Employer-Sponsored Daycare

Memorandum

To: Gwen Bunton, President

From: Melissa McMillan, Operations Assistant

Date: July 16, 2013

Subject: Proposal to Implement an Employer-Sponsored Child Care Program

Thank you for taking the time to review my attached proposal on the benefits of implementing an employer-sponsored child care program. I am confident that this program can be very beneficial to Bank of Walterboro and all of its employees.

As we have discussed over the past several weeks, employer-sponsored child care programs have proven to be beneficial to both employers and employees. Tardiness and absenteeism of employees due to child care issues has become a daily problem at Bank of Walterboro. By offering a child care program, this issue would be resolved, as well as assist us achieve goals in attraction and retention of key employees, increase productivity, and generate a positive organizational image.

In order to move forward with the implementation of an employer-sponsored child care program, we would need to contact a company that specializes in doing so. They will be able to assist us in determining the best suitable program for our needs, as well as determine all costs associated.

Thank you, again, for considering this proposal. I look forward to hearing your thoughts and decision. If you have any further questions, please contact me at (843)909-4833 or via email at mmcmillan1@lowcountry.com

An Employer-Sponsored Child Care Program at Bank of Walterboro

Prepared for
Gwen Bunton, President
Bank of Walterboro

Prepared by
Melissa McMillan, Operations Assistant
Bank of Walterboro

July 16, 2013

Contents

Executive Summary.......................................................................................4

Introduction..................................................................................................5

Benefits........................................................................................................6

Implementing the Program...........................................................................8

Potential Costs..............................................................................................8

Conclusion and Recommendations..............................................................10

References..................................................................................................11

Executive Summary

This proposal discusses the benefits of implementing an employer-sponsored child care program at Bank of Walterboro 's home office. The child care program will significantly decrease the tardiness and absenteeism of employees due to child care issues, as well as increase the attraction and retention of key employees and productivity.

Over the past decade, employer sponsored child care programs have been on the rise. Businesses have found that by offering such programs, their employees have become much more enthusiastic and dedicated to their position, their turnover rate is nearly zero, and their retention rate is thus higher than ever. Companies also are rewarded with many tax benefits.

Employers are not the only ones who benefit from employer-sponsored child care programs. These programs help working parents spend less time worrying about the affordability and accessibility of child care and more time focusing on their careers. This allows for them to feel more relaxed at work, thus better able to focus on their work.

In order to implement a child care program, there are numerous factors that must be considered, such as cost, location, licensing, program type, as well as many others. It would be necessary to consult with a company that specializes in the start-up of child care programs to ensure that all needs and requirements are met.

An Employer-Sponsored Child Care Program at Bank of Walterboro

INTRODUCTION

With more and more mothers entering the workforce and the rise of families in which both parents work outside the home, businesses are beginning to consider employer-sponsored child care programs (Hyland, 1990, p. 22). There are many benefits, not only for the employees but also for the employer, that arise from such programs. Businesses are finding that by offering this greater incentive, they are able to compete in the market for the most valuable employees and are able to retain those employees for much longer periods of time. Offering employer-sponsored child care is a highly-visible, highly effective method of maximizing employee recruitment and retention efforts, as well as improving employee productivity, loyalty, and morale ("Illinois Child Care," 2004, p. 1).

During the six years that I have been employed by Bank of Walterboro, day after day I have watched parents arrive late for work, call out because of not having dependable child care, or leave throughout the day in order to go breastfeed their infant. These absences could be completely avoided if we offered a child care program. These programs prove effective in reducing work-family conflict and influencing organizational commitment, which is another problem we face (Wang, Lawler, & Shi, 2011, p. 493). Employees have had the tendency to become too comfortable in their positions and thus, a few co-workers get stuck with taking on all the workload while the others tend to slack. Offering quality child care gives employees the incentive to be more dedicated and productive at their positions. They do not want to risk being forced to switch jobs because that means they will be forced to find new child care ("The Real Savings," n.d., p. 1).

When employees are completely dedicated and loyal to the company, it will show, and if it shows to the employer, it will also show to the customers. Keeping customers satisfied is the top goal of any business. However, we have recently had a problem with two tellers being absent due to child care issues, which has become a major issue on our busy days. Customers are left waiting in line for long periods of time, and the drive thru has become backed up due to only one teller working the window. This problem could easily be avoided if we had a child care program in place. This would satisfy the employees, which would in turn satisfy the customers, which would in turn satisfy the employer.

Child care needs are a major factor contributing to the work-family conflict in the United States. Studies have shown that offering employer-sponsored child care programs can increase job satisfaction and commitment, and decrease turnover and absenteeism (Zeytinoglu, Gordon, & Cooke, 2010, p, 178). Because Bank of Walterboro has been facing so many of these issues over the past several years, implementing a child care program is the best solution for our needs. The majority of our employees are working parents who would greatly benefit from such a program.

Benefits

A survey from the Society for Human Resources Management showed many businesses now offer benefits that help employees balance family and work responsibilities. One of the most important reasons for this is the perception that employer-sponsored child care programs will reduce work-family conflict (Wang, Lawler, & Shi, 2011, p. 494). As a working parent, it can prove difficult to find child care that is reliable, dependable, and one that operates not only during the day hours, but also the evening hours. Employer-sponsored child care services help ensure that employees have access to child care during all hours of operation. This helps to reduce tardiness and absenteeism for parents with unreliable arrangements and also helps companies to recruit and retain employees. These facilities may serve the business exclusively or receive children from non-employees as well (Illinois Child Care, 2004, p.35).

Should an emergency arise, parent-employees have realized the benefits of having their children physically close by utilizing onsite child care facilities. Most facilities also offer child care for school-aged children. Therefore, parent-employees have less worry when it comes to finding a sitter after school, which allows for more concentration and productivity at work (Oekerman, 1997, p. 90). Other advantages parent-employees gain from onsite child care includes: • Parents can drop in on breaks • Mothers with infants can stop in to breastfeed • Mothers and fathers can stop by to tend to babies • Parents can carpool with their children, saving time in the drop-off and pick-up process • Parents have the peace of mind knowing their children are close, safe, and well cared for

By assisting working parents in child care benefits, employers provide a benefit that not only increases workers ' productivity through reduction of stress, but offers a solution that helps create happy, loyal employees. Benefits can be designed to assist employees who have trouble accessing child care because of their work schedules. While child care clearly benefits working parents, its advantages reach beyond working parents to impact the organization and all of its employees. Co-workers do not have to take on an extra workload when parent-employees are absent from work because of child care issues ("The Benefits of," 2009, p.3).

Offering employees access to child care programs results in numerous benefits, and these programs are good for employers. They help businesses to achieve goals in attraction and retention of key employees, and increase productivity and generate a positive organizational image. Similarly, these programs help working parents spend less time worrying about the affordability or accessibility of child care and more time focusing on their careers. "Employer-sponsored child care can benefit employees, and thus benefit employers, by making employees: • Feel they are more productive at work • Feel their company is supportive of them and their work/life balance • Be less likely to leave their job to pursue other opportunities • More likely to return to work after the birth of a child because of the benefit • Consider the benefit as a factor in a decision to join the organization • Feel more involved in their child 's day due to the proximity of the center to their workplace."

Source: ("The Benefits of," 2009, p. 2)

Businesses that offer employer-sponsored child care services frequently top the list of "The Best Places to Work," according to the National Child Care Information Center. By offering this benefit, companies exhibit a loyalty to employees and to the community, which results in enhanced morale and company image. It also allows for the ability to attract new talent ("The Benefits of," 2009, p. 3). Publicity regarding a company 's child care program has caused potential employees to initiate contact with the company therefore reducing recruitment expenditures (Oekerman, 1997, p. 90).

There are other numerous benefits to employers who offer child care programs including:

• Reduces on-the-job employee stress • Provides stability in the workforce • Reduces absenteeism and tardiness • Shortens the length of maternity to leave • Improves morale and work performance

A 2006 study conducted by Children 's Healthcare of Atlanta showed that expanding its child care offerings:

• Increased employee retention rate from 83.4% to 88.6% • Decreased the job vacancy rate from 4.9% to 3.3% • Increased the rate of employees who returned to work after parental leave from 64% to 92%

Source: (Children 's Choice, n.d.)

There are clearly many benefits to both employees and employers who offer child care programs, but customers will also benefit. They will see the devotion Bank of Walterboro has for it 's employees and know that this is a business who cares. Customers will also be able to see the dedication and loyalty that the employees have to them. With less employees being absent because of their children, we will be able to better serve our customer 's needs.

Implementing the Program

In order to implement a child care program, we will need to contact a company, such as Children 's Choice Learning Centers, who we can collaborate with to build a family-friendly workplace. They will first meet with us to help us determine and evaluate our child care options. Then they will develop a preliminary program statement which will include program features such as hours of serves, ages served, center capacity, and location. They will perform a Needs Assessment in which they use a variety of tools to prioritize our child care needs. Children 's Choice also recommends meeting with all employees to answer any questions and to gather feedback (Children 's Choice, n.d.).

Children 's Choice will perform a feasibility test that will determine land and construction costs and zoning and building codes. Bank of Walterboro owns the vacant house directly behind the main office, which would be perfect for housing the facility. There are only minor renovations that would need to be done and the yard is already fenced in. Children 's Choice will help us select an architect and/or construction firm and make recommendations on our behalf to each party involved (Children 's Choice, n.d.).

Children 's Choice is available to meet with employers and/or employees on Saturdays, so that we would not have to take time off of work. However, this would require us to come in on our day off. They will provide employees with all the information needed regarding the child care center and will answer any questions or concerns that we may have.

Potential Costs

Employer sponsored child care programs have proven to be cost effective. "The 1997 National Study of the Changing Workforce by the Families and Work Institute found that:

• Two-third of employers report that their child care programs far outweigh the costs or are cost-neutral; • 75% of employers who offer flexible work schedules find that the benefits outweigh the costs or are cost-neutral; and • Of those employers with family leave policies, 75% find that the benefits outweigh the costs or are cost-neutral."

Source: (Programs for Parents, n.d.)

Bank of Walterboro will be responsible for providing the facility and all costs associated with it. The company we select to have our program through, such as Children 's Choice Learning Centers, would "assume full responsibility for the profit and loss of operations" (Children 's Choice, n.d.). Once we have chosen a company to assist us in the development of a child care program, the exact costs will better be determined.

Conclusion and Recommendations

Employer-sponsored child care programs offer numerous benefits to both employers and employees. Bank of Walterboro would be positively impacted by implementing such a program. I hope that you as President will support and help implement a child care program.

To get this project started we must gain approval from the board of directors. The initial steps include:

1. Contact a company who specializes in the implementation of child care programs. 2. Decide which type of program best suits our needs. 3. Determine the best location to house the facility.

Once we have completed these steps, we will be able to better determine if a child care program will be cost effective. From there, we can begin to put the plan in action.

References

Children 's Choice Learning Centers. (n.d.) Retrieved July 14, 2013 from

http://www.childrenschoice.com/

Hyland, Stephanie L. (September 1990). Monthly Labor Review. pp. 22-26. Retrieved July 15,

2013 from www.bls.gov/mlr/1990/art3full.pdf

Illinois Child Care: Options for Employees. (2004). Retrieved July 9, 2013 from

http://www.commerce.state.il.us/nr/...a7c1.../childcareemployeroptions.pdf

Oekerman, R. (1997). Corporate-Sponsored Child Care: Benefits for Children, Families, and

Employers. Early Childhood Education Journal, 25(2), 89-92. Retrieved July 9, 2013 from

http://www.eric.ed.gov/ERICWebPortal/search/detailmini.jsp?_nfpb=true&_&ERICExtS

earch_SearchValue_0=EJ558650&ERICExtSearch_SearchType_0=no&accno=EJ558650

Programs for Parents, Inc. (n.d.) Retrieved from July 14,2013

http://www.programsforparents.net/businesses

The Benefits of Employer-Sponsored Child Care Benefits. (2009, October 7). In HR People online.

Retrieved July 14, 2013 from http://hrpeople.monster.com/news/articles/3021-the-

benefits-of-employer-sponsored-child-care-benefits?page=4

The Real Savings From Employer-Sponsored Child Care: Investment Impact Study Results.

Retrieved July 15, 2013 from

http://www.brighthorizons.com/Resources/pdf/investmentimpact.pdf

Wang, P., Lawler, J. J., & Shi, K. (September 2011). Implementing family-friendly employment

practices in banking industry: Evidences from some African and Asian Countries. Journal

of Occupational & Organizational Psychology, 84(3), 493-517. Retrieved July 9, 2013

from http://library.kaplan.edu/content.php?pid=150035

Zeytinoglu, I. U., Cooke, G. B., & Mann, S. L. (2010). Employer Offered Family Support Programs,

Gender and Voluntary and Involuntary Part-Time Work. Relations Industrielle, 65(2),

177-195. Retrieved July 9, 2013 from http://library.kaplan.edu/content.php?pid=150035

References: Children 's Choice Learning Centers. (n.d.) Retrieved July 14, 2013 from http://www.childrenschoice.com/ Hyland, Stephanie L. (September 1990). Monthly Labor Review. pp. 22-26. Retrieved July 15, 2013 from www.bls.gov/mlr/1990/art3full.pdf Illinois Child Care: Options for Employees. (2004). Retrieved July 9, 2013 from http://www.commerce.state.il.us/nr/...a7c1.../childcareemployeroptions.pdf Oekerman, R. (1997). Corporate-Sponsored Child Care: Benefits for Children, Families, and Employers The Benefits of Employer-Sponsored Child Care Benefits. (2009, October 7). In HR People online. Retrieved July 14, 2013 from http://hrpeople.monster.com/news/articles/3021-the- benefits-of-employer-sponsored-child-care-benefits?page=4 Retrieved July 15, 2013 from http://www.brighthorizons.com/Resources/pdf/investmentimpact.pdf Wang, P., Lawler, J. J., & Shi, K. (September 2011). Implementing family-friendly employment practices in banking industry: Evidences from some African and Asian Countries of Occupational & Organizational Psychology, 84(3), 493-517. Retrieved July 9, 2013 from http://library.kaplan.edu/content.php?pid=150035 Zeytinoglu, I. U., Cooke, G. B., & Mann, S. L. (2010). Employer Offered Family Support Programs, Gender and Voluntary and Involuntary Part-Time Work 177-195. Retrieved July 9, 2013 from http://library.kaplan.edu/content.php?pid=150035