It’s Good Business to Invest in Child Care

Child Care is central to the economic well being of families, businesses, and communities. According to recent surveys, businesses with child care programs report workplace improvements and bottom-line savings in the following areas:

  • Boosting Recruitment: 85% of employers report that providing child care services improved employee recruitment. About one in three working parents is willing to change employers or trade salary and benefits to work for a family friendly employer.
  • Damping Turnover: Almost 2/3 of employers found that providing child care services reduced turnover. Depending on the type of child care program offered, businesses reduced turnover by 37% to 60%.
  • Lowering Absenteeism: Child care breakdowns leading to employee absences cost businesses 3 billion annually in the United States. Fifty-four percent of employers report that child care services had a positive impact on employee absenteeism, reducing missed workdays by as much as 20% to 30%.
  • Increasing Productivity: Forty-nine percent of employers report that child care services had helped boost employee productivity.
    Strengthening Your Business Image: Communities value and support businesses that address the needs of their employees and the larger needs of the community in general. In one national survey, 85% of employers that offered child care programs reported more positive public relations.

Importance of Child Care

Child care is central to the economic well being of families, businesses, and communities. According to recent surveys, businesses with child care programs report workplace improvements and bottom-line savings.

Refer to statistics and survey questions below to see if investigating child care, as a benefit for your work place is profitable.

  • The average cost of leave for new mothers was 32% annual salary. Management was 39% and non-management was 28%. (Study conducted by AT&T). By comparison the cost of turnover was 150% of annual salary for management and 75% for non-management.
  • The cost of absenteeism is easier to figure. Just a few questions could give you the answer. What are employee ages and benefits for unworked time? How much time does the supervisor spend finding and instructing replacement workers? Does the replacement worker earn overtime pay for doing the work of absent workers? Is productivity reduced by absenteeism as, for example, on an assembly line?
  • The cost of turnover involves many variables. How much time does management spends in exit interviews and paperwork when a worker leaves? Are there severance pay expenses? Does the employer have to advertise to fill the position, or hire a recruiter, or an agency? How much time will personnel staff spend screening and interviewing applicants? Are there pre-employment tests, medical examinations or drug testing? Does the company cover the new hire’s travel or moving expenses? How much time will personnel staff spend orientating and processing paperwork for new hires?

By subsidizing care for employees’ sick children, an average business with 250 employees can save $75,000 per year in lost work time.
(Source: Johnson, G.W. Sick Child Care: An Idea Whose Time Has Come, Presentation at the Emergency Child Care Conference, Indianapolis, 1997.)

Package Options

Employer Sponsored Child Care Benefit Options available through West Central Child Care Connection

Enhanced Referral Package: Each employee who calls will receive three (3) referrals that have current vacancies in the age group the parent requests. Child care specialists from WCCCC will follow-up with each parent to see if there are additional questions or concerns. Employee may call back as needed. All services of the Enhanced Referral Package are outlined on an “Enhanced Parent Services” handout. This package is valid for 12 months starting at time of purchase. Package will have to be renewed annually.
Cost: Total number of employees in company (x) 5% (x) $125.00
(Example: 50 employees (x) 5% (x) $125.00 = $312.50)

Basic Referral Corporate Sponsorship Benefit: The employee is able to call our agency and receive child care referrals and all basic consumer literature regarding choosing quality child care. The State of Illinois requires that a sliding fee be charge to the parent, however, the employer would pay a $20.00 fee for each employee who calls us within the contract year. If any employee needs additional assistance within the year, no further charge is assessed. The employer would be billed quarterly.
Cost: Total cost will vary depending on usage

On-Site Services: Staff from WCCCC would be present on-site to explain our services to parents, evaluate their child care needs and fax, phone, or mail referrals to parents. Information and checklists about quality programs for children will be discussed. Eligibility guidelines for the IDHS child care subsidy program will be explained with assistance in completing forms where applicable. The employer determines the number of days and hours on site. Cost will increase if staff is present at shift or non-traditional hours.
Cost: $400.00 for eight (8) hours on site

Lunch and Learn On-Site Parenting Seminars: Professional specialists in child care and parenting issues will present interactive parenting seminars during lunch breaks. Handouts and parenting resources will be distributed to all who participate.
Cost: $200 per session

Customized Referral Package: Our agency is available to prepare a plan for services that will meet the individual needs of the employer and their work force. A representative of WCCCC is available to listen to the specific needs of the business and assist in creating a service plan.
Cost: Determined by services requested

Call (217) 222-2550 or 1-800-782-7318 to discuss which option suits your company’s needs. You may also email karen@wcccc.com with any questions regarding the employer benefit options.