Family Friendly Hr Practices, Achieving Work Life Balance

Family Friendly HR Practices

Executive Summary

In this report, we identified and provided examples of a variety of ways that businesses can promote access to child care for their employees.  Child care services should be considered of importance to all businesses who want to become part of “the Best Company to Work For” list.  Investing in child care can pay off in real dividends for employers and employees. This report was developed to examine the cost of implementing a subsidized on-site childcare center and the benefits that it will bring to the company and the employee.  Allowing employees to have access to reliable childcare either on-site or through the development of a contract with a local childcare provider makes good business sense.  It creates a work environment that supports the needs of the employee while benefiting the company. Providing childcare benefits enables the company to attract top talent and it also provides employees with a reason to stay on board.

This proposal brings attention to the history of women in the workplace, typical childcare cost for a two parent household, benefits of providing subsidized childcare and how successful companies are using it to become and maintain their status as an Employer of Choice.  

History        

Part of our culture today involves the juggling act of balancing both personal and work life, this is especially true for many mothers that are joining or returning to the workforce.  In the past, it was the women who were responsible for caring for their children, while their counterpart would provide financial stability for the household.  However, in recent years, many women have the desire to continue with their careers while still caring for their families.  This has been proven difficult and it has called for employers to adapt to the change in workforce.  Managing a household has been an important and never-ending responsibility for parents.  Parents of young children have always had family responsibilities that have at times conflicted with the demands of their jobs.  Recent statistics have shown that the numbers of families where both sets of parents are in the workforce have increased.  There has also been an increase of single parent households, who face even more challenges when trying to balance their careers and family life.  

The increase in the percentage of women working or looking for work began after World War II and it has been one of the most substantial social and economic trends in U.S. history. During the 1940’s, women made up 28% of the workforce which rose to 40% by 1966 and 51% in 1979 which has continued to increase steadily throughout the years. The US Department of Labor reports that women currently make up about 57% of the workforce.

Unlike in the past, research suggests that more married women are participating in the workforce largely in response to the increase in the labor market opportunities, not in response to the decline of their husbands’ jobs. Other factors that have influenced women’s decision to seek employment include the need for a second income to keep up with the rising cost of living, the changed attitudes about a woman’s role in the family, and reduced workplace discrimination against women. The income that a woman brings to the household has become an important part of the family income.  Almost one out of 4 married women earns more than her husband.  This is expected to increase, as women continue to break the “glass ceiling” and partake in executive roles within their organizations.  

The need for affordable child care is an obstacle for most women who are trying to return or enter the workforce after having a child.  According to the U.S. Department of Labor, 10 to 20 percent of nonworking mothers with young children do not seek employment because child care is not available or affordable. In fact, about 20 to 25 percent of employed mothers would work longer hours if they did not have childcare constraints.  However, childcare problems do not end once children start school. Once, children go to school is more difficult to arrange for childcare because it’s usually needed partially throughout the day, either before school begins or after school is released.

Childcare Options

The options for working parents are very limited to what is affordable and reasonable. One of the most common options is to have one of the parents to stay at home and care for the children.  This is a difficult decision because most families in the state of NJ rely on two working parents in order to provide for their family.  Usually, women are the ones that will sacrifice their careers to stay at home and raise the children.  Another option is to pay for a third party to take care of the children for 8 hours every day. When parents decide to pay for childcare it becomes the highest budgeted expense for the entire family. In New Jersey, it can take up to 24% of a two parent household salary per child.  Caring for an infant child in a licensed child-care center can cost on average $11,000 to $14,450 a year.  For toddlers and preschoolers, the cost ranges from $9,000 to $11,000.  Another option available is to use the federal- or state-funded child care centers such as Head Start programs. However, access to these programs is limited due to strict income guidelines. Some families will seek nonstandard hours in order to accommodate childcare either with a family member or the other spouse.

TABLE 5 STATEWIDE MONTHLY CHILD CARE CENTER MARKET RATES

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Fortune 100 Companies

Companies that incorporate child care benefits into their benefit package do so most successfully when its use is reinforced by company culture.  The Fortune magazine ranked the 100 Best Companies to Work For and of the companies on the top 100 list; almost one third offered on-site child care centers.  Companies that made the list included:  Aflac, SAS Institute, Publix Supermarkets, Bright Horizons, Baptist Health South, etc. all of these companies offer child care benefits at a monthly rate lower than the national average.  Nearly a third of Best Companies offer an onsite child-care center. Here are 10 with the lowest monthly rates for a 3-year-old to attend.