Ask the Scholar
Document scope · 1 page
Scholar
Ask about this object, its catalog metadata, its source description, or the page inventory.
For page-specific OCR and visual context, open one of the page chats.
Scholar Source Context
Document identity
localId
34429230
label
Treasury Working Group 4/23 [3]
core
doc
dtoType
document
citationUrl
pageCount
1
Source metadata
id
34429230
sourceUrl
contentType
document
title
Treasury Working Group 4/23 [3]
citationUrl
collections
Records of the First Lady's Office (Clinton Administration)
Jennifer Klein's Files
imageCount
1
hasImages
yes
source
import
hasTranscription
no
Source extras
naId
34429230
levelOfDescription
fileUnit
otherTitles
42-t-7422560-20140536S-050-007-2016
recordType
description
ocrSource
nara-archive
Single page context
seq
1
pageIndex
0
type
document
mediaId
ef8c055d3cb7925e
ocrText
I
So you have a copy
of our editi.
Z
I
APR-13-1998 14:44
EXEC. SEC. TREASURY DEPT
202 622 0073
P.02/02
called together child care expertszadiocates
economists, business leaders and
parents to highlight an
At the White House Conference on Child Care in October 1997, President Clinton and
issue That has
First Lady Hillary Rodham Clinton highlighted the importance of child care both for
tremendous
economic reasons and for the social well-being of future generations. At that conference, importance
the President also asked me to bring together a group of business and labor leaders to look for Americas
at child care problems facing working parents, and to identify best practices in the private
working.
sector and in public-private partnerships. The following report is the result of the group's
families P
work.
to examine business investment in child care,
The economy.
There, we learn
Over the last 30 years, the composition of the labor force has changed significantly.
that child can
Today, there are 20 million families with either a single working parent or two working
parents using child care. For too many of these families, quality child care is either
's,Toften of
unavailable or unaffordable. Addressing this issue should be a high priority of business, as
poor quality,
well as government, for the benefit of business, workers and the economy.
too often a
regulficant
In this report, we identified and provided examples of a variety of ways that businesses financial burder
can promote access to child care for their employees. In addition to providing on-site care, on
employers can also contribute to the cost of off-site care, help provide access to resource
families,
and referral networks, participate in public-private partnerships, and provide greater
and too
flexibility for working parents.
after
unaccesible
This report helps confirm a belief I have taken from my experience in the private sector: it
makes good business sense to create a work environment that supports the needs of each
individual, such as by providing access to child care. It not only benefits the individual, but
it also benefits the company by enabling them to attract and retain the best people. With
the changing nature of the workforce and a growing economy, this is more important to
individual businesses now than ever before. And child care is also critically important to all
businesses and our economy because today's children are tomorrow's workers.
The report carries an important lesson: investments in child care can pay off in real
dividends for employers and employees. I encourage businesses to draw lessons from the
best practices presented here to help determine what best meets their needs going forward.
By identifying and publicizing programs such as the ones contained in this report, we hope
to replicate these successes around the country in large and small businesses.
Thirty years ago, it would have seemed unusual for the Secretary of the Treasury to
address the issue of child care. Today, however, I am convinced that addressing this issue
is critical not only to the lives of the working parents and children involved, but to
business, and the well-being of our economy as we enter a new century.
Robert E. Rubin
APR-13-1998 13:25
EXEC. SEC. TREASURY DEPT
202 622 0073
P.04/29
INTRODUCTION
Child care affects many employees and almost all employers. In 1996.51 million Americans
were working parents (children under 18), representing 38 percent of the labor force, and there
were more than 10 million mothers; and 12 million fathers, of preschool children (younger than 6)
in the labor force. 1 Of the ten million preschoolers of employed mothers, more than half were
cared for by someone from outside the family.2 There are also 24 million school-age children in
need of care during out-of-school time. In some families both parents choose to work, in
others it is a financial necessity, and in many single-parent families work is the only option.
In all of these cases, however, parents need access to child care.
Working mothers and fathers face challenges in their dual roles as parents and employees.
They are concerned about the affection, education, and stimulation their infants, toddlers and
preschoolers are receiving. They are concerned about the financial burden of child care.
They are concerned about what they will do if their regular child care provider is unable to
care for their child, and about their school-age children before and after school and during
school vacations. They are concerned about how the demands of child care affect their
performance and productivity on the job.
Problems and worries about
This report, Investing in Child Care, discusses what businesses can do to promote their
employees' access to affordable, high quality child care. Although this report focusses on
employers, parents are rightfully responsible for ensuring that their children receive high quality
child care. If both parents work, they must research available options, select the type of care
(center, family day care, etc.) their children receive, and pay for the care. Parents select the child
care provider, and must do so taking into account factors such as the particular needs of their
children; the provider's qualifications, experience, and interaction with the children; the
environment in which the children receive care; convenience (including location and hours); and
affordability.
or single parents
recovide child cave assistance to
Federal, state, and local governments, and labor unions also help working parents with affordable,
high quality child care. Through both the tax code and a block-grant program for low-income
families, the Federal government provides financial assistance to working families for child care,
particularly, those for whom the cost of care is a financial burden. The Earned Income Tax Credit
and the recently enacted child tax credit also provide financial support to working families with
children, though not directly for child care purposes. Federal, state, and local governments also
promote efforts to improve the quality of care, through measures such as licensing, regulation of
child care centers, and provider education.
significant
to low-income families,
Employee representatives, such as labor unions, can also play an important role in helping parents
find affordable, quality care. Through collective bargaining, employers and employees have taken
steps to address child care issues and improve worker satisfaction and productivity. Benefits that
have been negotiated include child care subsidies for workers, time off for sick children, paid
family leave, and resource and referral programs. In an informal survey of six major unions, the
Labor Project for Working Families found more than 1.6 million workers covered by some type
of child care benefits through their union contract. 4
APR-13-1998 13:26
EXEC. SEC. TREASURY DEPT
202 622 0073 P.05/29
Employees have found that child cave significantly impacts Their businesses.
Child care is also an important issue for employers. Lack of access to affordable, quality child
care may make it difficult for businesses to hire qualified employees. Productive and valued
employees may leave because of child care problems, increasing hiring and training costs.
Employees may be forced to take time off because of child care problems, or spend time at
work handling child care concerns. All of these factors can reduce productivity and profits.
Many business recognize this, and support child care programs. But a recent study found that
only 1 percent of revenues for child care and early education came from the private sector.5
Businesses can play a very important role in helping their employees find and use quality
child: There are a number of reasons employers may find it beneficial to support child care:
to improve employee morale, to reduce turnover or absenteeism, to increase productivity, or
as part of efforts to benefit their community. Many companies have found that investment in
child care benefits the bottom line.
A recent survey of over 100 companies, conducted by Families and Work Institute,
reinforces this point. This survey is the first to use a randomly selected sample of businesses
to study the effects of family friendly policies on the bottom line.
Employers who have conducted formal evaluations of child care programs find
substantial benefits. More than half of those surveyed find that the benefits from child
care programs are greater than costs, and another fifth report that the programs are
cost-neutral.
There are similar findings for programs that allow for flexible work schedules: of those
companies that have done formal evaluations of the programs, one-third find that
benefits exceed costs, and another one-third report that the programs are cost-neutral.
For family leave policies subject to formal evaluations, almost one-half of employers
find that the benefits outweigh the costs, and another fifth find that the programs are
cost-neutral.
Many employers may view child care as a single issue--care for young children, with one
solution-an on-site child care center. However, the issue is much more complex. Many
parents choose other types of child care arrangements such as relative care or family day care;
fewer than 30 percent of preschool children of employed mothers are cared for in formal settings,
such as centers or nursery schools. Parents may also face other child care issues, such as
after-school care for older children or the need for backup care. This report looks at a number
of areas where employers can help their employees with child care, including:
resource and referral programs;
flexibility for working parents;
public-private partnerships;
APR-13-1998 13:26
EXEC. SEC. TREASURY DEPT
202 622 0073
P.06/29
corporate partnerships;
on-site child care;
off-site care;
backup/sick child care; and
out-of-school care.
It is important to note that child care is not only an issue for large employers. Small and
medium-sized businesses can also take steps to improve employee access to quality child care.
A business with only a few employees can face serious consequences if a vital worker is forced
to leave because of a child care problem. Although some of the solutions to child care
concerns discussed in this report will make sense primarily for larger employers, others will
also apply to small and medium-sized firms.
rearly experiences on
white Hounce
White House on
Employers should also be concerned about child care because today's children are tomorrow's
workers and consumers. Our changing economy requires a flexible, educated workforce.
President Clinton's 1997 conference on early child development and learning highlighted the
importance of brain development in early childhood. The President's child care conference in
October 1997 emphasized, the need that our youngest children receive the type of child care
that prepares them for school and beyond. For some children, the majority of this care will
come from their parents. For others, however, this care will come from a combination of
parents and other caregivers. Quality child care is important if these children are to reach their
full potential.7
the tance of child care that enhances growth and
prepares children to learn. It alro streeted the engent need
Section 1 of the report discusses the concerns facing workers as they balance their roles as
for
parents and employees. Section 2 will discusses the economics of child care. Section 3
after-schoo
features results from the Families and Work Institute survey of 1, 100, on child care practices,
apportunit
and how these practices have affected the bottom line; this survey is the first to take a
for
comprehensive look at what employers are doing to promote access to child care, and how they
young
benefit from these programs. This section also offers best practices in different child care
people.
areas. Section 4 offers suggestions on how employers who are interested in offering child care
programs can proceed. There is also a listing of child care resources.
This report is not an exhaustive list of what companies can do to promote employee access to
child care. It is, instead, a starting point for employers interested in learning about how they
can benefit both their company and their employees through investment in child care.
businesses
APR-13-1998 13:27
EXEC. SEC. TREASURY DEPT
202 622 0073 P.07/29
the needs of ther. children, child cave cost and quality,
PROBLEMS FACING WORKING PARENTS
1
The 51 million employees who are also parents must make a number of important decisions about
child care. Working parents of young children must decide what type of child care to use (i.e.,
family child care or a center), and then must select a specific provider. This decision depends on
factors such as price, the quality of care; and the convenience offered. Parents must also make
decisions about what to do if their regular provider is unavailable or if their child is sick. Parents
of school-age children must find care during out-of-school time, or leave their children at home
alone ("latch-key kids"). For many parents these are difficult choices, and sometimes they must
make tradeoffs between different attributes of care, such as price and quality. This can make child
care a source of concern for working parents. A 1992 study found that workers with children
exhibited higher levels of stress than workers without children, and child care responsibilities
appear to be one of the causes. 8
I. Financial Concerns
Child care is a serious financial burden for many families. In 1993, for families that paid for care
for their preschoolers, child care averaged $79 a week per family, or about $4000 annually, and
represented about 7.5 percent of income. Costs are higher for younger children (particularly
infants), for in-home baby sitters and child care centers, and in metropolitan areas. Child care
costs have increased more than 20 percent since 1986, even after adjusting for inflation (Chart
1).9 Care for older children in after-school programs is somewhat less expensive, averaging
about $1000 during the school year. 10
The cost of child care is a particular burden for low-income families (Chart 2). Child care costs
are less than 6 percent of income for families with annual incomes of $54,000 or more, but for the
poorest families, those with incomes of $14,400 or less, child care costs are more than
one-quarter of income. 11 These high child care costs for low-income workers can represent a
substantial impediment to work. And although there are programs in place to help low-income
working families with child care, a recent study finds that many parents are not aware of them. 12
II. Quality Concerns
Experiences during the first three years of childhood, including child care, can dramatically
affect the rest of life. A growing body of research verifies that investments in young children
nurture a child's physical and emotional development and that these investments can have
positive returns for families, government and society. 13
Quality is an important issue to parents and child care providers. "Quality" in child care
encompasses many different components, such as health and safety, education, and provider-child
interaction. Some attributes of quality, such as staff-child ratio and provider education, are
relatively easy to measure. Other components of quality, such as the interaction between
caregiver and child and the education component of care, have been less easy to quantify.
However, researchers have increasingly become able to both define and measure these
components of quality care. Interestingly, researchers' definitions of quality match what parents
APR-13-1998 13:27
EXEC. SEC. TREASURY DEPT
202 622 0073
P.08/29
value and desire in the care for their children.
The primary component of quality is the relationship between the child and the child care
provider, particularly that this relationship be warm and responsible. Parents want a provider who
cares about their child gives their child attention, ensures the child's safety, and communicates
with the parents about what is going on. 14
Studies have found that a number of factors make it more likely that the provider is warm and
responsive. These include:
a small number of children per adult (child to staff ratio);
a small group size;
a provider who has more education and training; and
a low level of staff turnover. 15
Three cross-national studies have found that child care quality is uneven in the United States.
Between 12 and 14 percent of children are in arrangements that promote their growth and
learning; another 12 to 21 percent are in arrangements that are potentially harmful. The
remainder of children are in care that is of mediocre quality--the children are safe, but there is
little learning. More than one-third of infants and toddlers are in care that is potentially harmful.
Several recent studies have shown that it is possible to improve quality in ways that can affect
children's development. For example, a recent study in Florida has shown that lowering child to
staff ratios and increasing teachers' educational requirements has improved children's cognitive,
social, and emotional development. 16
One area that is of particular concern is the child care labor market. According to the Center for
the Child Care Workforce, the median hourly earnings of child care workers in 1996 was only
about $6, and about $8 for preschool teachers. Earnings for family child care provider appear to
be even lower. 17 Perhaps because of these low wages, turnover is also very high; about one-third
of child care workers leave their jobs every year. 18 There is also evidence that child care workers
receive little return to training and education, reducing the incentive to improve their skills. 19
Together, all of these factors suggest that the labor market for child care workers can be an
impediment to ensuring that children receive quality care.
Improved provider education and training and reduced turnover are direct ways to improve the
quality of child care. As noted previously, however, the price of care is a financial burden for
many families. Therefore, parents who would like to purchase quality care may be unable to
afford it. An indirect, but equally important way, to improve the quality of care children receive is
to give parents the financial ability to purchase the type of care that best suits their needs.
Programs to make care more affordable will permit parents to purchase higher quality care.
APR-13-1998 13:28
EXEC. SEC. TREASURY DEPT
202 622 0073 P.09/29
Quality concerns for school-age care focus! more on learning and actively engaging children in
enrichment activities. Quality after-school programs can boost learning and achievement for
children; poor programs can actually be detrimental.
III. Other Concerns
Parents are also concerned about providing backup care, when their regular provider is
unavailable or their child is sick. Parents may also need to make alternative child care
arrangements for older children before or after school or when schools are closed. A 1997
study found that more than 1 in 4 employed parents with children under the age of 13 had
experienced a problem with their usual child care arrangement in the previous three months.
Employed parents with children under age 13 miss an average of 2.4 days of work annually
Move-
because of child-related reasons, including child care breakdowns and sick children. 20
Parents may also be unaware of how to obtain child care in their area. Often information on
providers is not readily available, and finding child care can be time-consuming. Parents may
also be unsure about what qualities to look for in selecting a provider and how to measure the
quality of care that their children receive.
Insert A
APR-13-1998 13:28
EXEC. SEC. TREASURY DEPT
202 622 0073 P.10/29
and (ul)
(1)
1
THE ECONOMICS OF CHILD CARE
Child care is a significant economic issue for a number of reasons, including labor force
trends, particularly the dramatic increase in the number of working women; the effects of child
care costs on labor supply; and the effects of child care on employee productivity. Because of
this, employers are recognizing the benefits of child care assistance for their workers.
X.
I.
Labor Force Trends
Labor force participation rates have increased dramatically for mothers over the past 50 years
(Chart 3). In 1947 just over one-quarter of all mothers with children between 6 and 17 years of
age were in the labor force, but by 1996 their labor force participation rate had tripled. The
increase in the labor force participation of mothers with younger children is similarly dramatic. In
1996 more than half of all mothers whose youngest child was less than 3 years of age were labor
force participants, versus only about one-fifth of such mothers in 1965.21
The labor force participation rate of women is expected to continue to rise in the future; by 2005,
6 of 10 women will be in the labor force. Women are expected to comprise more than 60 percent
of new labor force entrants between 1994 and 2005. The Bureau of Labor Statistics (BLS)
projects that female labor force participation of women will grow at double the rate for men from
1994 to 2005.22 In particular, women of childbearing age (15-44) are an increasing share of the
labor force; they are now 3 in 10 workers, up from 2 in 10 in 1961.23
The increase in the proportion of families with children headed by single women has also
expanded families' child care needs (Chart 4). In 1995.27 percent of families with children were
headed by a single mother 1960, up from fewer than 10 percent in 1960.24 Many of these
mothers require some form of child care while they are working to support their families, and this
trend will continue with the implementation of welfare reform. A recent study from the National
Conference of State Legislatures has found that lack of access to child care can be a serious
impediment to work for single parents leaving welfare.
III.
H. Child Care Costs
There is a substantial literature in economics that has studied the effects of child care costs on
labor supply. Although the studies use different statistical techniques and data sets, nearly all find
that reducing child care costs allows parents who want to work to enter the labor force. These
studies find that a 10 percent reduction in the price of care increases the probability that a married
mother will work by 2 to 8 percent. These studies find little effect of child care costs on the
number of hours worked, however, given that the mother is already in the labor force.
Parents choose from a variety of types of child care, including paid and unpaid care (such as from
a relative). Studies find that in areas with lower prices of care, working mothers are more likely
to use paid care. Substitution of paid for unpaid care is particularly likely to occur as the price of
paid care decreases because parents tend to be more dissatisfied with unpaid care than paid
care.25
APR-13-1998 13:29
EXEC. SEC. TREASURY DEPT
202 622 0073 P.11/29
I. mind. Burn
Insert A
X. Impact on Employee Behavior
evaluations of The
,corporale
are hand
While
It-is sometimes difficult to quantify the effect of child care programs on employee productivity
S
to come
Some companies have not conducted evaluations of the programs; other evaluations are based on
by,
informal employee surveys, and only a small percentage of employees may respond, or the
outcomes measured, like increased morale and job satisfaction, are difficult to translate into
and Surveys other
concrete benefits to the firm. Also, child care programs are highly individualized and results that measures
apply to one firm may not apply to others.
ruggest that investment
point to promism
However, given these caveats, many companies have discovered significant gains from child care
can
programs. According to a 1995 Conference Board survey, human resource professionals
surveyed believe that there are substantial benefits from offering child care services:
the benefit bottom
62 percent of respondents reported higher morale;
line improving by
54 percent reported reduced absenteeism;
employee
52 percent reported increased productivity; and
productivity.
37 percent reported lower turnover. 26
Other studies and reports have also pointed out the bottom line benefits of programs to assist
working parents.
Lexis-Nexis reduced operating expenses by more than 45 percent through a
telecommuting program and a flexible work environment. Savings came from higher
productivity, fewer facilities, greater geographical hiring pools, hiring of people with
disabilities, and better use of technology.
First Tennessee Bank reports reduced turnover costs of more than $1 million annually
from family friendly programs, including more flexible scheduling.
Johnson & Johnson reports savings of more than $4 for every $1 invested in its work-life
programs, including child care resource and referral information.
Lancaster Laboratories has a turnover rate one-half the industry average, in part due to an
on-site child care center.
ten ashs if There is anything worewecam
say have
APR-13-1998 13:29
EXEC. SEC. TREASURY DEPT
202 622 0073 P.12/29
take out &
use use for for
BEST PRACTICES AND NEW FINDINGS
maring
of
There are a number of options available for companies that are interested in promoting employee
access
to
affordable,
high
quality
child
care.
While some, such as on-site care or after-school
R&R
programs, represent a substantial investment, others have much smaller costs. In particular,
section
employers can form partnerships with resource and referral agencies to provide employees with
an excellent starting point for information on child care programs. This section briefly discusses
some types of child care initiatives companies have undertaken, and provide specific examples. It
will also offer examples of small and medium-sized businesses that have discovered benefits from
investing in child care programs.
NEW FINDINGS
This section also contains results from a recent survey of businesses on support for programs to
assist working parents. Earlier this year, the Families and Work Institute conducted a surveyef
re-
109 randomly selected employers 27 The survey was of firms with 100 or more employees, and
write
looked at family friendly policies, including child care, flexible work schedules, and leave for new
Earler This
parents. The interviewers spoke with human resource officials responsible for work-family
year. the
programs. This survey us the first to use a randomly selected sample of businesses to study the
Families &
work last.
effect of family friendly policies on the bottom line
roufirms with
conducted
The firmsirepresent surveyed a wide variety of sizes and industries (Charts 5 and 6). Many of the firms are
skudy
survey
small and medium-sized; one-fifth had fewer than 1,000 employees.28 About half of the
to study
the effect
employees of the firms interviewed are female, slightly more than half are hourly employees, and
about 15 percent are unionized. Among those companies with union employees, 13 percent of
of fun-fy
the child care programs were negotiated through collective bargaining.
pslices on the
bottom WNS.
According to the survey, employers offer a number of different reasons for investing in family
The nervey
friendly policies. The most common reasons given are:
of 1,109
accedently
to retain employees in general (19 percent);
employers of
100 or more.
to help employees balance work and family life (10 percent); and
rhers wasis
Thef st to
to improve employee morale (9 percent).
use a
include to respond
randomly
Other reasons employers institute work family programs are in response to employee requests, to
seve
increase productivity, to help retain highly skilled employees, and because it is the right thing to
bus. sample of It
do.
looks at.
When asked the main business obstacle in implementing these programs, almost one-third cite
cost; the second-most common obstacle is administrative hassles (11 percent). Other business
obstacles are competitive pressures, difficulty in supervising workers, and a belief that the
programs are not cost-effective.
The Families and Work Institute survey found substantial benefits for companies that invest in
child care programs. 29 Only one in ten companies have conducted formal evaluations of their
to end
Q: were commanies asked about the effect mese
worker productivity?
APR-13-1998 13:29
EXEC. SEC. TREASURY DEPT
202 622 0073
P.13/29
programs
However, of those firms that have conducted formal evaluations, more than half (56
percent) find that benefits from the programs are greater than costs, and another fifth
report that the programs are cost-neutral.
For companies that have not formally evaluated their child care programs, one-third of the
human resource professionals believe that the benefits of the programs exceed costs, and
another one-third believe that the programs are cost-neutral.
L Resource and Referral Programs
Child care resource and referral programs (CCR&Rs) provide information to parents about child
care, including information about local providers, the elements of high quality care, and how to
select a child care provider. The exact functions of a CCR&R agency vary, but in addition to
providing parent education, many agencies provide community planning, recruit and train
providers, and maintain a database of child care services. In 1994 CCR&Rs helped 1.5 million
families find child care. 30
In addition, CCR&Rs help employers implement and evaluate family-friendly workplace policies,
particularly support for child care. With their child care expertise and knowledge of community
needs, CCR&Rs serve as a valuable resource to employers who are working to support child care.
Employers and CCR&Rs cooperate in four main areas:
Consumer Assistance. Corporations contract with CCR&Rs to provide consultation and
referral services as a benefit for their employees.
Resource Development. Employers work with CCR&Rs to increase the supply of child
care in the community that meets the specific needs of the workforce. For example,
CCR&Rs funded by Levi Strauss in Fayetteville, Arkansas work to increase the supply of
infant care for Spanish-speaking families.
Quality Improvement. CCR&Rs are involved with major national initiatives, such as the
American Business Collaboration (ABC) for Quality Dependent Care, where they
facilitate training in more than 75 percent of communities involved CCR&Rs also work
with local efforts to improve care, such as Corporate Hands, a Houston employer
collaboration, and a consortium of public and private employers in Auburn and Opelika,
Alabama.
Data. CCR&R data on the supply of care, identified gaps, and assessment of needs
provide valuable tools for businesses both as employers and local corporate citizens.
Some CCR&Rs are community-based; these are generally non-profit organizations that provide
services in a particular community. There are approximately 500 community-based CCR&Rs
nationwide, and many are part of statewide networks. 31 A list of state resource and referral
networks is included in the Resources section of this report. Other CC&Rs offer services
APR-13-1998 13:30
EXEC. SEC. TREASURY DEPT
202 622 0073
P.14/29
nationwide to various companies under contract, and are often for-profit companies. 32
The Families and Work Institute survey finds that child care resource and referral is a very
popular benefit offered to employees. More than half (55 percent) of the businesses offer access
to information to help employees locate child care in their community. However, employee
access to child care resource and referral depends on the size of the employer. The largest
companies are more than twice as likely to offer access to information on locating child care
services as the smallest companies.
ChildNet, State of Iowa
Through the statewide Child Care Resource and Referral system, Iowa has greatly expanded
business and private sector involvement in meeting child care needs. ChildNet, a cooperative
partnership between businesses and community-based child care resource and referral agencies,
helps expand the supply of child care while providing comprehensive child care options to
employers to help address absenteeism, productivity, and retention of employees. More than 40
employers support ChildNet, providing enhanced services to nearly 20,000 employees.
Johnson & Johnson
Johnson & Johnson offers child care consultation and referral through its LifeWorks program.
LifeWorks helps Johnson & Johnson employees with finding and recognizing quality child care
(including backup care), finding appropriate care for school-age children after school, planning
for maternity/paternity leave and return, and adoption. LifeWorks is managed by WFD (formerly
Work/Family Directions), a national consulting firm.
Overall, a WFD evaluation found that Johnson & Johnson saved more than $4 in increased
productivity for every $1 invested in the LifeWorks program.
LifeWorks also includes an elder care referral service and educational components, but more than
half of all LifeWorks consultations, referrals, and requests for educational materials are for child
care-related issues. About one-fifth of J&J employees used LifeWorks in 1997, and 60 percent of
participants said the program strengthened their commitment to the company. The program is
also used by a broad section of employees: almost one-quarter had household incomes of less than
$50,000.
An evaluation of the LifeWorks program found benefits to both Johnson & Johnson and its
employees who used the program:
Employees saved, on average, 14 hours each time they used the service;
More than one-half of the employees who used LifeWorks said it helped them be more
productive at work with higher quality;
One-quarter reported that there were fewer days when they arrived late or left early; and
APR-13-1996 13:30
EXEC. SEC. TREASURY DEPT
202 622 0073
P.15/29
Another quarter percent reported that they took fewer days off.
II. Workplace Flexibilities
One way employers can help their employees with child care concerns is through flexible
workplace policies. There are many ways in which businesses can make their workplace more
flexible for working parents.
Re-order:
Flex Time. Flex time lets workers set their arrival and departure times, within specified
time periods. For example, a father who wants to be home when his children return from
S
school could agree to come in earlier in the morning and leave in time to meet his kids.
Compressed Work Schedule. With a compressed work schedule, a normal work week is
compressed into fewer than five full days.
Telecommuting. Some parents whose job does not require them to be physically in an
office can work from home. In most cases, someone else must still care for the child in
2
most instances, but the parent can spend breaks with the child and deal with child care
problems much more easily and efficiently.
Job Sharing. Parents who want to continue to work but spend more time with their child
can share jobs. For example, instead of one full-time worker, two workers can each work
3
3 days a week.
Parental Leave. Firms may not want to lose valuable workers who would otherwise
leave their job to stay at home with their child. One solution is extended maternity or
paternity leave. Parents can stay at home for an agreed upon time, then return to the same
(or comparable) job. The leave can be either paid or unpaid. The firm is able to retain the
worker, and the worker does not need to start over in a new job.33
The Families and Work Institute survey found substantial support for employee flexibility in work
scheduling.
Almost three-quarters of firms allow workers to periodically change starting and quitting
should
times, and about one-quarter allow workers to change starting and quitting times on a
This
daily basis.
Sixty percent of firms allow workers to move between full-time and part-time work, while
hein
remaining at the same position (or level).
descusona
The
Almost one-half of the employers let employees share jobs, and more than 45 percent
allow workers to compress their workweek by working longer hours on fewer days.
The
of
More than two-thirds of employers allow employees to work at home occasionally, and
almost one-half allow employees to work at home on a regular basis.
revinding?
APR-13-1998 13:31
EXEC. SEC. TREASURY DEPT
202 622 0073 P.16/29
More than three-quarters of employers allow new parents to return to work gradually
after childbirth or adoption.
The size of the company makes little difference in whether employees have flexibility in
scheduling work. The only areas where there are sizeable differences by firm size are in job
sharing and compressed workweeks, where the largest firms are about 50 percent more likely to
offer these options than the smallest.
Only 14 percent of employers who use flexible scheduling options have formally evaluated their
programs.
Of those companies that have done formal evaluations, one-third find that benefits exceed
costs, and another one-third that the programs are cost-neutral.
Of those companies that have not formally evaluated their programs, almost one-half of
human resources officials personally believe that flexible scheduling programs provide
benefits greater than costs, and another 29 percent believe they are cost-neutral.
Many of the companies surveyed also offer more leave for new parents than required under the
Family and Medical Leave Act. New mothers usually receive pay after giving birth, often as part
of a temporary disability benefit. However, only one in ten new fathers have access to paid leave.
6in the survey
Less than one-tenth of employers have conducted a quantitative evaluation of leave programs.
Of those companies that have, almost one-half (48 percent) find that the benefits outweigh
the costs. Another 19 percent find that the programs are cost-neutral.
Of those companies that have not conducted formal evaluations, 45 percent of human
resource officials surveyed believe that the benefits of family leave programs outweigh the
costs; another third believe that the programs are cost-neutral.
Salomon Smith Barney
Salomon Smith Barney offers employees a choice of alternative work arrangements, including
flextime, job sharing, and telecommuting. The purpose is to retain well-performing employees by
helping them balance work and personal life.
Salomon Smith Barney views these alternate arrangements as a privilege and not a right.
Employees must have at least one year of service and a strong performance record. The worker
requests the alternative work arrangement in writing from his or her manager, who evaluates the
request, taking into account the cost of the alternate arrangement and schedule coordination. The
manager also makes sure that alternate work arrangements are used consistently and fairly. If the
manager approves the request, he or she notifies the Benefits Committee, which ensures that all
the necessary issues have been addressed and any necessary human resource changes are made.
APR-13-1998 13:31
EXEC. SEC. TREASURY DEPT
202 622 0073
P.17/29
All alternate work arrangements are reassessed after implementation to evaluate their
effectiveness.
Because Salomon Smith Barney wants to give managers flexibility in approving alternate work
arrangements, the company does not keep track of the number of people using the program.
However, informal evaluations have found the program very useful in retaining valuable
employees and helping workers meet their obligations to both their families and the firm.
FirstBank of Colorado
FirstBank of Colorado established its reduced hours program in 1989 to provide workers the
flexibility to both maintain a career and raise a family. Staff-level employees have always been
able to work part-time, but the bank also has a program for officers. These officers must have a
minimum of three years of service, be the primary caregiver of a child under age seven, and be
able to work at least 28 hours a week. The participating office and the bank president agree on
job responsibilities and work schedule. Arrangements are reviewed annually to ensure the
arrangement is mutually beneficial to both the employee and the bank.
III. Public-Private Partnerships
Businesses across the country often join with the public sector to support child care. Through
these partnerships, at both state and local levels, companies improve child care not only for their
own employees, but for children and families in the broader communities as well. Such initiatives
promote the quality, affordability, and availability of child care for all families, including
low-income working families. Government, resource and referral, and community agencies have
the skills, expertise, and information needed to identify problems and avoid unnecessary
duplication.
Public-private partnerships not only help children and their families, but also benefit the business
community. The private sector can invest resources that increase the supply and improve the
quality of child care services, provide advice to the child care community about the tax code,
management practices, marketing, human resource policies, and other issues; and examine child
care needs and recommend improvements from a business perspective. By supporting child care,
the private sector can reduce absenteeism, increase productivity, and make it easier to attract and
retain employees. In the long-run, the businesses improve the education and development of
children who will be potential employees in the future.
Types of public-private partnerships include:
Child Care Investment Fund. Companies contribute resources to a fund which can be
used to address a range of issues, including affordability and quality.
Loans to Child Care Providers. A multi-bank community development fund can provide
loans and business assistance to child care providers. States and communities have
worked with both child care providers and financial institutions to encourage loans to
APR-13-1998 13:32
EXEC. SEC. TREASURY DEPT
202 622 0073 P.18/29
child care programs in accordance with the Community Reinvestment Act, which requires
banks and savings institutions to address the credit needs of their communities.
Child Care Business Commission. A commission of business and child care leaders can
increase business support for child care and implement specific policy recommendations.
Model Planning and Zoning Programs. Communities can remove planning and zoning
obstacles in establishing child care facilities. They can also provide incentives to increase
support for child care among real estate planners and developers.
More than one-half of the companies surveyed by the Families and Work Institute survey report
that they are involved in child care partnerships with state or local governments, and 16 percent
offer financial support for local child care through a fund or corporate contributions.
State of Colorado
Governor Roy Romer appointed corporate leaders to the Colorado Business Commission on
Child Care Financing in May 1995 to examine child care from a business perspective and propose
methods to help finance high quality, affordable, and accessible child care. The Commission met
with other business representatives, child care providers, child development experts, and state and
local leaders to develop a long-range funding plan for early childhood education. The
Commission's recommendations led to the passage of several legislative initiatives, including a
child care check-off box on the state income tax form, an increased commitment to child care, and
an ongoing Commission to work toward implementation of the reforms suggested in the
Commission's report. Other Commission recommendations included starting a multi-bank
community development corporation to provide loans and other financial assistance to child care
providers, and establishing a model planning and zoning program to increase the supply of child
care.
The Commission, together with Bright Beginnings (a non-governmental private-public partnership
designed to improve the lives of children from birth to age three), released a 45 page report on
family friendly policies, listing the benefits of such policies and concrete steps businesses can take
to implement these policies. The report also provides a work and family needs assessment survey
and a list of resources that Colorado businesses can use in implementing family friendly policies.
State of Florida
In 1996 Florida passed legislation aimed at encouraging public-private partnerships to provide
child care benefits. In fiscal year 1997-98 the state legislature allocated $4 million for the
program, and more than $3 million has been raised from businesses so far. Communities wishing
to participate must establish a local task force, with a majority of members representing
employers, but parents must also play a role. The task force is responsible for developing a plan
of action. Participating communities commit to matching state funds on a dollar-for-dollar basis
with local matching funds from employers, local governments, and charitable foundations.
APR-13-1998 13:32
EXEC. SEC. TREASURY DEPT
202 622 0073 P.19/29
Employers may participate by contributing funds to cover a portion of child qare costs for their
own low-income employees eligible for subsidized child care. Alternatively, employers,
foundations, and local governments can contribute to a general Child Care Purchasing Pool that
serves children from low-income families in the community. In either case, the state contributes a
dollar-for-dollar match, and parents pay a sliding scale fee.
At the state level, Governor Lawton Chiles appointed a Child Care Executive Committee,
comprised of business leaders, to increase the involvement of private industry in the subsidized
child care system. The Committee also assists in the development of child care policy and
provides an annual report to the governor and state legislature.
State of North Carolina
North Carolina's Smart Start initiative aims to provide every child with access to quality and
affordable child care, health care, and other support services. In each participating county, public
and private sector leaders join together to develop a plan that assesses community needs,
develops a shared vision, and provides for joint funding of needed early childhood services,
including child care.
Under state law, the North Carolina Partnership for Children and the local partnerships are
required to match 10 percent of the state appropriation (no more than half of the match can be
in-kind contributions). In 1996 the total state allocation was about $70 million. That same year
the North Carolina Partnership for Children received almost $10 million in contributions, and
local partnerships received an additional $5 million in financial and in-kind contributions.
Through a competitive grant application process, interested counties submit plans for approval to
the North Carolina Partnership for Children--a nonprofit organization which oversees and
provides guidance to local Smart Start partnerships. Once its plan is approved, each county
partnership provides an array of Smart Start services. About 30 percent of funds are used to
assist families in purchasing child care. Subsidies may be paid for care in any legally operating
child care center or family child care home which parents choose. Communities also work to
increase the availability of child care spaces; improve the quality of child care; promote the
inclusion of children with disabilities; and provide education and support for child care teachers.
IV. Corporate Partnerships
Another way that businesses work together to promote child care is through corporate
partnerships. For example, a number of businesses could jointly fund a child care center.
Alternatively, businesses can lead community efforts to improve the quality of care and train
providers.
American Business Collaboration for Quality Dependent Care and Work Family Directions
T
Through the American Business Collaboration for Quality Dependent Care (ABC), some 156
businesses (including 22 of the nation's largest corporations), governmental entities, and
Ted cuilds send in grevish edits?
Men G told me
APR-13-1996 13:33
EXEC. SEC. TREASURY DEPT
202 622 0073
P.20/29
not-for-profit organizations have invested more than $27 million in 45 communities in 25 states
and the District of Columbia. They have supported 355 dependent care projects used by more
than 277,000 individuals, including dependents of employees and community residents. WFD
manages the funding resources of the Collaboration and provides technical assistance to support
many different kinds of activities. ABC is committed to investing $100 million in targeted
communities over the next six years.
More than 100 projects are already underway; examples of ABC programs include:
$1.2 million to provide on-site training for staff and directors at 185 child care centers
over a 12- to 18-month period in Atlanta, Dallas, Washington, DC, Tampa, and the
Mid-Hudson Valley region in New York.
Almost $700,000 to expand a national program to support the professional development
of early childhood teachers through intensive training and mentoring programs in
Colorado, Florida, Illinois, and New York.
More than $1.5 million to provide technical assistance, on-site consultation, and small
grants for more than 425 child care centers in 30 communities across the country. The
funds will enable center directors to make quality improvements leading to accreditation.
Western New York Family Care Consortium
In 1996, United Auto Workers (UAW) members at a General Motors plant in Tonawanda, New
York, talked with GM management about problems in finding quality child care that fit their
scheduling needs. In response, GM and other employers in the Buffalo area surveyed their
employees about child care and found a number of problems. Almost half of the workers cited
child care as a reason they could not work overtime, and more than one-third missed 2-4 days of
work over a 3-month period because of child care problems. In response, UAW-General Motors
and UAW-American Axle, along with area employers DuPont and Praxair, founded the
Tonawanda Business Community Childcare Consortium.
Now known as the Western New York Family Care Consortium, the program is managed by
Childcare Network, Inc. In 1998 UAW-Delphi Thermal Systems joined the Consortium, and the
current employee base is more than 13,000 area workers. Consortium services include:
"Just for Kids," which provides care for school children before and after school (opening
at 5:30 AM) and during school holidays at three sites, as well as a half-day program for
children in kindergarten. Member families receive priority enrollment and pay reduced
fees.
"Just Like Home," an extended hours child care center near the worksite for ages 6 weeks
to 12 years; the center meets the needs of second shift workers by staying open until 2
AM. Member families receive priority enrollment and discounted fees.
APR-13-1998 13:33
EXEC. SEC. TREASURY DEPT
202 622 0073
P.21/29
"Just in Case," an emergency backup telephone network to connect parents with providers
when their usual child care arrangements are interrupted. Enrollment is free for UAW
members; others pay $15 to register, with $5 for each additional child.
The Consortium also provided training to more than 160 local child care providers in
1997, and has helped two area child care centers receive accreditation from the National
Association for the Education of Young Children.
V. On-Site Child Care
Perhaps the first thing employers think of when they hear about child care assistance is on-site
care, where a child care center operates on company property. On-site centers are located in
space that has been converted for child care use or specially constructed for child care. On-site
centers allow the employer greater control over quality, and are often accredited by private
organizations that evaluate child care quality.
The centers are often operated by outside contractors with experience in managing child care
centers. Companies may provide various subsidies to on-site centers. Some employers pay for
the construction and maintenance of a center, with parental fees covering the cost of operations,
while others provide operating subsidies, effectively lowering costs for all users, or offer subsidies
specifically to lower-income employees. Child care slots are generally reserved for company
employees, but if the on-site center is not full, services can be offered to other parents in the
community.
A 1998 study estimates that there are currently more than 8,000 on-site centers, sponsored by
firms of all sizes. A number of firms offering on-site care had fewer than 500 employees; these
firms typically worked with other small firms to jointly operate centers. Overall, 16 percent of the
on-site centers had more than one corporate sponsor 34
The Families and Work Institute survey found that one-fifth of firms offer on-site or near-site
child care. However, this availability of this benefit depends on the size of the firm; the largest
companies are four times more likely to offer on-site or near-site child care than the smallest
companies.35
A 1997 study of users of on-site care found beneficial effects for both employers and
employees.36
With on-site care, parents have less need to take time off because of child care
emergencies, increasing attendance and productivity.
On-site centers play an important role in attracting quality employees and increasing
retention. This is especially important in a time of low unemployment.
On-site centers are convenient, eliminating the need for another trip to the baby sitter or
child care center, reducing commuting time and stress.
APR-13-1998 13:34
EXEC. SEC. TREASURY DEPT
202 622 0073 P.22/29
I
Working parents can visit their children during lunch or breaks; this additional time can
also reassure parents about the quality of care that their children are receiving.
On-site centers demonstrate commitment to employees, creating greater employee loyalty.
SC Johnson Wax
The Johnson Wax Child Care Center (CCC), located at company headquarters in Racine, WI,
serves 250 children, providing full and half day care for ages newborn through 6 years. The
center also offers full day kindergarten, as well as before- and after-school care and a summer day
camp for older children. The CCC is managed by CorporateFamily Solutions, a national child
care provider, and the center is accredited by the National Association for the Education of
Young Children.
The CCC originally started in rented space in a church, but in 1991 moved to a state-of-the-art
facility on the company's park and fitness center grounds. SC Johnson Wax paid for the
construction of the facility and also provides maintenance; this allows CCC to keep costs low. In
addition, families with incomes below $60,0000 pay reduced fees.
Lancaster Laboratories
In 1986 Lancaster Laboratories had 150 employees, but in a tight labor market was losing skilled
workers who left after giving birth. The staff was young and largely female (62 percent), and an
employee survey found that many workers were planning to start a family within the next five
years. However, a good proportion of those wanted to continue their professional careers,
provided they could find a good child-care solution. Lancaster Laboratories responded by
opening an on-site child care center.
Lancaster Laboratories now has 600 employees, and 166 children are enrolled in the child care
center, including two state-approved kindergarten classes. The on-site Family Center also
includes a summer camp for school-age children and an adult day care center for older family
members. The child care center is operated by Hildebrant Learning Center, which provides
monthly reports to Lancaster Laboratories on program use, budget, and effectiveness. In
addition, Lancaster Laboratories also has a liberal parental leave policy that exceeds the standards
of the Family and Medical Leave Act.
Since the company opened the child care center in 1986, 94 percent of new mothers have
returned to the company, and most are back at work within three months after giving birth.
Annual turnover is only 8 percent, less than half the industry average, especially important for a
company that needs to retain skilled scientists. Lancaster Laboratories also has an important edge
in recruiting new employees, and the programs also attract childless employees who like the
company's family friendly policies.
VI. Off-Site Care
APR-13-1998 13:34
EXEC. SEC. TREASURY DEPT
202 622 0073 P.23/29
There are a number of options for companies which want to help their employees with child care
but do not want to offer on-site care. Some employers help operate and/or fund centers near the
place of business (near-site) or in the community. These centers can be collaborative, involving a
number of sponsoring employers, or community-based. Other companies make arrangements
with off-site centers so that employees have the first opportunity at available slots, and firms can
also subsidize off-site care with a provider the employee chooses.
Off-site care offers a number of advantages:
Employee Choice. Subsidies for off-site care allow workers to choose the child care
provider which best works for them. Off-site programs benefit employees who use child
care closer to home or near the workplace of other family members, or who work
non-standard schedules. These factors may be especially important for firms with flexible
scheduling, telecommuting, and mobile workers.
Equity Concerns. Off-site care programs allow companies to provide services to
workers when companies have multiple worksites or employees are geographically
dispersed.
Space Issues. Valuable building space or property is not diverted for child care use when
it may be needed in the future for other purposes. Many companies believe that their
premises should be for business use only.
Leadership and Corporate Citizenship. By supporting local off-site efforts, companies
reinforce their corporate citizenship and leadership roles in the community. Off-site care
not only meets the needs of employees, but also helps other employers assist their workers
and helps build the overall community tax base.
In addition to the 20 percent of firms that offered on-site or near-site care, the Families and Work
Institute survey found that 8 percent of employers offer direct subsidies for child care, such as
vouchers.
Katonah, New York
IBM joined with PepsiCo to develop one of the first child care centers in Northern Westchester
County to serve infants, toddlers, and preschoolers in the same setting. The original project
proved so successful that the two companies provided additional funding for the continued
development of the property. The center now contains several acres of wooded land, a pond, a
barn, trails, and a swimming pool. IBM and PepsiCo also added a summer science and nature
program for school-age children. Recently, Texaco and Nynex joined IBM for the next phase of
development. This second site offers backup care, care for school-age, and for children for who
are too sick to use their regular provider, but who do not need to stay at home.
Local 2/Hospitality Industry Child Care and Elder Care Fund, San Francisco
APR-13-1998 13:35
EXEC. SEC. TREASURY DEPT
202 622 0073
P.24/29
In 1994, the Hotel Employees and Restaurant Employees Union Local 2 and the San Francisco
Union Hotels negotiated the Child/Elder Care plan. Employers contribute 15 cents for every
qualified-employee hour worked, and the fund has grown to almost $1.5 million since the plan
was negotiated. A labor-management committee worked together to design a program to meet
the child and elder care needs of Local 2 workers. In particular, the committee had to address the
needs of hotel employees, many of whom work nights or weekends and require care at odd hours.
The fund provides reimbursement to union members in four areas: newborn care; child care for
children ages 1 to 14; subsidies for youth programs, such as after-school programs, classes, and
summer camp; and elder care. Workers receive a subsidy of $125 per month for newborn care,
and $60-$100 per month for child care, with higher reimbursement for licensed care. Parents are
free to select the child care provider that best fits their needs, and then use the subsidies to pay for
this care. There are a limited number of slots in each of the four reimbursement areas, and
assistance is offered on a first-come, first-served basis. In addition, the plan offers free counseling
and referral services for child and elder care 24 hours a day, seven days a week.
VII. Backup/Sick Child Care
Although many families choose a method of care that depends on a single provider, such as a
family day care provider, relative, babysitter, nanny or stay-at-home spouse, these forms of care
are susceptible to last-minute breakdowns. In fact, care is estimated to break down 8 to 12 days
per year in these arrangements, such as when a regular provider is ill or on vacation. Employees
may need backup child care to supplement their full-time arrangements so that they can come to
work when they might otherwise have to call in sick or take a vacation day.
In a 1996 survey of 300 CEOs by Cannon Consulting Group, 72 percent reported that worker
absenteeism would be greatly reduced if a company offered on-site or backup child care services.
A 1996 study conducted by the Merrill-Palmer Institute found that the annual cost of absenteeism
due to child care problems among the companies it surveyed ranged from $66,000 to $3,500,000.
A high quality backup child care alternative near the work-site can offer support to employees
when the regular care provider is unavailable; school is closed; or a mother is returning to work
from maternity leave. One provider of backup care has found that the average family using one of
its centers will use backup care more than five times a year. In trying circumstances, such as an
unexpected loss of a caregiver or the return to work after maternity leave, a parent may use the
program 20 times or more in a year.
In addition to backup care, parents may also need sick child care. Sometimes a child is too ill to
attend school or go to their regular child care provider, but not ill enough that a parent needs to
stay at home. Some employers offer care to address this circumstance. Also, employers may
grant time (with or without pay) to employees who need to stay home with a sick child.
The Families and Work Institute survey found that 14 percent of employers offer backup or
emergency child care, and another 11 percent offer care for sick children of employees. However,
APR-13-1998 13:35
EXEC. SEC. TREASURY DEPT
202 622 0073
P.25/29
this access depends on firm size. The largest firms are five times more likely to offer backup care,
and four times more likely to offer sick child care, than the smallest firms.
New York Life
In 1993 New York Life surveyed its approximately 8,000 home office employees to evaluate the
company's program and policies and employees' needs, including child care. The survey found
that New York Life lost more than $400,000 in lost productivity annually from employees calling
in sick due to child care responsibilities. In response, the company opened a backup care facility
in April 1996. The center is managed for New York Life by ChildrenFirst, a national provider of
backup care services.
Children and grandchildren ages 6 months to 13 years are eligible, and more than 400 children are
registered for the center-these are children who can use the center if backup care is needed.
Total utilization in 1997 was 2000 spaces.
A survey of employees who had registered children for the center found benefits both to New
York Life and its employees.
The center has directly helped 79 employees avoid calling in sick a total of 388 times,
saving New York Life approximately $84,000 in lost productivity. This figure includes
only those parents and grandparents who responded to the survey; total savings may be
higher.
Based on experience, 99 percent of respondents would recommend the backup care center
to co-workers.
Eli Lilly
At Lilly's Tippecanoe Laboratories in Lafayette, Indiana, employees can take their sick children to
the U.B.O.K. Sick Child Care Center at St. Elizabeth's Medical Center. In partnership with St.
Elizabeth's, Lilly provides sick child care spaces at U.B.O.K. at a discounted fee. U.B.O.K. is
open 7 days a week, 24 hours a day, and is staffed by skilled nursing assistants who care for sick
children under the age of 14. Lilly is also working with state government, other Indiana
companies, and the Purdue University Center for Families to address the need for care for similar
programs throughout the state.
In addition, Lilly provides employees with eight days of flexible paid time off per calendar year for
illness in the family. If a worker needs additional time to care for an ill family member, the
employee's supervisor and human resources representative can evaluate the situation and
authorize additional paid days off. Lilly employees can also request up to 12 weeks annually of
unpaid leave to care for a child with a serious health condition, as called for in the Family and
Medical Leave Act.
VII. Out-of-School Time
APR-13-1998 13:36
EXEC. SEC. TREASURY DEPT
202 622 0073 P.26/29
Many children and youth can benefit from extra learning time, enrichment, and recreation after
school and during weekends, summers, and holidays. Providing these opportunities, while
important to any parent, can be especially important for employed parents, reducing work
absences and increasing retention rates. A 1994 survey of parents found that 56 percent believe
that children are left alone too much after school.37 A 1997 survey shows that parents would like
after-school programs that offer computer skills, art, music, and drama, recreation, and public
service.38
In 1995 there were 23.5 million school-aged children with parents in the workforce, but the vast
majority (over 20 million) did not have a supervised environment to go to after their day was
over.39 Yet this is exactly the time of day when young children and teenagers need supervision.
According to data from the Federal Bureau of Investigation, youth between the ages of 12 and 17
are most at risk of committing violent acts and being victims of violent crime between 3:00 p.m.
and 8:00 p.m.--when they are not in school.4
While some businesses are developing and implementing after-school programs, especially for
children of their employees, they are not widespread. The Families and Work Institute survey
found that about 10 percent of employers offer care for school-age children during vacations.
Again, availability of this benefit depends on the size of the company; the largest employers are
more than twice as likely to offer care for school-age children during vacations as the smallest
firms surveyed. A recent survey of 90 companies already implementing work/life programs such
as elder care, child care, flex-time, and other benefits, found that only 20 percent had after-school
programs.41
John Hancock Financial Services
John Hancock offers a comprehensive work/family program to its employees, ranging from
flexible work arrangements to on-site child care. One of its unique programs is Kids-to-Go,
which provides supervised activities and field trips for children, ages 6-14, from 7:30 a.m. to 4:30
p.m. during school holidays. Fifty children attend the program, staffed by a nonprofit social
agency. The company initiated this program in response to an employee survey citing
work/family issues as a major cause of concern to its employees. The company estimates a
payback of $4.17 for every dollar invested in family-friendly policies and programs, including
Kids-to-Go, through increased performance and retention, stress reduction, and reduced
absenteeism.
Hewlett-Packard
Recognizing that employees' schedules can make it difficult to keep in contact with their children
during the school day, Hewlett-Packard, the California computer corporation, teamed up with the
Santa Rosa City School District to establish the first work-site public school on the West Coast.
The Hidden Valley Satellite School, a branch of the Hidden Valley Elementary School one mile
away, is located on 2.6 acres of land adjacent to the company's Santa Rosa plant.
Hewlett-Packard employees have priority registration for the school, and more than 75 percent of
the students' parents are Hewlett-Packard employees.
APR-13-1998 13:36
EXEC. SEC. TREASURY DEPT
202 622 0073 P.27/29
The company's flextime policy enables its employees to take advantage of their proximity to the
school by visiting their children during the day. Teachers report that parent participation is higher
than they have seen at other schools, especially among fathers. Hewlett-Packard employees often
join their children for lunch. The Hidden Valley Satellite School also encourages parents to
volunteer in the classroom, and teachers work with parents to determine the best type of help for
each class. Parents serve as teachers' aides, help children with projects, and even provide
hands-on instruction in subjects like math and science.
IX. Small and Medium-Sized Businesses
Many of the policies discussed above are applicable to small and medium-sized business. For
example, community-based child care resource and referral agencies can provide information to
employees of small business, and small business can also participate in public-private partnerships.
Small businesses can also arrange with off-site child care centers to reserve slots for employees.
Another option available to small firms are child care consortiums, where small employers work
together to sponsor child care.
Flexible work arrangements may be easier to arrange in a small firm. The Families and Work
institute survey finds that many smaller companies (100 to 499 employees) have child care
programs in place. More than two-thirds allow workers to periodically change starting and
quitting times, and one-quarter allow this on a daily basis. More than one-half allow employees to
move from full-time to part-time work and back, staying in the same position; more than one-third
allow job sharing; one-third allow compressed workweeks; and one-half permit employees to
occasionally work at home.
Almost one-half of these smaller companies that have performed formal evaluations of
flexible work arrangements find that the benefits exceed costs, and another quarter find
that they are cost-neutral.
For human resource managers of smaller firms that have not done formal evaluations,
more than two-thirds personally believe that either the benefits of these programs exceed
costs or that they are cost-neutral.
Smaller firms offer less in terms of access to child care, however. Surprisingly, less than one-third
of these smaller companies offer access to information to help locate child care. Less than ten
percent of these firms offer on-site or near-site care, child care subsidies, backup care, sick child
care, or care during school vacations.
New Berlin Child Care Center, Inc.
In 1988 three employees left A&A Manufacturing, a business of 200 workers, because they were
unable to find adequate child care. A&A discussed this with other small businesses in the New
Berlin (Wisconsin) Industrial Park, and they realized that access to child care was an important
issue in retaining skilled employees. None of the employers could individually afford to support a
APR-13-1998 13:37
EXEC. SEC. TREASURY DEPT
202 622 0073
P.28/29
child care center; however, the businesses together, with other contributions, were able to raise
enough funds to build a child care center in the industrial park.
The New Berlin Child Care Center opened in 1992. Today, it is a cooperative effort serving 210
children, involving more than 80 businesses and the city of New Berlin. The center is accredited
by the National Association for the Education of Young Children, and features a full-day
kindergarten. It is governed by a non-profit corporation with a volunteer board of directors and
managed by Bright Horizons Children's Centers, Inc., a for-profit company that specializes in
employer-supported child care centers.
Most of the businesses that sponsor the center have fewer than 100 employees, and some are as
small as 2 or 3 workers. Employees of sponsoring companies receive priority when an opening
occurs, but parents are responsible for fees. The center has proven very effective in allowing
employers to retain existing employees that might otherwise have left to care for their children.
New Berlin Child Care Center estimates that at any one time, the center helps up to 150 workers
remain at their jobs. In fact, the New Berlin Child Care Center has been so successful that it is
expanding to meet the needs of the many children on the waiting list.
Lost Arrow/Patagonia
Lost Arrow is the parent company of Patagonia, a clothing designer, and other smaller
subsidiaries. The Ventura, California-based company and employs about 600 workers. Its
Work-Family Program started in 1984 with an on-site child care center; now Lost Arrow also
offers a generous leave policy, flexible work scheduling, subsidized off-site care, and a child care
resource and referral program. Lost Arrow also supplies training and financial support for
licensed child care providers who serve employees.
New parents, including those who adopt, are entitled to eight weeks of paid leave, plus an
additional eight weeks of unpaid leave; in addition, Lost Arrow provides financial aid towards
adoption costs. The company also offers on-site child care and covers 40 percent of the cost,
with parental fees covering the remainder. Lost Arrow also offers employees subsidies for off-site
care.
The generous leave and child care policies help keep turnover costs low; the company estimates
that it costs $50,000 to train a new worker. A Lost Arrow evaluation found that over a two-year
period the Work-Family Program has more than recovered its cost of $585,000, producing net
benefits of about $4,000. This savings come from lower turnover and reduced Federal and state
taxes. Other benefits Lost Arrow cites from its Work-Family Program include increased
employee morale, increased productivity, reduced absenteeism, and enhanced recruitment.
APR-13-1998 13:37
EXEC. SEC. TREASURY DEPT
202 622 0073 P.29/29
WHAT TO DO NEXT
If you are an employer, hopefully this report has given you some ideas about how to benefit both
your company and your employees by Investing in Child Care. If you are an employee, you can
give this report to your employer as an example of what other businesses are doing to support
their employees access to high quality child care. The "Resources" section is an excellent place to
start if you are interested in finding out more about implementing child care programs in the
workplace.
The Child Care Action Campaign suggests five things employers can do if they are interested in
starting or expanding child care programs.
Have lunch with your employees and listen to their child care concerns.
Do a survey of employees to identify work/family problems and potential solutions.
Ask whether your personnel policies help or hinder parents' needs to balance work and
family.
Call your local resource and referral agency to find out what's most needed in your
community, what other employers are doing, and what information and counseling the
agency can provide. Use the list state resource and referral contacts in "Resources," or
call Child Care Aware at (800) 424-2246, to locate the resource and referral agency in
your area.
Put child care on the agenda of your next Chamber of Commerce, Business Roundtable,
Rotary, or other business organization meeting. Invite a panel of parents, child care
providers, resource and referral representatives, and a business owner who is already using
child care programs.
DEPARTMENT OF THE TREASURY
THE DEPA TREASURY THE
WASHINGTON, D.C. 20220
1789
March 31, 1998
MEMORANDUM FOR CHILD CARE WORKING GROUP
FROM:
Joyce Carrier
Sarah Fordney
Attached to this memo, you will find a draft of the Child Care Working Group's report.
We would like to thank all of you for your contributions to this project. We would also
like to acknowledge the tremendous contribution of Gus Faucher who, as all of you know,
worked tirelessly to pull all of the information together.
We very much see this as a draft report and would welcome your edits and
suggestions. We would appreciate it if you would send your comments to Gus either by
fax (202-622-1294) or e-mail ([email protected]). In order to make all of
our deadlines it would be helpful if government agencies could submit comments by
Tuesday, April 7 and private sector participants by Friday, April 10. As always, please
feel free to call Gus at 202-622-0714 if you have any questions.
Everything is still on schedule for our final meeting on Thursday, April 23rd at 10:30 a.m.
We are currently working out the details of the event including possible White House
participation. As soon as we have the final plans we will let you know. We would hope
that the members of the working group would be willing to talk to the press about the
report. If you public relations staff would like some guidance please have them call Dan
Israel at 202-622-1996.
We look forward to seeing you all on the 23rd.
CONTENTS OF REPORT
Letter From Treasury Secretary Rubin
Introduction
Problems Facing Working Parents
Affordability
Quality
Job Flexibility
Other
The Economics of Child Care
Labor Force Trends
The Effects of Child Care Costs
Impact of Child Care on Employee Behavior
New Findings
Best Practices
Resource and Referral Programs
Workplace Flexibilities
Public-Private Partnerships
Corporate Partnerships
On-Site Child Care
Off-Site Care
Backup/Sick Child Care
Out-of-School Care
Small and Medium-Sized Businesses
Resources
References
INTRODUCTION
Child care affects many employees and almost all employers. In 1996 51 million Americans
were working parents (children under 18), representing 38 percent of the labor force, and there
were more than 10 million mothers, and 12 million fathers, of preschool children (younger than
6) in the labor force. 1 Of the ten million preschoolers of employed mothers, more than half were
cared for by someone from outside the family.² In some families both parents choose to work, in
others it is a financial necessity, and in many single-parent families work is the only option. In
all of these cases, however, parents need access to child care.
Working mothers and fathers want to do a good job both at work and at home, but face
challenges in their dual roles as both employee and parent. They are concerned about the
affection, education, and stimulation their infants, toddlers and preschoolers are receiving. They
are concerned about the financial burden of child care. They are concerned about what they will
do if their regular child care provider is unable to care for their child. They are concerned about
their school-age children before and after school and during school vacations. They are
concerned about how the demands of child care affect their performance and productivity on the
job.
Parents, obviously, are responsible for ensuring that their children receive high quality child care.
If both parents work, they must research available options, select the type of care (center, family
day care, etc.) their children receive, and pay for the care. Parents select the child care provider,
and must do so taking into account factors such as the provider's qualifications, experience, and
interaction with the children; the environment in which the children receive care; convenience
(including location and hours); and affordability. However, Federal, state, and local
governments, employers, and labor unions can all play important roles in promoting access to
affordable, high quality child care for working parents.
Through both the tax code and a block-grant program for low-income families, the Federal
government provides financial assistance to working families for child care, particularly those for
whom the cost of care is a financial burden. The Earned Income Tax Credit and the recently
enacted child tax credit also provide financial support to families with children, though not
directly for child care purposes. Federal, state, and local governments also promote efforts to
improve the quality of care, through measures such as licensing, regulation of child care centers,
and provider education.
Child care is also an important issue for employers. Lack of access to affordable, quality child
care may make it difficult for businesses to hire qualified employees. Productive and valued
employees may leave because of child care problems, increasing hiring and training costs.
Employees may be forced to take time off because of child care problems, or spend time at work
¹Bureau of Labor Statistics.
²Casper (1995, 1996).
handling child care concerns. All of these factors can reduce productivity and profits.
Employee representatives, such as labor unions, can also play an important role in helping
parents find affordable, quality care. Through collective bargaining, employers and employees
have taken steps to address child care issues and improve worker satisfaction and productivity.
Benefits that have been negotiated include child care subsidies for workers, time off for sick
children, paid family leave, and resource and referral programs. In an informal survey of six
major unions, the Labor Project for Working Families found over 1.6 million workers covered by
some type of child care benefits through their union contract.
This report will discuss, in particular, what businesses can do to promote their employees' access
to affordable, high-quality child care. Of course, child care is rightfully the primary
responsibility of parents. However, there are many steps that businesses can take to help their
employees find quality child care. There are a number of reasons employers may find it
beneficial to support child care: to improve employee morale, to reduce turnover or absenteeism,
to increase productivity, or as part of efforts to benefit their community. Many companies have
found that investment in child care benefits the bottom line.
Many employers may view child care as a single issue--care for young children, with one
solution--an on-site child care center. However, the issue is much more complex. Parents may
face other child care problems, such as after-school care for older children or the need for backup
care. There are many ways in which employers can help their employees with child care, such as
resource and referral networks, off-site care, public-private partnerships, and greater flexibility
for working parents.
It is important to note that child care is not only an issue for large employers. Small and
medium-sized businesses are also affected by child care. A business with only a few employees
can face serious consequences if a vital worker is forced to leave because of a child care problem.
Although some of the solutions to child care concerns discussed in this report will make sense
primarily for larger employers, others will also apply to small and medium-sized firms.
This report will proceed as follows. Section 1 will discuss the concerns facing workers as they
balance their roles as parents and employees. Section 2 will discuss the economics of child care.
Section 3 features results from a recent Louis Harris survey of 1100 randomly selected
companies of 100 or more employees on child care practices, and how these practices have
affected the bottom line. This survey is the first to look comprehensively at what employers are
doing to promote access to child care, and how they benefit from these programs. Section 4 will
offer best practices in different child care areas. Section 5 provides further resources for
companies interested in starting or expanding child care programs.
³This number is not comprehensive because not all union contracts are included.
2
This report is not an exhaustive list of what companies can do to promote employee access to
child care. It is, instead, a starting point for employers interested in learning about how they can
benefit both their company and their employees through investment in child care.
PROBLEMS FACING WORKING PARENTS
The 51 million employees who are also parents must make a number of important decisions
about child care. Working parents of young children must decide what type of child care to use
(i.e., home day care or a center), and then must select a specific provider. This decision depends
on factors such as price, the quality of care, and the convenience offered. Parents must also
make decisions about what to do if their regular provider is unavailable or if their child is sick.
For many parents these are difficult choices, and sometimes they must make tradeoffs between
different attributes of care, such as price and quality. This can make child care a source of
concern for working parents. A 1992 study found that workers with children exhibited higher
levels of stress than workers without children, and child care responsibilities appears to be one of
the causes.4
I. Financial Concerns
Child care is a serious financial burden for many families. In 1993, for families that paid for care
for their preschoolers, child care averaged $79 a week per family, or about $4000 annually, and
represented about 7.5 percent of income. Costs are higher for younger children (particularly
infants), for in-home baby sitters and child care centers, and in metropolitan areas. Child care
costs have increased more than 20 percent since 1986, even after adjusting for inflation (Chart
1).⁵
The cost of child care is a particular burden for low-income families (Chart 2). Although poor
families spend less, on average, for care than wealthier families, child care costs represent a much
greater percentage of income for poor families. While child care costs are less than six percent
of income for families with annual incomes of $54,000 or more, and about 8.5 percent of income
for families with incomes between $36,000 and $54,000, child care costs are almost 12 percent
of income for families with annual incomes between $14,400 and $36,000. For the poorest
families, those with incomes of $14,400 or less, child care costs are more than one-quarter of
income.⁶ These high child care costs for low-income workers can represent a substantial
impediment to work.
4Galinsky et al (1993).
⁵Casper (1995).
⁶Casper (1995).
3
II. Quality Concerns
Although there is some uncertainty about the exact relationship between child care quality and
child development, the level of child care quality is of concern to both parents and child care
professionals. "Quality" in child care is difficult to define, because it encompasses many
of
components, such as health and safety, education, and provider-child interaction. Some
attributes of quality, such as staff-child ratio and provider education, are relatively easy to
measure. Other quality components, however, are less easy to quantify, including the interaction
between caregiver and child and the education component of care. About two-thirds of parents
are satisfied with the quality of care that their child receives.⁷ However, indicators of child care
quality that are important to professionals, such as licensing and formal education, may be less
important to parents. 8
There is evidence that the quality of care some children receive may be detrimental to child
health, safety, and development. A recent study of child care centers found that 86 percent of the
centers surveyed provided mediocre or poor quality care, when judged from the perspective of
child development, and in 12 percent, children's basic health and safety needs were only partially
met. The study also found that almost half of infants and toddlers were in rooms where basic
health and safety needs were not met.⁹ In a study of family day care, 91 percent of providers
were found to provide inadequate or only adequate care. 10 There is also evidence that the
informal, home-based care that many low-income children receive is of lower quality than that
received by higher-income children. 11
Experiences during the first three years of childhood, including child care, can dramatically
affect the rest of life. A growing body of research verifies that investments in young children
nurture a child's physical and emotional development and that these investments can have big
payoffs for families, government and society. 12
III. Other Concerns
Parents are also concerned about backup care, when their regular provider is unavailable or their
Mitchell et al.
°CEA (1997a).
⁹Cost, Quality & Outcomes Team (1995).
¹⁰Helburn and Howes (1996).
¹¹Phillips (1995).
¹²CEA (1997b).
4
child is sick. Parents may also need to make alternative child care arrangements for older
children before or after school or when schools are closed. A 1992 study found that 26 percent
of employed parents with children under the age of 13 had experienced a problem with their
usual child care arrangement in the previous three months. 13
These problems can cause parents to miss work; parents of children under the age of 13 missed
almost one day of work every three months, on average, because of child-related reasons
(including child care problems and sick children). These problems also caused parents to either
arrive late or leave early about once every five months. These problems were much greater for
mothers than fathers. 14 According to the Child Care Action Campaign, companies lose up to $3
billion annually in reduced production because of employee absences from child care problems.
Parents may also be unaware of how to obtain child care in their area. Often information on
providers is not readily available, and finding child care can be time-consuming. Parents may
also be unsure about what qualities to look for in selecting a provider and how to measure the
quality of care that their children receive.
THE ECONOMICS OF CHILD CARE
Child care is an significant economic issue for a number of reasons. Perhaps most important is
the effect of child care on labor supply. Working parents are a large part of the labor force, and
child care is an important factor in the productivity of working parents.
I. Labor Force Trends
Employers are beginning to recognize the need for child care and related benefits to assist their
workers. This is fueled by several related labor force trends involving women, particularly
mothers.
Labor force participation rates have increased dramatically for mothers over the past 50 years
(Chart 3). In 1947 just over 25 percent of all mothers with children between 6 and 17 years of
age were in the labor force, but by 1996 their labor force participation rate had almost tripled to
more than 77 percent. The increase in the labor force participation of mothers with younger
children is similarly dramatic. In 1947 only about 12 percent of mothers with children under the
age of 6 were in the labor force; by 1996 this figure had risen to 63 percent. In addition, in 1996
more than half of all mothers whose youngest child was less than 3 years of age were labor force
¹³Galinsky et al (1993).
¹⁴Galinsky et al (1993).
5
participants, versus only about one-fifth of such mothers in 1965.
The labor force participation rate of women is expected to continue to rise in the future. By the
year 2005, 62 percent of all women will be in the labor force. Women are expected to comprise
more than 60 percent of new labor force entrants between 1994 and 2005. While women made
up 30 percent of the labor force in 1950 and 45 percent in 1987, it is estimated that by the year
2005 women will compose about 48 percent of the labor force. The labor force is projected to
grow at an annual rate of 1.1 percent over 1994-2005, compared to 1.4 over 1982-1993. The
Bureau of Labor Statistics (BLS) projects that female labor force participation will grow at an
annual rate of 1.4 percent from 1994 to 2005, compared to 0.7 percent annually for men.¹⁶ In
particular, women of childbearing age (15-44) are an increasing share of the labor force. In 1961
they made up only about 20 percent of the labor force, but now are more than 30 percent of the
labor force.¹⁷
The increase in the proportion of families with children headed by single women has also
expanded families' child care needs (Chart 4). In 1960 fewer than 10 percent of families with
children were headed by a single mother. This increased to 27 percent of families with children
by 1995. 18 Many of these mothers require some form of child care while they are working to
support their families, particularly with the implementation of welfare reform. A recent study
from the National Conference of State Legislatures has found that lack of access to child care can
be a serious impediment to work for single parents leaving welfare.
II. The Effects of Child Care Costs
Way to say this 0 11 IS clear
costs
that " COAS cnables those who want tol
There is a substantial literature in economics that has studied the effects of child care costs on
need to
labor supply. Although the studies use different statistical techniques and data sets, nearly all
work to
7
find that reducing child care/reduces the barriers to work for some parents. The magnitude
do
so,
varies across studies, but in general they find that a 10 percent reduction in the price of care
increases the probability that a married mother will work by 2 to 8 percent. These studies find
little effect of child care costs on the number of hours worked, however, given that the mother is
already in the labor force. This suggests that corporate programs to reduce the cost of care can
have a significant impact on hiring.
Parents choose from a variety of types of child care, including paid and unpaid care. Studies find
¹⁵The Greenbook (1996), "Employment Characteristics of Families Summary;" Bureau of
Labor Statistics.
¹⁶Fullerton (1995).
"Fullerton (1993).
¹⁸The Greenbook (1996).
6
that in areas with lower prices of care, working mothers are more likely to use paid care.
Although estimates vary, most of these studies find that a 10 percent decrease in the hourly cost
of care increases the use of paid care by working mothers by 1 to 2 percent. Substitution of paid
for unpaid care is particularly likely to occur as the price of paid care decreases because parents
tend to be more dissatisfied with unpaid care than paid care.¹⁹
III. Impact of Child Care on Employee Behavior
It is sometimes difficult to quantify the effect of various corporate child care programs on
employee productivity. Some companies have not conducted evaluations of the programs, while
Trantwy much
other evaluations are based on informal employee surveys. Results from these surveys are
difficult to interpret because only a small percentage of employees may respond, and the
outcomes measured, like increased morale and job satisfaction, are difficult to translate into
concrete benefits to the firm. However, other studies look at more quantitative measures, such as
retention and output.
Also, it is difficult to extrapolate the results from one firm to others. One reason is that child
care programs are highly individualized. Also, it can be expected that those firms that institute
programs are those that are most likely to benefit, perhaps because of the characteristics of the
firm's workforce.
However, given these caveats, many companies have discovered significant gains from child care
programs. A 1995 Conference Board survey of human resource professionals found substantial
benefits from offering child care services:
62 percent of respondents reported higher morale;
54 percent reported reduced absenteeism;
6 ther data?
53 percent reported enhanced recruitment;
52 percent reported increased productivity;
37 percent reported lower turnover;
and 35 percent reported decreased tardiness. 20
¹⁹For a more complete discussion of these issues, see Council of Economic Advisors
(1997a).
²⁰Parkinson (1996).
7
Other studies and reports have also pointed out the bottom line benefits of programs to assist
working parents.
Lexis-Nexis reduced operating expenses by more than 45 percent through a
telecommuting program and a flexible work environment. Savings came from higher
productivity, fewer facilities, greater geographical hiring pools, hiring of the physically
challenged, and better use of technology.
First Tennessee Bank reports reduced turnover costs of more than $1 million annually
from family-friendly programs, including more flexible scheduling.
Johnson & Johnson reported savings of over $4 for every $1 invested in its work-life
programs, including child care resource and referral information.
Lancaster Laboratories has a turnover rate one-half the industry average, in part due to
an on-site child care center.
A recent article in the Wall Street Journal highlighted family-friendly policies the Big Six
accounting firms are taking in their efforts to hire and retain employees.²¹
NEW FINDINGS
[Insert 2 to 3 pages of results from Louis Harris survey here.]
BEST PRACTICES
There are a number of options available for companies that are interested in promoting employee
access to affordable, high-quality child care. While some, such as on-site care or after-school
programs, represent a substantial investment, others have much smaller costs. In particular,
employers can partner with resource and referral agencies to provide employees with an excellent
starting point for information on child care programs. This section will briefly discuss some of
the major child care initiatives that companies have undertaken, then provide specific examples.
It will also offer examples of small and medium-sized businesses that have discovered benefits
from investing in child care programs.
I. Resource and Referral Programs
There are two types of child care resource and referral (CCR&R) agencies. Community-based
CCR&Rs are generally non-profit organizations that provide services in a particular community.
There are approximately 500 community-based CCR&Rs nationwide, and many are part of
²¹Shellenbarger (1998).
8
statewide networks. 22 A list of state resource and referral networks is included in the Resources
section of this report. Nationwide CC&Rs offer services to various companies under contract,
and are often for-profit companies.²³
CCR&Rs provide information to parents about child care, including information about local
providers, the elements of high quality care, and how to select a child care provider. The exact
functions of a CCR&R agency vary, but in addition to providing parent education, many
agencies provide community planning, recruit and train providers, and maintain a database of
child care services. In 1994 CCR&Rs helped 1.5 million families find child care. 24
In addition, CCR&Rs help employers implement and evaluate family-friendly workplace
policies, particularly support for child care. With their child care expertise and knowledge of
community needs, CCR&Rs serve as a valuable resource to employers who are working to
support child care. Employers and CCR&Rs cooperate in four main areas:
Consumer Assistance. Corporations contract with CCR&Rs for enhanced consultation
and referral services as a benefit for their employees. According to a recent study, 33 to
37 percent of mid- to large-sized businesses offer child care resource and referral to their
employees while an additional 20 percent say they plan to offer these services in the
future.
25
Resource Development. Employers work with CCR&Rs to increase the supply of child
care in the community that meets the specific needs of the workforce. For example,
CCR&Rs funded by Levi Strauss in Fayetteville, Arkansas work to increase the supply of
infant care for Spanish-speaking families.
Quality Improvement. CCR&Rs are involved with major national initiatives, such as
the American Business Collaboration (ABC) for Quality Dependent Care, where they
facilitate training in over 75 percent of communities involved. CCR&Rs also work with
local efforts to improve care, such as Corporate Hands, a Houston employer
collaboration, and a consortium of public and private employers in Auburn and Opelika,
Alabama.
Data. CCR&R data on the supply of care, identified gaps, and assessment of needs
²²For more information on community-based CCR&Rs, see National Association of
Child Care Resource and Referral Agencies (1996) and Adams et al (1996).
²³For information on nationwide CCR&Rs, see Friedman and Pauker (1997).
24 Adams et al (1996).
25 William M. Mercer, Incorporated (1996), and Hewitt and Associates (1996).
9
provide valuable tools for businesses both as employers and local corporate citizens.
State of Iowa
Through the statewide Child Care Resource and Referral system, Iowa has greatly expanded
business and private sector involvement in meeting child care needs. One example in ChildNet,
which is a cooperative partnership between businesses and community-based child care resource
and referral agencies. ChildNet helps expand the supply of child care while providing
comprehensive child care options to employers to help address absenteeism, productivity, and
retention of employees. More than 40 employers support ChildNet, providing enhanced services
to nearly 20,000 employees.
Johnson & Johnson
Johnson & Johnson began offering child care and elder care consultation and referral nationwide
in 1989 through Work/Family Directions (now WFD), a national consulting firm. In 1991
adoption and education components were added, and in 1994 WFD introduced LifeWorks for
Johnson & Johnson.
More than half of all LifeWorks consultations and referrals and requests for education materials
are for child care-related issues. LifeWorks helps Johnson & Johnson employees with adoption,
planning for maternity/paternity leave and return, finding and recognizing quality care (including
backup care), and finding appropriate care for school-age children after school and during
vacations.
About 20 percent of employees used ifeWorks in 1997, and 60 percent of participants said the
program strengthened their commitment to J&J. The program is also used by a broad section of
employees: 23 percent had household incomes of less than $50,000.
An evaluation of the LifeWorks program found benefits to both Johnson & Johnson and its
employees who used the program:
employees saved, on average, 14 hours each time they used the service;
54 percent of employees who used LifeWorks said it helped them be more productive at
work with higher quality;
26 percent reported that there were fewer days when they arrived late or left early;
another 26 percent reported that they took fewer days off;
and 60 percent of users said LifeWorks strengthened their commitment to J&J.
10
Overall, a WFD evaluation found that Johnson & Johnson saved more than $4 in increased
productivity for every $1 invested in the LifeWorks program.
II. Workplace Flexibilities
One way employers can help their employees with child care concerns is through flexible
workplace policies. There are many ways in which businesses can make their workplace more
flexible for working parents.
Flex Time. Flex time lets workers schedule work hours to best meet their needs. For
example, a father who wants to be home when his children return from school could
agree to come in earlier in the morning and leave in time to meet his kids. Employees
work the same number of hours, but in a way that allows them to better balance work and
family needs. One type of flex time is a compressed work schedule, where a normal
work week is compressed into fewer than five full days.
Telecommuting. Some parents whose work does not require them to be physically in an
office can work from home. Obviously, someone else must still care for the child in most
instances, but the parent can spend breaks with the child and deal with child care
problems much more easily and efficiently.
Job Sharing. Parents who want to continue to work but spend more time with their child
can share jobs. For example, instead of one full-time workers, two workers can each
work 3 days a week.
Parental Leave. Firms may not want to lose valuable workers who would otherwise quit
to stay at home with their child. One solution is maternity/patemity leave. Parents can
stay at home for an agreed upon time, then return to the same (or a similar) job. The
leave can be either paid or unpaid. The firm is able to retain the worker, and the worker
does not need to start over in a new job.²⁶
Salomon Smith Barney
Salomon Smith Barney offers employees a choice of alternate work arrangements. The purpose
is to retain strong performing employees by helping them balance work and personal life. The
program includes flextime, job sharing, and telecommuting.
²⁶Under the Family and Medical Leave Act, signed by President Clinton in 1993, firms
with 50 or more workers are required to grant up to 12 weeks of unpaid leave to parents after the
birth or adoption of a child. However, many companies grant longer leave, and some offer pay
(either partial or full) during a leave.
11
Salomon Smith Barney views these alternate arrangements as a privilege and not a right.
Employees must meet certain conditions to be eligible, including at least one year of service and
a strong performance record. If the worker meets these conditions, he or she requests the
alternative work arrangement in writing from his or her manager. The manager then considers
the appropriateness of the request, taking into account the cost of the alternate arrangement and
schedule coordination. The manager also makes sure that alternate work arrangements are used
consistently and fairly. If the manager approves the request, he or she notifies the Benefits
Committee, which ensures that all the necessary issues have been addressed and any necessary
human resource changes are made. All alternate work arrangements are reassessed 30 to 60 days
after implementation to evaluate their effectiveness.
Because Salomon Smith Barney wants to give managers flexibility in approving alternate work
arrangements, the company does not keep track of the number of people using the program.
However, informal evaluations have found the program very useful in retaining valuable
employees and helping workers meet their obligations to both their families and the firm.
FirstBank of Colorado
FirstBank of Colorado established its reduced hours program in 1989 to provide officers with the
flexibility to maintain a career and raise a family. Officers must have a minimum of three years
of service, be the primary caregiver of a child under age seven, and be able to work at least 28
hours a week. The participating office and the bank president agree on job responsibilities and
work schedule. Arrangements are reviewed annually to ensure the arrangement is mutually
beneficial to both the officer and the bank. Part-time work is also available to staff-level
employees.
III. Public-Private Partnerships
Businesses across the country often join with the public sector to support child care. Through
these partnerships, at both state and local levels, companies improve child care not only for their
own employees, but for children and families in the broader communities as well. Such
initiatives promote the quality, affordability, and availability of child care for all families,
including low-income working families. While local governments initiate some partnerships,
businesses are the driving force behind others.
Public-private partnerships not only help children and their families, but also benefit the business
community. By supporting child care, the private sector improves the business infrastructure and
climate, reducing absenteeism, increasing productivity, and making it easier to attract and retain
employees. In the long-run, the businesses improve the education and development of children
who will be potential employees in the years to come. Support for child care also raises a
company's profile and promotes public relations.
The private sector has many resources to offer, including:
12
Leadership and Planning. Companies can examine child care needs and recommend
improvements from a business perspective.
Business Advice. Companies can provide advice to the child care community about the
tax code, management practices, human resource policies, and other issues.
Funding. Businesses can invest resources that increase the supply and improve the
quality of child care services.
Under a public-private partnership, business involvement with child care is developed in
conjunction with the public sector. Government, resource and referral, and community agencies
have the skills, expertise, and information needed to identify problems and avoid unnecessary
duplication. Examples of the types of public-private partnerships include:
Child Care Business Commission. A commission of business and child care leaders
can increase business support for child care and implement specific policy
recommendations.
Child Care Investment Fund. Companies contribute resources to a fund which can be
used to address range of issues, including affordability and quality.
Model Planning and Zoning Programs. Communities can remove planning and zoning
obstacles in establishing child care facilities. They can also provide incentives to increase
support for child care among real estate planners and developers.
Loans to Child Care Providers. A multi-bank community development can provide
loans and business assistance to child care providers. States and communities have
worked with both child care providers and financial institutions to encourage loans to
child care programs in accordance with the Community Reinvestment Act, which
requires banks and savings institutions to address the credit needs of their communities.
State of Colorado
Governor Roy Romer appointed corporate leaders to the Colorado Business Commission on
Child Care Financing in May 1995 to examine child care from a business perspective and
propose methods to help finance high-quality, affordable, and accessible child care. The
Commission met with other business representatives, child care providers, child development
experts, and state and local leaders to develop a long-range funding plan for early childhood
education.
The Commission's final report included an array of strategies for generating revenue to improve
and increase the supply of child care services. These recommendations included establishing a
model planning and zoning program to increase the supply of child care and starting a multi-bank
13
community development corporation to provide loans and other financial assistance to child care
providers. The Commission's recommendations led to the passage of several legislative
initiatives, including a child care check-off box on the state income tax form, an increased
commitment to child care, and an ongoing Commission to work toward implementation of the
reforms suggested in the Commission's report.
The Commission, together with Bright Beginnings (a non-governmental private-public
partnership designed to improve the lives of children from birth to age three), released a 45 page
report on family friendly policies, listing the benefits of such policies and concrete steps
businesses can take to implement these policies. The report also provides a work and family
needs assessment survey and a list of resources that Colorado businesses can use in
implementing family friendly policies.
State of Florida
In 1996 Florida passed legislation aimed at encouraging public-private partnerships to provide
child care benefits. In fiscal year 1997-98 the state legislature allocated $4 million for the
program, and more than $3 million has been raised from businesses so far. Communities
wishing to participate must establish a local task force, with a majority of members representing
employers, but parents must also play a role. The task force is responsible for developing a plan
of action. Participating communities commit to matching state funds on a dollar-for-dollar basis
with local matching funds from employers, local governments, and charitable foundations.
Employers may participate by contributing funds to cover a portion of child care costs for their
own low-income employees eligible for subsidized child care. Alternatively, employers,
foundations, and local governments can contribute to a general Child Care Purchasing Pool that
serves children from low-income families in the community. In either case, the state contributes
a dollar-for-dollar match, and parents pay a sliding scale fee.
At the state level, Governor Lawton Chiles appointed a Child Care Executive Committee,
comprised of business leaders, to increase the involvement of private industry in the subsidized
child care system. The Committee also assists in the development of child care policy and
provides an annual report to the governor and state legislature.
State of North Carolina
North Carolina's Smart Start initiative aims to provide every child with access to quality and
affordable child care, health care, and other support services. In each participating county, public
and private sector leaders join together to develop a plan that assesses community needs,
develops a shared vision, and provides for joint funding of needed early childhood services,
including child care.
Through a competitive grant application process, interested counties submit plans for approval to
14
the North Carolina Partnership for Children--a nonprofit organization which oversees and
provides guidance to local Smart Start partnerships. Twelve new counties were recently
approved to enter the planning phase, while 43 other counties already provide Smart Start
services. Smart Start's goal is to gradually increase the initiative to cover all 100 counties.
Once its plan is approved, each county partnership provides an array of Smart Start services.
About 30 percent of funds are used to assist families in purchasing child care. Subsidies may be
paid for care in any legally operating child care center or family child care home which parents
choose. Communities also work to increase the availability of child care spaces; improve the
quality of child care; promote the inclusion of children with disabilities; and provide education
and support for child care teachers.
Under state law, the North Carolina Partnership for Children and the local partnerships are
required to match 10 percent of the state appropriation (no more than half of the match can be in-
kind contributions). In 1996 the total state allocation was about $68 million. That same year the
North Carolina Partnership for Children received $9.5 million in contributions, and local
partnerships received an additional $4.8 million in financial and in-kind contributions.
IV. Corporate Partnerships
Another way that businesses work together to promote child care is through corporate
partnerships. These are collections of businesses that together promote access to child care. For
example, a number of businesses could jointly fund a child care center. Alternatively, businesses
can create and manage community efforts to improve the quality of care and train providers.
American Business Collaboration for Quality Dependent Care and Work Family
Directions
Through the American Business Collaboration for Quality Dependent Care (ABC), some 156
businesses (including 22 of the nation's largest corporations), governmental entities, and
not-for-profit organizations have invested more than $27 million in 45 communities in 25 states
and the District of Columbia. They have supported 355 dependent care projects which have been
utilized by more than 277,000 individuals, including dependents of employees and community
residents. WFD manages the funding resources of the Collaboration and provides technical
assistance to support many different kinds of activities. ABC has already committed to investing
$100 million in targeted communities over the next six years.
More than 100 projects are already underway; examples of ABC programs include:
$1.2 million to provide on-site training for staff and directors at 185 child care centers
over a 12- to 18-month period in Atlanta, Dallas, Washington, DC, Tampa, New Jersey,
and the Mid-Hudson Valley in New York.
15
$692,000 to expand a national program to support the professional development of early
childhood teachers through intensive training and mentoring programs in Colorado,
Florida, Illinois, and New York.
$1.54 million to provide technical assistance, on-site consultation, and small grants for
more than 425 child care centers in 30 communities. The funds will enable center
directors to make quality improvements leading to accreditation.
$145,000 to support a three-year training and professional development program for some
150 to 250 child care providers serving 800 young children in the Greater Phoenix area.
Western New York Family Care Consortium
In 1996, a number of employers in the Buffalo area surveyed their employees about child care
and found a number of problems. Almost half of the workers cited child care as a reason they
could not work overtime, and more than one-third missed 2-4 days of work over a 3-month
period because of child care problems. In response, area employers DuPont and Praxair, along
with the United Auto Workers (UAW) and UAW employers General Motors and American
Axle, founded the Tonawanda Business Community Childcare Consortium.
Now known as the Western New York Family Care Consortium, the program is managed by
Childcare Network, Inc. In 1998 UAW-Delphi Thermal Systems joined the Consortium, and the
current employee base is over 13,000 area workers. The Consortium offers a number of services.
"Just for Kids" provides care for school children before and after school (opening at 5:30
AM) and during school holidays at three sites, as well as a half-day program for children
in kindergarten. Member families receive priority enrollment and pay reduced fees.
"Just Like Home" is an extended hours child care center near the worksite for ages 6
weeks to 12 years; the center meets the needs of second shift workers by staying open
until 2 AM. Member families receive priority enrollment and discounted tuition.
"Just in Case" is an emergency backup telephone network to connect parents with
providers when their usual child care arrangements are interrupted. Enrollment is free for
UAW members; others pay $15 to register, with $5 for each additional child.
The Consortium also provided training to more than 160 local child care providers in
1997, and has helped two are child care centers receive accreditation from the National
Association for the Education of Young Children.
V. On-Site Child Care
Perhaps the first thing employers think of when they hear about child care assistance is on-site
16
care, where a child care center operates on company property. On-site centers are located in
space that has been converted for child care use or specially constructed for child care. The
centers are often operated by outside contractors with experience in managing child care centers.
Companies may provide various subsidies to on-site centers. Some employers pay for the
construction and maintenance of a center, with parental fees covering the cost of operations,
while others provide operating subsidies, effectively lowering costs for all users, or offer
subsidies specifically to lower-income employees. Child care slots are generally reserved for
company employees, but if the on-site center is not full, services can be offered to other parents
in the community.
A 1998 study estimates that there are currently more than 8000 on-site centers. These centers are
evenly distributed in firms with fewer than 1000 employees, between 1000 and 2000 employees,
between 2000 and 4000 employees, and more than 4000 employees. A number of firms offering
on-site care had fewer than 500 employees; these firms typically worked with other small firms
to jointly operate centers. Overall, 16 percent of the on-site centers had more than one corporate
sponsor. 27
A 1997 study of users of on-site care found beneficial effects for both employers and
employees.
28
With on-site care, parents will have less need to take time off because of child care
emergencies, increasing attendance and productivity.
On-site centers can play an important role in attracting quality employees and increasing
retention. This is especially important in a time of low unemployment.
On-site centers are convenient, eliminating the need for another trip to the baby sitter or
child care center, reducing commuting time and stress.
Working parents can visit their children during lunch or breaks, allowing them to spend
additional time with their kids. This additional time can also reassure parents about the
quality of care that their children are receiving.
On-site centers demonstrate commitment to employees, creating greater employee
loyalty.
In addition, on-site centers allow the employer greater control over quality. On-site centers are
often accredited by private organizations that evaluate child care quality.
27 Burud & Associates (1998).
28 Andrews et al (1997).
17
SC Johnson Wax
The Johnson Wax Child Care Center (CCC), located at company headquarters in Racine, WI, has
served more than 1000 children since its opening in 1985. The CCC originally started in rented
space in a church, but in 1991 moved to a state-of-the-art 20,000 square foot facility on the
company's park and fitness center grounds. The child care facility provides full and half day
care for ages newborn through 6 years. The CCC is managed by Corporate Family Solutions, a
national expert in child care, and the center is accredited by the National Association for the
Education of Young Children. The CCC currently serves 250 children in the child care program.
The center also offers full day kindergarten, as well as before- and after-school care and a
summer day camp for older children.
SC Johnson Wax paid for the construction of the facility and also provides maintenance. This
allows CCC to keep costs low. In addition, the company provides tuition assistance for families
with incomes below $60,0000.
Lancaster Laboratories
In 1986 Lancaster Laboratories had 150 employees, but in a tight labor market was losing skilled
workers who left after giving birth. The staff was young and largely female (62 percent), and an
employee survey found that many workers were planning to start a family within the next five
years. However, a good proportion of those wanted to continue their professional careers,
provided they could find a good child-care solution. Lancaster Laboratories responded by
opening an on-site child care center. When the center first opened, only five children showed up,
instead of the 22 anticipated. Within two months, however, 20 children were enrolled.
Now Lancaster Laboratories has expanded to 600 employees, and 166 children are enrolled in the
child care center, including two state-approved kindergarten classes. The 26,300 square foot on-
site Family Center also includes a summer camp for 43 school-age children, an adult day care
center for 25 older family members, and an employee fitness center. The child care center is
operated by Hildebrant Learning Center, which provides monthly reports to Lancaster
Laboratories on program use, budget, and effectiveness. In addition, Lancaster Laboratories also
has a liberal parental leave policy that exceeds the standards of the Family and Medical Leave
Act.
Since the company opened the child care center in 1986, 94 percent of new mothers have
returned to the company, and most are back at work within three months after giving birth.
Annual turnover is only 8 percent, less than half the industry average, especially important for a
company that needs to retain skilled scientists. Lancaster Laboratories also has an important
edge in recruiting new employees, attracting even potential parents or those without dependents
who like the company's family friendly policies.
18
VI. Off-Site Care
Corporations are not limited to on-site child care centers in assisting their employees in obtaining
quality child care. There are a number of options for companies which want to help their
employees with child care but do not want to offer on-site care. Some employers help operate
and/or fund centers near the place of business (near-site) or in the community. These centers can
be collaborative, involving a number of sponsoring employers, or community-based. Other
companies make arrangements with off-site centers so that employees have the first opportunity
at available slots, and firms can also subsidize off-site care with a provider the employee
chooses.
Off-site care offers a number of advantages:
Space Issues. Valuable building space or property is not diverted for child care use when
it may be needed in the future for other purposes. Many companies believe that their
premises should be for business use only.
Leadership and Corporate Citizenship. By supporting local off-site efforts, companies
reinforce their corporate citizenship and leadership roles in the community. Off-site care
not only meets the needs of employees, but also helps other employers assist their
workers and helps build the overall community tax base.
Equity Concerns. Off-site care programs allow companies to provide services to
workers when companies have multiple worksites or employees are geographically
dispersed.
Employee Choice. Subsidies for off-site care allow workers to choose the child care
provider which best works for them. Workers may find this more valuable than an on-
site center.
Convenient Location and Time. Off-site programs offer flexible locations for families
that choose to have their children closer to home or near the workplace of other family
members. Off-site care may also be more convenient for employees that work non-
standard schedules. These factors may be especially important for firms with flexible
scheduling, telecommuting, and mobile workers.
Katonhah, New York
IBM joined with PepsiCo to develop one of the first child care centers in Northern Westchester
County to serve infants, toddlers, and preschoolers in the same setting. The original project
proved so successful that the two companies provided additional funding for the continued
development of the property. The center now contains several acres of wooded land, a pond, a
barn, trails, and a swimming pool. IBM and PepsiCo also added a summer science and nature
19
program for school-age children.
Recently, Texaco and Nynex joined IBM for the next phase of development. This second site
offers backup care and care for school-age and mildly ill children. A unique feature is the all-
season sports court, used to teach children a number of sports, including basketball, golf, and
tennis.
Local 2/Hospitality Industry Child Care and Elder Care Fund, San Francisco
In 1994, the Hotel and Restaurant Employees Local 2 and the San Francisco Union Hotels
negotiated the Child/Elder Care plan. Employers contribute 15 cents for every each qualified-
employee hour worked, and the fund has grown to almost $1.5 million since the plan was
negotiated. A labor-management committee worked together to design a program to meet the
child and elder care needs of Local 2 workers. In particular, the committee had to address the
needs of hotel employees, many of whom work nights or weekends and require care at odd
hours.
The fund provides reimbursement to union members in four areas: newborn care; child care for
children ages 1 to 14; subsidies for youth programs, such as after-school programs, classes, and
summer camp; and elder care. Workers receive a subsidy of $125 per month for newborn care,
and $60-$100 per month for child care, with higher reimbursement for licensed care. Parents are
free to select the child care provider that best fits their needs, and then use the subsidies to pay
for this care. There are a limited number of slots in each of the four reimbursement areas, and
assistance is offered on a first-come, first-served basis. In addition, the plan offers free
counseling and referral services for child and elder care 24 hours a day, seven days a week.
VII. Backup/Sick Child Care
Only 20 percent of working parents who use child care choose centers as their primary care
arrangement. The other 80 percent prefer the care provided by a family day care provider,
relative, babysitter, nanny or stay-at-home spouse. However, these forms of care are dependent
on a single provider and are susceptible to last-minute breakdowns. In fact, care is estimated to
break down 8 to 12 days per year in these arrangements.
Employees need backup child care to supplement their full-time arrangements so that they can
come to work when they would otherwise have to call in sick or take a vacation day. A high
quality backup child care alternative near the work-site can offer valuable support to employees
when the regular care provider is ill or takes a vacation day; school closes for a holiday,
professional day or vacation; mothers return to work from maternity leave, as a compliment to a
flexible work arrangement such as job share, flex-time or part-time; or to ease corporate
relocation or travel issues. One provider of backup care has found that the average family using
one of its centers will use backup care more than 5 times a year. In trying circumstances, such as
an unexpected loss of a caregiver or the return to work after maternity leave, a parent may use the
20
program 20 times or more in a year.
A 1997 survey of 2,000 employers conducted by Working Mother found that the need for backup
child care is an important issue for both employers and employees alike. There is compelling
research to confirm that backup child care is a win-win investment that typically pays for itself
within a few short months of implementation in terms of increased productivity due to decreased
absenteeism and tardiness, enhanced recruitment and retention, and improved corporate morale.
In a 1996 survey of 300 CEOs by Cannon Consulting Group, 72 percent reported that worker
absenteeism would be greatly reduced if a company offered on-site or backup child care services.
A 1996 study conducted by the Merrill-Palmer Institute found that the annual cost of
absenteeism due to child care problems among the companies it surveyed ranged from $66,000
to $3,500,000.
In addition to backup care, parents may also need sick child care. Sometimes a child is too ill to
attend school or go to their regular child care provider, but not ill enough that a parent needs to
stay at home. Some employers offer care for mildly sick children to address the circumstance.
Also, employers may grant time (with or without pay) to employees who need to stay home with
a sick child.
New York Life
In 1993 New York Life surveyed its approximately 8000 Home Office employees to evaluate the
company's program and policies and employees' needs, including child care. More than one-
third of respondents had children and one-half anticipated having child care responsibilities
within the next two to three years. The survey also found that New York Life lost more than
$400,000 in lost wages annually from employees calling in sick due to child care responsibilities.
A more detailed survey on employees' specific child care needs was conducted, and in 1995 the
Human Resources Department recommended that New York Life build an on-site backup care
facility. The Executive Management Committee agreed, and the center opened in April 1996.
The center is managed for New York Life by ChildrenFirst, a national provider of backup care
services.
Children and grandchildren ages 6 months to 13 years are eligible, and more than 400 children
are registered for the center--these are children who can use the center if backup care is needed.
Total utilization in 1997 was 2000 spaces, an average of about 8 children a day.
A survey of employees who had registered children for the center found benefits both to New
York Life and its employees.
The center has directly helped 79 employees avoid calling in sick a total of 388 times,
saving New York Life approximately $84,000 in lost productivity. This figure includes
only those parents and grandparents who responded to the survey; total savings may be
21
higher.
Based on experience, 99 percent of respondents would recommend the backup care center
to co-workers.
Almost all respondents (99 percent) believe the backup care center enhances New York
Life's reputation as an "Employer of Choice."
Eli Lilly
At Lilly's Tippecanoe Laboratories in Lafayette, Indiana, employees can take their sick children
to the U.B.O.K. Sick Child Care Center at St. Elizabeth's Medical Center. In partnership with
St. Elizabeth's, Lilly provides sick child care spaces at U.B.O.K. at a discounted fee. U.B.O.K.
is open 7 days a week, 24 hours a day, and is staffed by skilled nursing assistants who care for
sick children under the age of 14. Lilly is also working with state government, other Indiana
companies, and the Purdue University Center for Families to address the need for care for mildly
ill children throughout the state.
In addition, Lilly provides employees with eight days of flexible paid time off per calendar year
for illness in the family. If a worker needs additional time to care for an ill family member, the
employee's supervisor and human resources representative can evaluate the situation and
authorize additional paid days off. And of course Lilly employees can request up to 12 weeks
annually of unpaid leave to care for a child with a serious health condition, as called for in the
Family and Medical Leave Act.
VII. Out-of-School Time
Many children and youth can benefit from extra learning time, enrichment, and recreation after
school and during weekends, summers, and holidays. Providing these opportunities, while
important to any parent, can be especially important for employed parents, reducing work
absences and increasing retention rates. Parents want their children to be positively engaged in
their out-of-school hours. A 1994 survey of parents found that 56 percent believe that children
are left alone too much after school.²⁹ A 1997 survey shows that parents would like after-school
programs that offer computer skills, art, music, and drama, recreation, and public service. 30
While there is a demand for out-of-school programs, the need for more is clear. In 1995 there
were 23.5 million school-aged children with parents in the workforce, but the vast majority (over
²⁹Metropolitan Life (1994).
³⁰U.S. Department of Education (1997).
22
20 million) did not have a supervised environment to go to after their day was over. 31 Yet this is
exactly the time of day when young children and teenagers need supervision. According to 1997
report using data from the Federal Bureau of Investigation, youth between the ages of 12 and 17
are most at risk of committing violent acts and being victims of violent crime between 3:00 p.m.
and 8:00 p.m.--a time when they are not in school. 32
While some businesses are developing and implementing after-school programs, especially for
children of their employees, they are not widespread. A 1996 Hewitt Associates survey found
that of 902 large employers offering child care services, only 4 percent offered before- and after-
school care and only 2 percent offered summer care. A recent survey of 90 companies already
implementing work/life programs such as elder care, child care, flex-time, and other benefits,
found that 39 percent had summer/holiday programs, 36 percent had backup/emergency care
programs, 27 percent operated school-age child care programs, 20 percent had after-school
programs, and 20 percent ran summer camps.³³
John Hancock Financial Services
John Hancock offers a comprehensive work/family program to its employees, ranging from
flexible work arrangements to on-site child care. One of its unique programs is Kids-to-Go,
which provides supervised activities and field trips for children, ages 6-14, from 7:30 a.m. to
4:30 p.m. during school holidays. Fifty children attend the program, staffed by a nonprofit social
agency. The company initiated this program in response to an employee survey citing
work/family issues as a major cause of concern to its employees. The company estimates a
payback of $4.17 for every dollar invested in family-friendly policies and programs, including
Kids-to-Go, through increased performance and retention, stress reduction, and reduced
absenteeism.
G. T. Water Products, Inc.
This small California company operates a free, year-round, on-site school to serve the children of
its 24 employees. The students, ages 4 to 16, attend school during business hours, which
eliminates employee worries over child care. Because of the extended day, students rarely take
assignments home, freeing evenings to spend as family time. Parents are actively involved in the
classroom: they join their children on field trips, teach special classes and tutor in the classroom,
and often eat lunch with their children. For its $50,000 annual investment in the school, the
31 The School-Age Care Project (1997).
³²Fight Crime: Invest in Kids (1997).
³³Otterbourg (1997). This report also provides more detailed information on employer
involvement in education, including out-of-school time.
23
company reports many benefits, including virtually no employee turnover. Students perform at
or above national averages on standardized tests, and the company cites many other benefits to
the children from the school and the increased family involvement it supports.
IX. Small and Medium-Sized Businesses
Many of the policies discussed above are applicable to small and medium-sized business. For
example, community-based child care resource and referral agencies can provide information to
employees of small business, and small business can also participate in public-private
partnerships. Flexible work arrangements may be easier to arrange in a small firm. Small
businesses can also arrange with off-site child care centers to reserve slots for employees.
Another option available to small firms are child care consortiums, where small employers work
together to sponsor child care.
New Berlin Child Care Center, Inc.
In 1988 A&A Manufacturing, a small business of 200 workers, lost three employees because as
working mothers they were unable to find adequate child care. A&A discussed this with other
small businesses in the New Berlin Industrial Park, and they realized that access to child care
was an important issue in retaining skilled employees. None of the employers could individually
afford to support a child care center; however, the businesses together, with other contributions,
were able to raise enough funds to build a child care center in the industrial park.
The New Berlin Child Care Center opened in 1992. Today, it is a cooperative effort involving
more than 80 businesses and the city of New Berlin, serving 210 children. The center is
conveniently located on 10 acres with wooded trails in the industrial park. The center is
accredited by the National Association for the Education of Young Children, and features a full-
day kindergarten and an on-site kitchen. It is governed by a non-profit corporation with a
volunteer board of directors. The actual facility is managed by Bright Horizons Children's
Centers, Inc., a for-profit company that specializes in employer-supported child care centers.
Most of the businesses that sponsor the center have fewer than 100 employees, and some are as
small as 2 or 3 workers. Employees of sponsoring companies receive priority when an opening
occurs, but parents are responsible for tuition. The center has proven very effective in allowing
employers to retain existing employees that might otherwise have left to care for their children.
New Berlin Child Care Center estimates that at any one time, the center allows up to 150 workers
to remain at their jobs. In fact, the New Berlin Child Care Center has been so successful that it is
expanding to meet the needs of the many children on the waiting list.
Lost Arrow/Patagonia
Lost Arrow is the parent company of Patagonia, a clothing designer, and other small subsidiaries.
The company is based in Ventura, California and employs about 600 workers. Its Work-Family
24
Program started in 1984 with an on-site child care center; now Lost Arrow also offers a generous
leave policy, flexible work scheduling, subsidized off-site care, and a child care resource and
referral program.
New parents, including those who adopt, are entitled to eight weeks of paid leave, plus an
additional eight weeks of unpaid leave; in addition, Lost Arrow provides financial aid towards
adoption costs. The company also operates on-site child care and covers 40 percent of the cost,
while parental tuition covers the remaining 60 percent. Lost Arrow also offers employees
subsidies for off-site care.
The generous leave and child care policies help keep turnover costs low; the company estimates
that it costs $50,000 to train a new worker. A Lost Arrow evaluation found that over a two-year
period, the Work-Family Program has more than recovered its cost of $540,000, producing net
benefits of more than $130,000. This includes reduced turnover and savings in Federal and state
taxes. Other benefits Lost Arrow cites from its Work-Family Program include increased
employee moral, increased productivity, reduced absenteeism, and enhanced recruitment.
25
RESOURCES
Child Care Support Organizations
The AFL-CIO Working Women's
The Conference Board
Department
845 Third Avenue
815 16th Street, N.W.
New York, NY 10022
Washington, D.C. 20006
(212) 759-0900
(202) 637-5064
http://www.aflcio.org
Ecumenical Child Care Network
8765 West Higgins Road, Suite 405
American Business Collaboration for
Chicago, IL 60631
Quality Dependent Care
(312) 693-4040
WFD
930 Commonwealth Ave.
Families and Work Institute
Boston, MA 02215
330 Seventh Ave.
(800) 767-9863
New York, NY 10001
(212) 465-2044
Center for Career Development in Early
http://www.familiesandwork.org
Care and Education
Wheelock College
The Labor Project for Working Families
200 The Riverway
IIR, 2521 Channing Way, #5555
Boston, MA 02215-4176
Berkeley, CA 94720
(617) 734-5200, ext. 211
(510) 643-6814
http://socrates.berkeley.edu/-ir/workfam/
Child Care Action Campaign
home.html
330 Seventh Avenue, 17th Floor
New York, NY 10001
National Association for Family Child
(212) 239-0138
Care
206 Sixth Avenue, Suite 900
Child Care Law Center
Des Moines, IA 50309-4015
22 Second Street, 5th Floor
(515) 282-8192
San Francisco, CA 94105
(619) 466-8340 (California)
(415) 495-5498
National Association for the Education
Children's Defense Fund
of Young Children
Child Care and Development Division
1509 16th St., N.W.
25 E St., N.W.
Washington, D.C. 20036-1426
Washington, D.C. 20001
(800) 424-2460
(202) 662-3547
26
National Association of Child Advocates
School-Age Child Care Project
1522 K St., N.W., Suite 600
Wellesley College Center for Research on
Washington, D.C. 20004
Women
(202) 393-5501
106 Central St.
Wellesley, MA 02181
National Association of Child Care
(202) 638-1144
Resource and Referral Agencies
1319 F St., N.W., Suite 810
Women's Wire
Washington, D.C. 20004
http://www.womenswire.com/work/
(202) 393-5501
Working Mother Magazine
National Black Child Development
100 Best Companies for Working Mothers
Institute
http://www.womweb.com/100intro.htm
1023 15th St., N.W., Suite 600
Washington, D.C. 20005
(202) 387-1281
National Center for the Early Childhood
Work Force
733 15th St., N.W., Suite 1037
Washington, D.C. 20005
(800) U-R WORTHY
(202) 737-7700
National Child Care Information Center
301 Maple Avenue West
Suite 602
Vienna, VA 22180
(800) 616-2242
Fax: (800) 716-2242
TTY: (800) 516-2242
http://ericps.ed.uiuc.edu/nccic/nccichome.ht
National School-Age Child Care Alliance
2140 West 44th St.
Indianapolis, IN 46208
(317) 283-3817
27
State Resource and Referral Network Contacts
Alabama
Hawaii
Mary Silbert Davis
Sally Little
Alabama Child Care Network
Patch
c/o Child Care Resource Network
2850 Pa'a Street, Suite 130
Ft. Payne, AL 35967
Honolulu, HI 96819
(205) 845-8238
(808) 839-1789
Alaska
Idaho
Sharon Lattery
Marlene Yardley
Child Care Connection
Child Care Contacts
201 Barrow, Suite 103
P.O. Box 531
Anchorage, AK 99501
Twin Falls, ID 83303
(907) 279-5024
(208) 733-9351
California
Illinois
Patty Siegel
Steve Bemiller
CA CCR&R Network
IL CCR&R Network
111 New Montgomery, 7th Floor
207 W. Jefferson St., Suite 301
San Francisco, CA 94105
Bloomington, IL 61701
(415) 882-0234
(309) 827-9659
Colorado
Indiana
Gail Wilson
Marsha Thompson
CO Office of R&R Agency
Indiana Association for Child Care
7853 E. Arapahoe Rd., Suite 3300
Resource and Referral
Englewood, CO 80112
3901 N. Meridian, Suite 350
(303) 290-9088
Indianapolis, IN 46208
(317) 924-5202
Florida
Susan Muenchow
Iowa
Florida Children's Forum
Marla Sheffler
259 East 7th Avenue
CCR&R of Central Iowa
Tallahassee, FL 32303
550 11th Street
(904) 681-7002
Des Moines, IA 50314
(515) 883-1206
Georgia
Jerry Walker
Georgia Association of CCR&R
P.O. Box 243
Tifton, GA 30309
(912) 382-9919
28
Kansas
Missouri
Leadell Ediger
Andi Schleicher
KACCRRA
Child Day Care Association of St. Louis
P.O. Box 2294
2031 Olive Street, 2nd Floor
Salina, KS 67401
St. Louis, MO 63103
(785) 823-3343
(314) 241-3161
Kentucky
Montana
Susan Vessels
Janet Bush
Community Coordinated Child Care
Child Care Resources
1215 South 3rd Street
127 E. Maine, Suite 314
Louisville, KY 40203
Missoula, MT 59802
(502) 636-1358
(406) 728-6446
Maine
New Hampshire
Linda Elias
Denise Buck
Child Care Connections
Family Works of Child & Family
P.O. Box 10480
500 Amherst Rd.
Portland, ME 04104
Nashua, NH 03063
(207) 775-6503
(603) 889-7189
Maryland
New Jersey
Sandra Skolnik
Beverly Ranton
Maryland Committee for Children
NJACCRRA
608 Water Street
606 Delsea Drive
Baltimore, MD 21202
Sewell, NJ 08080
(410) 752-7588
(609) 582-8282
Michigan
New Mexico
J. Mark Sullivan
Nicola Baptiste
Michigan 4C Association
YWCA/Carino CCR&R
2875 Northwind Drive, #200
7201 Paseo Del Norte, NE
East Lansing, MI 48823
Albuquerque, NM 87113
(517) 351-4171
(505) 822-9922
Minnesota
New York
Patrick Gannon
David Hunt
Minnesota CCR&R Network
NY State Child Care Coordinating Council
2116 Campus Dr. SE
130 Ontario Street
Rochester, MN 55904
Albany, NY 12206
(507) 287-2497
(518) 463-8663
29
North Carolina
Texas
Mary Bushnell
Nancy Hard
NCCCR&R Network
Dependent Care Management Group
Chapel Hill, NC 28305
130 Lewis Street
(919) 967-3272
San Antonio, TX 78212
(210) 225-0276
North Dakota
Linda Reinicke
Vermont
Lutheran Social Service of North Dakota
Deborah Curtis
615 S. Broadway, Suite L3
VACCRRA
Minot, ND 58701-4473
32 College Street, Suite 100
(701) 838-7800
Montpelier, VT 05602
(802) 828-8765
Ohio
Tracy Ballas
Virginia
Action for Children
Pam Chappelear
78 Jefferson Avenue
Council of Community Services
Columbus, OH 43215
P.O. Box 598
(614) 224-0222
Roanoke, VA 24004
(540) 985-0131
Oklahoma
Liz Reece
Washington
Child Care Resource Center
Elizabeth Thompson
1700 ½ S. Sheridan Rd.
WA State CCR&R Network
Tulsa, OK 74112
917 Pacific Avenue #301
(918) 834-2273
Tacoma, WA 98402
(206) 383-1735
Oregon
Debra Orman
Wisconsin
Oregon CCR&R Network
Backy Mauss
3533 Fairview Industrial Drive
WI CCR&R Network, Inc.
Salem, OR 97302
519 W. Wisconsin Avenue
(503) 375-2644
Appleton, WI 54911
(414) 734-0966
South Dakota
Pam Henning
SDSU Family Resource Network
Box 2218-HDCFS/SDSU
Brookings, SD 57007
(605) 688-5730
30
SOURCES
Adams, Diane et al (1996) "Making Child Care Work." National Association of Child Care
Resource and Referral Agencies.
Burud & Associates (1998). "Work-Site Child Care Today."
Casper, Lynne (1995). "What Does it Cost to Mind Our Preschoolers?" U.S. Bureau of the
Census, Current Population Reports, P-70, no. 52.
Casper, Lynne (1996). "Who's Minding Our Preschoolers?" U.S. Bureau of the Census, Current
Population Reports, P-70, no. 53.
Cost, Quality & Outcomes Team (1995). "Cost, Quality, and Child Outcomes in Child Care
Centers." University of Colorado at Denver, University of California at Los Angeles,
University of North Carolina, and Yale University.
Council of Economic Advisors (1997a). "The Economics of Child Care."
Council of Economic Advisors (1997b). "The First Three Years: Investments That Pay."
Friedman, Dana E. and Anne M. Pauker (1997). "The Corporate Guide to National Dependent
Care Resource & Referral Services." Families and Work Institute.
Fullerton, Howard N. Jr. (1995). "The 2005 Labor Force: Growing, But Slowly." Monthly Labor
Review, November, p. 29-44.
Fullerton, Howard N. Jr. (1993). "Another Look at the Labor Force." Monthly Labor Review,
November, p. 31-40.
Helburn, Suzanne and Carollee Howes (1996). "Child Care Cost and Quality" in "The Future of
Children: Financing Child Care." Center for the Future of Children.
Hewitt Associates (1996). "Work and Family Benefits Provided by Major U.S. Employers in
1995."
Galinsky, Ellen at al (1993). "The Changing Workforce: Highlights of the National Study."
Families and Work Institute.
National Association of Child Care Resource and Referral Agencies (1996). "Supporting
Families in Changing Times: Child Care Resource & Referral Looks to the Future."
31
Otterbourg, Susan D. (1997). "A Business Guide to Support Employee and Family Involvement
in Education." The Conference Board.
Parkinson, Deborah (1995). "Work Family Roundtable: Child Care Services." The Conference
Board, Winter.
Phillips, Deborah (1995). "Child Care for Low Income Families: Summary of Two Workshops."
National Research Council.
Shellenbarger, Sue (1998). "Accounting Firms Battle to Be Known As Best Workplaces." The
Wall Street Journal, January 21, p. B1.
William M. Mercer, Incorporated (1996). "Mercer Work/Life and Diversity Initiatives
Benchmarking Survey 1996."
32
APR-13-98 MON 09:50 AM FAMILIES & WORK
FAX NO. 2124658637
P. 02/18
very preleminary draft
den - this is the draft
of Ellen's report That
I mentined ment
I think this will be a very important complement to the DOT report because it will
provide more research detail.
N
It has not been fact checked.
In addition, I think it could be reformatted so that findings are in bold, much in the
same style we use for the 1997 NSCW
EMPLOYER-SUPPORTED CHILD CARE 1997
by (Authors to come)
WHAT IS EMPLOYER-SUPPORTED CHILD CARE?
In the carly years of research on work and family life, employer-supported child care was
seen as the assistance provided from employers to help employees come to work and
concentrate on their jobs without being distracted by worries about their children.
Accordingly, work and family life were seen-at best-as separate, non overlapping
domains of life. Employer assistance was needed to retain this separation-to keep child-
related issues from causing problems at work. In fact, child care was often defined as a
problem. The solutions posed by employers were aimed at helping employees find child
care or Child Care Resource and Referral; helping employees pay for child care through
direct subsidies or vouchers from employers or through dependent care assistance plans
where the employees' pretax salaries are used to reimburse child care expenditures; or
providing on- or near-site child care.
After a more than a decade of research, it is clear work and family or personal life are not
separate. It is also clear that work is far more likely to spill over into home life than home
life is to spill into work life. And finally, it is clear that work and family life can confliet
with each other or can chance each other.
Thus, we pose a new definition of employer-supported child care. We include any
assistance provided by employers to help employees care for their own children as well as
to use others to care for them. We include flexible time and leave for parents in this
definition. It is a definition that builds on what we have learned from research in child care
and in the brain development of young children. Rather than set child care and parent care
as opposing poles, we need to focus on the continuum of care that children need from
their families and from the other important people in their lives.
In the following report, WC discuss the impact of employer-supported child care on
business productivity and employee well-being, we describe the programs and benefits that
companies provide for employees, we assess which companics are most likely to provide
employer-supports for child care, we describe the access that employees have to child care
assistance, and we analyze which employees are most likely to have such access. In these
analyses, we rely on two studies conducted by the Families and Work Institute, the 1998
Business Work-Life Study and the 1997 National Study of the Changing Workforce.
These studies which are described more fully below, are both conducted with
representative samples. The 1998 Business Work-Life Study is conducted with a
representative sample of employers with 100 or more employees and the 1997 National
Study of the Changing Workforce is conducted with a representative sample of the U.S.
1
APR-13-98 MON 09:51 AM FAMILIES & WORK
FAX NO. 2124658637
P. 03/18
labor force. Each of these studies is or will be repeated, enabling the Families and Work
Institute to assess trends over time.
WHAT IS THE IMPACT OF EMPLOYER-SUPPORTED CHILD CARE ON
PRODUCTIVITY AND EMPLOYEE WELL-BEING?
Here I would like to re-analyze 1997 NSCW, using access to flexibility and
dependent care assistance as the dependent variables. If not, we can use data
from Chapter 8 in 1997 NSCW.
WHAT PROGRAMS AND BENEFITS DO COMPANIES OFFER
EMPLOYEES?
To assess the programs and policies that companies offer employees we used the 1998
Business Work-Life Study, conducted by the Families and Work Institute. (Need
footnote funders, Louis Harris, response rate, also need to thank Dana Markow
and Liz Cooner from LHA for their remarkable help with this) In this study,
representatives from a representative sample of businesses with 100 or more employees
were interviewed by telephone between February and March 1998. The sample for this
study is 1109 businesses.
Provision of Flexible Time
As shown in Table 1, we found that:
More than three-quarters of companies (76 percent) allow employees to return
to work gradually after childbirth or adoption and 11 percent who don't offer
this benefit are considering doing so.
Seven in ten companies (72 percent) allow employees to periodically change
their starting and quitting times and another 14 percent are considering offering
this program, flextime.
Two-thirds of companies (66 percent) allow employees to work at home
occasionally and 11 percent are considering offering this program.
Six in ten companies (60 percent) provide part-time work, which we defined as
allowing employees to move from full-time, to part-time, and back again while
remaining in the same position or level. Another 8 percent are considering
offering part-time work. Another form of part-time work is allowing
employees to share jobs and almost half of employers (49 percent) offer this,
with another 17 percent considering doing so. Part-time, on average, is
considered 30 hours a week (median). Thirty percent of companies provide full
health care benefits to part-timers while 20 percent provide pro-rated benefits.
More than half of companies (53 percent) allow employees to take a few days
off work to care for a mildly ill child without using vacation days and without
losing pay. The median number of days off is six days and the mean is 11
days.
2
APR-13-98 MON 09:51 AM FAMILIES & WORK
FAX NO. 2124658637
P. 04/18
Almost half of companies (47 percent) allow employees to work at home
regularly-possibly linked to their workplace by a computer or telephone- and
an additional 15 percent are considering offering this program.
One quarter of companies (25 percent) allow employees to change their starting
and quitting times on a daily basis and 9 percent are considering offering this
benefit.
Table 1: Employer Provision of Flexible Work Arrangements
Does your company
Yes
Does not allow, yes
allow employees
considering
To periodically change
(n=1109)
(n=305)
starting and quitting times?
72%
14%
To change starting and
(n=1109)
(n=833)
quitting times on a daily
basis?
25
9
To return to work gradually
(n=1101)
(n=270)
after childbirth or adoption?
76
11
To care for a mildly ill child,
(n=1109)
to take a few days off work
without using vacation days
and without losing pay?
53
Not asked
To move from full-time to
(n=1109)
(n=443)
part-time and back again
while remaining in the same
position or level?
60
8
To share jobs?
(n=1109)
(n=562)
49
17
To work at home
(n=1109)
(n=376)
occasionally?
66
11
To work at home or off-site
(n=1109)
(n=587)
on a regular basis, possibly
linked by telephone and
computer?
47
15
Source: Families and Work Institute, 1998 Business Work-Life Study
Provision of Leave
Because we sampled companies with 100 or more employees, they are required to comply
with the 1993 Family and Medical Leave Act (FMLA) which stipulates that employers with
50 or more employees within a 75 mile radius must provide 12 weeks of job-guaranteed
leave for birth, adoption, foster care placement, the serious illness of a child or family
member, or one's own illness.
As shown in Table 2, we found that:
Four percent of companies reported that the maximum length of leave their
company allows to female employees who give birth to a child (including the
period of disability and other related time) is less than 12 weeks, the legal
requirement of FMLA. Forty-six percent allow 12 weeks, while 27 percent
3
APR-13-98 MON 09:51 AM FAMILIES & WORK
FAX NO. 2124658637
P. 05/18
allow 13-26 weeks, and another 13 percent allow more than 26 weeks. The
median amount of time off is 20 weeks and the mcan is 12 weeks.
Employers were asked, "excluding vacation days, accrued sick days, or other
paid personal time off, do employees giving birth receive any pay during the
period of disability? Almost two-thirds (63 percent) do provide pay. Of those,
31 percent provide full pay, 43 percent provide partial pay, and another 21
percent report that it depends.
Of those receiving pay, 81 percent state that this is part of their general
temporary disability insurance coverage.
On the other hand, women giving birth clearly take far less time than they arc
allowed. Companies report that 2 percent take less than six weeks, 18 percent
take six weeks, 29 percent take 7-11 weeks, and 25 percent take 12 weeks.
Only 8 percent of women giving birth take more than 12 weeks off-while at
the other end of the spectrum, 20 percent take six weeks or less. The median is
9 weeks and the mean is 10 weeks.
The vast majority of women giving birth return to their companies after
childbirth lcave. Only 9 percent of companies report that fewer than 75 percent
return. The median percent of returning women is 89 percent, while the mean
is 85 percent.
The above findings lend themselves perfectly to bar charts or graphic
representation.
When asked about the maximum length of job-guaranteed lcave that companies
allow for male employees whose partner gives birth to a child, five percent
report less than 12 weeks-the amount of time they are required to provide by
FMLA, 59 percent report 12 weeks, 15 percent say 13-26 weeks, and 7 percent
more than 26 weeks. The median here is 12 weeks and the mean is 16 weeks. It
is interesting to note that about half as many companies (22 percent) allow more
than 12 weeks off for fathers as do for mothers (40 percent). Comparing the
length of leave allowed to mothers and fathers upon the birth of a child.
Employers did not know how much time male employees actually took off so
this question was dropped from the study.
In contrast to the 63 percent of companies that provide full or partial pay for
women giving birth, only 10 percent provide paid Icave for fathers (excluding
vacation days, accrued sick days or other personal paid time off) when their
partners give birth.
The provision for mothers and fathers to care for newly adopted children or
newly placed foster children is similar to that for men whose partners have
given birth. Five percent allow less than 12 weeks (thus failing to meet the
legal requirement of FMLA), 60 percent allow 12 weeks, 16 percent allow 13-
26 weeks, and 6 percent more than 26 weeks. The median amount of time off is
12 weeks and the mcan is 16 weeks. Twelve percent of these companies report
providing paid time off (excluding vacation days, accrued sick days or other
personal paid time off).
4
APR-13-98 MON 09:52 AM FAMILIES & WORK
FAX NO. 2124658637
P. 06/18
I
In terms of caring for seriously ill children, 3 percent allow less than 12
weeks-the amount of time they are required to provide by FMLA, 64 percent
allow 12 weeks, 14 percent allow 13-26 weeks, and 6 percent more than 26
weeks The median is 12 weeks and the mean 16 weeks.
In sum, the mean amount of time off allowed for birth, adoption, and newly
placed foster children is 12 weeks-the legally required amount of time off for
companies of 100 or more employees.
Table 2: Employer Provision of Leave Policies
Leave
6 Weeks or
7-11 Weeks
12 Weeks
13-26 Weeks
More than
Median
Policy
Less
26 Weeks
Number of
Weeks
Maternity
2%
2%
46%
27%
13%
12 weeks
Leave
Paternity
4
1
59
15
7
12 weeks
Leave
Adoption,
3
2
60
16
6
12 weeks
Foster Care
Leave
Care of
2
1
64
14
6
12 weeks
Seriously
III Children
Leave
n=1109; Note: Percentages do not always add up 10 100% because of respondents who answered "don't
know."
Source: Families and Work Institute, 1998 Business Work-Life Study
Maybe table should be redone to include don't knows.
Note: I would like to include the number of companies that offer flexible time and
leave programs as we do with employee data but I would want them recalculated
so that they include the same items as we do below.
Provision of Dependent Care Assistance
As shown in Table 3, we asked companies about the provision of dependent care
assistance. We found that:
Nearly ninc in ten companies (86 percent) allow their employees to take time off
from work to attend their children's school or child care functions.
Seven in ten companies (73 percent) provide dependent care assistance plans to
help their employees pay for child care with pretax dollars.
Over half (55 percent) provide child care resource and referral and another 20
percent are considering offering this service.
Nineteen percent of companies provide on- or near-site child care and 14
percent are considering doing so. The medium number of sites where child care
is offered is two and the mean is seven.
5
APR-13-98 MON 09:52 AM
FAMILIES & WORK
FAX NO. 2124658637
P. 07/18
Sixteen percent of companies provide financial support to child carc through a
fund or through corporate contributions above and beyond what they contribute
through United Way.
Fourteen percent of companies provide back-up or emergency care for the
children of employees and 9 percent are considering doing so. The median
number of sites where this service is offered is two and the mean is ten.
Eleven percent) offer care for employces'children who are sick and 7 percent
are considering this service. The median number of sites where sick child care
is offered is three and the mean is 17.
One in ten companies (10 percent) provides child care for employees' children
on holiday and 5 percent are considering doing so. The median number of sites
where vacation care is offered is two and the mean is 11.
Nine percent of companies provide employees with reimbursement of child care
costs when they travel for business and eight percent reimbursc child care costs
when employees work late.
Table 3: Employer Provision of Dependent Care Assistance
Does your company
Yes
Does not provide, yes
provide
considering
Access to information to
(n=1109)
(n=501)
help locate child care in the
community?
55%
20%
Dependent care assistance
(n=1109)
plans (DCAPs) that help
employees pay for child care
with pretax dollars?
73
Not asked
Payment for child care with
(n=1101)
(n=1020)
vouchers or other subsidies
that have direct costs to the
company?
8
8
Reimbursements of child
(n=1109)
care costs when employees
work late?
6
Not asked
Reimbursement of child care
(n=1109)
costs when employees travel
Not asked
for business?
9
Child care at or near the
(n=1109)
(n=901)
worksite?
19
14
Flexibility to take time off
(n=1109)
from work to attend ther
children's school or child
carc functions?
86
Not asked
Child care for school-age
(n=1109)
(n=996)
children on vacation?
10
5
6
APR-13-98 MON 09:53 AM FAMILIES & WORK
FAX NO. 2124658637
P. 08/18
Back-up or emergency care
(n=1109)
(n=956)
for employees when their
regular child care
14
arrangements fall apart?
9
Sick care for the children of
(n=1109)
(n=1109)
employees?
11
7
Financial support of local
(n=1109)
child care through a fund or
corporate contributions
Not asked
beyond United Way?
16
(n=T109)
(n=1109)
To work at home or off-site
(n=1109)
(n=587)
on a regular basis, possibly
linked by telephone and
computer?
47
15
Source: Families and Work Institute, 1998 Business Work-Life Study
WHICH EMPLOYERS ARE MORE LIKELY TO PROVIDE EMPLOYER-
SUPPORTED CHILD CARE?
This needs to be done, program by programs, hitting the highlights
WHAT ACCESS TO EMPLOYED PARENTS HAVE TO EMPLOYER-
SUPPORTED CHILD CARE?
To assess employee access to employcr-supported child care, we used the National Study
of the Changing Workforce (NSCW), a research program of the Families and Work
Institute that surveys representative samples of the nation's labor force every five years.
Wc focus on findings from the 1997 study. (Need to footnote funders, Louis Harris,
response rate, also need to reference report and to thank study authors) Only
employed parents who are wage and salaried, over 18 years old, and who have children
under 13 living with them half or more of the time are considered here. The sample size is
1003 parents- 531 fathers and 472 mothers.
Access to Flexible Time and Leave
First, we examine access to flexible time and leave. The questions asked in the 1997
NSCW were not designed to determine whether these flexible arrangements are formal
policies affecting all workers; normative practices in the workplace, or case-by-casc
decisions made by supervisors. They do reveal, however, actual practice in the workplace
and thus provide a reasonable basis for investigating the extent to which employees are
allowed to have time off and flexibility SO that they can care for family members. As
depicted in Table 4, we found that:
7
APR-13-98 MON 09:53 AM FAMILIES & WORK
FAX NO. 2124658637
P. 09/18
Nearly all employed parents (94 percent) say that women can take time off to
recuperate from childbirth without jeopardizing their jobs and most (79.5
percent) say that men can take time off when they become fathers.
Almost three-fourths of employed parents (73 percent) say that they decide
when they take breaks and nearly two-thirds (64 percent) report that they find it
"not hard at all" or "not too hard" to take time off during their work day to take
care of personal or family matters.
Among parents who work part-time, 53 percent say that they could or might be
able to arrange to work full-time in their present position, while 38 percent of
parents who are employed full-time feel that they could or might be able to work
part-time in their current position.
On the other hand, only 48 percent of employed parents can take a few days off
to care for a sick child without losing pay, using a vacation day, or having to
make up some other excuse.
Likewise, just over four in ten employed parents (43 percent) can choose their
starting and quitting times within some range of hours (traditional flextime) and
one quarter (24.5 percent) can make these changes on a daily basis (daily
flextime).
Finally, 28 percent currently work or could work at least part of their regularly
scheduled hours at home.
Table 4: Access to flexible time and leave
Are you allowed to choose your own
(n=1002)
starting and quitting times within some
range of hours?
Yes
43%
No
57
Are you allowed to change your starting
(II=996)
and quitting times on a daily basis?
Yes
24.5%
No
75.5
Are you allowed to take a few days off to
(n=977)
care for a sick child without losing pay,
without using vacation days, and without
having to make up some other rcason for
your absence?
Yes
48%
No
52
Are women who work for your employer
(n=927)
able to take time off work to recuperate
from childbirth without endangering their
jobs?
Yes
94%
No
6
8
APR-13-98 MON 09:53 AM FAMILIES & WORK
FAX NO. 2124658637
P. 10/18
Are men who work for your employer able
(n=871)
to take time off work when they become
fathers without endangering their jobs?
Yes
79.5%
No
20.5
How hard is it for you to take time off
(n=871)
during your work week to take care of
personal or family matters?
Not too hard. not at all hard
64%
Somewhat hard, very hard
36
I decide when I take breaks
(n=1001)
Strongly, somewhat agree
73%
Strongly, somewhat disagree
27
If presently part-time, could you arrange to
(n=137)
work full time in your current position?
Yes, maybe
53%
No
47
If presently full-time, could you arrange to
(n=844)
work part-time in your current position?
Yes, maybe
38%
No
62
Currently work or would you be allowed to
(n=1003)
work at least part of regularly scheduled
hours at home?
Yes
28%
No
72
Source: Families and Work Institute, 1997 National Study of the Changing Workforce
Using the these items, wc developed an index of flexibility. The results show that four in
ten employed parents have little or no access to flexibility at the workplace (see Table 5).
Table 5: Overall access to flexible time and leave
(n=1003)
Few or no flexible time and leave programs
41%
Some
23
Many or all
35
Source: Families and Work Institute, 1997 National Study of the Changing Workforce
Even though more than a third of employees have access to most or all of these
programs or policies, a very large majority of parents (70 percent) feel that they
do not have enough time with their children. Is this under 18 or 13 or are
these the same?
It is not surprising that parents want more time with their children. On average,
employed parents are working XX hours beyond their regularly scheduled
hours. Give data. When asked how many hours they would prefer to work,
they would like to reduce their hours by XX.
Clearly, not even greater flexibility can compensate for working very long hours.
9
APR-13-98 MON 09:53 AM FAMILIES & WORK
FAX NO. 2124658637
P. 11/18
Access to Dependent Care Assistance
Far fewer employed parents have access to dependent care assistance than to flexible time
and leave. As shown in Table 6, we found that:
The most frequently available dependent care benefit is a dependent care
assistance plan (DCAPs), where employees can set aside part of their pay
before taxes into an account to pay for child care. Just under one third of
parents (31 percent) have access to DCAPs.
One in five employed parents (20 percent) works for an employer who provides
child care resource and referral, a service to help employees find child care.
Very few employed parents have access to direct financial assistance for child
care (13 percent) or to on- or near-site child care (12 percent).
Furthermore, comparisons with the 1992 National Study of the Changing
Workforce reveals that employee access to these four benefits have not changed
over the past five years.
Table 6: Access to dependent care assistance
Docs your employer have a program or
(n=966)
service that helps employees find child
care?
Yes
20%
No
80
Does your employer operate or sponsor a
(n=987)
child care center for employees' children on
or near the worksite?
Yes
12%
No
87
Does your employer provide employees
(n=979)
with any direct financial assistance for child
care?
13%
Yes
No
87
Does your employer have a program that
(n=962)
allows employees to put part of their pay-
before taxes-into an account that can be
used to pay for child care or other
dependent care?
Yes
31%
No
69
Source: Families and Work Institute, 1997 National Study of the Changing Workforce
While more than one third of employed parents (35 percent) has access to most or all of the
flexible time and leave programs or policies we assessed, far fewer (20 percent) have
access to dependent care assistance (see Table 7). In fact, 55.5 percent have no or very little
access to dependent care assistance.
Table 7: Overall access to dependent care assistance
10
APR-13-98 MON 09:54 AM
FAMILIES & WORK
FAX NO. 2124658637
P. 12/18
(n=985)
Few or no programs
55.5%
Some
24
Many or all
20
Source: Families and Work Institute, 1997 National Study of the Changing Workforce
WHICH EMPLOYEES ARE MORE LIKELY TO HAVE ACCESS TO
EMPLOYER-SUPPORTED CHILD CARE?
It is important to delve beyond these overall statistics to determine whether there is
differential access to employer-supported child care. Are some employees more likely to
receive help at the workplace while others don't?
Access to Flexible Time and Leave by Different Employee Groups
Lower-wage workers, workers from lower-income families, and single parents
have much less access to traditional flextime than other workers. For
example-when we divide hourly earnings into quartiles, we see that 37 percent
of worker in the bottom quartile ($7.85 an hour or less) are able to chose—
within a range of hours-their starting and quitting times compared with 58
percent of workers in the top quartile $18.97 an hour or more) do. Even more
dramatic are the figures for workers from low-income households. In the
bottom quartile (under $28, 650 per year), 29 percent of workers have access to
traditional flextime compared with 61 percent in the top quartile ($71,600 or
more per year). Likewise, while 45 percent of employees who are married or
living in a marriage-like relationship have access to traditional flextime, only
one-third (33 percent) of single parents do.
Fathers are more likely (28.5 percent) to have access to daily flextime than
mothers (20 percent). Lower-wage workers in the bottom quartile of hourly
earnings have less access (16 percent) than those in the top quartile (40
percent). Similarly, parents in the bottom quartile of household income have
three times less access (14 percent) than parents in the top quartile (41 percent).
Finally, single parents have less access (17 percent) than those who live with a
spouse or partner (26 percent).
There are по differences between mothers and fathers in their ability to take time
off to care for a sick child without losing pay, using vacation days, or having
to make up some other reason. However, parents in the lowest quartile of
hourly earners have less access to leave to care for sick children (36 percent)
than their counterparts in the highest quartile of earners (60.5 percent).
Likewise, parents living in households in the lowest quartile of household
income have half as much access to this time off to care for sick children (31
percent) than those in highest quartile of household income (64 percent).
Finally, 51 percent of employed parents who are living with a spouse or
partner can take time off for sick children compared with 38 percent of single
employees.
Interestingly, there are no differences among parent groups in their access to
maternity and to paternity leave. There are also no differences among
employee groups in their reported ability to take time off during the work day
11
APR-13-98 MON 09:54 AM
FAMILIES & WORK
FAX NO. 2124658637
P. 13/18
to take care of personal or family matters. Alternatively, employed parents
with lower hourly earning and living in lower-income households are less likely
to decide when they take brcaks.
While part-time mothers and fathers who are married and single, with higher
and lower wages and household incomes report equal access to being able to
move to full-time work in their current position, there is much less equal
access when it comes to full-timers moving to part-time work. For example,
only 32 percent of fathers compared with 45.5 percent of mothers feel that they
could move to part-time work. Full-time employed parents who make higher
wages and live in higher-income households also are less likely to fcel they
could move to part-time work than those at the lower ends of the wage and
household income spectrum do. Likewise, only 36 percent of full-time
employed parents living with a spouse or partner feel they could arrange part-
time work compared with 47 percent of single full-time employed parents.
Conversely, employed parents with higher wages and living in households with
higher incomes are more likely to report that they currently do or could work at
least part of their regularly scheduled hours at home. For example, 24
percent of employed parents with wages in the lowest quartile compared with
40 percent of those in the highest quartile could or do work at home.
In Table 8 and Table 9, we examine the issue of overall access by developing an index of
flexibility, created by combining responses to the ten types of flexible time and leave we
have discussed above. We found that employed parents with the lowest wages and living
in the lowest income households have less access to flexibility than their wealthier
counterparts. In other words, those with the least resources have the least flexibility from
their employers.
Table 8: Flexibility Index by Employees' Hourly Earnings at Their Main Job
Flexible
Quartile I
Quartile 2
Quartile 3
Quartile 4
Total
benefits
$7.85 or less
>$7.85-$12
>$12-$18.97
>$18.97
Few or none
46%
54%
41%
27%
42%
Some
25
23
20
24
23
Many or all
29
23
39
49
35
Significance=p<.000; n=933; Source: Families and Work Institute, 1997 National Study of the Changing
Workforce
Table 9: Flexibility Index by Employees' Total Household Income in 1996
Flexible
Quartile 1
Quartile 2
Quartile 3
Quartile 4
Total
benefits
<$28,650
$28,650-
$46,250-
$71,600 and >
$46,250
<$71,600
Few or none
55%
45%
39.5%
29%
42%
Some
22
27
27
16
23
Many or all
23
28
33
55.5
35
Significance=p<.000;n=961; Source: Families and Work Institute, 1997 National Study of the Changing
Workforce
12
APR-13-98 MON 09:55 AM
FAMILIES & WORK
FAX NO. 2124658637
P. 14/18
Note: I left employer size out of these analyses because NSCW would have to
be re-coded to match the employer size distinctions in the Employer Survey. I
don't know If we can do it in time.
Access to Dependent Care Assistance by Different Employees Groups
Do the same kind of difference we found in employee access to flexible time and leave
assistance also hold for access to dependent care assistance?
The only difference in access to child care resource and referral was for
employees with differing household incomes. About half as many employees
from low-income households (the lowest quartile) have access to child care
resource and referral as those from the high-income households (the highest
quartile): 13.5 percent for low-income employees versus 27 percent for high-
income employees.
There are no difference in parent employees' access to on- or near-site child
care.
Likewise, there are no differences in access to financial assistance for child
care.
On the other hand, employees with lower-hourly earnings and living in lower-
income household had less access to dependent care assistance plans (DCAPs)
than their higher income counterparts. For example, twice as few employed
parents in the lowest quartile of hourly earnings (20 percent) have access to
DCAPs as those in the top quartile of hourly carnings (43 percent). An even
greater difference emerges when one examines household income. There, 14
percent of employed parents living in houscholds in the bottom quartile of
family income have access to DCAPs compared with 47 percent from the top
quartile-a differential of more than three times.
As shown in Table 10 and 11, the same type of disparity in access to flexibility between
more and less advantaged parents holds true in terms of access to dependent care
assistance. This index was developed by combining responses to all four types of
dependent care assistance.
Table 10: Dependent Care Index by Employees' Hourly Earnings at Their Main
Job
Dependent
Quartile 1
Quartile 2
Quartile 3
Quartile 4
Total
care benefits
$7.85 or less
>$7.85-$12
>$12-$18.97
>$18.97
Few or none
64%
66%
52%
44%
56%
Some
18
20
25
32
24
Many or all
19
14
23
24
20
Significance=p<.000; n=911; Scurce: Families and Work Institute, 1997 National Study of the Changing
Workforce
Table 11: Dependent Care Index by Employees' Total Household Income in 1996
Dependent
Quartile 1
Quartile 2
Quartile 3
Quartile 4
Total
care benefits
<$28,650
$28,650-
$46,250-
$71,600 and >
$46,250
<$71,600
13
APR-13-98 MON 09:55 AM FAMILIES & WORK
FAX NO. 2124658637
P. 15/18
/
Few or none
70%
60.5%
52%
42%
56%
Some
15
21
29
30
24
Many or all
14
19
19
28
20
Significance=p<.000; n=939; Source: Families and Work Institute, 1997 National Study of the Changing
Workforce
In sum, although employed parents with lower earnings have less access to
dependent care assistance from their employers, it is parents from low-income
households that fare the worst. Half as many employed parents from the lowest
quartile of household income (14 percent) have many or all of the four
dependent care programs compared with employed parents from the highest
quartile (28 percent).
It is important to note, however, the only 20 percent of employed parents with
children under 13 have much assistance from their employers in finding, paying
for or providing child care.
IMPLICATION OF THESE FINDINGS
CONCLUSION
14
Employees
Family Friendly Policies
Employees
Bnr. Bnr. Pt.
Banner Title
Bnr Sub-title
Notes
2
1
Total
Female Employees (% of Total)
2
0%-24%
Q115<=24
3
25%-49%
25<=Q115<=49
4
50%-74%
50<=Q115<=74
5
75%-100%
Q115>=75
Unionized Employees (% of Total)
APR-13-98 MON 09:55 AM FAMILIES
6
0%-32%
Q130<=32%
7
33%-66%
33%<=Q130<=66%
8
67%-100%
Q130>67%
Hourly Employees (% of Total)
9
0%-32%
Q135<=32%
10
33%-66%
33%<=Q135<=66%
& WORK
11
67%-100%
Q135>=67%
Part-time Employees (% of Total)
12
0%-4%
Q230<=4%
13!
5%-9%
5%<=Q230<=9%
14
10%-49%
10%<=Q230<=49%
15
50%-100%
Q230>=50%
Evaluation of Programs
16
Evaluation
Q250 OR Q340 OR Q445 OR Q520 OR Q846 = 1 OR 2 OR 3
17
No Evaluation
Q250 AND Q340 AND Q445 AND Q520 AND Q846 = 4
Mgmt Considers Personal Needs
18
True
Q975E=1 OR 2
19
Not True
Q975E=3 OR 4
FAX NO. 2124658637
P. 16/18
Louis Harris Associates, Inc.
4/2/98
Family Friendly Policies
Family Friendly Policies
APR-13-98
Family Friendly Programs
Bnr. Bnr. Pt.
Banner Title
Bnr Sub-title
Notes
3
1 Total
Flexible Work Arrangements
2
0-1 Programs
Q204-8A: Special Table Score=0 or 1
3
2-3 Programs
Q204-8A: Special Table Score=2 or 3
4
4-6 Programs
Q204-8A: Special Table Score=4 or 5 or 6
5
7-8 Programs
Q204-8A: Special Table Score=7 or 8
Child Care
6
0-1 Programs
Q404-424A: Special Table Score=0 or 1
7
2 Programs
Q404-424A: Special Table Score=2
8
3 Programs
Q404-424A: Special Table Score=3
MON 09:55 AM FAMILIES & WORK
9
4+ Programs
Q404-424A: Special Table Soore>=4
Elder Care
10
0 Programs
:Q504-508A: Special Table Score=0
11
1 Program
Q504-508A: Special Table Score=1
12
2-3 Programs
Q504-508A: Special Table Score>=2
Family Conflict Resolution
13
0 Programs
Q604-612A: Special Table Score=0
14
1-2 Programs
Q604-612A: Special Table Score=1 or 2
15
3 Programs
Q604-612A: Special Table Score=3
16
4 Programs
Q604-612A: Special Table Score=4
Family & Medical Leave
17
Less than 5 Programs
Q304-Q312: Special Table Score <5
18
5 Programs
Q304-Q312: Special Table Score =5
Training Programs
19
0 Programs
Q970A-E: Special Table Score=0
20
1-2 Programs
Q970A-E: Special Table Score=1 or 2
FAX NO. 2124658637
21
3-4 Programs
Q970A-E: Special Table Score=3 or 4
P. 17/18
Louis Harris Associates, Inc.
4/2/98
Health & Financial Programs
Family Friendly Policies
Health and Financial Programs
Banner Bnr. Pt. 'Banner Title
Bnr Sub-title
Notes
4
1; Total
Health Care
2
0-2 Programs
Q704-712A<=2
3
3-4 Programs
Q704-712A=3 or 4
4
5 Programs
Q704-712A=5
Economic Security
5
0-1 Programs
Q806-816A=0 or 1
6
2 Programs
Q806-816A=2
7
3 Programs
Q806-816A=3
APR-13-98 MON 09:56 AM FAMILIES & WORK
8
4-5 Programs
Q806-816A=4 or 5
Financial Comparison to Competitors
9
Better
Q988=1
10
About the Same
Q988=2
11
Worse
Q988=3
Downslzing in Last 12 Months
12
Yes
Q980=1
13
No
Q980=2
Female Executives
14
0 Positions
Q910A-E: Special Table Score = 0
15
1 Position
Q910A-E: Special Table Score = 1
16
2 Positions
Q910A-E: Special Table Score = 2
17
3-5 Positions
Q910A-E: Special Table Score> = 3
Minority Executives
18
0 Positions
Q915A-E: Special Table Score = 0
19
1 Position
Q915A-E: Special Table Score = 1
20
2-5 Positions
Q915A-E: Special Table Score >= 2
FAX NO. 2124658637
4/2/98
P. 18/18
Louis Harris Associates, Inc.