Backup Child Care
Maintaining a population of skilled, productive workers is a continual challenge for employers. For working parents, their challenge is often related to sourcing convenient, quality child care solutions. Today, many employers are stepping into this work-life challenge and have begun offering child care benefits that support the work/life balance of employees. And, despite budget crunches and space constraints that many companies face today, there are numerous options to meet the needs – and budgets – of employers both large and small.
Backup child care is a child care option that is much less costly than developing a dedicated child care center, and may meet the needs of more employers. A recent Society of Human Resource Management study showed a significant increase in utilization of emergency backup care programs – finding that 14 percent of employers now offer emergency or sick child care, up from 6 percent in previous years.
Statistics over the years support the common claim that child care programs for employees pay off for the sponsoring organization in reducing turnover, reducing absenteeism, and improving morale:
- Organizations that offer child care often top the lists of "Best Places to Work." This benefit demonstrates a commitment to employees and leadership in the community, resulting in enhanced morale and company image, as well as an ability to attract new talent. In one survey, 85 percent of employers that offered child care programs reported more positive public relations (National Child Care Information Center, www.nccic.org).
- In 2006, unscheduled absenteeism climbed to its highest level since 1999, costing some large employers an estimated $850,000 per year in direct payroll costs, and even more when lost productivity, morale and temporary labor costs were considered. "Family issues" account for 22 percent of these unscheduled absences (2006 and 2007 Unscheduled Absenteeism Surveys by CCH Incorporated).
- A national survey of working adults found that 59 percent of employees and their spouses missed between three and ten days of work in the last year due to the lack of adequate backup child care or elder care options. (Workplace Options, Public Policy Polling).
- For every $1 invested in backup child care, employers can expect a return of $3 to $4 in productivity and reduced turnover. (WFD Consulting, via Employee Benefit News)
- According to studies, the total cost of absenteeism can equal as much as 36 percent of payroll. (The Total Financial Impact of Employee Absences by Mercer, via Employee Benefit News)
- Employer-sponsored child care can slash absenteeism by an average of 20 percent. (Circadian Technologies, via Employee Benefit News)