" and "child care." After visiting ECEC
pendices to these reports have been published by the
centers, traveling preschools (a project where
Governor's Office of Children and Youth and are
preschool equipment is packed in vans that travel
available upon request.
to different locations in communities), and fam-
ily child care homes, and talking with parents of
young children, business, philanthropy, and poli-
Contact
cymakers (especially men) gained a new respect
Sandra Potter Marquardt, Office of the Governor
for ECEC providers and a better understanding of
Children and Families
the critical work that they do.
415 S. Beretania Street 4th floor
Honolulu, HI 96813
Be responsive to the fact that a broad-based stake-
(808) 586-0110
holder group represents very different cultures
(808) 586-0125
and languages (this is especially true in Hawaii)
(808) 586-0122 Fax
and that time must be taken to develop common
language and definitions.
Provide leadership that encourages ECEC
providers and advocates to see their business,
INVOLVING BUSINESS
129
3.
submit recommendations for determining how
All Business Task Force
the state's General Assembly could implement
changes in the current policy to ensure that par-
ents have quality child care choices.
Some of the problems of bringing the early
Kathleen Shindler, a policy advisor working at First
childhood community together with business lead-
Impressions, describes the thinking behind the de-
ers-due to differences in style, pace, and
velopment of the Business Commission: "We wanted
format-are avoided when a task force is formed that
to look at these finance issues as one would for a busi-
is made up entirely of business representatives. This
ness investment. And, when the time comes, these
is the approach that First Impressions took in
business leaders will also help us sell whatever pro-
Colorado when it established its Business Commis-
gram or plan they develop."
sion on Child Care Financing. Based on the belief
Accordingly, the Business Commission was facili-
that business has a role to play in early care and
tated by a former state legislator, Sam Williams.
education, community and business leaders were
According to Shindler:
convened to look at child care as a business that
Convening a group of just business leaders was a different
needs improvement and to suggest solutions.
way of working because we believed this group would think
big and that the public would listen to what it had to say.
Be aware, however, that we did invite representatives from
early childhood organizations to present at the first meet-
ing and have kept them informed of the Commission's
Business Commission on Child Care
work.
Financing
The Business Commission began a six-month
State of Colorado
process in June 1995 to assess the current finance sys-
tem of early childhood care and education, and to
investigate ways to improve that system. Chaired by
Douglas Price, President of FirstBank of Denver, the
Modeled after Hawaii's Early Childhood Education
Business Commission has identified financing strate-
and Care Finance Think Tank, the Business Com-
gies, reviewed creative funding strategies used by
mission was created on May 7, 1995 by Governor
other states, and found additional sources of fund-
Romer through an executive order. The Governor
ing. In the course of the deliberations, the Business
appointed 25 Colorado leaders in business and fi-
Commission members were briefed by early child-
nance and asked them to:
hood experts in Colorado as well as national experts
about the impact of maternal employment on chil-
assess child care problems and recommend fi-
dren, child care financing and other issues. In
nancing strategies to solve them;
addition, leaders of the early childhood community
came to observe the meetings and were available as
identify possible funding streams that could be
sources of information if questions arose.
used to finance a system of early care and educa-
tion;
Points of Accomplishment
develop a long-term plan to finance early care and
The Business Commission completed its sixth and
education; and
final meeting in October 1995 and released its report
in December. It made 12 recommendations:
130 INVOLVING BUSINESS
Recommendation #1. Establish model planning and
Recommendation #11. Convene a governor's
zoning programs designed to increase and impact
statewide summit on business and child care.
the supply of child care.
Recommendation #12. Create a permanent busi-
Recommendation #2. Develop and distribute a busi-
ness and child care commission.
ness-oriented resource guide describing child care
employee benefit options.
As recommendations are made public, Sam
Williams will continue to work with business leaders
Recommendation #3. Design, implement, and dis-
and the state's General Assembly to act upon the
tribute a packet of model child care programs that
Business Commission's recommendations. At that
can be locally replicated or adapted by employers of
time, he will also begin to work on other recom-
varying sizes and organizational structures.
mendations made by Colorado's Business and Child
Care Council. Since the 12th recommendation calls
Recommendation #4. Establish a multi-bank com-
for the establishment of a permanent business and
munity development corporation that will provide
child care commission "to guide the implementation
loans and other financial assistance to child care
of these recommendations," it is clear that business
providers.
will continue its role of working with the public and
private sectors on how Colorado cares for its chil-
Recommendation #5. Develop and distribute a child
dren.
care consumer guide for parents.
Recommendation #6. Restructure the current Col-
Contact
orado enterprise zone child care contribution
Sam Williams, Business and Child Care Coordinator
program to improve the availability, quality, and af-
Colorado Office of Business Development
fordability of child care.
1625 Broadway
Denver, Colorado 80202
Recommendation #7. Initiate legislation to establish
(303) 892-3873
a voluntary child care check-off on Colorado state in-
(303) 892-3848 Fax
come tax returns to fund quality enhancement in
[email protected]
licensed child care facilities through a dedicated
funding source.
Recommendation #8. Initiate a refundable child
care income tax credit for Colorado families to sig-
nificantly assist them in paying for licensed child care.
Recommendation #9. Initiate a change in property
tax assessment rates to allow child care facilities to be
taxed at the residential rate rather than the com-
mercial rate.
Recommendation #10. Develop policies that provide
for the utilization of existing public educational
buildings for child care programs.
INVOLVING BUSINESS
131
QUESTIONS TO CONSIDER
Show how a partnership will bring results. Once
the business has been sold on the issue, present
Business Involvement in
the ways in which the initiative has the capacity to
Community Mobilization
bring about change or make things happen.
2.
1.
H
ow can we maintain business
H
ow can we begin?
involvement?
Target those businesses that are most likely to want
Create clear expectations. Be sure that business
to participate. Find out who in the community is
and community leaders are clear about tasks and
already interested or who has built-in interests in
responsibilities and expected results.
the cause-possibly because of the nature of the
business, the employees in that business, the cus-
Continue to provide needed background infor-
tomers the business serves, or their personal
mation. Wehling has seen initiatives fail when not
experience.
enough time is invested in providing background
materials needed for decision making.
Look for individuals who are "predisposed" to the
cause. According to Robert Wehling, Senior Vice
Create a "bonding" experience. Social service
President, Procter & Gamble:
agencies, educational institutions, and govern-
You have higher odds if you find someone who's already
ment generally approach issues differently than
leaning your way and get them to do more. Don't enlist
many business people do. Wehling states:
anyone from business to help unless they are personally
There needs to be some kind of retreat or something that
and genuinely enthusiastic about being involved. They
groups do together that helps them to develop a common
must be willing to take the personal time to truly under-
language and a common set of expectations.
stand the problems and the issues that you are dealing
with.
For example, he suggests hosting a workshop or
seminar that uses a structured vehicle such as the
Make personal contact. "It'sa one-person-reaches-
audio- or videotape series by Stephen Covey titled
one-person thing," says Dee Topol, President, The
Seven Habits of Highly Effective People. Here,
Travelers Foundation. If possible, have a signifi-
Covey provides a framework that teaches individ-
cant community leader, a respected elected
uals how to work effectively together; it also
official, or a business colleague make the first
strongly emphasizes the need for a commonly de-
contact.
veloped mission. Another example comes from
Hawaii's Early Childhood Education and Care Fi-
Make a business case for participation. Business
nance Think Tank. Early childhood leaders
leaders will typically not get involved unless there
organized visits to child care programs with an ob-
is a strong business reason for doing so. As the old
servation guide so that business leaders could see
adage goes, "You see the light when you feel the
the issues first hand and become familiar with the
heat."
vocabulary that early childhood professionals use.
132 INVOLVING BUSINESS
Agree to a timetable. Wehling says:
They may feel more comfortable setting short-
Business people often want to move faster than a lot of the
term goals than setting the long-term investments
agencies do. But both sides need to listen to each other.
often required by dependent care.
The business people need to understand why speed may
not be in the best interest of the outcome we seek. By the
It is important to deal with the ambivalence that
same token, the [early childhood] people need to see that
business leaders may have. For example, child care
maybe there is a way to do something faster than they had
can be less acceptable as a business cause, as it
thought.
seemingly contradicts some common assumptions
such as these: children should be at home, cared
Assign meaningful tasks. All too often, things fall
for by their mothers; employees should leave their
apart when early childhood leaders don't ask busi-
personal problems at home; child care is a
ness to do things that are meaningful. Once you
women's issue, not a business issue; business has
have gained the commitment of business, it is es-
no right to interfere with family life; the quality of
sential to keep the enrolled companies involved.
child care is not important because a good family
"Give them something to do so they can feel that
life will protect children if the child care is of lower
they are helping," says Topol. Active participation
quality; children do not really begin to learn until
goes beyond attending meetings. "You can't just
they enter school.
engage people in the issue, tell them to come to a
meeting, and then-three months later-tell
Dealing with ambivalence as it arises is necessary
them to come back to another meeting." Topol
to ensure the full commitment of participants.
has seen occasions where businesses will stop com-
ing to the meetings. "They begin to think, 'What
The dependent care community must also take re-
am I doing here? Why do they need me?"
sponsibility for explaining the complexities of its
field to the business community in an under-
Keep business leaders informed. Pick up the
standable way. Unlike the public schools, there is
phone or write to participants to let them know
no single point of entry to the early childhood
how things are going.
field. Drawing diagrams of different programs,
their auspices, and their funding sources can help.
Give business leaders sufficient credit and recog-
nition for achievements.
Dependent care leaders must help business lead-
ers understand the difference between improving
programs and improving systems. Business lead-
ers may not understand enough about the field to
3.
understand why systemic change is necessary.
What are issues to keep in mind when
They may tend to think in terms of "program"
working with business?
rather than "system." Explaining why the early
childhood field (like other industries and social
Dependent care may be a harder sell than other
services) needs an infrastructure can clear up this
issues receiving the support of business. Business
understandable confusion.
leaders may choose to be involved with visible is-
sues such as crime, homelessness, or hunger. They
may select issues that provide a traditionally obvi-
Summary
ous direct benefit for their companies-such as
In the space of a few short years, there has been an
higher education or school-to-work programs.
increase in the involvement of the business commu-
INVOLVING BUSINESS
133
nity in community mobilization efforts. Although
useful models have been created for other commu-
nities and states to use or adapt, the innovations still
tend to be confined to a few parts of the country. En-
larging the involvement of business is an important
task for the coming years. It is clear that business in-
volvement to date makes a difference in the quality
of the results and in the lasting power of community
mobilization efforts on behalf of children and their
families.
134 INVOLVING BUSINESS
ABC
American Business Collaboration
Quality Dependent for Care
1996 Annual Report
American Business Collaboration
1996 Annual Report
This report was prepared by WFD as the first
project report on Phase II of the American
Business Collaboration. It highlights the
learnings and progress of the project thus far.
AMERICAN BUSINESS COLLABORATION FOR QUALITY
DEPENDENT CARE (ABC)
I. ABOUT THE ABC
WHY COMPANIES INVEST
Internal Impacts
External Impacts
THE PARTNERSHIP
Champions in Action
Community Partners
WFD's Role
II. PROGRAM MODEL SOLUTIONS
FOR EMPLOYEES WITH ELDER CARE RESPONSIBILITIES
The Scope of the Issue
A Program Success Story: Elder Transportation Services
FOR EMPLOYEES WITH SCHOOL-AGE CHILDREN
The Scope of the Issue
A Program Success Story: The Global Games Curriculum and
Equipment Package
FOR EMPLOYEES WITH YOUNG CHILDREN
The Scope of the Issue
A Program Success Story: T.E.A.C.H. Early Childhood TM Plus
III. CHAMPIONSHIP MODEL PILOTS
CHAMPIONSHIP MODEL: BACKUP CARE
CHAMPIONSHIP MODEL: BRIDGE PROJECT
CHAMPIONSHIP MODEL: MIDDLE SCHOOL YOUTH PROGRAM
CHAMPIONSHIP MODEL: PARTNERSHIPS FOR QUALITY CARE
I. ABOUT THE ABC
I. ABOUT THE ABC
In 1992, 11 progressive companies committed $27 million to
ensure that their employees had access to the quality
dependent care services they needed. This groundbreaking
ABC Champion Companies
initiative, The American Business Collaboration for Quality
Aetna Inc.
Dependent Care, was the first partnership of its kind to
Allstate Insurance Company
leverage significant financial support to improve the supply
American Express Company
and quality of child care, school-age care, and elder care
Amoco Corporation
services in targeted communities across the country.
AT&T
Bank of America
Citibank
In September 1995, the ABC expanded to launch a new
Chevron Corporation
phase including 22 Champion companies committed to
Deloitte & Touche LLP
invest $100 million through the year 2000. The ABC
Eastman Kodak Company
remains the largest private sector investment of its kind to
Exxon Corporation
date in dependent care.
GE Capital Services
Hewlett-Packard Company
IBM Corporation
The companies that have pioneered this initiative - the
Johnson & Johnson
Champions - have been joined by other large and small
Lucent Technologies
employers committed to the idea that providing employees
Mobil Business Resources Corporation
and communities with this kind of support ultimately
NYNEX Corporation
contributes to the success of their businesses.
Price Waterhouse LLP
Texaco
Texas Instruments
Why Companies Invest - The American Business
Xerox Corporation
Collaboration Return On Investment
Companies value ABC activities because of their connection
to business results. The ABC's joint statement, signed by
the Chief Executive Officers of the Champion companies,
expresses this business rationale:
"We believe that supporting the diverse dependent
care needs of our employees is critical to our success
"The support these programs have
as it enables our companies to attract and retain a
provided has enabled my husband
and me to focus better on our work
productive, competitive, committed, and motivated
and our family As each of us is
work force.'
asked to do more. it is a great
productivity boost."
"We support these needs because the availability of
quality dependent care programs particularly those
involving infants, children in school, and the elderly
enables our employees to do their best at work by
helping them manage the demands of their work and
personal responsibilities."
ABC Annual Report 1996
The ABC has created a forum for companies to leverage
investments and ideas to accomplish together what none
could do alone. These companies are setting an example,
both as good corporate citizens and as a positive national
force, that continually strengthens the communities in which
their employees and their families live and work.
Thus far, the evaluation of ABC's efforts has focused on the
direct impacts on employees, mainly employee productivity
and satisfaction. Productivity is expressed as reduced
"Having my children at the program
absenteeism, time saved at work, and increased work output.
has allowed me to work without
Satisfaction is expressed through retention, recruitment, and
feeling guilty.
increased commitment, initiative and/or morale. Utilization
data and satisfaction surveys have been implemented to
measure the critical internal impacts. Anecdotal data also
provide powerful evidence of the effects these investments
have on working people's lives.
Internal Impacts
Investment in Direct Employee Supports
Employees are better able to meet demands of their jobs
when not distracted or prevented from getting to work
because of shortages of quality care and other services. They
feel a greater sense of loyalty when their company
"I have seen the positive effects of
recognizes these issues and responds in ways that help
ABC support at my child's program.
employees to be more able and willing to contribute.
I encourage the member companies
to keep up the good work!"
Employees of funding companies benefit from their
company's support in a variety of ways. Benefits include:
preferential access to programs their company has
funded.
improvement in the quality of services they use through
company-funded professional trainings for dependent
care providers and mini-grants for program curriculum,
equipment, and materials.
"family-friendly" policies - extended hours, flexible
program offerings, vacation or holiday coverage - that
providers are often required to put in place to be more
responsive to employees' needs.
2
ABC Annual Report 1996
Workplace Impacts of ABC Projects
70
65%
60
62%
59%
Percentage of Respondents
50
40
40%
40%
30
20
10
0
Less worrying
Less stress fait
More productive
Fewer times
Fewer days
et work
about family
at work
arrived late/
taken off
left early
for family
Utilization of ABC Programs
While investments in Phase I projects are completed,
the impact on dependents continues. As of September
1996, there were a total of 278,872 people who benefited
from their participation in Phase I community investment
projects.
278,872 Total Dependents Served By
Phase I Community Investment Projects
300
250
277,491
278,872
200
211,497
Thousands
150
100
106,494
50
40,592
0
JUL 93
JAN 94
SEP 94
SEP 95
SEP 96
Phase II projects have already touched 344,859
people. Of this number, 24,908 were company
dependents of funding companies. The number of
company and total dependents touched so far in Phase II
has already exceeded the total amount for all of Phase I.
3
ABC Annual Report 1996
Indirect Work Force Benefits
There is a growing body of knowledge supporting the idea
that retention of existing employees and recruitment of new
"Please keep up the support. This
employees are significantly influenced by the availability of
is a great situation for my child and
these kinds of programs. Research shows that awareness of
I am proud that my company is
corporate support makes employees feel more committed to
supporting children through
their employer, whether or not they make use of the
this program.
services. (DuPont Study, 1995)
Employee Perception of
ABC Projects' Value to Company
100
80 percent of employees agree
80
80%
78%
company attract and retain
Percentage of Respondents
71%
or strongly agree that these
67%
60
programs will help their
59%
40
valuable employees.
20
Nearly 75 percent of
employees agree or strongly
0
agree that support of their
we help
WE help
Feel more
Helps me
Stranger
company keep
company attract
positive about
balance work
relationship
employees
child care program made them
employees
company
and family
with company
feel more positive toward the
company.
Making Strategic Links
For most ABC Champion companies, participation in the
ABC is only one effort in a carefully conceived and
executed corporate strategy that leverages all human
resource and corporate strategic initiatives to gain
maximum potential from the whole. Supporting that link is
another crucial return on the ABC investment for many
companies, measurable by each individual company.
External Impacts -- Positioning and Citizenship
Champions also receive significant external benefits that
are often equally valued but hard to measure. These
external returns contribute to company-specific and ABC
project goals by:
encouraging others to participate: companies. providers,
employees, consumers.
distinguishing companies as leaders who set an
example, not just as good citizens, but as significant
influences on the environments in which their
employees live and work.
making employees, customers, and communities aware
of the companies' participation and support.
4
ABC Annual Report 1996
Community Impacts
We are beginning to see the effect that the work of ABC is
having in local communities on a project and strategy level.
"I am excited about the support
that my company gives to the
On a project level, we have seen that the ABC influences
day care provider in funding
providers to adopt policies and practices in support of
conferences, training programs.
employee caregivers. Extended hours, flexible program
and equipment. It has enhanced
offerings, vacation and holiday backup coverage are often
the care that my child receives.'
the result of ABC funding and WFD technical assistance.
A standard part of the WFD program development and
monitoring function is an inventory of providers' customer
service practices and ongoing technical assistance to
providers to ensure that they view employee caregivers as
customers.
As we look at communities with strong and responsive
collaborations, we realize that the strength of the local
infrastructure is the key to sustainable impact.
The Partnership
This effort to achieve quality dependent care nationwide is
the result of a partnership between three groups: the
corporations that develop the investment strategy and fund
the investments; the local service providers, who ensure
that employees receive quality, customer-focused services;
and WFD, who manages local and national collaboration.
develops program solutions, and manages the relationships
with participating providers and companies.
Champions in Action
The ABC approach to community investment is simple:
align the supply of local dependent care services with the
needs of corporate employees. The board of Champion
companies began this process by determining a national
strategy that includes:
goals, desired outcomes, project timing, and
implementation schedules on a national and local level.
targeted communities, key locations where much of the
project work will take place.
development of innovative, national, replicable projects
that can be implemented in all communities where need
and funding exist.
measured and analyzed the results of investments and
revised strategy accordingly.
communicated the actions and benefits to company
employees, providers, and the general public.
5
ABC Annual Report 1996
Community Partners
Providers chosen to participate in the ABC receive valuable
professional training, grants for equipment or expansion, or
funding for new facilities to meet the goals of ABC
initiatives. These investments make providers more
successful organizations and bring long-lasting benefit to
their community dependent care infrastructure. Through
this partnership, ABC investments increase the quality and
supply of services for everyone in the community, not just
employees of sponsoring organizations.
WFD's Role
WFD facilitates the collaboration process, bringing groups
with diverse business concerns together to achieve common
goals. WFD works with Champions on a national and local
level to develop strategies that serve the needs of funding
companies and their employees. WFD conducts needs
assessments to:
identify existing community services.
assess the needs of funding companies' employees in
the community.
WFD develops program solutions, then selects, manages,
and evaluates service providers who meet the stringent
quality and customer service standards set forth by the
ABC, and provides them with valuable technical assistance.
Finally, WFD acts as liaison between the funding
corporations, providers, and other community stakeholders.
6
II. PROGRAM MODEL SOLUTIONS
ABC Annual Report 1996
II. Program Model Solutions
For Employees With Elder Care Responsibilities
The ABC is a pioneer in recognizing and responding to
working families' elder care responsibilities.
Approved* Projects To Date
68 of 412 Total Projects as of 12/31/1996
40.0%
17.0%
68 elder care projects
$2,564,191 invested
Employees with
(with Elders
Young Children
3,819 company dependents
served
Championship Models
6,405 total dependents served
Employees with
7.0%
School-Age Children
"Approved - Signed Project Recommendations
36.0%
The Scope of the Issue
Employees with elder caregiving responsibilities often face
a conflict between getting their own work done and
assisting their elders' with health management and
household tasks, whether it be locally or from a long
distance.
The ABC is committed to heightening employee awareness
of managing elder care responsibilities and providing
employees with a forum for discussion, as well as offering
resources and solutions. By bringing this issue to the
forefront, the ABC is redefining elder care as a normal.
common part of the aging process and of employees'
family lives.
7
ABC Annual Report 1996
In fact, dependent care surveys conducted for a number of
ABC Champions point to elder care as a looming work-life
issue.
Almost 20 percent of each employee sample reported
providing assistance to elders with health management
and household tasks.
Employees' future projections are even more striking.
In each survey sample, over 40 percent of employees
expected to provide elder care within the next five
years.
A Program Success Story: Elder Transportation
Services
ABC's needs assessments, surveys, and focus groups with
employees routinely pointing to transportation as a leading
elder care concern. Further research found that elder
transportation services are in short supply in most
communities.
Over the last few years, the ABC and several individual
companies have funded the development or expansion of
16 escorted transportation programs in 14 communities
across the country. Through Elder Transportation
Services, employees' older relatives now have access to a
service that picks them up at the door, accompanies them to
their appointments, offers priority enrollment, and charges
affordable fees. The program has become a reliable,
routine service for employees whether they live near or far
from their older relatives. It has given Champion
employees "a sense of relief and reduced stress" as well as
"peace of mind". One employee commented "I'm glad
knowing that the program is there for all of us."
8
ABC Annual Report 1996
For Employees With School-Age Children
The ABC addresses an underserved market in response to
concerns of working parents and their school-age children.
Approved* Projects To Date
147 of 412 Total Projects as of 12/31/1996
40.0%
17.0%
147 school-age projects
Employees with
Employees
funded
Young Children
with Elders
$5,996,577 invested
Championship Models
6,671 company dependents
served
7 0%
67,783 total dependents served
*Approved - Signed Project Recommendations
36 0%
The Scope of the Issue
Champion needs assessments identified a shortage of
services for school-age children. Working parents cited
worrying about their school-age child as a source of
distraction and stress at the workplace.
Supply analysis reveals:
an insufficient number of available programs serving
this population.
quality issues in existing programs.
programs that are not interesting, relevant, stimulating,
or motivating for school-age kids.
9
ABC Annual Report 1996
"The current science program is
Not enough programs exist to meet the needs of children
superior to the after-school
who are too old for center-based care, but too young to stay
activities offered in the past.
home alone. Guided by research findings, the ABC and
WFD have taken the lead in searching for innovative,
effective program solutions that meet the needs of school-
age children and their working parents.
A Program Success Story: The Global Games
Curriculum and Equipment Package
The Global Games Curriculum and Equipment Package,
which combines themes of cultural diversity and activities
related to the 1996 Olympic Games, is one example of the
many innovative, effective program solutions funded by
ABC and developed by WFD school-age specialists to meet
the needs of school-age children and their working parents.
In 1996, Global Games was offered to 81 summer camps in
8 different communities across the country where funding
companies' employees lived. Sixteen hundred of the
almost 14,000 children who enjoyed this enriching summer
experience received priority enrollment as children of
employees from funding companies.
The Global Games curriculum covers areas of drama, food,
crafts, and cooperative games from dozens of countries.
The equipment kit provides high-quality materials
necessary to implement the activities. Camp staff received
two days of training and a site visit from a specialist on
how to implement the program in their own setting.
Parents, children, and staff responded enthusiastically.
Parents noted that children did not want to leave camp until
they had finished activities, and often used time at home to
talk about or do more activities related to what they did at
camp. Staff noted that the games also engaged older
campers, usually a challenge for full-day programming.
Program staff expressed interest in incorporating these
themes into their year-round after-school activities, thereby
extending the impact of this investment.
10
ABC Annual Report 1996
For Employees With Young Children
ABC investment is a catalyst for higher quality in the early
childhood field.
Approved* Projects To Date
166 of 412 Total Projects as of 12/31/1996
40.0%
166 child care projects funded
17.0%
$12,822,411 invested
Employees
8,539 company dependents served
with Elders
108,836 total dependents served
Championship Models
Employees with
-70%
School Age Children
36.0%
*Approved - Signed Project Recommendations
The Scope of the Issue
Champion companies acknowledge that high-quality child
care must meet the needs of both children and working
parents. High-quality programs not only provide safe,
stable, nurturing, stimulating environments for children, but
they also help employees respond to the demands and
schedule of their jobs. Yet, in focus groups and surveys
conducted during community needs assessments,
employees cited quality of care as a concern in both child
care centers and family child care homes. Research
supports these concerns. Overall quality in the U.S. child
care market is distressing. Approximately 7 out of 10 child
care centers provide "minimal quality" care that meets
basic health and safety standards but fails to promote
children's learning and development. Between 12-21
percent of children are in programs that are unsafe or
harmful, and only 12-14 percent of children are in care
arrangements that promote their growth and cognitive
development (Cost, Quality and Child Outcomes Study,
1995).
11
ABC Annual Report 1996
The negative effects of low-quality early childhood
programs are well documented. with adverse child
outcomes most commonly cited. Galinsky and Friedman
"Assistance in training and
(1993) note that "Children, high and low income alike,
education offered to staff will help
morale and increase the quality of
have been shown to suffer ill effects when they are in
child care provided.'
crowded programs, when they receive little individualized
attention, when they wander aimlessly about, or are
pressured into inappropriate activities beyond their grasp."
Conversely, high-quality programs are designed to offer
"Excellent program. My children
individualized attention, continuity of care, and
are VERY happy there.
developmentally appropriate activities that foster children's
learning and socialization.
"The best child care environment
Research indicates that parents' definition of overall child
we have ever worked with. It was
care satisfaction is primarily influenced by the nature of
an extremely positive learning
their child's experience. They may be dissatisfied with
experience for our child."
aspects of the program that affect them, but will place these
needs second as long as their child's experience is positive.
The factors that affect parents most often include: hours of
operation, flexibility of scheduling, location, and parents'
opportunity for input. When parents are dissatisfied with
"As a small day care center we do
these features of the care arrangement, they are more likely
not have the funds to help our
staff further their education. But
to have higher levels of stress, more work-family conflict,
now, with your help, we will be
and more stress-related health problems (Shinn, Galinsky,
able to do it. It is nice to know the
& Gulcur, 1990).
big companies, like yourself, are
willing to help out the little
A Program Success Story: T.E.A.C.H. Early Childhood
companies especially when it
TM
Plus
comes to the welfare
of our children."
ABC has funded a two-part, quality-enhancement project
called T.E.A.C.H. (Teacher Education And Compensation
Helps) Early Childhood TM Plus. This project brings
From center directors - "The
scholarships, training, and technical assistance to more than
career choice that these teachers
77 child care centers serving employees' children across the
have made brings them long, hard
country.
days working with wonderful
children. Teachers in preschool
make considerably less than people
The first part of T.E.A.C.H. Plus, the T.E.A.C.H. Early
flipping hamburgers. By helping
Childhood
TM
Scholarship, offers center staff the ability to
these teachers fulfill their
pursue credit-bearing educational opportunities.
educational goals, you are giving
Scholarship recipients agree to complete required courses
them much more than an
and to remain at their center for a specified period of time.
education, but a chance to become
a professional in their field."
Providers who fulfill their requirements are guaranteed
increased compensation by their center which results in
reducing staff turn-over and ensuring continuity of care.
12
ABC Annual Report 1996
The second part of T.E.A.C.H. Plus, the on-site training
component, offers a year-long, on-site training program that
uses nationally recognized early childhood standards to
help centers assess and improve the quality of care
delivered. Enhancements to the program curriculum and
new materials for classrooms have improved the day-to-day
experience for employees' children. Training on "family-
friendly" practices, such as flexible schedules and hours of
operation, has made it easier for parents to balance the
demands of work and family life.
13
III. CHAMPIONSHIP MODEL
PILOTS
ABC Annual Report 1996
III. Championship Model Pilots
Approved* Projects To Date
31 of 412 Total Projects as of 12/31/1996
40.0%
31 champion model pilot
170%
projects
Employees with
Employees
Young Children
with Elders
$2,226,820 invested
4,966 company dependents
served
Employees with
7.0%
155,380 total dependents
School-Age Children
served
36 0%
*Approved - Signed Project Recommendations
Through Championship Models, the ABC Champions
provide leadership and serve as a catalyst for the
development of national, replicable models to use in any
community across the country.
Championship Models focus on innovative long-term
solutions, gaps in existing program models, development of
design models which can be easily replicated and
implemented locally, and partnership opportunities with
private foundations and public entities. Champions are
committed to research and development of four pilot
programs that help alleviate the following key dependent
care issues:
pervasive need for back-up child care during emergency
situations or breakdowns in routine arrangements as
well as planned absences and school vacations.
meeting the employee's unique challenge to be
involved as a parent in his/her children 's education.
unmet need for stimulating, supervised before and
after-school programs for middle-school children.
finding sufficient supply of high-quality care options
for dependents of all ages and life stages.
14
ABC Annual Report 1996
After a course of research and development, pilot testing,
and evaluation, the programs will serve as nationally
replicable dependent care solutions, blueprints for efficient
implementation of dependent care solutions.
Championship Model: Backup Care
The Backup Care Championship Model began in Spring,
1995 to respond to a key child care need identified by both
employees and managers. The model was designed to
evaluate a number of different parameters measuring
program effectiveness and success, and to include backup
care programs as part of each community strategy over the
first two years of collaboration.
To date, 39 backup programs have been approved in 21
community strategies. Models include:
in-home registries
mildly ill conferences
family child care
family child care emergency school closing (i.e.,
Snowy Day), and
a two-day health and safety training initiative.
In addition, a "full-service" backup care center was
developed to offer parents temporary and emergency care
for their school-age children on holidays, vacations, snow
days, or other school closing days.
15
ABC Annual Report 1996
Championship Model: Bridge Project
The Bridge Project is a national pilot project designed to
improve student success in public schools through an
innovative voice mail program that strengthens
communication between parents and teachers.
The Bridge Project was launched in 1995 to meet the needs
of employees who had expressed a desire to become more
involved with their children's education - but who had
little contact with their children's teachers due to work
schedules, family commitments, and/or language and
"It's a wonderful communication
cultural barriers. Key goals for the project were to:
tool for parents, teachers, and
students. It has helped to clarify
develop a replicable parent-teacher communication
homework assignments and
model
projects and upcoming events.
introduce a customer service focus to schools
establish corporate leadership in supporting parent
involvement in education.
The project has been well received by employees, teachers,
and communities, creating a significant amount of positive
national and local media attention. In April 1996, the
American Business Collaboration received a "Golden
Apple Award" from Working Mother magazine and the
"I now can get more information
U.S. Department of Education to recognize their
from my child's school. I feel good
that IBM is showing more interest
"outstanding effort in promoting family involvement in
in the community and in our
education." In August 1996, the Bridge Project was
children.'
featured on the Today Show.
The Bridge Project has now moved through all phases of
"This is what I call convenience
Championship Model research, development, implementation, and
for working parents.
evaluation. The data clearly illustrate the positive impact that
Bridge exerts on students, working families, and communities:
On average, parent-teacher contact increased 431
percent in pilot schools.
87 percent of employees' families used their school's
voice messaging system.
70 percent of employee's parents report the project
makes them feel more positive about their employer.
48 percent of employee's parents report they are now
more involved in their child's education and their child
completes more homework as a result of the project.
30 percent of employee's parents believe the project
helped to improve their child's knowledge or skills.
16
ABC Annual Report 1996
40 percent of employee's parents report the project
helped them to balance work and family
responsibilities.
Championship Model: Middle School Youth
Program
The key goals for the Middle School Youth Program are to
provide leadership and work with youth-serving agencies to
develop programs that address the interests and abilities of
middle school-age children, as well as the concerns of their
working parents. Companies recognize that these children
represent our future work force.
Implementation of six after-school pilots began in fall
1996. Presentations at two youth program conferences by
members of the project design team were well-received,
evidence that learnings from this initiative will benefit the
youth development field.
Six programs were initiated or expanded in 1996, two
beginning in summer 1996, the rest beginning at the start of
the school year. Over 30 staff at six sites were trained to
understand the elements of successful programming for the
10-14-year-old age group. Four hundred and seventy-two
young people were served by the new programs, which
exceeded the goal of 240 total youth for all six sites.
Thirty-nine children of funders' employees enrolled in the
programs. Technical advisers dedicated over 200 hours of
telephone consultation to each pilot site for program
development assistance.
17
ABC Annual Report 1996
Championship Model: Partnerships For Quality Care
The objectives of the Partnerships for Quality Care
Championship Model are: 1) to improve the quality of care
in child care centers, family child care homes, school-age
programs, and adult day care programs; 2) to ensure that
quality standards are in place through the development of
training, credentialing and accreditation initiatives; 3) to
develop strategic partnerships with leadership organizations
in the field to reach the overall goal. Four initiatives
describe ABC's success in these areas:
1. Center Directors' Credential
A national caucus group on director credentialing, whose
members represent a number of leaders in the early
childhood field, has been formed. This group led a full-day
discussion on credential issues with national academic
experts and advocates at the NAEYC Professional
Development Conference held in June, and a half-day
session at the National NAEYC conference in November.
Roger Neugebauer, a member of the caucus, and editor of
the Child Care Information Exchange, a national
publication for center directors, developed a survey for this
publication on the topic of center director credentialing,
which was included in the January issue.
2. Family Child Care Advanced-Level Training
The advanced level training was piloted in
January/February 1997 in Chicago, Denver, Kansas City,
Metro DC and St. Louis. The final version will be available
for implementation in communities nationwide in the fall
of 1997. A train-the-trainer session was developed and
implemented for this curriculum.
Mentor training was also developed with Windflower
Enterprises of Colorado. The Mentor training has been
piloted through collaboration projects in Spring 1997 in the
following communities: Washington, DC; Raleigh, NC;
Charlotte, NC; Tampa, FL; and Chicago, IL. The final
version will be available for implementation in
communities nationwide in the winter of 1998.
Championship Model funding, through collaboration with
other funders, also supported the national Family Child
Care Accreditation initiative to finalize the revision and
18
ABC Annual Report 1996
development of the new family child care accreditation
standards, including a plan for the implementation of
national pilots.
3. School-Age Accreditation Trainings
Over 100 parents and staff attended accreditation standards
and process trainings. Eight programs in each of four
communities funded through the ABC are participating in
the piloting of the School-Age Accreditation. Sites
include: Atlanta, GA; Denver, CO; North/Central NJ; and
San Jose, CA. Over 2,000 children are currently enrolled in
these 32 programs, with 218 of this number children of
employees of ABC companies.
Participating programs have formed self-study teams to
assess how their individual programs rated in relation to the
national accreditation standards. A total of 14 employees
of ABC companies are serving as parent representatives on
these teams. In the fourth quarter of 1996, participating
programs completed the self-study process. These
programs are engaged in program improvement plans based
on the results.
4. National Adult Day Services Accreditation Project
The Program Assistant Testing and Certification program
certified 87 program assistants. This number reflects 22
programs serving at least 1,494 adult day service
participants. The curriculum drafted by the task force on
the Director/ Administrators Curriculum Development was
field tested in the fall and later used to train one hundred
and forty of the Adult Day Service program administrators
Having examined working models in six fields, an
Accreditation Research Task Force was created to complete
the research on the accreditation models.
Survey work was conducted among Adult Day Service
providers on key features related to the development of an
accreditation model. Results were overwhelmingly positive
in support of accreditation of adult day programs.
19
American Business Collaboration
Phase II
Participating Companies
AT&T
Houston Lighting and Power
Advantis
IBM Corporation
Aetna Inc.
ITT Hartford
AlliedSignal, Inc.
International Monetary Fund
Allstate Insurance Company
Johnson & Johnson
America West Airlines
Johnson & Johnson Medical, Inc.
American Cyanamid Company
Levi Strauss
American Express Company
Lyondell Petrochemical Company
American Home Products Corp.
Marathon Oil
Amoco Corporation
Merck & Co., Inc.
Arthur Andersen/Andersen Consulting
Meridan Oil
Austin Diagnostic Center
Mervyn's
BC/BS of the Rochester Area
Mobil Chemical Company
Bank One
Mobil Business Resources Corporation
Bank of America
Motoroia, Inc.
BankBoston
NYNEX Corporation
Bankers Trust New York Corporation
Nabisco
Bashas' Markets
NationsBank
Bausch & Lomb. Inc.
Novartis Pharmaceuticals Corporation
Baxter HealthCare Corporation
Our LL Regional Medical Center
Bell Atlantic Company
Pan Energy
BellSouth Cellular Corporation
Panhandle Eastern Corporation
Bellcore
Price Waterhouse LLP
Boise Cascade Corp.
Prudential Insurance Company of America
Chevron Corporation
Rochester Gas & Electric
Chubb Corporation
Rochester Telephone
Citibank
Salt River Project
City National Bank
Santa Fe Energy
Colgate-Palmolive Company
Santa Fe Resources. Inc.
Cooper Industries
Schering-Plough Corporation
Deloitte & Touche LLP
Southern New England Telephone
Dow Chemical
St. Mary's Hospital
Dow Jones & Company, Inc.
Tenneco Packaging
E.I. DuPont de Nemours & Co.
Texaco
Eastman Kodak Company
Texas Commerce Bank
Enron Corporation
Texas Instruments
Exxon Corporation
The Conde Nast Publications. Inc.
First Interstate Bank of Texas
The World Bank
Fisons Corporation
Transco Energy Company
GE Capital Services
UTMB Galveston
Georgia School-Age Care Association
United Technologies
Hewitt Associates
Warner-Lambert Company
Hewlett-Packard Company
Work/Family Directions. Inc.
Hoechst Celanese Corporation
Xerox Corporation
American Business Collaboration
Targeted Communities
January 1997
Albuquerque, NM
Mid Hudson Valley, NY
Allentown, PA
Milwaukee, WI
Atlanta, GA
Minneapolis, MN
Austin, TX
Mississippi
Bakersfield, CA
Nashville, TN
Baton Rouge, LA
New Orleans, LA
Boca Raton, FL
New York, NY
Boise, ID
North/Central, NJ
Boston, MA
Northern Colorado, CO
Boulder, CO
Philadelphia, PA
Burlington, VT
Phoenix, AZ
Canton, OH
Portland, OR
Charlotte, NC
Raleigh, NC
Chicago, IL
Richmond, VA
Cincinnati, OH
Rochester, MN
Corvallis, OR
Rochester, NY
Dallas, TX
Rockland/Orange County, NY
Danbury, CT
Roseville, CA
Denver, CO
Sacramento, CA
Detroit, MI
Salt Lake City, UT
Durham, NC
San Antonio, TX
Fort Worth, TX
San Diego, CA
Ft. Lauderdale, FL
San Francisco Bay Area, CA
Greensboro, NC
San Jose, CA
Hartford, CT
Seattle, WA
Houston, TX
St. Louis, MO
Jacksonville, FL
Stamford, CT
Joliet, IL
Tampa, FL
Kansas City, MO
Temple, TX
Las Vegas, NV
Trevose, PA
Lexington, KY
Tucson, AZ
Long Island. NY
Tulsa, OK
Los Angeles Basin, CA
Vancouver, WA
Lynchburg, VA
Washington, DC
Westchester, NY