Employers considering implementing child care assistance programs face various challenges. Many of these challenges can be overcome with careful planning and coordination.

Dealing with Expectations

Many employers worry that, in the process of considering child care assistance programs and policies, they will raise employees' expectations about the possibility of new benefits beyond what the company is able to provide.

Involving employees early in the planning process and clearly communicating the intent of planning and exploration activities can help alleviate these concerns. Presenting assessments and other planning tools in as neutral a way as possible will also help to avoid raising employees' expectations before any decisions have been made.

Equitability of Employer-Sponsored Child Care Programs

Concern that a child care program will not benefit all employees equally can be an issue for a company planning for child care assistance. However, according to recent surveys, companies that have implemented child care programs report that they have received a highly favorable reaction from all of their employees, including those without children.

Employees whose own children are too old to benefit from child care often say that they wish they could have had such a program when their children were young. Employees without children often welcome child care assistance as a benefit they could use in the future. Elder care programs and services help to "round out" services provided to the whole family.

Equity can be improved through flexible benefit plans that allow all employees to select benefits that are most appropriate for their individual family needs. For example, allowing employees to use sick or personal leave to care for a sick child, spouse, or elderly parent benefits a broader range of employees.

Applicability

Some employers wonder why they should establish a child care assistance program if relatively few of their employees have young children. Yet in the current labor market, skilled workers are in short supply. An employer-sponsored child care program can help to fill vacant positions and it can also build staff morale and loyalty, creating the stable workforce needed by all successful businesses. Offering child care assistance can also expand the potential pool of employees by bringing into the labor force those who otherwise would be unable to work.

On-Site Daycare Liability Concerns

Liability and the cost of insurance is another concern of employers. However, liability insurance for employer-sponsored child care services is both available and affordable, and should not be a barrier to employer-sponsored child care.

The extent of your involvement with child care services is a key factor in determining liability considerations. For example, liability issues are limited if you are only providing educational materials or connecting employees with a referral service.

An on-site or near-site daycare center will raise different liability considerations. Fortunately, most well-run daycare centers employ policies and practices that eliminate the potential for high risks. In fact, your business may already have adequate liability coverage for an on-site daycare center. Another way to reduce liability risk is by having another organization operate the center. As with any insurance policy, you should thoroughly review your liability risks and research insurance options to ensure that your coverage meets your particular needs.

Costs of Employer-Sponsored Child Care Programs

The cost of child care assistance varies according to the type of program provided. Resource and Referral services provided by a community agency are relatively inexpensive. Offering a child care assistance spending account involves minimal administrative costs that are often recovered in savings in federal income and FICA taxes. On the other hand, establishing an on-site daycare center requires a significant level of investment.

Questions of costs often can be answered by conducting a cost-benefit analysis that compares the costs of various child care options to the savings realized in reduced turnover and absenteeism and lower recruitment and training expenses. As many companies have found, investments in dependent care can yield large benefits

Ultimately, there are child care options available at every level of investment that can be tailored to your business's goals, your employees' needs, and the needs and resources of your community.

Source: Child Care Partnership Project