Family Friendly Hr Practices, Achieving Work Life Balance

...

Company

Best Companies rank

Monthly rate

Publix Super Markets

78

$130

SAS Institute

3

$410

Bright Horizons Family Solutions

83

$485

Aflac

77

$490

Chesapeake Energy

18

$560

Men's Wearhouse

55

$600

Meridian Health

96

$632

Baptist Health South Florida

42

$672

USAA

20

$680

Atlantic Health

65

$756

Child Care Benefits

One solution to employee problems involving childcare is employer-sponsored childcare benefits, which is similar to offering health benefits if not more important for some. Care programs could include on-site or near-site child care, back-up care, sick childcare, non-standard hours care, resources/referrals as well as tuition discounts and reimbursements. The specific employer-sponsored childcare program that will be further explored is Subsidized Child Care.

Subsidized Child Care Benefits refers to a condition in which an employer, a group of employers, or a labor union takes some initiative in meeting employees’ child care needs and accepts some or all of the cost. Providing employees with subsidized childcare does not only benefit the employee, but the employer as well. By offering affordable and high quality childcare to the employees, the employer is eliminating a significant source of worry and stress to the employee. The final result is employees who are willing and able to put their best performance for your company every day. The following information highlights the impact that the center will have on both ends.

Employer

- Providing on-site child care will increase the employee’s loyalty towards the organization.

- Child Care will provide tax breaks. The employer is able to deduct up to 30% of the startup cost of constructing a child care facility.

- An employer can deduct up to 10% of its gross taxable income as a charitable contribution to a child care program.

- Many employees will stay and as a result, the company will be able to retain and recruit key talent.

- Providing childcare to the employees will encourage productivity and boost morale.

Employees

- Employees will need to commute less and tardiness will be reduced.

- It will lower the employee’s financial responsibility.

- Employees will have a feeling of job satisfaction and it will reduce turnover.

- It will decrease absenteeism, which affects daily p productivity.

- Most importantly, it will decrease stress among employees.

Subsidized Child Care Program Design

Based on the company’s strategy which is to continue growing to ensure they will remain the leaders in the beauty industry and their corporate culture which is to maintain a respectful relationship within the members of their company. Proposing a subsidized child care for its employees would align with its business strategy because the implementation of a subsidized childcare program is shown to be profitable after a period of five years and as importantly the employee feels appreciated.

Program Implementation

Collect data to determine need – Create a panel to collect data on the need for this benefit. Data can be taken from exit interviews, through recruitment and from other sources such as employee surveys. The team can consist of Human Resources managers, employee committee, operational manager and finance manager. Outside consultants who are experts in similar projects.

Determining Success Factors – Determine a standard that can be measured. What is considered a successful launch of this benefit for example: increase in profit, reduced absenteeism, reduced turnover rate, increased productivity?

Complete Research and Determine Investment Cost

The first step to determine if investing in a childcare facility would save the company money was to determine the cost of replacing an employee as the result of turnover due to childcare conflicts. Research shows that it costs a company 150% the annual salary of an exempt employee and 75% of the wages of a non-exempt employee to be replaced.

To take this further assuming out of 2,000 employees at a particular compnay, 20% are considering leaving the company to manage work and personal life. If the 400 employees actually leave, and they are made of 70% exempt and 30% non-exempt, it would cost an estimated 35,100,000 to replace. Assuming the average annual salary is 75K for exempt employees and the average salary for non-exempt is 40k.

75,000 x 1.5 = 112,500 per exempt employee

40,000 x .75 = 30,000 per non-exempt employee

280 exempt employees x 112,500 = 31,500,000

120 non-exempt employees x 30,000 = 3,600,000

Total Cost is 35,100,000

The second step is finding out

...