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A Not Too Small to Care:
Small Businesses and Child Care
National Advisory Panel Exchange #2
Prepared by:
Caroline Eichman
Barbara Reisman
CCAC
CHILD
CARE
ACTION
CAMPAIGN
September
1991
The Child Care Action Campaign
The Child Care Action Campaign (CCAC), formed in 1983, is
a national coalition of leaders from a wide range of
American institutions: the media, government, corporations,
unions, women's groups, academia. Our overall mission is to
stimulate and support the development of policies and
programs that will increase the availability of quality,
affordable child care for the benefit of children, their
families, and the economic well-being of the nation.
To accomplish this, CCAC provides information and original
research to the public and to government and corporate
policy makers about the needs of families with children, and
the connection between these needs and national
prosperity; and it advocates for additional investments in
child care by employers, by labor and by federal, state and
local governments.
CCAC welcomes individuals and organizations who share its
goals to become members of the organization.
Child Care Action Campaign
330 7th Avenue, 17th Floor
New York, New York 10001
(212) 239-0138
Not Too Small to Care:
Small Businesses and Child Care
National Advisory Panel Exchange #2
CCAC
CHILD
CARE
ACTION
CAMPAIGN
September
1991
ACKNOWLEDGEMENTS
The Child Care Action Campaign's (CCAC) National Advisory Panel,
our network of public and private leaders from all 50 states, the
District of Columbia, and Puerto Rico, enables us to provide
cutting-edge information about child care trends throughout the
country, and to initiate action to expand the supply and improve
the quality of child care. Our Panel was instrumental in
providing information and analysis for this report and for our
first National Advisory Panel Exchange report, Making the
Connections: Public Private Partnerships in Child Care, released
in 1990 and revised in March, 1991.
Not Too Small to Care: Small Businesses and Child Care, the
second of CCAC's National Advisory Panel Exchange reports, was
prepared by Caroline Eichman and Barbara Reisman and edited by
Maxine Gold. Special thanks to CCAC staff Kristin Anderson,
Julie Kay and Pat Nicholson who assisted with the research.
We are deeply grateful to American Express Philanthropic Program
for its support.
We also wish to thank:
-- the CCAC National Advisory Panel for inspiring this report and
for collecting much of the information;*
-- the CCAC Board of Directors, specifically Dr. Susan Aronson,
Vivian Cadden, Bettye Caldwell, Rosalind B. Chaikin, Sey
Chassler, Ellen Galinsky, Sheila Kamerman, Elliot Lehman, Kate
Rand Lloyd, and Gwen Morgan, who have contributed in various and
significant ways;
-- Hal Morgan, author of Companies Who Care, who helped us
identify businesses; Victor Rubin, Berkely Planning Associates;
Edward Starr and Juanita Weaver, U.S. Small Business
Administration; and Cheri Sheridan, People Katch International,
who offered technical assistance;
-- the many employers and child care professionals who took the
time to speak with us; and CCAC student interns, Mark Curnin, Ana
Echeverri, Diane Foy, Marjorie Grossman, Nicole Hoffmeister,
Christina Vaccariello, and MiMi Meng, who assisted with our
research.
Elinor Guggenheimer
President, Child Care Action Campaign
* See Appendix I, page 87, for a roster of National Advisory
Panel members who have been especially helpful.
TABLE OF CONTENTS
1
INTRODUCTION Facts about Employment and the Need for Child Care
1
Small Businesses
2
NOT TOO SMALL TO CARE: SMALL BUSINESS AS A PARTNER IN
SOLVING THE CHILD CARE DILEMMA
3
3
OVERVIEW
Child Care Options
3
Flexible Scheduling and Parental Leave
4
Demographics
6
Benefit Availability and Usage
6
Advantages and Problems
6
7
Costs
Table A. Employers Profiled In This Report
5
RECOMMENDATIONS
8
RESEARCH METHODOLOGY
10
PHASE I
10
Defining A Small Business
10
Identifying Small Businesses
10
PHASE II
11
Data Collection
11
How This Report Is Organized
11
OPTION #1: CHILD CARE FACILITY
12
CHILD CARE CENTER
12
On- or Near-Site Center
12
Consortium Center
13
Contract With Third-Party Operator
13
Family Day Care Home
13
Table B. Option #1: Child Care Facility
14
Benedictine Nursing Center
15
Bowles Corporation
17
Business Office Supply Company, Inc
20
Byrne Electrical Specialists, Inc.
23
Chalet Dental Clinic
26
Champlain Dental Lab
29
Cumberland Hardwoods
32
Edgewood Centre
35
Group 243, Inc.
37
Hamilton Realty
39
Stackpole Limited
42
G.T. Water Products, Inc.
44
Overseas Adventure Travel
46
OPTION #2: CHILD CARE SUBSIDY
49
Voucher Programs
49
Vendor Programs
49
Table C. Option #2: Child Care Subsidy
50
Bestronics of San Diego
51
Ding-A-Ling
53
Hemmings Motor News
55
Joseph Alfandre & Co, Inc
57
Maine Antique Digest
59
PRO TEM Professional Temporary Services
61
Southbury Voices, Prime Publications, Inc
63
OPTION #3: RESOURCE AND REFERRAL SERVICE
65
CompuServe Data Technologies
66
Mascoma Savings Bank
68
Chronicle of Higher Education
70
Table D. Option #3: Resource and Referral Service
65
OPTION #4: DEPENDENT CARE ASSISTANCE PLAN
72
Beaverton-Tigard Insurance Agencies
73
Bigelow Labs
75
Monadnock Worksource
77
Sheehan, Phinney, Bass, and Green
79
Table E. Option #4: Dependent Care Assistance Plan
72
OPTION #5: FLEXIBLE BENEFIT PLAN
81
Dunning, Forman, Kirrane, & Terry
82
Lynchburg Hemotology-Oncology Center
84
Table F. Option #5: Flexible Benefit Plan
81
CONCLUSION
86
APPENDIX I: CCAC NATIONAL ADVISORY PANEL
87
APPENDIX II: NATIONAL RESOURCES
90
BIBLIOGRAPHY
91
CHILD CARE ACTION CAMPAIGN: BOARD OF DIRECTORS
93
NOT TOO SMALL TO CARE: SMALL BUSINESSES AND CHILD CARE
I.
INTRODUCTION
Facts about Employment and the Need for Child Care
Demographic changes in the U.S. labor force -- a declining
pool of skilled entrants coupled with an increasing
proportion of mothers of young children -- are compelling
employers to develop strategies that will enable them to
attract and retain skilled workers in order to maintain a
competitive edge, and improve their productivity. To that
end, the need for family friendly workplace policies has
emerged as a major issue facing the employer of the 1990s.
Programs which help employers find and pay for quality child
care are a key element of such policies. Although the
number of employers providing some form of child care
benefit still remains relatively small, parents and child
care advocates can point to some progress: today, an
estimated 5,600 out of nearly six million employers offer
their employees a child care benefit, a 500 percent increase
since 1978, and these employers are making a major
difference in the lives of children and their families.
The marital status and living arrangements of American
families has changed dramatically in the last twenty years.
Fifty percent of all marriages end in divorce and more and
more adults are single. In 1988, 38 percent of all children
(5.9 million) under 18 years of age were living with a
divorced parent and 24 percent (15.3 million) were living
with a single parent.¹ Nearly 87 percent of all single
living in poverty than any other group. In addition, two
parent families are finding it increasingly difficult to
maintain their standard of living on a single income.
As the number of two-earner and single-parent families
grows, as more mothers enter into the labor force -- by the
year 2000, women will comprise 52 percent of new labor force
entrants and nearly half (47 percent) of the total labor
force² -- the demand for child care will continue to
expand. The degree to which the public and private sectors
respond to this urgent demand will have a direct impact on
1 U.S. Department of Commerce. Bureau of the Census. "Studies
in Marriage and the Family." Current Population Reports Series P-
23, No. 162, 1989, pp.5-6.
2 Fullerton, Howard, "New Labor Force Projections, Spanning
1988 to 2000," Outlook 2000, U.S. Bureau of Labor Statistics,
Employment Projections.
1
the productivity of this country and its competitive
position in the international arena.
Small Businesses
Small businesses are a source of employment to a large
proportion of the American workforce, and are a vital
segment of our national economy -- contributing 44 percent
of all sales and 38 percent of U.S. gross national
product. 3 Between 20 and 26 million women (more than 50
percent of the female labor force) today are employed in
small businesses.4 A very high percentage of these women
will become mothers during their careers. Of the existing
5.4 million private employers, over 98 percent employ under
250 workers. Small businesses are more likely to generate
jobs for younger workers, older workers, and women, many of
whom prefer or are only able to work on a part-time basis.
5
According to the U.S. Small Business Administration, small
businesses employ over half of all workers in the private
sector. 6 Furthermore, it is estimated that by the year
2000, over half of all those employed in small businesses
will be women.
7
3 U.S. Small Business Administration, FACT SHEET 40, Office of
Public Communications, March, 1989.
4 CCAC estimate using Bureau of the Census data from 1986, and
Bureau of Labor Statistics data from 1990.
⁵U.S. Small Business Administration FACT SHEET 40, March 1989.
6 Brown, Charles, Hamilton, James, Medoff, James; "Employers
Large and Small," Harvard University Press; Cambridge,
Massachusetts; 1990; p.11.
7 The BNA Special Report Series on Work and Family, "Work and
Family Programs: A Growing Benefit for Small Companies," Special
Report #25, January, 1990.
2
II. NOT TOO SMALL TO CARE: SMALL BUSINESS AS A PARTNER IN
SOLVING THE CHILD CARE DILEMMA
Although the popular view is that small employers lack the
resources to institute effective child care benefits, this
report reveals that with proper planning and strong
commitment on the part of the employer, the goal of meeting
employees' child care needs can be achieved. Moreover, the
benefits to small employers are much the same as those
commonly reported by large corporations: improved employee
productivity and morale, an increased ability to attract and
retain skilled workers, and a better image in the community.
A.
OVERVIEW
1. Child Care Options
Not Too Small to Care: Small Business and Child Care
contains profiles of 29 small businesses employing
under 250 workers in 15 states which offer child care
benefits to their employees. The companies profiled
were not randomly selected and they do not constitute a
representative sample of small businesses -- neither
those that offer child care or the larger universe of
small businesses. The research presents models of
innovative employer-sponsored child care programs and
emphasizes the role that small employers can play in
enhancing the supply of and access to child care for
working families. In five separate sections of the
report, we examine the background, costs, and
experiences of these employers in instituting one or
more of the child care options that are available to
them. These include:
1)
the direct provision, on- or off-site, of a
licensed child care facility, either a child care
center or family day care home;
2)
child care subsidies, paid directly to the parent
(voucher program) or to the child care provider
(vendor program) ;
3)
financial assistance, through a Dependent Care
Assistance Plan (DCAP), which can reduce
employees' taxable income by enabling them to pay
for child care out of pre-tax earnings. Employers
who implement a DCAP can also lower their own
costs through reduced taxes;
3
4)
resource and referral services, which can
be administered either at the worksite, or through
an outside contractor;
5)
a flexible benefits plan, which offers employees
the opportunity to choose from a menu of benefits
that include some form of child care assistance.
These options are described in full detail at the
beginning of each section of this report.
Of the 29 employers profiled, thirteen -- nearly one
half -- offer an on-site or near-site child care
facility; seven provide direct subsidies to help
employees pay for child care; three offer a resource
and referral service; four offer a dependent care
assistance plan (DCAP) ; and two offer a flexible
benefits plan. This does not reflect the prevalence of
these benefits among employers nor the proportion.
Each of these options may be offered in conjunction
with other benefits that help to create a family
friendly workplace.
The following options are also included in the profiles
but are not described in separate sections of the
report:
1. Flexible Scheduling and Parental Leave
Alternative work-scheduling policies, such as flexible
hours, part-time work, job sharing, and work-at-home
arrangements help working parents meet their family
responsibilities
Parental leave policies grant employees a specified
period of paid or unpaid leave to care for a newborn or
newly adopted child. As of this writing, the United
States has no national policy requiring employers to
offer paid or unpaid parental leave to their
employees. 8 Thirty-three states currently have some
form of parental leave law. 9 Parental leave is a
8 As of this writing, two bills are being debated in Congress
that could lead to the establishment of national leave legislation.
They are H.R. 2 and S.5, entitled the "Family and Medical Leave Act
of 1991. " Last year President Bush vetoed similar legislation which
called for all employers with more than 50 workers to provide up to
12 weeks of unpaid family and medical leave.
9 The Bureau of National Affairs, "Work and Family: The
Complete Resource Guide," Washington, D.C., 1991.
4
A Table A. Employers Profiled in This Report
Percent of
Year
Employees
Year
Employer
Total Employer
Company
No. of
Who Are
Child Care
Benefit
Start-Up
Operating Cost,
Profiled
Company Name
State
Establ.
Type of Business
Employees
Female
Benefit Provided
Establ.
Investment
1990
On Page
Beaverton-Tigard Insurance Agency
Oregon
1952
insurance agency
7
70%
DCAP
1988
negligible
negligible
73
Benedictine Nursing Center
Oregon
N/A
nursing facility
230
95%
center
1988
$30,000
$120,000
15
Bestronics of San Diego
California
1970
seller of electronic parts
6
67%
subsidy
1987
N/A
N/A*
51
Bigelow Labs
Maine
1975
research lab
48
50%
DCAP
1989
$1,000
-$1,200
75
Bowles Corporation
Vermont
1983
engineering firm
12
50%
center
1987
$2,500
$2,500
17
Business Office Supply Co., Inc.
Kentucky
1966
office equipment distributor
100
50%
center
1989
none
minimal
20
Byrne Electrical Specialists, Inc.
Michigan
1971
electrical manufacturer
110
92%
center
1989
$228,000
$20,000
23
Chalet Dental Clinic
Washington
1974
dental clinic
45
91%
center
1984
N/A
$18,000
26
Champlain Dental Lab
Vermont
1968
dental lab
18
60%
center
1985
$5,000
$9,500
29
CompuServe Data Technologies
Massachusetts
1971
software manufacturer
100
52%
R & R
1989
N/A
$1,560
66
Cumberland Hardwoods
Tennessee
1941
wood manufacturer
120
24%
center
1989
$107,000
$28,000
32
Ding-A-Ling
Florida
1973
answering/beeper service
110
95%
subsidy
1989
N/A
$25,000
53
5
Dunning, Forman, Kirrane & Terry
Massachusetts
1973
law firm
22
60%
flexible benefit plan
1985
N/A
$14,000
82
Edgewood Centre
New Hampshire
1972
nursing facility
175
85%
center
1989
$16,000
$32,000
35
Group 243, Inc.
Michigan
1975
advertising agency
111
71%
center
1982
N/A
$40,000
37
G.T. Water Products, Inc.
California
1980
plumbing supply mfr.
31
55%
school
1987
$2,000
$40,000
44
Hamilton Realty
Massachusetts
1960
realty company
125
65%
center
1986
$425,000
$20,000
39
Hemmings Motor News
Vermont
1955
magazine publisher
85
80%
subsidy
1989
N/A
$60,000
55
Joseph Alfandre & Co.
Maryland
1983
home builders
55
45%
subsidy
1989
N/A
$6,000
57
Lynchburg Hematology-Oncology Center
Virginia
1975
cancer treatment center
16
75%
flexible benefit plan
1981
N/A
$7,030
84
Maine Antique Digest
New Hampshire
1971
provides svces. to disabled
65
60%
DCAP
1990
N/A
N/A
59
Mascoma Savings Bank
Maine
1973
publisher
15
80%
subsidy
1986
N/A
$800
68
Monadnock Worksource
New Hampshire
1899
savings bank
90
80%
R & R
1987
N/A
$350
77
Overseas Adventure Travel
Massachusetts
1979
travel agency
12
80%
family day care home
1987
$11,000
$6,000
46
PRO TEM Profl Temporary Services
Oregon
1982
temporary service agency
155
70%
subsidy
1989
N/A
$4,500
61
Sheehan, Phinney, Bass & Green
New Hampshire
1930
law firm
150
50%
DCAP
1989
N/A
none
79
Southbury Voices
Connecticut
1970
regional newspaper
49
80%
subsidy
1987
N/A
$21,000
63
Stackpole Limited
Tennessee
1981
metal bearings mfr.
100
50%
center
1989
$5,000
$9,600
42
The Chronicle of Higher Education
Washington, D.C.
1966
publisher
140
72%
R&R
1989
N/A
$1,650
70
Several hundred dollars
**
Net savings from reduction in FICA expense
***
Combined with clinic construction costs
significant benefit for many parents: it provides
invaluable time for them to bond with their children in
their early months and to adjust, or help siblings
adjust, to a new life situation. Twenty-four of the 29
small employers highlighted in the profiles section of
this report, offer their employees a parental leave
option -- seven offer paid leave while 15 offer unpaid
leave and two provide flexible leave arrangements. In
this report, formal parental leave policies are
distinguished both from policies in which employees may
accumulate sick, personal, or vacation days to use for
leave, and from employer paid disability policies.
2. Demographics
Women comprise at least 50 percent of the workforce at
27 of the 29 companies profiled. The average age in
the vast majority of the companies is below 40 years;
the workforce in these companies are in their prime
childbearing years.
3. Benefit Availability and Usage
Although many of the companies are well established
concerns, 16 offered child care benefits since 1988.
The first benefit in this sample was instituted in
1982.
In nearly every instance, child care facilities are
operating at or near maximum capacity, although
slightly more than half -- seven out of 13 -- serve a
larger proportion of children of non-employees than of
employees.
In the cases where employees receive financial
assistance, through subsidies or a Dependent Care
Assistance Plan, only those using this benefit for
child care are reported.
4. Advantages and Problems
Across the board, employers are overwhelmingly
enthusiastic about the impact of their child care
benefits on employee morale, a decrease in turnover and
absenteeism, and an increase in ability to recruit and
retain qualified workers. In only one case has an
employer reported employee abuse of the benefit; a very
small number report that employees who are ineligible
for child care benefits feel they are being treated
unfairly; and some cite frustration with bureaucratic
delays in meeting state licensing requirements. In no
6
case, however, is a firm contemplating removing the
benefit. It is the general consensus that the benefits
greatly outweigh whatever problems that arise.
5. Costs
Despite the advantages of providing child care, costs
remain a leading concern for many of the small
businesses -- particularly for those which provide a
center or family day care home. In 1990, employers
report having spent between $2,500 and $425,000 on
start-up costs, and between $2,500 and $120,000 on
operations. The broad range in start-up costs is
attributed to the variation in the capacity of the
facilities. In some cases, firms already owned the
space in which the center is housed and incurred only
the renovation costs required to meet state licensing
regulations.
7
B.
RECOMMENDATIONS
Employers of all sizes can play a significant role in
helping working parents address their child care needs.
Small businesses interested in establishing a child
care option for their employees should consider the
following when planning a benefit package:
1. Understand and assess employees' needs. Before
instituting a child care option, you should become
fully educated about the child care needs of your
employees. How many employees require assistance with
child care, and what form of help do they need? If the
problem is a shortage in the supply of child care
facilities, you may want to develop a policy that will
create more child care spaces for the appropriate age
groups. If affordability is of concern to your
workers, a policy that assists with child care payments
may be of most use. A thorough understanding of the
child care problems of your workforce will clarify the
benefit policies that can best address their needs in a
cost-effective way.
2. Become familiar with the child care situation in
your community. Contact a local resource and referral
(R & R) agency to help you examine the availability and
cost of quality care in your area. [See Appendix II,
page 90, for a list of national resources that can help
you identify local R & R's]. If there appears to be a
large supply of child care available but at a high
cost, you may want to develop a benefit that will help
subsidize the cost of care for your employees. If the
shortage of quality care is the problem, constructing a
child care center, or improving the quality in existing
community centers may prove beneficial to your
employees.
3. Look for partnerships. Under the right
circumstances, small businesses can benefit by forming
partnerships with other businesses, large or small.
According to Gwen Morgan, consultant, Work/Family
Directions in Boston, Massachusetts, and CCAC Board
Member: "Because small businesses have limited
planning resources, it is more practical for them to
first find out what larger companies are doing in their
community, and second, to try to encourage partnerships
with those larger firms who have the resources, both
8
financial and staff, to conduct in-depth planning. 10
4. Examine state and local funding opportunities.
Many states offer employers, and sometimes small
businesses in particular, financial assistance -- in
the form of a tax credit, a grant, or a loan -- if you
offer a child care benefit.
5. Inform employees about the option. Without a
sufficient education campaign, employees may never
realize that a benefit exists. This is particularly
the case with subsidies and flexible scheduling
options, benefits that are not clearly visible.
6. Measure your option's effectiveness. To better
understand how your benefit is impacting employee
morale, productivity, retention and turnover, survey
your workers. Such feedback can serve as an important
guide to help you improve or enhance your benefit.
7. Seek the advice of child care professionals. All
too often, businesses attempt to handle the
complexities of this endeavor themselves, only to find
that they lack the skill and experience. Child care
professionals such as resource and referral agency
staff, government administrators, and consultants can
save you valuable time and can help you avoid the
inevitable pitfalls of an often complicated process.
8. Evaluate how other company policies affect
families. Your personnel policies should be consistent
with work and family benefits. For example, a company
policy that penalizes employees who refuse overtime is
very likely to conflict with the family
responsibilities of some of your employees.
9. Publicize the option. Publicity for the child care
benefit can be beneficial. It will strengthen your
community image, and will attract employees to your
company.
10 Interview, Gwen Morgan, Consultant, Work/Family Directions,
and CCAC Board Member, January, 1991.
9
III. RESEARCH METHODOLOGY
Research was conducted between June, 1990 and March,
1991, and was divided into two phases. In Phase I,
terms were defined and small businesses that offer
child care were identified. During Phase II, data were
collected from targeted businesses and a selection of
companies to profile was made.
A.
PHASE I
1. Defining A Small Business
Although small businesses are sometimes defined as
firms employing under 500 workers, members of the CCAC
Research Committee, an advisory group of eight child
care experts, felt that firms with over 250 employees
were too large for the purpose of this study. 11
Similarly, by looking solely at firms with under 100
workers, the Committee determined that the study would
emerge with too narrow a view of companies with limited
resources. In order to present a broader employer
perspective, the definition of a small business was
limited to private firms employing under 250
workers.
12
2. Identifying Small Businesses
The 29 firms highlighted in this report were identified
in the summer of 1990, primarily with the help of
CCAC's National Advisory Panel, state administrators
and child care advocates. Our selection of companies,
which is neither random nor fully representative of
small businesses that offer child care, was dependent
on the extent to which our National Advisory Panel
members, government officials and/or state advocates
maintained information on employer-sponsored child
care. The extent of information on employers that
sponsor child care varied greatly from state to state.
11 According to Edward Starr, economist with the Small Business
Administration: "It is the nature of the problem that should drive
the definition of what is a small business."
12 One problem with redefining small businesses in this way is
that the available data on small businesses; i.e., their role in
U.S. productivity, the extent to which women are employed, etc., is
most often collected for employers with under 500 and under 100
employees. For this reason we have estimated statistics to reflect
the universe of small employers with under 250 employees.
10
Not surprisingly, in those states where strong child
care advocacy networks and/or strong government
commitment to child care exist, it was easy to identify
businesses offering such benefits.
More than 300 small employers that sponsor some form of
child care benefits were identified in this phase. We
made the selections in order to present a range of
options in a variety of industries and in a large
number of states.
It should also be noted that because information was
more readily available from those employers offering a
tangible option, such as a child care center, rather
than from employers with more abstract options, such as
flexible work arrangements, our report highlights more
child care centers (page 14) than any other benefit.
Readers should not, however, extrapolate from this that
child care centers are more prevalent nationwide than
other options offered by small businesses.
B.
PHASE II
1. Data Collection
Data were collected via extensive telephone interviews
conducted by CCAC staff between June, 1990 and
February, 1991. Interviews were conducted with the
individual (s) responsible for administering and
implementing the child care option, typically the
owner, a representative from upper management, and/or
the human resource contact. The information contained
in each profile has been verified by each of our
company contacts.
2. How This Report Is Organized
In the following pages, the profiles are organized by
section according to five child care options: child
care facility, child care subsidy, resource and
referral service, Dependent Care Assistance Plan
(DCAP), and flexible benefits plan. Each section
contains a description of the option, followed by
portraits of those businesses that have implemented it.
11
OPTION #1: CHILD CARE FACILITY
I.
CHILD CARE CENTER
Approximately 1,800 employers of all sizes offer their
employees a child care center benefit, 13 located on site or
near the workplace. The facility may be in the form of a
child care center or family day care home. 14 In addition,
businesses sometimes enter into arrangements with a group of
employers which pool their resources to sponsor centers for
the combined benefit of all the employees. This is commonly
referred to as a consortium center.
1. On- or Near-Site Center
On- or near-site centers may be operated by or for the
employer or by an independent child care provider. Although
a center is the most visible of child care benefits, it may
not always be the best choice for a business. The
construction and operation of a center can be expensive.
The average cost to construct a free-standing child care
facility to serve 100 children can be $500,000, while the
cost of retrofitting space in an existing facility can be
significantly less.
The cost of providing care is also highly dependent on state
regulations. 16 Since child care is a labor-intensive
service, the cost of providing care, and the fees for
service, will depend heavily both on the staff/child ratio,
and on the wages and benefits paid to teaching staff.
In general, staff salaries for child care providers
throughout the nation remain dismally low, considering the
13 Child Care Action Campaign, unpublished data collected for
upcoming "Child Care Primer", 1990.
14 A family day care home is care by a single caregiver in the
caregiver's home, typically to no more than six children at any
given time.
15 Interview, Cheri L. Sheridan, child care consultant and
president, People Karch International Co. Ltd., and CCAC National
Advisory Panel member, November, 1990.
16 Regulations for child care vary from state to state. For
detailed information on the licensing and regulatory requirements
for child care providers (including information on staffing
requirements) see Morgan, Gwen, "The National State of Child Care
Regulation 1986," Work/Family Directions.
12
high educational level of many of the teachers and
providers. The average salary for a child care teacher is
$5.35 an hour, despite the fact that nearly three-fourths of
all teachers and one-half of all assistant teachers have
some college background, particularly in early childhood
education. 17 In the case studies presented here, salaries
for center staff range from $4.50 to $7.50 an hour. Since
it has been clearly demonstrated that there is a direct
correlation between quality and staff ratios as well as
between quality and the wages and working conditions of
staff, the data presented in the profiles offer some
indication of the quality of the facility program.
2. Consortium Center
The lower capital and operating costs and fewer management
responsibilities make this option an attractive one for some
employers. However, a mutually advantageous site and the
longer start-up period required for more complex planning
might discourage some from choosing it.
3. Contract With Third-Party Operator
This may include operating a center as part of a local
community program or establishing a center to be operated by
an independent operator. Regardless of the choice,
employers should be careful to conduct "due diligence" in
selecting an operator -- the provider should be of
sufficient quality so that the employer can reduce their own
liability risk.
4. Family Day Care Home
Twenty-three percent of all children under five years of age
with working mothers are cared for in a family day care
setting. There are 200,000 licensed or regulated family day
care homes serving 1.2 million children. 18 Over five
million children are cared for in homes that not regulated.
The number of children permitted to receive care in a family
day care home varies from state to state, depending upon
licensing or regulatory requirements. Many families prefer
to place their children in family day care homes because of
the home-like environment, and the flexible hours such homes
are open.
17
Child Care Employee Project, "National Child Care Staffing
Study, " Child Care Employee Project, San Francisco, CA., November,
1989.
18 Child Care Action Campaign, unpublished data, September,
1990.
13
A Table B. Option #1: Child Care Facility
Percent
No. of
Percent of
of
Employees'
Total
No. of
Employees
Open to
Employees
Children
Employer
Employer
Type of
Company
Who Are
Facility
Non-
Using
Using
Start-Up
Operating
Company Name
Facility
Year opened
Employees
Female
Capacity
Ages Served
Employees?
Benefit
Benefit
Investment
Cost, 1990
Price Employees Pay
Other Benefits
Benedictine Nursing
center
1988
230
95%
30
6 wks. to
yes
4%
11
$30,000
$120,000
$210 to $410/mo.
unpaid leave
Center
preschool;
summer: up to
12 yrs.
Bowles Corporation
center
1987
12
50%
12
0 to 12 yrs.
yes
58%
7
$2,500
$2,500
$1 to $1.50/hr.
flex.
scheduling.
unpaid leave
Business Office
center
1989
100
50%
36
0 to 6 yrs.
yes
6%
6
$0
minimal
$65 to $70/wk.
paid leave
Supply Co., Inc.
Byrne Electrical
center
1989
110
92%
130
6 wks. to 12
yes
23%
30
$228,000
$20,000
$50 to $65/wk.
DCAP, flextime,
Specialists, Inc.
yrs.
paid leave
Chalet Dental Clinic
center
1984
45
91%
12
0 to 5 yrs.
patients
22%
10
N/A**
$18,000
$5 to $8/day
unpaid leave
14
only
Champlain Dental
center
1985
18
60%
15
6 wks. to 12
no
11%
4
$5,000
$9,500
$80 to $100/wk.
DCAP, unpaid
Lab
yrs.
leave
Cumberland
center
1989
120
24%
50
6 wks. to 5 yrs.
yes
17%
30
$107,000
$28,000
$20 to $22.50/wk.
unpaid leave
Hardwoods
Edgewood Center
center
1989
175
85%
22
14 mos to 9
yes
7%
16
$16,000
$32,000
$55 to $60/wk.
unpaid leave
yrs.
Group 243, Inc.
center
1982
111
71%
50
2 wks. to 5 yrs.
no
15%
30
N/A
$40,000
$110 to $130/wk
DCAP.
maternity leave
via disability
G. T. Water
school
1987
31
55%
none*
5 to 15 yrs.
no
32%
13
$2,000
$40,000
none
unpaid leave
Products, Inc.
Hamilton Realty
center
1986
125
65%
52
2 mos. to 5 yrs.
yes
6%
7
$425,000
$20,000
$437 to $640/mo
direct subsidy,
unpaid leave
Overseas Adventure
family day 1987
12
80%
6
over 1 yr.
yes
17%
3
$11,000
$6,000
$2.81/hr.
paid leave
Travel
care home
Stackpole Limited
center
1989
100
50%
15
1 to 7 yrs.
yes
7%
7
$5,000
$9,600
$30/wk.
maternity leave
via disability
*
State law does not impose a capacity limit on licensed schools.
** Combined with clinic construction costs
CHILD CARE FACILITY
On-site
BENEDICTINE NURSING CENTER
Mt. Angel, Oregon
"Offering a child care benefit makes a lot of sense because
employees feel much more comfortable at work knowing that their
children are being well taken care of. It also brings a lot of
people into the workforce who could not otherwise work."
Eileen Beaudine, Assistant Administrator
Benedictine Nursing Center
ABOUT THE EMPLOYER:
ABOUT THE BENEFIT:
Type of Business: Nursing
Year Benefit Began: 1988
Home, not-for-profit
No. of Employees Using Benefit: 10
Year Established: N/A
No. of Children in Facility: 25
Number of Employees: 230
Children of Employees: 11
Other Children: 14
F/T: 120 P/T: 110
Maximum Capacity: 30
Age Range: 16-50
Center Staff: 6; 1 director, 5
Percent Women: 95%
caretakers
Center Staff Wages: $5.00 -
Other Benefits:
$10.00/hr.
Unpaid Leave
Employer Costs:
Start-Up: $ 30,000
Operating, 1990: $120,000
Background: In 1987, a group of employees approached management
to express their need for child care support. At the time, the
Board of Directors was considering ways to establish an
intergenerational program that would allow elderly patients to
interact with children. Tying employee and patient needs
together, the Board decided to found an on-site child care center
that would provide an intergenerational program component,
bringing children and the elderly together for daily activities,
such as story-telling and arts and crafts.
15
CHILD CARE FACILIT
On-Site
Benefit Description:
Hours of operation: daily, 6:15 a.m. to 6:00 p.m.
Ages served: six weeks to preschool; up to 12 years during
summer.
Fees: $410/month for infants; $310/month part day care
$275/month all others; $210/month part day care
Employees who earn less than $15,000 are entitled to a 40 percent
discount, and those who earn over $15,000 receive a 30 percent
discount on these fees.
Employees are informed of the child care center when they are
hired.
Company Costs: The child care center is located in a building
adjacent to the nursing center facility. The nursing home
received a state Children's Services Grant of $30,000, which
covered most of the renovation and some of the operating costs.
The grant was unexpectedly discontinued in 1990, and the nursing
center is now responsible for all operating costs.
Advantages: Employee feedback has been extremely favorable.
According to Eileen Beaudine, Assistant Administrator,
Benedictine Nursing Center: "The best part about the on-site
center is the closeness that the parents have with the children
and their accessibility to them in case of accidents or illness.
The parents love seeing their children for lunch, and the nursing
center residents enjoy having young people around for the
intergenerational program."
Problems: High operating costs and difficulty in retaining
teacher assistants.
At present, plans are being considered to add an after-school
program to meet the needs of employees with school-aged children.
Other Benefits: Up to 12 weeks of unpaid parental leave, which
can be extended if an employee wants to use her or his accrued
sick and personal days as leave.
Contact:
Eileen Beaudine
Assistant Administrator
Benedictine Nursing Center
540 North Main Street
Mt. Angel, OR 97362
(503) 845-6841
16
CHILD CARE FACILITY
On-Site
BOWLES CORPORATION
Petersburgh, Vermont
"It is very important for employers to be flexible and consider
the needs of all employees when deciding on what child care
benefits to offer."
Carol Bowles, Vice President
Bowles Corporation
ABOUT THE EMPLOYER:
ABOUT THE BENEFIT:
Type of Business:
Year Benefit Began: 1987
Engineering firm
No. of Employees Using Benefit: 7
Year Established: 1983
No. of Children in Facility: 12
Number of Employees: 12
Children of Employees: 7
Other Children: 5
F/T: 6 P/T: 6
Maximum Capacity: 12
Average Age: Late 30's
Center Staff: 2 full-time
Percent Women: 50%
Center Staff Wages: N/A
Other Benefits:
Employer Costs:
Flexible Scheduling
Start-Up: $2,500
Unpaid Leave
Operating, 1990: $2,500
Background: In 1986 Vice President Carol Bowles brought her
newborn daughter with her to work because she was not able to
arrange for child care. An employee approached Ms. Bowles with a
similar dilemma. The two mothers agreed to hire a babysitter who
would care for their children in the office. Prompted by
employee suggestions, two offices were set aside to accommodate
the needs of two additional children. By early 1987, the
children and the caretaker that Bowles Corporation had hired
relocated into a mobile home located on the same property as the
company offices.
17
CHILD CARE FAC
On-site
Benefit Description:
Ages served: infancy to 12 years.
Fees: Employees pay $1.50/hr. for one child, $1.00/hr. for
second child.
Non-employees pay an additional $.50/hr. for each child
Staff Qualifications: The two staff members are high school
graduates with extensive child care experience.
Employees who wish to bring their children to the child care
center contact Carol Bowles directly to make the necessary
arrangements.
Company Costs: The Bowles Corporation purchased the mobile home
for $1,500. The cost of the necessary renovations to meet
licensing standards was approximately $1,000.
The child care center operates as a part of the Bowles company.
Advantages: According to Ms. Bowles: "One of the best outcomes
is that there is interaction between the children and the
employees. The children's presence really livens the atmosphere,
which helps the employees enjoy their jobs more. We hope one day
that the center will be self-sufficient and able to pay its own
way. I don't think we're too far from our goal.
Problems: Obtaining a license for the center from the state was a
very time-consuming process. "However, offering a center benefit
is easier than it sounds. The regulations may seem intimidating,
but really they are not."
Other Benefits: A variety of flexible work arrangements,
scheduling of work hours according to employee needs. Half the
staff is part-time, although both part-time and full-time staff
may work flexible hours. According to Ms. Bowles: "The only
restriction on work hours we have is if an employee wishes to use
machinery, there must be at least one other person in the office.
This is solely for safety reasons."
Disability insurance covers a paid leave for childbirth for up to
eight weeks. Parents can extend their leave, but without pay.
The company also allows employees to use sick days to care for
their ill children.
18
LI
CHILD CARE FACILITY
On-Site
Contact:
The Bowles Corporation
Carol Bowles, Vice President
RR1 Box 735
North Ferrisburg, VT 05473
(802) 425-3447
19
CHILD CARE FACILITY
On-site
BUSINESS OFFICE SUPPLY COMPANY, INC. (BOSCI)
Louisville, Kentucky
"There is an element of community responsibility that a business
should take to ensure that employees have valid options for child
care that are affordable and of high quality."
Stephen Zink, President
Business Office Supply Company, Inc.
ABOUT THE EMPLOYER:
ABOUT THE BENEFIT:
Type of Business:
Year Benefit Began: 1989
Distributor of office
furniture and supplies
No. of Employees Using Benefit: 6
No. of Children in Facility: 36
Year Established: 1966
Children of Employees: 8
Number of Employees: 100
Other Children: 28
F/T: 96 P/T: 4
Maximum Capacity: 36
Average Age: under 40
Center Staff: 10
Percent Women: 50%
Center Staff Wages: N/A
Employer Costs:
Other Benefits:
start-Up: none; $70,000 paid
Paid Leave
by company owner
Operating, 1990: minimal
Background: Company president and owner Stephen Zink established
the child care center after he experienced difficulty searching
for a child care arrangement for his own two young children.
According to Mr. Zink: "I realized that if I was facing so many
problems finding child care, many of my employees were probably
having similar problems. I set up a center because there were
none in our area. I thought this would be the best service the
company could offer."
Benefit Description: Since February 1989, the Buttons and Bows
child care center, a nonprofit facility, has been located on site
of BOSCI's offices in a renovated two-story home.
20
CHILD CARE FACILI
On-site
Ages served: infancy to six years.
Fees: Employees pay $70/week for infants; $65/week for children
up to six years.
Non-employees pay $80/week for infants; $75/week for
children up to six years.
Employees of BOSCI are informed of the child care center when
they are hired.
Company Costs: The center receives some financial support from
BOSCI. The renovation cost to Mr. Zink personally was
approximately $70,000. The center ran at a $1,000 deficit each
month for the first two years of operation, in part because
formal accounting procedures were not yet designed. This cost
was also absorbed by Mr. Zink.
The center is owned by Mr. Zink, not by BOSCI, and is a separate
legal entity: it is insured by a separate carrier and the
company is not liable for any occurrences at the center.
However, the company underwrites part of the center's overall
utility costs, largely because the electricity and other
utilities are connected to the company lines. The center does
not pay rent. Parent fees cover the remainder of the center's
operating expenses, such as staff salaries and insurance coverage
for full-time employees.
Advantages: The company has received a great deal of local media
attention as a result of the child care center. According to
Stephen Zink: "The availability of the center has made BOSCI a
more attractive place to work. It has been a boost to
recruitment and retention of employees, and our absenteeism has
declined." Employees who have children in the center,
particularly those with infants, appreciate the opportunity to
drop in on their children during the day.
Problems: High start-up and operating costs. Mr. Zink suggests
small companies may want to consider contracting with a local
center, if one exists, or forming a consortium with other small
businesses. "Particularly with a consortium, costs could be
distributed among a few employers who would all benefit
tremendously," states Mr. Zink.
Mr. Zink also stressed that a business should research the costs
and benefits of a variety of child care options. Says Mr. Zink:
"It is much easier for people to speak with other companies who
already have child care policies in place rather than trying to
shape a policy of one's own in a vacuum."
21
CHILD CARE FACILITY
CIL
On-site
other Benefits: A minimum of six weeks paid parental leave along
with a benefit package that includes both individual and family
health care, retirement benefits, and short- and long-term
disability insurance.
Contact:
BOSCI
Stephen Zink, President
106 East Broadway
Louisville, KY 40202
(502) 589-5522
22
CHILD CARE FACILITY
On-site
BYRNE ELECTRICAL SPECIALISTS, INC.
Rockford, Michigan
"Because women are such a significant percentage of today's
workforce, the need for child care must be recognized by
employers. The child care benefits we provide our employees have
had a very positive influence on our business."
Rosemary Byrne, Vice President
Byrne Electrical Specialists, Inc.
ABOUT THE EMPLOYER:
ABOUT THE BENEFIT)
Type of Business:
Year Benefit Began: 1989
Manufacturer of electrical
parts
No. of Employees Using Benefit: 25
No. of Children in Facility: 90
Year Established: 1971
Children of Employees: 30
Number of Employees: 110
Other Children: 60
F/T: 105 P/T: 5
Maximum Capacity: 130
Age Range: 18-40
Center Staff: 17
Percent Women: 92%
Center Staff Wages: $5.50/hr.
Employer Costs:
Other Benefits:
Start-Up: $228,000
Dependent Care Assistance
Operating, 1990: $ 20,000
Plan
Flextime
Paid Leave
Background: Owners Norman and Rosemary Byrne were aware for
several years that a child care shortage existed in their
community. In 1988, their daughter had difficulty finding child
care for her first child. Realizing the crisis parents face
trying to juggle work and family responsibilities, the Byrnes
decided to provide on-site child care.
At the same time that ten Byrne employees were expecting babies,
Byrne Electrical was in the process of expanding its office
space, and an empty space was available to construct and house an
on-site center. The Byrnes chose to offer this type of facility
23
CHILD CARE FACILITY
On-Site
because, "It would be the kindest way to offer child care to our
employees."
Benefit Description: The center is a subsidiary of Byrne
Electrical, and is known as the Wee Folk Child Care Center.
Ages served: from six weeks to 12 years.
Fees: Employees pay $65/week per infant; $50/week for children
over two years.
Non-employees pay 30 percent more.
Employees are informed of the child care center when they are
hired.
Byrne Electrical Specialists has also established, at negligible
cost, a Dependent Care Assistance Program (DCAP) to enable
employees to pay for child care in pre-tax dollars. Employees
enrolled in the DCAP are required to submit their expense
information to the accounting department, which in turn
reimburses their child care provider directly.
Company Costs: In the first year of operation, the company spent
$62,000 to subsidize the center operations. Operating
expenditures included overhead, taxes, staff salaries, equipment,
and insurance. A van is provided by the company to transport
children to and from school.
Advantages: According to owner Rosemary Byrne: "Our employees
are thrilled with the center. Having the children nearby was
very important to most of the mothers, and they feel more
comfortable leaving their children in a center knowing that they
are close by."
The management believes that the center has also been very good
for morale and that absenteeism has declined as a result. "We
have also seen an increase in the number of applications for
employment, and we believe that this is because of the child care
center," states Ms. Byrne.
Problems: Very few; the Byrnes have no plans to change or limit
its availability. Ms. Byrnes feels that, because the company is
family owned and operated, "It is easy to keep things under
control, because there is no bureaucratic paperwork and no formal
decision making processes to contend with.'
Other Benefits: Six weeks paid parental leave and use of
accumulated personal time for an additional leave of absence.
When the parent is ready to return to work, she may work up to 90
days part-time and may take advantage of flextime work
24
CHILD CARE
On-site
arrangements. In cases of a family crisis or illness of a child,
Byrne encourages employees to consult with the company so that
informal, individual arrangements can be made.
Contact:
Byrne Electrical Specialists, Inc.
Rosemary Byrne, Vice President
320 Byrne Industrial Drive
Rockford, MI 49341
(616) 866-3461
25
CHILD CARE FACILITY
On-site
CHALET DENTAL CLINIC
Yakima, Washington
"A child care benefit can be good for employee morale. We
established a center to help mothers. We felt that it would be
more convenient for mothers to have their children close by so
they would not have to travel a distance for child care."
Dr. Michael Buehler, D.D.S.
President
Chalet Dental Clinic
ABOUT THE EMPLOYER:
ABOUT THE BENEFIT:
Type of Business: Dental
Year Benefit Began: 1984
clinic
No. of Employees Using Benefit: 10
Year Established: 1974
No. of Children in Facility: 12
Number of Employees: 45
Children of Employees: 10
Other Children: 2
F/T: 30 P/T: 15
Maximum Capacity: 12
Average Age: Early 20's to
mid 30's
Center Staff: 6; 1 Director, 5
part-time aides
Percent Women: 91%
Center Staff Wages: $4.50 -
$7.50/hr.
Other Benefits:
Unpaid Leave
Employer Costs:
Start-Up: Included in
building costs
Operating, 1990: $18,000
Background: Chalet Dental Clinic established an on-site child
care center for its employees after the wife of one dentist
encouraged her husband to investigate child care options for
company employees. He then convinced his colleagues of the
importance of establishing a child care benefit.
After consulting with employees on their child care needs, the
dentists decided that a child care center would best suit the
needs of their workers, and that an on-site center would be the
26
CHILD CARE FACILITY
On-site
best option because the employees wanted to see their children
during the day. The dentists reasoned that a center would allow
mothers, anxious about their newborn infants, to return to work
more quickly. In addition, they acknowledged the potential
advantage of having an on-site center available to patients.
Plans to construct a child care center were incorporated into the
construction plans for new office space.
Benefit Description:
Ages served: up to five years.
Fees: Employees pay $8/day for the first child and $5/day for
each additional child.
Patients may place children in the center at no charge
during their office visits.
Staff Qualifications: Staff are qualified child care
professionals and report directly to the Chalet Clinic Day Care
Coordinator.
Employees are informed of the child care benefit during
orientation seminars conducted after their hiring. Written
information on the center is also distributed.
Company Costs: The center is owned and operated by Chalet Dental
Clinic and the firm contributes $18,000 annually (or $1,500 per
month) to the operation of the center.
Advantages: Employee feedback has been very positive. According
to Office Manager Kathleen Musitelli: "Prospective employees
often cite the existence of a center as a significant influence
on the decision to seek employment with the Clinic. The
publicity we've gotten about the center has helped reduce the
Clinic's recruiting costs."
In quarterly "mothers' meetings" (open to any employee or her
spouse), which the Day Care Coordinator conducts, mothers using
the center have expressed continuing satisfaction and
appreciation. According to Ms. Musitelli: "Mothers are willing
to return quickly from maternity leave because of the center.
The need to hire and train temporary employees has lessened and
recruiting costs have also been reduced. In addition, our
patients enjoy using the center, and word of mouth has attracted
new patients to the Clinic."
Problems: High operating expenses. However, the dentists firmly
believe that the benefits outweigh the costs. Ms. Musitelli
cautions: "The company does not operate the center for a profit,
27
TY
CHILD CARE FACILITY
On-Site
nor do we feel it should be run for a profit. The center is
viewed as a benefit to our employees."
Other Benefits: Although not a written policy, the Clinic
generally offers up to three months of unpaid parental leave. In
addition, the firm provides up to six paid sick days for each
employee, which may be used to care for ill children.
Contact:
Does not wish to be listed
28
CHILD CARE FACILITY
On-Site
CHAMPLAIN DENTAL LAB
South Burlington, Vermont
"Businesses will find that child care will result in workers
being absent from work less often. Employees don't have to worry
about adding time to their commute to take their children to day
care."
Diane Paren, Vice President
Champlain Dental Lab
ABOUT THE EMPLOYER:
ABOUT THE BENEFIT:
Type of Business: Dental
Year Benefit Began: 1985
laboratory
No. of Employees Using Benefit: 2
Year Established: 1968
No. of Children in Facility: 11
Number of Employees: 18
Children of Employees: 4
Other Children: 7
F/T: 18 P/T: N/A
Maximum Capacity: 15
Average Age: 20's and 30's
Center Staff: 2; 1 Director, 1
Percent Women: 60%
aide
Center Staff Wages: $6.00 -
Other Benefits:
$7.50/hr.
Dependent Care Assistance
Plan
Employer Costs:
Unpaid Leave
Start-Up: $ 5,000
Operating, 1990: $9,5000
Background: In 1985, the management of Champlain Dental Lab
realized that child care was an employee issue that had to be
addressed. Several employees were expecting children, and
management believed that in order to retain employees, the
company needed to establish a child care benefit.
Management decided on a two-pronged approach: the first was the
development of an on-site center, and the second was the
implementation of a Dependent Care Assistance Plan (DCAP) to help
employees pay for child care. Management felt that an on-site
center would offer anxious new parents an opportunity to visit
29
CHILD CARE FACILITY
On-site
with their children during the day, and it would reduce commuting
time, thus enabling employees to be more productive at work.
Benefit Description:
Hours of operation: weekdays, 7:30 a.m. to 5:30 p.m.
Ages served: six weeks to 12 years.
Fees: $100/week for infants; $80/week for children over 30
months.
Under the DCAP, the company reimburses an employee's off-site,
independent child care provider directly for services. Four
employees are enrolled in the DCAP for child care.
Employees are informed of the center and the DCAP through
literature distributed at the time of their hiring.
Company Costs: Annual rent for the on-site center is $4,500; an
additional $5,000 is earmarked for operational expenses.
Champlain splits the $9,000/year lease with a group of physicians
who practice in the same building. The physicians are guaranteed
seven spaces in the center, and Champlain is guaranteed eight.
The cost of establishing the DCAP account was negligible.
Advantages: According to Diane Paren, Vice President of Champlain
Dental Lab, feedback from employees has been positive.
"Employees really appreciate being able to see their children
during the workday. They tell us that it has greatly reduced
their commute to work. We have also experienced a reduction in
employees absent from work, and there seems to be a general
improvement in morale."
Problems: High annual costs and administrative difficulties.
Because the administration of the center has interfered with Ms.
Paren's ability to do other aspects of her job, the company is
planning to turn the administrative aspect of the center over to
the parents of children currently enrolled in the center.
According to Ms. Paren: "We are hoping that by forming this
group, I will be able to again focus my energies on the
operations of the Lab, and parents will feel comfortable with the
care their children receive."
Other Benefits: Up to eight weeks of unpaid parental leave.
Requests for longer leaves are considered on a case-by-case
basis.
30
CHILD CARE FACILITY
On-site
Contact:
Champlain Dental Lab
Diane Paren
60 Timber Lane
So. Burlington, VT 05403
(802) 863-3556
31
CHILD CARE FACILITY
On-Site
CUMBERLAND HARDWOODS
Sparta, Tennessee
"From a business perspective, a child care benefit makes for
happier, more productive employees. Affordable, quality child
care also creates a more nurturing environment for today's
children and tomorrow's work force."
Janet Davis, Human Resources Manager
Cumberland Hardwoods
ABOUT THE EMPLOYER:
ABOUT THE BENEFIT:
Type of Business: Prepares
Year Benefit Began: 1989
wood for manufacture of
furniture
No. of Employees Using Benefit: 20
No. of Children in Facility: 46
Year Established: 1941
Children of Employees: 30
Number of Employees: 120
Other Children: 16
F/T: 120 P/T: 0
Maximum Capacity: 50
Average Age: 32
Center Staff: 9; 1 Director
Percent Women: 24%
Center Staff Wages: above minimum
wage; commensurate
with experience
Other Benefits:
Unpaid Leave
Employer Costs:
Start-Up: $107,000
Operating, 1990: $ 28,000
Background: The center is part of a two-year experiment co-
sponsored by the Upper Cumberland Human Resource Agency (UCHRA)
and CumBerland Hardwoods. UCHRA is a state organization which
directs state and federal grants to in-state institutions. In an
effort to revitalize the region's economy, UCHRA and Cumberland
Hardwoods established, as a partnership, a program designed to
educate the local workforce and eliminate obstacles to worker
productivity.
Recognizing that the provision of child care would help reduce
employee absenteeism and turnover, and with a severe shortage of
32
CHILD CARE FACILITY
On-site
child care facilities -- there were no child care centers in
Sparta -- Cumberland decided to purchase a privately-owned house
situated on company property. With the help of UCHRA, which
contributed a total of $50,420 to the first six months of the
operation, Cumberland co-founded an on-site center.
Cumberland incorporated an adult learning and training center
into the plans for the child care center. The company felt that
the adult education center would encourage members of the
community to enter the labor force, and would offer entrants the
skills they need to do their jobs.
Performance Learning, a nonprofit corporation, was created in
1990 as both a child care center and an adult learning center.
After six months of operation, Cumberland assumed all
administrative and financial responsibilities for the center.
Benefit Description:
Hours of operation: weekdays, 6:30 a.m. to 5:30 p.m.
Ages served: six weeks to five years.
Fees: Employees pay, at a 50 percent discount, $20-$22.50/week,
depending upon age of child.
Non-employees pay $40-$44.50/week, depending upon age of
child.
Staff Qualifications: Director holds a B.S. in early childhood
development.
Thirty spaces are reserved exclusively for employees, and 16 are
open to the public.
Employees are notified of the center benefit through literature
distributed to them when they are hired.
Company Costs: In addition to the tuition subsidies, Cumberland
covers any shortfall the center may experience in any given
month.
High start-up costs, which totaled $107,000, have left the center
operating at a deficit.
Advantages: According to Janet Davis, Human Resource Manager:
"Employees say that they decided to work at Cumberland solely
because of the child care benefit and/or the education program."
Although Ms. Davis has noticed a reduction in absenteeism and
employee turnover in recent times, she has no specific data to
support her claim. Several local area businesses have sent
33
CHILD CARE FACILITY
On-Site
representatives from their companies to study the Cumberland
program to determine if they should implement a similar program
for their employees.
Problems: Administrative: operating a joint child care/adult
learning program serving a large age range -- from six weeks to
60 years.
Other Benefits: Up to three and a half months of unpaid parental
leave, two months before the birth and six weeks after. An
Employee Assistance Program helps employees confront personal
problems, such as drug and alcohol abuse and housing concerns.
Contact:
Cumberland Hardwoods
Janet Davis, Human Resource Manager
Highway 70 South
Sparta, TN 38583
(615) 738-5264
34
CHILD CARE FACILITY
On-site
EDGEWOOD CENTRE
Portsmouth, New Hampshire
"If a business has intentions to provide benefits to its staff, a
child care benefit will generate much good feeling from the staff
and the community because it fulfills employees' needs."
Pat Ramsey Co-owner,
Edgewood Centre
ABOUT THE EMPLOYER:
ABOUT THE BENEFIT:
Type of Business: Private
Year Benefit Began: 1989
geriatric nursing facility
No. of Employees Using Benefit: 13
Year Established: 1972
No. of Children in Facility: 35
Number of Employees: 175
Children of Employees: 16
other Children: 19
F/T: 123 P/T: 52
Maximum Capacity: 22
Average Age: late 20's to
early 30's
Center Staff: N/A
Percent Women: 85%
Center Staff Wages: N/A
Employer Costs:
Other Benefits:
Start-Up: $16,000
Unpaid Leave
Operating, 1990: $32,000
Background: Because Edgewood provides a labor-intensive service,
the company has a great need for reliable, quality workers.
Owners Pat Ramsey and her brother David recognized the need to
attract and retain such workers.
The Ramseys also observed that many of its staff had problems
juggling their child care arrangements with their work. In 1985,
the Ramseys decided to take advantage of two existing education
rooms that were available on the nursing-center grounds, and
renovate the rooms for use as a child care center.
35
CHILD CARE FACILIT
On-Site
Benefit Description:
Hours of operation: Monday to Saturday.
Ages served: 14 months to nine years.
Fees: Employees pay $10 registration fee and $55-$60/week,
depending upon the age of the child; ten percent less for
the second child.
Non-employees pay $25 registration fee and $90-$100/week.
Employees are given priority for use of the center, and are
informed of the child care center during employee orientation.
Advantages: The child care center is very popular among the
employees. Currently, 60 percent of the parents with children
enrolled at the center are Edgewood staff. The proximity of the
children to their parents reduces the amount of time they spend
worrying about or calling their children during the day.
According to Ms. Ramsey: "Our employees often meet their
children for lunch and visit with them during the day."
A major advantage is the interaction between the children and
residents of the nursing center. Edgewood Centre's recreational
department frequently organizes intergenerational activities,
such as cooking classes, storytelling sessions, and sing-alongs.
The company also notes that its employee turnover rate has
decreased 50 percent in the last two years, and credits the child
care center with this decline.
Problems: Significant increase in costs -- from $12,000 in 1989
to $32,000 in 1990, due to increase in enrollment of staff
children, who attend at reduced fees. However, the company is
willing to bear the costs out of its commitment to employees.
Several employees have mentioned a need for sick-child care.
However, Edgewood does not have the space required to offer such
care.
Other Benefits: Unpaid parental leave; employees may use
accumulated personal time for a paid leave.
Contact:
Edgewood Centre
Pat Ramsey
928 South Street
Portsmouth, NH 03801
(603) 436-0099
36
CHILD CARE FACILITY
On-site
GROUP 243 INC.
Ann Arbor, Michigan
"The need for child care is an integral part of our culture. By
offering a child care benefit, we are making a positive statement
about our company to the community and to our employees."
Pat Walter, Human Resources Manager
Group 243, Inc.
ABOUT THE EMPLOYER:
ABOUT THE BENEFIT:
Type of Business:
Year Benefit Began: 1982
Advertising agency
No. of Employees Using Benefit: 17
Year Established: 1975
No. of Children in Facility: 50
Number of Employees: 111
Children of Employees: 30
Other Children: 20
F/T: 111 P/T: 0
Maximum Capacity: 50
Average Age: under 40
Center Staff: 15; 1 Director, 8
Percent Women: 71%
full-time, 6 part-time
Center Staff Wages: N/A
Other Benefits:
Dependent Care Assistance
Employer Costs:
Plan
Start-Up: N/A
Maternity Leave via
Operating, 1991: $40,000 (company
Disability
subsidy)
Background: Group 243 was first confronted with a child care
problem nine years ago when several executives, including company
president Janet Muhleman, became pregnant. Ms. Muhleman
spearheaded the company's effort to help its employees meet their
work and family demands.
The company decided to establish an on-site child care center so
that parents would be able to visit with their children during
the work day. Since there were very few child care centers in
the area at the time, the company believed its facility, which is
housed in a separate building on the grounds of Group 243
corporate headquarters, would be in great demand.
37
CHILD CARE FACILITY
On-Site
Benefit Description:
Ages served: two weeks to five years.
Fees: Employees pay $130/week for infants under two and a half
years; $110/week for children two and a half to five
years.
Employees of neighboring businesses pay $20 more for each
age category.
Staff Qualifications: All have professional degrees in child
care.
Employees are informed of the center benefit in an employee
handbook distributed at their hiring.
Company Costs: In 1990, the company spent $100,000 to subsidize
the center's operations. In 1991, the company will reduce its
subsidy to $40,000.
Advantages: According to Human Resource Manager Pat Walter:
"Prospective employees have cited the company center as an
important influence on their decision to seek employment with
Group 243
it has been a significant recruiting tool.'
The center has helped the firm retain employees and has reduced
turnover and costs associated with recruiting; it has also given
the company national recognition as a leader in work/family
benefits.
Problems: High costs. This year Group 243 reduced its subsidies
to the center by over 100 percent. Tuition was raised $10 for
both employees and non-employees, and various fundraisers have
been held, and more are planned for the coming year to help
defray some of the costs.
Other Benefits: Six weeks maternity leave at two-thirds pay under
a short-term disability benefit. The leave can be extended to 13
weeks (also at two-thirds pay) if the delivery is particularly
difficult or results in medical complications. However, a
written doctor's report must justify the request for an
extension.
Contact:
Group 243, Inc.
Pat Walter, Human Resource Manager
1410 Woodridge Ave.
Ann Arbor, MI 48105-9990
(313) 995-0243
38
CHILD CARE FACILITY
On-Site
HAMILTON REALTY
Allston, Massachusetts
"Women in the workforce are a reality and many working mothers
need quality, affordable child care if they are to stay in the
workforce. Employers can help these mothers remain in their
jobs."
Jina Corey, President, Board of Directors
Hamilton Children's Center
ABOUT THE EMPLOYER:
ABOUT THE BENEFIT:
Type of Business:
Year Benefit Began: 1986
Commercial and residential
real estate
No. of Employees Using Benefit: 7
No. of Children in Facility: 50
Year Established: 1960
Children of Employees: 7
Number of Employees: 125
Other Children: 43
F/T: 113 P/T: 12
Maximum Capacity: 52
Age Range: 20-50
Center Staff: 20; 13 full-time
teachers, 7 part-time aides
Percent Women: 65%
Center Staff Wages: N/A
Other Benefits:
Employer Costs:
Direct Subsidy
Start-Up: $425,000
Unpaid Leave
Operating, 1990: $ 20,000 (to
subsidize employees' tuition costs)
Background: Hamilton Realty owner Harold Brown, an Allston
resident and business leader, had been aware of the shortage of
affordable, quality child care in Allston for a number of years.
As an entrepreneur who employs a significant number of young
women, Mr. Brown realized that child care was not only an
economic concern directly related to the vitality of his
business, but a very real problem for many of his employees.
39
CHILD CARE FACILIT
On-Site
Benefit Description:
Hours of operation: weekdays, 7:30 a.m. to 6:00 p.m.
Ages served: two months to five years.
Fees: $915/month for infants; $715/month for toddlers;
$625/month for preschoolers. Employees receive a 30
percent discount.
Ten spaces are reserved for parents who receive a child care
subsidy from the state.
Prospective employees are informed of the benefit when they
interview for the job and during their orientation once hired.
Company Costs: Hamilton Realty pays nearly $20,000 annually to
subsidize tuition costs for employees.
Mr. Brown contributed $350,000 of his own money for start-up
costs and $75,000 to partially subsidize the first nine months of
operation. He expects the center to break even in 1991. The
Center occupies 4,800 square feet in the same building that
houses Hamilton Realty. When the Hamilton Children's Center was
established, Mr. Brown turned control of it over to a community
board composed of parents with children in the center, and to
other community members. The community board is responsible for
hiring the center staff. Mr. Brown is no longer involved in the
operation of the center.
Mr. Brown recently established a second child care center in
Boston, which has a capacity for 84 children but which currently
has 17 children enrolled; it will also be managed by a community
board and will function in similar fashion to the first. This
center is also subsidized by Mr. Brown.
Advantages: According to Linda Howes, Executive Director,
Hamilton Children's Center: "Many parents, both employees and
community residents, are very pleased with the center. Employees
who use the center are better able to concentrate on their work
because they are no longer preoccupied with worries about their
children."
Other Benefits: Parental leave, which entitles employees up to
ten weeks of unpaid leave. This policy also applies to parents
who adopt. The company also provides six paid sick days, which
may be used to care for sick dependents.
40
CHILD CARE FACILITY
On-Site
Contact:
Hamilton Children's Center
Linda Howes, Executive Director
Hamilton Realty
39 Brighton Avenue
Allston, MA 02134
(617) 783-0039
41
CHILD CARE FACILITY
On-Site
STACKPOLE LIMITED
Brownsville, Tennessee
"Our goal is to help our employees' children learn and grow in a
healthy, safe and fun environment. When we offer our employees
child care, we are able to achieve this goal."
John McCabe, President
Stackpole Limited
ABOUT THE EMPLOYER:
ABOUT THE BENEFIT:
Type of Business:
Year Benefit Began: 1989
Manufacturer of metal
bearings
No. of Employees Using Benefit: 7
No. of Children in Facility: 12
Year Established: 1981
Children of Employees: 7
Number of Employees: 100
Other Children: 5
F/T: 100 P/T: 0
Maximum Capacity: 15
Average Age: 30's and 40's
Center Staff: 2; 1 Director, 1
Assistant
Percent Women: 50%
Center Staff Wages: N/A
Other Benefits:
Employer Costs:
Maternity Leave via
Start-Up: $5,000
Disability
Operating, 1990: $9,600
Background: The need to provide child care benefits to employees
became evident to Stackpole Limited's management in 1989 when a
valued employee announced that she was forced to quit her job
because she could not afford to keep her three children in child
care.
At the time, Stackpole was undergoing expansion, and was in the
process of relocating its facilities. The new property included
a ,500-square-foot house. Stackpole President John McCabe
decided that the house could be used as an on-site child care
center, and took the necessary steps to renovate it. The
decision to establish an on-site center was made because no other
center-based alternatives exist in the rural Brownsville area.
42
CHILD CARE FACILIT
On-site
Benefit Description:
Ages served: one to seven years.
Fees: Employees pay $30/week; non-employees pay $40/week.
According to Vicki Blackburn, Stackpole Accounting supervisor:
"We very much want to be involved in overseeing the center's
operation. We want to have control over quality, because we
finance the center and our employees use it. Therefore, quality
must be up to par with our standards."
Company Costs: Operating expenses include salaries for the
director and assistant, utilities, supplies and equipment, two
snacks per child a day, and liability insurance. Stackpole plans
to invest between $3,000 and $5,000 over the next year to
purchase additional playground equipment and a computer for the
children. States Vicki Blackburn: "Management feels that
improvements in the facility will draw even more prospective
employees to the firm and help retain current employees even
better than we do now. "
Employees are informed of the center through literature
distributed to them when they are hired.
Advantages: The response to the center from employees and the
local media has been extremely favorable. According to Ms.
Blackburn: "The center has been instrumental in helping us
retain our workers and has reduced turnover. Because we are the
only area business to offer any child care benefit, we have
received significant media coverage from several regional and
local newspapers. This publicity has attracted potential
employees and has helped reduce our recruiting costs. "
Problems: Renovating the house so that the center would be in
compliance with state regulations took several months longer than
the company anticipated.
Other Benefits: Up to 26 weeks maternity leave at partial pay as
part of disability coverage.
Contact:
Stackpole Limited
Vicki Blackburn, Accounting Supervisor
400 Dupree
Brownsville, TN 38012
(901) 772-3780
43
CHILD CARE CENTER
On-Site/Montessori School
G.T. WATER PRODUCTS, INC.
Moorpark, California
"Parents and children belong together. Since parents have to be
at work for at least eight hours of the day, parents do not get
the chance to spend enough time with their children. For us,
providing a school is just good business. Our employees do not
have to worry about their children during the day."
Deborah Tash, Vice President
G.T. Water Products, Inc.
ABOUT THE EMPLOYER:
ABOUT THE BENEFIT:
Type of Business:
Year Benefit Began: 1987
Manufacturer of plumbing
supplies, family owned
No. of Employees Using Benefit: 10
No. of Children in Facility: 13
Year Established: 1980
Children of Employees: 13
Number of Employees: 31
Other Children: none;
serves only company
F/T: N/A P/T: N/A
children
Age Range: 20-50
Maximum Capacity: N/A
Percent Women: 55%
School Staff: 2 Teachers
School Staff Wages: N/A
Other Benefits:
Unpaid Leave
Employer Costs:
Start-Up: $ 2,000
Operating, 1990: $40,000
Background: George Tash, owner of G.T. Water Products, was
unhappy with the public and private school systems in Moorpark.
In the late 1980's, he decided to investigate alternative
educational options that would also enable employees' school-age
children to be near their parents during the day, which Mr. Tash
also desired for his own children.
He contacted the State of California Department of Education, and
in 1987 an agreement with the state led to the establishment of a
state-licensed Montessori School on the site of the company.
44
CHILD CARE FACILITY
On-Site/Montessori School
Benefit Description:
Hours of operation: weekdays, 7:30 a.m. to 5:00 p.m.
Ages served: five to 15 years.
Fees: None; the operations of the school are fully subsidized by
the company.
Company Costs: Because the company owns the facility in which the
school is located, it does not pay rent for the center. Operating
expenses cover such costs as maintenance, utilities, and staff
salaries.
Prospective employees are informed of the school benefit when they
apply for a job. The company also includes a description of the
benefit in its job announcements.
Advantages: The on-site school has generated positive feedback from
employees and the public. According to Celia Hatcher, Export
Administrator, G.T. Water Products: "The center has helped to reduce
our turnover rate, and our employees seem to be more productive. They
now worry less about the well-being of their children; they know they
are well taken care of. The parents also like to visit their children
during the day."
Problems: Although operating at a great expense to G.T. Water, Mr.
Tash feels committed to the school and believes that the cost is
justified in light of its advantages.
Other Benefits: Up to four months of unpaid or adoptive parental leave.
The company also gives $500 to all women who give birth, and $1,500 to
those who adopt.
Contact:
G.T. Water Products
Celia Hatcher, Export Administrator
5239 North Commerce Avenue
Moorpark, CA 93021
(805) 529-2900
45
CHILD CARE FACILITY
Family Day Care Home
OVERSEAS ADVENTURE TRAVEL
Cambridge, Massachusetts
"The day care program has been excellent. It has been running very
smoothly, and I would say it is the major reason that many of my
employees have continued working at Overseas Travel Adventure."
Judy Wineland, Owner
Overseas Adventure Travel
ABOUT THE EMPLOYER:
ABOUT THE BENEFIT:
Type of Business: Travel
Year Benefit Began: 1987
agency
No. of Employees Using Benefit: 2
Year Established: 1979
No. of Children in Facility: 6
Number of Employees: 12
Children of Employees: 3
Other Children: 3
F/T: 12 P/T: 0
Maximum Capacity: 6
Average Age: early 30's
Provider Staff: 1 Provider
Percent Women: 80%
Provider Wage: $3.75/hr. per
child;
Other Benefits:
Paid Leave
Employer Costs:
Start-Up: $11,000
Operating, 1990: $ 6,000
Background: The idea to establish a child care benefit came about
in 1983, when the owner of Overseas Adventure Travel, Judy
Wineland, began looking for nearby child care arrangements for
her daughter. Ms. Wineland decided on an on-site family day care
provider because the Overseas Adventure Travel building, a three-
story house, provided the opportunity for such an arrangement.
Benefit Description: The second story above the company's offices
was converted into an apartment for a live-in family day care
provider who was required to meet state requirements, including a
Criminal Offenders Record Information check.
46
CHILD CARE FACILITY
Family Day Care Home
Hours of operation: daily, 8:30 a.m. to 5:30 p.m.
Ages served: over one year.
Fees: $3.75/hr. per child; employer pays 25 percent for
employees. Employees are eligible after they have worked
for Overseas Adventure Travel for one year. Full-time
enrollment is required.
Although the situation has not yet presented itself, Ms. Wineland
says that if an employee chooses a different child care provider,
a subsidy of similar value would most likely be available.
Company Costs: On the recommendation of a community services
representative, Overseas Adventure Travel initially hired the
Child Resource Center, a local consultant group for $3,000 to
help establish the family day care home. The kitchen and
bathroom areas of the second story apartment needed major
renovation, at a cost of $8,000, in order to accommodate a family
day care provider's living space and a child care area.
Advantages: Parents no longer have to spend time in travel for
child care. Having the family day care provider on site has also
increased employee satisfaction by allowing parents to have
contact with their children during the day. According to Ms.
Wineland: "There is nothing more liberating or wonderful than
having my daughter on the premises.' She believes that her
employees share these feelings about their own children.
Ms. Wineland also believes that the on-site family day care has
fostered employee loyalty to the company and has enabled her to
retain valued workers.
Problems: Bureaucratic delays during the initial set-up of the
facility. Ms. Wineland says that because the state Office for
Children may take up to one month to process a criminal records
check, Overseas Adventure Travel faced time-lag difficulties in
hiring a family day care provider. In addition, the family day
care center initially had trouble finding enough children to
participate in the program.
Other Benefits: Paid parental leave of one or two months,
depending upon how long an employee has worked for the agency.
Employees may use sick or personal days to stay at home with an
ill child.
The company offers flexible work hours for employees to
accommodate their child care needs on an individualized basis.
47
CHILD CARE FACILITY
Family Day Care Home
Contact:
Judy Wineland, Owner
Overseas Adventure Travel
349 Broadway
Cambridge, MA 02139
(617) 876-0533
48
OPTION #2: CHILD CARE SUBSIDY
Employers can help employees pay for child care by offering
their workers a discount or subsidy to help cover a portion
or all of their child care expenses. Employers may give the
money directly to the employee, typically through a child
care voucher, or reimburse the employee's child care
provider, referred to as a vendor form of payment. Voucher
and vendor programs are meant to make child care more
affordable to employees who find it difficult to pay the
local market rate.
1. Voucher Programs
A voucher program allows the parent the freedom to select
the provider. Some employers may place restrictions on
employees eligible for the voucher benefit to limit the cost
to the firm.
2. Vendor Programs
In a vendor program, an employer purchases slots in a child
care center or a family day care home, and then resells the
slots to employees, often at a discount. In a vendor
program, the employer, not the parents, selects the child
care provider and determines the number of slots that will
be made available for the employees.
Employers would be wise to document their selection process
before recommending a provider to employees. They also may
want the provider to include an enrollment disclaimer in
their registration, stating the parents' responsibility in
making the decision to enroll their child in the center.
Such a disclaimer will protect the employer from a parent
who may file a law suit against the employer if there is a
problem at the center. 19
19
Interview, Cheri Sheridan, President PKI, CCAC National
Advisory Panel member, March 27, 1991.
49
Table C. Option #2: Child Care Subsidy
Year
No. of
Percent of
Benefit
Company
Employees who
Percent of Employees
Total Employer Cost,
Company Name
Began
Employees
are Female
Using Benefit
1990
Maximum Employer Copayment
Other Benefits
Bestronics of San Diego
1987
6
67%
33%: 4 children
several hundred dollars
$300/mo.
DCAP, flex. scheduling
50
Ding-A-Ling
1989
110
95%
15%: 20 children
$25,000
$30/wk.
unpaid leave
Hemmings Motor News
1989
85
80%
40%
$60,000
$350/mo. or $3,000/yr.
flex. scheduling, paid leave
Joseph Alfandre & Co.
1989
55
45%
7%: 6 children
$6,000
$60/wk. or up to 50%, whichever is less
sick child care, unpaid leave
Maine Antique Digest
1981
15
80%
27%: 6 children
$7,030
$50/wk.
flex. leave, maternity leave via disability
PRO TEM
1989
155
70%
10%
$4,500
50c/hr.
unpaid leave
Southbury Voices
1987
49
80%
18%: 12 children
$21,000*
$25-$35/day
unpaid leave
* Employer cost, 1991
BESTRONICS OF SAN DIEGO
San Diego, California
"The child care benefit is a vital part of the company, and has
been well worth instituting. It has been instrumental in helping
us retain employees. In a service business like ours, that's
essential.'
Gail Davis, Operations Manager
Bestronics of San Diego
ABOUT THE EMPLOYER:
ABOUT THE BENEFIT:
Type of Business: Seller of
Year Benefit Began: 1987
electrical parts
No. of Employees Using Benefit: 2
Year Established: 1970
No. of Children Served: 4
Number of Employees: 6
Type of Program: Vendor
F/T: 4 P/T: 2
Maximum Employer Copayment:
Average Age: 30's
$300/month; DCAP covers
balance up to $5,000/year
Percent Women: 67%
Total Employer cost, 1990:
Other Benefits:
Several hundred dollars
Dependent Care Assistance Plan
Flexible Scheduling
Background: The child care benefit implemented at Bestronics
came about when a valued employee became pregnant with her third
child, and was faced with the decision of either leaving to care
for her children, or finding a higher-paying job. Comments Gail
Davis, Operations Manager: "Our staff is our greatest asset, and
we were reluctant to see one of our valued employees leave. We
felt that any new employee would have to be trained for at least
a year before bringing in any profit. It would be more
economical for the company to implement a child care benefit to
retain employees."
Benefit Description: The subsidy and the DCAP funds are paid
directly to the child care provider.
Employees are informed of the policy upon their hiring.
Company Costs: Several hundred dollars to cover fees for legal
advice for the subsidy and DCAP programs.
51
CHILD CARE SUBSIDY
Advantages: Ms. Davis firmly believes that every small business
should, at the least, take advantage of the DCAP program, since
it helps parents with their child care expenses and saves both
the company and parents tax dollars.
Problems: None. Because the company believes its low employee
turnover is directly related to the child care benefits,
Bestronics plans to continue the child care subsidy for several
years, at least until the children currently receiving child care
are of school age.
Other Benefits: A variety of informal work arrangements with
employees. According to Ms. Davis: "The small size of the
company allows for a great deal of flexibility, making it easy
for employees and supervisors to work out informal arrangements
on an individual basis."
Contact:
Bestronics of San Diego
Gail Davis, Operations Manager
9683 Tierra Grande Street, Suite 102
San Diego, CA 92126
(619) 693-1111
52
CHILD CARE SUBSIDY
DING-A-LING
Fort Lauderdale, Florida
"In order to maintain the quality of our service, we have to
retain our employees. With a child care benefit program,
employees never leave. Child care translates into good
business."
Herman Shooster, Owner
Ding-A-Ling
ABOUT THE EMPLOYER:
ABOUT THE BENEFIT:
Type of Business:
Year Benefit Began: 1989
Family-owned answering
and beeper service
No. of Employees Using Benefit: 17
Year Established: 1973
No. of Children Served: 20
Number of Employees: 110
Type of Program: Voucher
F/T: 72 P/T: 38
Maximum Employer Copayment: $30/week
Average Age: 20-35
Total Employer Cost, 1990: $25,000
Percent Women: 95%
Other Benefits:
Unpaid Leave
Background: The workforce at Ding-A-Ling is comprised
predominantly of single mothers. Herman Shooster, Ding-A-Ling
owner, realized that he was losing many workers because of child
care problems. "Economically, it was easier for parents not to
work than to pay for child care. This was not good for business,
so we implemented a child care subsidy program in 1989 because we
felt that a direct subsidy would give employees the flexibility
they need to find quality, affordable child care."
Benefit Description: When prospective employees apply for a job
with Ding-A-Ling, they are presented with a packet of information
describing company benefit programs. The firm also includes a
description of the child care benefit plan in any company job
announcements.
Advantages: According to Mr. Shooster: "The advantages of the
benefit have gone beyond reducing absenteeism and turnover. The
53
CHILD CARE SUBSIDY
benefit has improved employee morale and enhanced employee
loyalty to the firm."
In addition, The Fort Lauderdale News, a regional newspaper, ran
a full-page story on Ding-A-Ling, reporting that the company was
a pioneer in providing child care benefits to employees in the
region. The article has attracted new employees and clients to
the firm. One client informed Shooster that he brought his
business to Ding-A-Ling specifically because he liked the way the
firm spent its money. Prospective employees cite the subsidy as
a major reason for seeking employment with the firm.
From the company's perspective, the program has been very easy to
administer. The subsidy payments are incorporated into the
payroll process.
Problems: According to Mr. Shooster: "The reimbursement plan is
costly, but benefits well outweigh the costs. We have not
conducted a cost/benefit analysis. However, the attitudes of our
employees are enough to tell us that the benefit is working and
worth the cost."
Other Benefits: Up to three months unpaid parental leave and a
Profit Sharing plan in which a percentage of profits is invested
in separate accounts for each employee.
Contact:
Ding-A-Ling
Herman Shooster, Owner
777 South State Road Seven
Margate, FL 33068
(305) 973-7300
54
HEMMINGS MOTOR NEWS
Bennington, Vermont
"Because of the prominence of two wage-earner families, child
care is an important issue for business to address. It is a
crucial factor contributing to the economic strength of business.
Child care benefits must be recognized by employers as an
essential component in an employee's benefit package."
Charles Waters, Vice President of Finance
Hemmings Motor News
ABOUT THE EMPLOYER:
ABOUT THE BENEFIT:
Type of Business: Antique- Year Benefit Began: 1989
car magazine publisher
No. of Employees Using Benefit: 30-35
Year Established: 1955
No. of Children Served: N/A
Number of Employees: 85
* Type of Program: Voucher; employees
F/T: 65 P/T: 20
must have worked 90 days minimum
Average Age: 35
Maximum Employer Copayment: $350/month,
or $3,000/year, tax free
Percent Women: 80%
Total Employer Cost, 1990: $60,000
Other Benefits:
Flexible Scheduling
* may be used for care of any
Paid Leave
dependents: children under 13, elderly,
incapacitated family members
Background: In 1988, Hemmings Motor News initiated a review of
its employee benefits package. A management team composed of ten
top managers was charged with the task of benefit review.
Through informal conversations with employees, the team soon
began to realize that child care was a benefit in great demand.
A dependent care subsidy and a flexible scheduling option were
instituted because, according to Charles Waters, Vice President
of Finance: "These options received the greatest employee
support. They allow the employee the maximum flexibility in
choosing a child care provider and offer a sizeable subsidy."
Benefit Description: A flextime schedule tailored to meet the
child care needs of employees is also offered. Part-time work
arrangements can be made between an employee and her/his
supervisor. States Mr. Waters: "There is a great deal of
55
CHILD CARE SUBSI
latitude in creating schedules as long as the employee can still
contribute effectively to the firm. "
Employees are notified of the benefits through personnel manuals
distributed at the time of their hiring and at an initial staff
orientation.
Advantages: According to Waters: "Our entire benefits package
has reduced our turnover rate and has saved the firm time and
money for recruiting and training. Employees have told me that
they are better able to concentrate on their work. Now that
child care is more affordable, they are not preoccupied with who
will care for their children."
Problems: Some employees who do not have dependents feel that the
subsidy program unfairly benefits employees who do, and that
those ineligible for the subsidies are losing out. According to
Mr. Waters: "The management team is reviewing the benefits
package to assess the equity of their benefit program."
Other Benefits: Six weeks of parental leave at two-thirds pay.
In addition, employees are eligible for up to six months
unpaid leave. Upon their return from leave, all employees may
establish a part-time work schedule with the approval of their
supervisor. Says Mr. Waters: "Our policies also apply to
employees who adopt. We try to allow our employees sufficient
leave time to bond with their child.'
Employees also receive eight paid sick days and two paid personal
days each year, all of which may be used to care for an ill
dependent. The management team is also considering establishing
extra sick days specifically for sick dependents.
Contact:
Hemmings Motor News
Charles Waters, Vice President of Finance
P.O. Box 256
Bennington, VT 05201
(802) 442-3101
56
CHILD CARE SUBSIDY
JOSEPH ALFANDRE & COMPANY
Rockville, Maryland
"In today's society, where two-income households are the norm,
day care has become a more compelling issue. If an employer is
willing to absorb some of the day care expense, it reduces the
burden on the employee and relieves some of the anxiety
associated with a sometimes already stressful situation. An
employee will view his/her employment in a better light and
consider this benefit one of importance."
Michele Rogers, Personnel Administrator
Joseph Alfandre & Co, Inc.
ABOUT THE EMPLOYER:
ABOUT THE BENEFIT:
Type of Business:
Year Benefit Began: 1989
Home builders
No. of Employees Using Benefitra4
Year Established: 1983
No. of Children Served: 6
Number of Employees: 55
Type of Program: Voucher; included in
F/T: 55 P/T: 0
paycheck
Average Age: 20's to 30's
Maximum Employer Copayment: 50% of
child care costs or $60/week,
Percent Women: 45%
whichever is less
Other Benefits:
Total Employer Cost; 1990
Sick Child Care
Unpaid Leave
Background: Discussions with his employees enabled Joseph L.
Alfandre, owner and president of Joseph Alfandre & Co., to
recognize the need working parents have for child care support.
Mr. Alfandre himself has seven children ranging in age from nine
months to 14 years.
Because a large proportion of his employees are women, and many
are also mothers, Mr. Alfandre decided to institute a child care
benefit. "I felt that a child care subsidy would offer the
workers the greatest flexibility in seeking a child care
provider," states Mr. Alfandre.
Benefit Description: The amount of the subsidy is determined by
the individual employee's total household income and the actual
amount they pay for child care. A graduated subsidy scale was
57
CHILD CARE SUBSI
determined to be the most equitable system of reimbursement. The
subsidy amount is calculated either as a percentage of up to 50
percent of the child care costs or $60/week, whichever is less.
The child care subsidy program is outlined in the Employee
Handbook.
Advantages: According to Michele Rodgers, Personnel
Administrator: "Employees feel that they are better able to
concentrate on their work without distractions, and without
worrying about who is taking care of their children from one day
to the next." The company also cites decreased turnover and a
reduction in recruiting costs since they implemented the subsidy
program.
Problems: None
Other Benefits: Eight weeks maternity leave: the employee
receives 75 percent of gross pay as part of disability coverage.
Parents are eligible for up to three months of unpaid leave. The
same policies apply to employees who adopt a child. Parents
receive three paid days each year specifically for the care of
sick children. The company offers six sick days each year to all
of its employees. Employees who do not have children are granted
an additional three sick days to care for a spouse or other
family member.
Contact:
Joseph Alfandre & Co., Inc.
Michele Rodgers, Personnel Administrator
1355 Piccard Drive, Suite 450
Rockville, MD 20850
(301) 670-0343
58
CHILD CARE SUBSIDY
MAINE ANTIQUE DIGEST
Waldoboro, Maine
"We firmly believe that a child care benefit can't help but
encourage employees to stay on the job
retaining employees is
very important to the productivity of our company."
Sally Pennington, Co-owner
Maine Antique Digest
ABOUT THE EMPLOYER:
ABOUT THE BENEFIT:
Type of Business:
Year Benefit Began: 1981
Monthly publication
on antiques
No. of Employees Using Benefit: 4
Year Established: 1973
Number of Employees: 15
No. of Children Served: 6
F/T: 13 P/T: 2
Type of Program: Voucher, paid monthly
Average Age: 30's
Percent Women: 80%
Maximum Employer Copayment: $50/week
Other Benefits:
Maternity Leave via
Total Employer Cost, 1990: $7,030
Disability
Flexible Leave
Background: "We chose to implement a child care benefit because
of financial and philosophical considerations," comments co-owner
Sally Pennington. While exploring employee benefit packages that
would not add to the company's tax burden, the Penningtons worked
with their accountant to identify benefit possibilities. "Our
accountant examined tax codes and discovered that child care
assistance could warrant tax breaks from the state and federal
government.
According to Ms. Pennington: "We believe that women who decide
to go to work should receive assistance for child care if they
need it. We decided to institute a subsidy because we employ
many women, and the need for a child care benefit was great among
our employees. A reimbursement policy is also fairly simple to
administer."
59
CHILD CARE SUBSID
Advantages: According to Ms. Pennington: "Because of the small
size of the business, we only have to track the expenses of a few
people. We know the people and the families, and we can trust
them.
"
Other Benefits: No formal parental leave policy, but up to six
weeks paid leave on disability insurance for new mothers.
If they require more than six weeks, "We determine whether the
leave will be paid on a case-by-case basis. We make informal
arrangements for each employee based upon how long an employee
has been with us, how much extra leave is needed, and other
considerations."
Contact:
Maine Antique Digest
Sally Pennington, Co-owner
P.O. Box 1429
Waldoboro, ME 04572
(207) 832-7534
60
CHILD CARE SUBSIDY
PRO TEM PROFESSIONAL TEMPORARY SERVICES
Portland, Oregon
"If business invests in children today, we as a society will pay
less in the future for costs due to neglect, such as crime and
homelessness. Positive support today will reap benefits in later
years.
"
Jo Rymer, Executive Vice President
PRO TEM Professional Temporary Services
ABOUT THE EMPLOYER:
ABOUT THE BENEFIT:
Type of Business:
Year Benefit Began: 1989
Temporary office service
agency
No. of Employees Using Benefit: 15
Year Established: 1982
No. of Children Served: N/A
Number of Employees:
Type of Program: Vendor
155/week (on avg.)
Maximum Employer Copayment: $.50/hr.
F/T: 93 P/T: 62
including 1 hr. travel time and 1 hr.
for lunch.
Average Age: 20's to 30's
Total Employer Cost, 1990: $4,500
Percent Women: 70%
Other Benefits:
Unpaid Leave
Background: The need for child care support became apparent in
discussions between employees and PRO TEM Executive Vice
President, Jo Rymer. According to Ms. Rymer: "Some of the
temporary employees, when they were offered placement, said they
would not be able to accept work because it was not profitable
for them to work and pay for child care. They felt that if PRO
TEM could pay some of these expenses, they could afford to work."
PRO TEM makes a substantial investment in recruiting,
interviewing, and screening temporary employees. If temporary
employees are not placed in jobs, the company does not earn a
commission. Thus, the company decided that it would be in their
interest, as well as in the interest of their employees, to
explore child care benefit options. PRO TEM surveyed all of its
employees to determine the benefit that would be most useful. In
1989, PRO TEM implemented a direct subsidy program to help
employees with their child care costs.
61
CHILD CARE SUBSI
Benefit Description: Once the maximum is met -- ten hours
reimbursement for every eight hours worked -- the employee is
billed by the provider for the remainder of the cost. All
employees are eligible for the program as long as the child care
is not provided by a spouse, relative, or individual under the
age of 16.
Employees must sign a statement of participation detailing their
child care costs and submit their statement to Executive Vice-
President, Jo Rymer, who is responsible for administering the
program.
Company Costs: Approximately ten percent of the firm's employees
take advantage of the subsidy. The company receives a child care
tax credit from the state of Oregon for 50 percent of its child
care expenses.
Employees are told of the benefit when they interview with PRO
TEM.
Advantages: "Employees are very pleased with the benefit, because
it has enabled them to work and afford child care," states Ms.
Rymer. The program has been an asset in recruiting new employees
and has seemed to reduce the firm's turnover. The subsidy has
enabled more temporaries to work, and in so doing has increased
PRO TEM's revenues. "In the final analysis, the benefit resulted
in a very positive revenue-to-expense ratio of 18 to one," says
Rymer.
Problems: None.
Other Benefits: Parental leave for newborn or adopted children,
and for elder care needs; up to three months of unpaid leave.
Employees have the option of extending their leave by adding
accumulated sick days and vacation time to the three months.
These benefits apply to full-time employees only.
Contact:
PRO TEM Temporary Services
Jo Rymer, Executive Vice President
1001 South West 5th Avenue, Suite 1225
Portland, OR 97204
(503) 228-1177
62
CHILD CARE SUBSIDY
SOUTHBURY VOICES, PRIME PUBLICATIONS, INC.
Southbury, Connecticut
"Child care is an excellent investment in a company's future and
in the future of its employees; I recommend a child care benefit
to any company. Employees will discover that it is the best
thing they ever did."
Rudy Mazurosky, President
Prime Publications, Inc.
ABOUT THE EMPLOYER:
ABOUT THE BENEFIT:
Type of Business:
Year Benefit Began: 1987
Free weekly regional
newspaper
No. of Employees Using Benefit: 9
Year Established: 1970
No. of Children Served: 12
Number of Employees: 49
Type of Program: Vendor
F/T: 5 S P/T: 44
*Maximum Employer Copayment: $2.75/hr.
up to $25/day; up to $35/day for 2
Age Range: 25-50
children
Percent Women: 80%
Total Employer Cost, 1990: $21,000;
state tax credit of up to 50% of
Other Benefits:
expenses
Unpaid Leave
* includes travel time
Background: The child care problem became evident to the employer
in 1986. According to Rudy Mazurosky, the publisher of Voices
and President of Prime Publications, Inc., the firm was
experiencing a high incidence of absenteeism, and was having
difficulty retaining and recruiting employees because of the lack
of affordable child care. "The problem was clear," comments Mr.
Mazurosky. "People weren't coming to work; they had to stay home
with their children when their regular arrangements fell through.
Their anguish was obvious."
Sympathetic to the child care hardships employees were facing,
Mr. Mazurosky and his partner Mary Jane Musgat established a
child care subsidy to meet the needs of their employees, as well
as to address the issues of employee retention, turnover,
absenteeism, and productivity. According to Mr. Mazurosky: "We
considered implementing a child care benefit as simply a smart,
pragmatic business decision."
63
CHILD CARE SUBSI
Benefit Description: Any employee working 17.5 hours or more a
week, with a child under 13 years of age enrolled in a child care
arrangement, is eligible. Parents must use a licensed child care
provider in order to receive reimbursement.
Employees are informed of the policy when they are first hired.
Advantages: Feedback from all employees has been extremely
positive. According to Mr. Mazurosky: "The rewards are obvious.
Those who use the benefit now have peace of mind, and the rest of
the employees are proud of the company."
Voices itself has benefited enormously. States Mr. Mazurosky:
"The dividends have been tremendous. We have an enthusiastic
staff that praises us -- this gives us great publicity. People
want to work for us because of our benefit; we can selectively
hire qualified staff." In addition, productivity has improved,
newspapers are circulated in a more timely manner, and there is
less turnover and absenteeism.
Problems: Some employee abuse: some employees ineligible for the
child care subsidies would claim them. However, Mr. Mazurosky
indicates that this problem has been corrected and that the
benefit package is now written to avoid loopholes. The program
should continue to be a success.
Other Benefits: Up to three months of unpaid leave following the
birth or adoption of a child. An additional three months of
unpaid "compassionate leave" may be granted if medical
complications affect the mother or newborn child. A certificate
from the physician verifying the severity of the employee's
medical condition must accompany any request for compassionate
leave.
Contact:
Rudy Mazurosky
President, Prime Publications, Inc.
Publisher, Southbury Voices
P.O. Box 383
Southbury, CT 06488
(203) 263-2116
64
OPTION #3: RESOURCE AND REFERRAL SERVICE
Resource and referral (R & R) programs are designed to provide
employees with information about the child care options available
in their community. Resource and referral services may be
offered in-house by the employer, or the employer may contract
with a local R & R agency to provide referral services to
employees.
R & R staff counsel parents about how to determine which child
care options are best for them. Many R & R's also recruit and
train new child care providers, thereby increasing the supply of
care.
According to Nancy Kolben, President, National Association of
Child Care Resource and Referral Agencies (NACCRRA): "Resource
and referral programs allow small businesses an affordable way to
address the child care needs of their employees. For an annual
fee, employers can provide their workers with access to important
information on how to look for and choose quality child care."
In addition, resource and referral programs help parents with
children of all ages.
A Table D. Option #3: Resource and Referral Service
Year
No. of
Percent of
Benefit
Company
Employees who
Percent of Employees
Total Employer Cost,
Company Name
Began
Employees
are Female
Using Benefit
1990
Other Benefits
CompuServe Data Technologies
1989
100
52%
3%: 3 children
$1,560
unpaid leave
Mascoma Savings Bank
1987
90
80%
11%
$350
unpaid leave
The Chronicle of Higher Education
1989
140
72%
4%
$1,650
paid leave
65
RESOURCE AND REFERRAL SERVICE
COMPUSERVE DATA TECHNOLOGIES
Cambridge, Massachusetts
"Corporate decision makers need to give attention to the changing
needs of families and base allocation of child care resources
accordingly. Business should be sensitive to those needs and be
pro-active, to maintain employee commitment to the company."
Theresa Sain, Human Resource Coordinator
CompuServe Data Technologies
ABOUT THE EMPLOYER:
ABOUT THE BENEFIT:
Type of Business:
Year Benefit Began: 1989
Software manufacturer
No. of Employees Using Benefit: 3
Year Established: 1971
No. of Children Served: 3
Number of Employees: 100
Type of Resource: Off-site: the Child
F/T: 99 P/T: 1
Care Resource Center
"Age Range: 22-35
Other services: Extensive library;
staff conducts on-site informational
Percent Women: 52%
seminars for employees
Other Benefits:
Total Employer Cost, 1990: $1,560
Unpaid Leave
Background: CompuServe chose to offer a resource and referral (R
& R) service to its employees because the demand for a child care
benefit was minimal, and the company did not want to make a large
capital investment in child care for only a few employees.
However, as a progressive company, management believes in the
importance of the family and feels an obligation to help
employees with their family needs. Newly hired Human Resources
Manager Mara Levy, who had initiated a R & R at her previous
workplace, strongly recommended that the company adopt a R & R
program because of her previous success with it. CompuServe
began offering the program in the fall of 1989.
Benefit Description: CompuServe has contracted with the Child
Care Resource Center, an R & R service in Cambridge. Employees
needing child care are directed to the center, which has an
extensive library listing of available child care providers who
serve children ages six weeks to 12 years. A counselor at the
66
RESOURCE AND REFERRAL SERVICE
center helps employees find the provider who best satisfies their
specifications. The R & R agency bills CompuServe, which pays
for the total cost of these services. In addition, CompuServe
commissions the center to present informational sessions
addressing various child care issues to its employees. These
specially contracted sessions are conducted at CompuServe.
Employees are informed of the benefit's availability at the time
of their hiring. Memos are distributed to all employees
announcing the date, time and subject matter of the seminars
being given at CompuServe.
Advantages: Very positive employee feedback. Employees
continually express their gratitude to the Human Resource
Coordinator.
Problems: None. The company has been very pleased with the
benefit.
Other Benefits: Up to eight weeks unpaid leave. Mothers can
receive six weeks leave at 70 percent pay or up to eight weeks
leave at 70 percent pay, if there are medical complications.
Contact:
CompuServe Data Tech
Teresa Sain, Human Resource Coordinator
1000 Massachusetts Avenue
Cambridge, MA 02138
(617) 661-9440
67
RESOURCE AND REFERRAL SERVICE
MASCOMA SAVINGS BANK
Lebanon, New Hampshire
"Employers should realize that when they extend child care
benefits to working parents, they not only help parents to cope
better with family issues, but they also help to improve employee
morale at the workplace.'
Sally McEwen, Personnel Director
Mascoma Savings Bank
ABOUT THE EMPLOYER:
ABOUT THE BENEFIT:
Type of Business:
Year Benefit Began: 1987
Savings bank
No. of Employees Using Benefit: 5-10
Year Established: 1899
since 1990
Number of Employees: 90
No. of Children Served: N/A
yr: 81 P/T: 9
Type of Resource: Off-site: the Child
Care Project; serves states of New
Average Age: 39
Hampshire and Vermont
Percent Women: 80%
Other services: Staff is available
to counsel employees and to offer
Other Benefits:
on-site workshops
Unpaid Leave
Total Employer Cost, 1990: $350
annual consortium membership fee
Background: In 1987, Personnel Director Sally McEwen and C.E.O.
Bill Maloy of Mascoma Savings Bank were approached by the Child
Care Project, a local (R & R) organization that was seeking to
recruit new corporate members. Management was well aware of the
need its employees had for child care, and the Bank was having
difficulty retaining employees. The primary reason cited by
employees leaving the bank was the lack of affordable, accessible
child care.
To combat the high incidence of employee turnover, the bank
decided to join the Child Care Project consortium. of the 25
contributing members, 20 are small businesses (i.e., businesses
with under 250 employees).
The Project is a nonprofit corporation funded by employer
participants, and state and United Way grants; it operates at a
total annual budget of $82,000.
68
RESOURCE AND REFERRAL SERVICE
Benefit Description: Mascoma Bank commissions two or three on-
site workshops a year. Project staff are available to counsel
employees on all their available options. The Project is
equipped to provide employees with up-to-date information on all
child care providers in New Hampshire and Vermont.
Although Mascoma does not provide financial assistance to
employees after they locate a child care provider, the bank is
currently exploring options to help employees meet their child
care costs, and is planning to conduct an in-house survey to
better understand the needs of its employees.
Employees are issued brochures detailing the services provided by
the Child Care Project during their orientation. In addition,
company newsletters frequently mention the availability of the
benefit.
Company Costs: The fee is determined according to the number of
employees working at each business.
Problems: None.
Advantages: According to Ms. McEwen, participation in the Child
Care Project has enabled the Bank to reduce its high rate of
employee turnover. Employees have told her that the affordable
child care arrangements the R & R has helped to locate have
enabled them to continue working.
According to Susan Lloyd, Program Coordinator at the Child Care
Project: "An R & R funded by a consortium is a great approach to
child care for small businesses that lack abundant financial
resources. Many small businesses cannot afford to establish an
on-site center, but an R & R consortium allows companies to
provide a needed service at a reasonable cost."
Other Benefits: Unpaid parental leave of up to 60 days, which may
be applied to the birth or adoption of a child. Mascoma also
offers short-term disability up to six weeks; the time period
depends upon the employee's medical condition.
Contact:
Mascoma Savings Bank
Sally McEwen, Personnel Director
P.O. Box 435
Lebanon, NH 03766-0435
(603) 448-3650
69
RESOURCE AND REFERRAL SERVIC
The R & R may be used by any employee in search of a child care
arrangement. Employees consult with a counselor at The Child
Care Group to discuss their specific child care needs and
financial constraints. Counselors assist parents with the
identification of providers who will meet the needs of both
parents and children. The R & R typically offers parents the
names of three child care providers, from which the parent
selects one.
Employees are informed of the R & R service in orientation
literature they receive on their first day at work. The benefit
is also publicized in the annual company newsletter.
Company Costs: Based on previous experience, Ms. Birchard expects
that three to six employees will take advantage of the R & R this
year. The service's yearly fee covers counseling for six
employees per year. If more than six employees use the R & R,
the Chronicle will pay an additional $275 per employee.
Advantages: The company has received very little feedback from
employees about the R & R to date. According to Birchard: "We
do, however, feel that it is important to provide a child care
benefit to employees."
Problems: Because the benefit is new, the company is waiting to
see how many employees take advantage of it. Management is
concerned that the service may not be cost effective if only a
few employees use it, and is trying to find ways to encourage
more employees to do so.
Other Benefits: One month paid leave. On April 1, 1991, a new
family leave law went into effect in Washington D.C., requiring
that employers provide up to 16 weeks of unpaid leave to all
employees to care for a newborn, a newly adopted child, or a
seriously ill family member.
Contact:
The Chronicle of Higher Education
Lisa Birchard, Office Manager
1255 23rd Street N.W., Suite 700
Washington, DC 20037
(202) 466-1029
71
DEPENDENT CARE ASSISTANCE PLAN (DCAP)
BEAVERTON-TIGARD INSURANCE AGENCIES
Tigard, Oregon
"We appreciate the work our employees do for us, and we're happy
that we can make a benefit available to them that will make a
difference in their lives."
Pat Dorr, Vice-President
Beaverton-Tigard Insurance Agencies
ABOUT THE EMPLOYER:
ABOUT THE BENEFIT:
Type of Business:
Year Benefit Began: 1988
Insurance company,
family owned
No. of Employees Using Benefit: 1
Year Established: 1952
Number of Employees: 7
Employer Costs:
Start-Up: negligible
F/T: N/A P/T: N/A
Operating, 1990: negligible
Average Age: 20's-30's
Percent Women: 70%
Other Benefits:
Flexible Leave
Arrangements
Background: In 1988, Pat Dorr, Beaverton-Tigard Vice President,
learned about Dependent Care Assistance Plans from a local
television show. Within a few months, Beaverton-Tigard had
instituted a DCAP for Beaverton employees.
Benefit Description: Beaverton-Tigard pays the employee's child
care provider directly. The company deducts payment from the
employee's DCAP account.
Advantages: Ms. Dorr believes that: "The DCAP is the only
option our business has, considering our small size. The
feedback from the employee who uses the DCAP has been positive;
the employee is really pleased about the tax break."
Problems: None.
Other Benefits: Although the company has not instituted a formal
parental leave policy, leave arrangements are made on a case-by-
case basis.
73
DEPENDENT CARE ASSISTANCE PLAN (DCAP)
Contact:
Beaverton-Tigard Insurance Agencies
Pat Dorr, Vice President
P.O. Box 23183
Tigard, OR 97223
(503) 620-0230
74
DEPENDENT CARE ASSISTANCE PLAN (DCAP)
BIGELOW LABS
West Boothbay Harbor, Maine
"Although child care benefits are still relatively new, many
business leaders have recognized child care as a crucial element
to a successful business. Child care will become more and more
prevalent as businesses realize the fruitful results it yields."
Vicky Reinecke, Senior Account Assistant
Bigelow Labs
ABOUT THE EMPLOYER:
ABOUT THE BENEFIT:
Type of Business:
Year Benefit Began: 1989
Nonprofit oceanographic
research laboratory
No. of Employees Using Benefit: 8
Year Established: 1975
Number of Employees: 48
Employer Costs:
start-Up: $1,000
F/T: 47 P/T: 1
Operating, 1990: negligible; tax
savings of $1,200 donated to local
Average Age: 30's
preschool
Percent Women: 50%
Other Benefits:
No Leave Benefits
Background: In 1988, four Bigelow employees faced child care
concerns -- several had recently given birth, while others had
preschool-age children. The four Bigelow employees enrolled
their children in the Boothbay Regional Preschool, a local
nonprofit facility. It was the Boothbay staff that informed the
Bigelow Employees of Dependent Care Assistance Programs (DCAP).
Upon learning of the DCAP option, the employees approached
Bigelow management with the idea of establishing such a program
to assist with their child care costs. Management acknowledged
their need for child care support and was sympathetic to it.
Benefit Description: Employees are informed of the DCAP benefit
in January of each year, at which time Bigelow distributes a
descriptive pamphlet. Literature on the DCAP is also
included in an employee manual distributed at the time of hiring.
Any employee wishing to take advantage of the DCAP benefit must
register with the accounting department and must sign a contract
75
DEPENDENT CARE ASSISTANCE PLAN (DCAP)
specifying the amount to be deposited into the DCAP. Child care
expense claims must be filed by the employee twice a month to the
accounting department. Bigelow Labs will then pay the child care
provider directly, drawing on the funds in the DCAP account.
Company Costs: The $1,000 start-up cost was for legal fees to
establish the DCAP account and to ensure that the program was in
compliance with IRS regulations.
Advantages: According to Vicky Reinecke, Senior Account
Assistant, and administrator of the DCAP: "Employees are
extremely satisfied with the program. The DCAP has helped to
reduce our turnover rate, because it makes child care affordable,
and mothers don't have to leave work to care for their children."
The DCAP also saves Bigelow tax dollars. Bigelow saves $1,200
annually in matching taxes. Money saved in taxes is donated to
The Boothbay Regional Preschool. Says Reinecke: "We see it as
an added benefit to our employees and a goodwill gesture to the
center. The Laboratory determines, on an annual basis, if FICA
savings are to be contributed to the Boothbay Regional Preschool.
This has been done through 1990.'
Problems: None. The fact that all the employees use the same
center has made administration of the program particularly easy;
payment is made with one check, at the same time employees
receive their paychecks.
Other Benefits: Although the company does not have a formal
parental leave policy, a parent may use any accrued sick or
vacation time towards leave.
Contact:
Bigelow Labs
Vicky Reinecke, Senior Account Assistant
McKown Point
West Boothbay Harbor, ME 04575
(207) 633-2173
76
DEPENDENT CARE ASSISTANCE PLAN (DCAP)
MONADNOCK WORKSOURCE
Peterborough, New Hampshire
"Child care benefits are an excellent way for employers to help
their employees meet their family needs. Employer's can't lose
if they provide such a benefit."
Luana Davy, Director of Operations
Monadnock Worksource
ABOUT THE EMPLOYER:
ABOUT THE BENEFIT:
Type of Business:
Year Benefit Began: 1986
Nonprofit provider of
services to the disabled
No. of Employees Using Benefit: 3
Year Established: 1971
Number of Employees: 65
Employer Costs:
Start-Up: none
F/T: 59 P/T: 6
Operating, 1990: $800; administrative
expenses
ge-Range: 30-50
Percent Women: 60%
Other Benefits:
Unpaid Leave
Background: The Voucher Corporation, a national firm specializing
in the administration of vouchers for child care, approached
company executives and suggested that they establish a Dependent
Care Assistance Plan (DCAP) for their employees. The Voucher
Corporation suggested that it would be a good way to extend child
care benefits to employees at a minimal expense to the firm.
Benefit Description: At the beginning of each year, employees
inform Monadnock of the amount of money, if any, they want placed
in their DCAP. The employees who are taking advantage of the
DCAP for child care have deposited a combined sum of
approximately $11,500 into their tax-free accounts.
Employees are told about the DCAP at the time of their hiring.
Thereafter, they receive annual notices detailing the benefit.
Company Costs: An annual administrative fee of seven percent of
the total dollars employees deposit into their account -- an
amount that is less than Monadnock would have to pay in FICA
taxes -- is paid to the Voucher Corporation, to issue vouchers to
77
DEPENDENT CARE ASSISTANCE PLAN (DCAP)
employees, who then turn the vouchers over to their child care
provider.
Advantages: According to Luana Davy, Director of Operations:
"Employees appreciate the tax benefit and the convenience of
having their child care payments made for them. We like the
program, first, because we don't administer it, and second,
because it saves us tax dollars."
Problems: None.
Other Benefits: Up to six weeks of unpaid leave. If an employee
requests additional leave time, permission for an extension from
the immediate supervisor and the executive director is required.
New mothers and fathers may use their accrued sick days toward
parental leave. All full-time employees are entitled to 12 paid
sick days a year.
Contact:
Monadnock Worksource
Luana Davy, Director of Operations
P.O. Box 28
Peterborough, NH 03458
(603) 924-3326
78
DEPENDENT CARE ASSISTANCE PLAN (DCAP)
SHEEHAN, PHINNEY, BASS, AND GREEN
Manchester, New Hampshire
"It is to our advantage and to the advantage of our employees to
offer a child care benefit it [the benefit] helps with all
aspects of the firm's ability to do business efficiently and
productively. "
Harriet Blanc, Personnel Director
Sheehan, Phinney, Bass, and Green
ABOUT THE EMPLOYER:
ABOUT THE BENEFIT:
Type of Business: Law firm Year Benefit Began: 1989
Year Established: 1930
No. of Employees Using Benefit: 9
Number of Employees: 150
F/T: 148 P/T: 2
No. of Children Served: 12
Average Age: 35-40
Employer Costs:
Percent Women: 50%
start-Up: N/A
Operating, 1990: none
Other Benefits:
Paid Leave
Background: In 1989, a group of local law firms met to discuss
the diversity of child care options they could provide to their
employees. Members discussed establishing a consortium and
founding a child care center. However, according to Sheehan
Personnel Director Harriet Blanc: "Rather than become embroiled
in the complicated negotiations that would precede the
establishment of a consortium, and rather than entangling
ourselves in the management of a center, our managing partners
decided that the firm would create its own benefit program." The
partners ultimately decided to institute a DCAP, in part because
administrative costs would be minimal.
Benefit Description: An employee wishing to take advantage of the
DCAP must submit to Personnel a written statement from the
employee's child care provider, detailing all aspects of the
care, including the amount of time the child is in care; the fees
the parent pays for the care; and information about the child
79
DEPENDENT CARE ASSISTANCE PLAN (DCAP)
care provider. The law firm will directly compensate the
provider for services rendered.
Employees are informed of the DCAP in an information packet
distributed to them at the time they are hired.
Advantages: The primary advantage of the DCAP is that the firm
can administer the benefit with ease. There is virtually no cost
to provide the benefit, and there are very few administrative
problems. Feedback from employees who use the DCAP has been
favorable.
Problems: None.
Other Benefits: Up to three months paid parental leave for
employees who have been with the firm for five years or more.
All other employees receive up to three months unpaid leave.
Contact:
Sheehan, Phinney, Bass and Green
Harriet Blanc, Personnel Director
1000 Elm St.
Manchester, NH 03101
(603) 668-0300
80
OPTION #5: FLEXIBLE BENEFIT PLAN
A flexible benefit plan allows employees to select from a menu of
taxable and nontaxable benefits that suit their individual needs.
Most employers offer their workers a core package of benefits
that includes basic medical coverage, vacation, sick and personal
days, retirement, and life insurance. Employers can also allow
their employees to add flexible benefits such as child care,
elder care, vision and dental care, to their core benefits.
Single parents, married parents, upper- and lower-income workers,
all of whom constitute today's workforce, present an equally
diverse array of employee needs. By allowing them to select from
among a list of available benefits, employees can create a
benefits package tailored to meet their personal and family
needs.
Table F. Option # 5: Flexible Benefit Plan
Year
No. of
Percent of
Benefit
Company
Employees Who
Percent of Employees Total Employer Cost,
Company Name
Began
Employees
Are Female
Using Benefit
1990
Other Benefits
Dunning. Forman, Kirrane and Terry
1985
22
60%
23°c
$14 000
paid leave
Lynchburg Hematology-Oncology Center 1990
16
75%
38% 7 children
N/A
no formal leave
81
FLEXIBLE BENEFIT PLAN
DUNNING, FORMAN, KIRRANE, & TERRY
Mashpee, Massachusetts
"Child care is very important as it relates to maintaining
quality employees in their child-bearing years. It has a
positive impact on the morale of those employees who participate
in the program because they have an opportunity to interact with
their child during the course of the working day."
Kevin Kirrane, Partner
Dunning, Forman, Kirrane, & Terry
ABOUT THE EMPLOYER:
ABOUT THE BENEFIT:
Type of Business: Law firm Year Benefit Began: 1985
Year Established: 1973
No. of Employees Using Benefit: 5
Number of Employees: 22
F/T: 16 P/T: 6
Employer Costs:
Start-Up: N/A
Average Age: 38
Operating, 1990: $14,000 ($40/week per
employee)
Percent Women: 60%
Other Benefits:
Paid Leave
Background: Six years ago, an independent licensed preschool
facility, the Mashpee Creative Children's Center, was started
with the help of a few partners of the law firm that owned the
building which now houses both the firm and the center. Paula
Martin, Director of the Center, pays rent to Dunning, Forman et
al. on a sliding scale. The firm has incorporated the Center
into part of its flexible benefits plan.
"When the need for child care among our staff arose, we had moved
from a smaller office space to our present location. The idea
was to set up a center right in our building, even if the center
ran independently of the firm," said Blaise Stapleton, Office
Manager.
Benefit Description: The child care benefit is a subsidy within a
flexible benefits plan. All full-time employees, except
82
FLEXIBLE BENEFIT PLAN
partners, are eligible to receive a subsidy of $40/week towards
child care expenses.
Part-time employees can receive a pro-rated subsidy, the amount
determined by the hours worked.
Staff, attorneys and partners of the law firm are given priority
for space over outsiders. Parents are not required to use the
Mashpee Center and may use the subsidy to pay for any child care
provider.
Employees are notified of the subsidy upon hiring. Those using
the benefit submit a receipt of their child care expenses to the
office manager. Employees may be reimbursed directly, or the
firm can compensate the provider.
Two partners, although ineligible for the subsidy, have children
at the Center.
Advantages: The benefits to both the firm and employees who take
advantage of the subsidy have been great. According to Office
Manager, Ms. Stapleton: "One of our female employees was
planning career changes and considered leaving. Because her
child was being cared for at a subsidized rate nearby, she
decided to stay at our firm."
Problems: None.
Other Benefits: Parental leave for 12 weeks at half pay. If an
employee requires more than 12 weeks leave, arrangements may be
made on a case-by-case basis.
Contact:
Dunning, Forman, Kirrane, & Terry
Blaise Stapleton, Office Manager
P.O. Box 560
Mashpee, MA 02649
(508) 477-6500
83
FLEXIBLE BENEFIT PLAN
LYNCHBURG HEMATOLOGY-ONCOLOGY CENTER
Lynchburg, Virginia
"Child care is a very real concern for our employees. A child
care benefit is an excellent means by which we can assist our
employees and their entire family."
Vicki Ryan, Medical Secretary
Lynchburg Hemotology-Oncology Center
ABOUT THE EMPLOYER:
ABOUT THE BENEFIT:
Type of Business:
Year Benefit Began: 1990
Private cancer
treatment center
No. of Employees Using Benefit: 6
Year Established: 1975
Number of Employees: 16
No. of Children Served: 7
F/T: 8 P/T: 8
Employer Costs:
Average Age: late 20's
Start-Up: N/A
Operating, 1990: N/A
Percent Women: 75%
Other Benefits:
No Formal Leave Benefits
Background: In 1990, the company decided to offer its employees
a new benefit package structured to allow each employee to select
the benefits that would best serve individual and family needs.
Because women constitute such a large percentage of Lynchburg's
workforce, the company decided to include a child care benefit
option in their benefits menu.
Benefit Description: Employees are allocated a set amount of
money each year (a lesser amount is granted to part-time
employees) which may be used to cover benefits of their choice.
Employees are given a listing of their benefit options when they
are hired and are urged to consider them carefully. An employee
who has no children, for example, may choose to place his/her
allotted money into a health insurance fund. Conversely, a
parent who incurs significant child care expenses and who is
covered through a spouse's employer for health insurance, may
choose to place all her benefit allotment into the child care
reimbursement.
84
FLEXIBLE BENEFIT PLAN
Lynchburg offers employees who choose child care a direct subsidy
to cover child care costs. Once the employee has opted for the
child care reimbursement, he or she must supply the company with
a receipt from the child care provider. Reimbursement follows
soon thereafter.
Company Costs: Although the company subsidizes care for children
of all ages, the benefit is used most often for children under 12
years. When a parent decides to terminate the child care
benefit, the money previously used for that purpose is
transferred to another option.
Because the program is new, no cost/benefit analysis has been
conducted, nor have costs for the past year been calculated.
Advantages: According to Vicky Ryan, Lynchburg's Medical
Secretary: "There has definitely been a friendlier atmosphere in
the center since the introduction of the new benefits package.
The fact that benefit options can be tailored to an individual's
needs is a huge advantage and was welcomed by our employees."
Problems: None.
Other Benefits: In addition to a range of benefits offered under
the flexible benefits plan, parental leave is granted to
employees who have accumulated personal days. Sick or emergency
child care leave is granted to employees who decide to use their
sick days to care for their child.
Contact:
Lynchburg Hematology-Oncology Center
Vicki Ryan, Medical Secretary
1937 Thomson Drive
Lynchburg, VA 24501
(804) 947-5925
85
CONCLUSION
More and more employers of all sizes are realizing the value of
offering a child care benefit. Despite the seemingly high
expenditures associated with such policies, these employers
contend that the gains outweigh the costs. Employers cite the
fact that their child care options have been instrumental in
reducing recruitment costs through lower staff turnover; in
improving employee productivity, commitment and morale; and in
enhancing their firm's image as one that is sensitive to the
needs of its employees. Although the national child care crisis
cannot be solved solely by employers who provide benefits to
their own workers, large and small employers alike can help to
address the problem. By instituting child care policies,
employers have the opportunity to improve significantly the lives
of their employees while at the same time reaping important
benefits.
86
APPENDIX I: CCAC NATIONAL ADVISORY PANEL
While the opinions and analysis contained herein are those of CCAC, the following CCAC National
Advisory Panel members were especially helpful in our research:
Barbara Adolf
Susan Cowell
Buck Consultants
International Ladies Garment Workers Union
Harmon Meadows, NJ
New York, NY
Darrell D. Akins
Martha Daley
Greater Knoxville Chamber of Commerce
Office of Child Care Initiatives
Knoxville, TN
Denver, CO
Nancy P. Alexander
Patty Eaton
Child Care Services, Inc. of Northwest Louisiana
Child Care Resource Center
Shreveport, LA
Tulsa, OK
Florette Angel
Jane B Emling
West Virginia Youth Coalition
Office for Children and Youth
Charleston, WV
Jackson. MS
Margaret Bordeaux Arbuckle. M.D.
John Fernandez
North Carolina Advocacy Institute
Advanced Research Management
Greensboro, NC
Philadelphia, PA
Glenda Bean
Sandy Frank
Arkansas Early Childhood Commission
U.S. Department of Labor, Women's Bureau
Little Rock, AR
Chicago, IL
Becky Barnette Beane
Jean Gardner
Lincoln/Lancaster County
First Lady
Health Department
Olympia, WA
Lincoln, NE
Stacie G Goffin Ed D
Elizabeth Milder Beh
University of Missouri at Kansas City
Governor's Office
Kansas City. MO
Harrisburg, PA
Bea Gold
Mary J. Bondarin
Child and Family Services
Bureau of Child Development & Parent Education
Los Angeles, CA
New York State Education Department
Albany, NY
Jane C. Grady
Laurance Armour Day School of Rush-Presbyterian
Paula Breen
St Luke's Medical Center
Child Care Connection
Chicago. IL
Wilmington, DE
Judith B. Greenman
Nancy Brown Ph.D.
Association of Junior Leagues inc.
Department of Educational Leadership
Fort Worth. TX
North Carolina State University
Raleigh, NC
Elizabeth A. Grever
Community Coordinated Child Care
Jude Carrol
Louisville, KY
Connecticut Association for Human Services
Hartford, CT
Shirley Herrick
Trust Group Administration
Barbara Collier
U.S. Bank of Oregon
Office of Child Care Coordinator
Portland, OR
Augusta, ME
Andrew Hornsby Jr.
Joyce Cohen
Department of Human Resources
State Senator
Montgomery, AL
Lake Oswego, OR
Barbara A. Ibarra
Michael J. Conway
Greater Miami Chamber of Commerce
America West Airlines
Coral Gables. FL
Phoenix, AZ
87
Martha W. Isler
Janice H McElroy
Employers & Child Care
Pennsylvania Commission for Women
Greater Pittsburgh Chamber of Commerce
Harrisburg, PA
Pittsburgh, PA
Nancy Ann Min
Martha H. Izzi
Tennessee Department of Human Services
U.S. Department of Labor
Nashville. TN
Women's Bureau
Boston. MA
Barbara Morgan
People Attentive to Children (PATCH)
Michael J Jenkins
Honolulu. HI
National Director of Public Relations
Dominos Pizza
Janet C. Muhleman
Ann Arbor, MI
Group 243 Inc.
Ann Arbor. MI
Gail Johnson
Options for Working Parents
Camille F. Murphy
Providence, RI
Westchester County Office for Women
White Plains, NY
Carol Kamin Ph.D.
Children's Action Alliance
Mary L. Olsen Ph.D.
Phoenix, AZ
Department of Social Services
Office of Assistance Payments
Helen Keith
Salt Lake City. UT
Vermont Social and Rehabilitation Services Department
Waterbury, VT
Karen J. Ortiz
Governor's Office for Children
Karen King
Phoenix, AZ
Polk County Child Care Resource and Referral
Des Moines, IA
Mia Oxley
Child Care Connection
Mary Lou Kinney
Anchorage, AK
Early Childhood Consultant
Boise, ID
Ronald L. Phillips
Coastal Enterprises. Inc.
Therese Lansburgh
Wiscasset. ME
Maryland Committee for Children
Baltimore, MD
Diane Quinn
Iowa Commission on Children, Youth and Families
Marlynn Levin
Des Moines. IA
The Merrill-Palmer Institute
Detroit, MI
Alden Raine
Executive Office of Economic Affairs
Jean D. Linehan
Boston, MA
The Bureau of National Affairs
Chevy Chase, MD
Mary Wendy Roberts
Bureau of Labor & Industries
Patricia Mapp
Portland, OR
University of Wisconsin, Milwaukee
Milwaukee, WI
Paul Ronninger
Department of Human Services
Nadine Mathis
Bismark, ND
Summa Associates
Tempe, AZ
Martha K. Rothman
Tucson Association for Child Care
Scott McCallum
Tucson, AZ
State of Wisconsin
Madison, WI
Marguerite W. Sallee
Corporate Child Care. Inc.
Mary Louise McClintock
Nashville, TN
Department of Human Resources
Salem, OR
Nicholas R. Scalera
New Jersey Division of Youth and Family Services
Barclay B. McCoy
Trenton, NJ
McCoy & McCoy, Inc.
Madisonville, KY
Margery Leveen Sher
Fred & Sher, Inc
Edward McElroy Jr.
Herndon, VA
Rhode Island Federation of Teachers
Rhode Island AFL-CIO
Providence, RI
88
Cheri Sheriden
JoAnn Williams
Corporate Child Care Division
Child Development, Inc
People Karch International Co, Ltd
Russellville. AR
Chantilly, VA
Helen S. Wilson
Laura Lee Simon
Child & Family Services of New Hampshire
Connecticut Commission on Children
Manchester. NH
Hartford. CT
Sue Wilson
Judy Sobin
Sue Wilson Express Service
Union Child Care, Inc
Albuquerque. NM
Honolulu, HI
Aletha R. Wright
Polly Spedding
Division of Youth and Family Services
Cornell University
Office of Child Care Development
Ithaca, NY
Trenton, NJ
Kathryn J. Stead
Child Care Connections
Portland. ME
Louise Stoney
New York State Child Care Coordinating Council
Albany, NY
Mark Sullivan
Michigan 4-C Association
East Lansing, MI
Glen Taylor
Chairman, Taylor Corporation
St. Paul, MN
Nick Theodore
Lieutenant Governor
Columbia, SC
Donald Thompson
Coalition for Children
Albuquerque, NM
Nancy E. Travis
Save the Children
Child Care Support Center
Atlanta, GA
Yamina S. Vinci
Department of Human Services
Trenton, NJ
Jeanne Ward
Task Force on Corporate Child Care
Jacksonville, FL
Billie Warford
Montana State University Early Childhood Project
Bozeman, MT
Judy Watts
Agenda for Children
New Orleans, LA
Thomas J. White
Greater Durham Chamber of Commerce
Durham, NC
Maria Whelan
Children's Services Division Chicago Department of
Human Services
Chicago, IL
89
APPENDIX II: NATIONAL RESOURCES
For additional information on child care regulations, state and federal funding opportunities, employer-
sponsored child care programs, and what makes for quality child care, call or write:
Child Care Action Campaign
330 7th Avenue, 17th floor
New York, New York 10001
phone: (212) 239-0138
fax: (212) 268-6515
Children's Defense Fund
122 C Street, N.W.
Washington, D.C. 20001
phone: (202) 628-8787
Families and Work Institute
330 7th Avenue, 14th floor
New York, New York 10001
phone: (212) 465-2044
National Association of Child Care
Resource and Referral Agencies (NACCRRA)
2116 Campus Drive, S.E.
Rochester, Minnesota 55904
phone: (507) 287-2020
National Association for the Education
of Young Children (NAEYC)
1834 Connecticut Avenue, N.W.
Washington, D.C. 20009
phone: (202) 232-8777
Work/Family Directions
930 Commonwealth Avenue, South
Boston, MA 02215-1212
phone: (617) 278-4000
90
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