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Employer-Supported Child Care

Employers support the child care needs of their employees through a variety of strategies including offering "dependent care assistance plans" to help employees pay for child care with pretax dollars; providing information to assist employees to find child care in the community; offering child care at or near the worksite; and providing cash vouchers or other subsidies directly to employees to assist in child care costs. The following is a sample of national organizations and publications with information about employer-supported child care.

National Organizations

  • Families and Work Institute (FWI)
    267 Fifth Avenue, Floor 2
    New York, NY 10016
    212-465-2044
    World Wide Web: http://www.familiesandwork.org

    FWI is a nonprofit research and planning organization committed to developing new approaches for balancing the changing needs of America’s families with the continuing need for workplace productivity. FWI conducts policy research on a broad range of issues related to the changing demographics of the workforce and operates a national clearinghouse on work and family life.
  • Military Family Resource Center (MFRC)
    Department of Defense (DoD) Office of Family Policy
    CS4, Suite 302, Room 309
    241 18th Street
    Arlington, VA 22202-3424
    703-602-4964
    World Wide Web: http://www.mfrc-dodqol.org

    MFRC is a tool for enhancing the effectiveness of military family policy and programs. MFRC’s mission is to act as a catalyst of information between the DoD Military Community and Family Policy (MCFP) office and military policy-makers and program staff and to deliver timely, efficient, and effective information services through cutting-edge technology. The DoD military child development system (CDS) provides services for the largest number of children on a daily basis of any employer in the United States. Military child care is provided in 800 centers in over 300 geographic locations, both within and outside of the continental United States. MFRC houses the National Clearinghouse for the Military Child Development Program, which was created to share information on military efforts with the civilian community, as well as to facilitate efforts within the military community. It has information on military model programs and initiatives; legislation, policies and guidance; and other research and resources. An overview of the Military Child Development System is available on the Web at http://www.mfrc-dodqol.org/MCY/mm_cdc.htm.
  • Work & Family Connection, Inc.
    5197 Beachside Drive
    Minnetonka, MN 55343
    800-487-7898 or 612-936-789
    World Wide Web: http://www.workfamily.com

    Work and Family Connection is a clearinghouse of information about work-life issues and practices. Its Web site has information on child care, emergency and sick care, telecommuting, and job sharing. "FAQs: Employer-Supported Childcare" is available on the Web at http://www.workfamily.com/open/FAQ_childcare.asp.

Publications

  • 100 Best Companies for Working Women” (October 2004), in Working Mother, identifies companies that are “family friendly.” Many of these offer on-site child care or child care resource and referral (CCR&R) services. This information is available on the Web at http://www.workingmother.com/bestlist.html. Additional information about this survey is available on the Web at http://www.workingmother.com/100BEST_2004.html.
  • The Real Savings From Employer-Sponsored Child Care: Investment Impact Study Results (2003), by Bright Horizons, summarizes the results of the Investment Impact Study, which examined if differences exist between center users and the overall workforce population in terms of retention, retention of key employees, and the advancement of women. The study then calculated the investment impact of these differences. In addition to the benefits of cost savings, the study found a number of ways in which child care centers generated a positive impact for employers. This resource is available on the http://www.brighthorizons.com/investstuduies/Investment%20Impact.FINAL.pdf. For additional information about the Investment Impact Study, contact Debbie Cohen, at (408) 261-2727 or dcohen@brighthorizons.com.
  • "Employer Child Care Growth Slows with the Economy–Status Report #13 on Employer Child Care" (September/October 2003), in Child Care Information Exchange, by Roger Neugebauer, discusses the impact of the recession on the growth of employer child care. For additional information, contact Child Care Information Exchange at 800-221-2864 or on the Web at http://www.ccie.com.
  • Business and Early Care and Education: A Review of Engagement Strategies and a Connecticut Case Example (June 2003), by Janice M. Gruendel, Harry Orlick, and Abby Kantor, Connecticut Voices for Children, reviews and summarizes business engagement with family-work issues as well as with school readiness programs, and presents case examples for each of six categories of involvement. The report concludes with a brief review of early care and education-related business engagement in Connecticut. This resource is available on the Web at http://www.ctkidslink.org/publications/ece03Business06.pdf.
  • "Employer Child Care Growth Slows with the Economy–Status Report #12 on Employer Child Care" (September/October 2002), in Child Care Information Exchange No. 147, by Roger Neugebauer, discusses the impact of the recession on the growth of employer child care. For additional information, contact Child Care Information Exchange at 800-221-2864 or on the Web at http://www.ccie.com.
  • The True Cost of Quality Child Care: Financing Strategies for Silicon Valley (July 2002), by the Local Child Care Planning Council of Santa Clara County (LPC), focuses on what financing would be necessary to fund the true cost of quality care through licensed child care options. The report establishes what funding is utilized in Santa Clara County to finance child care, develops a preliminary analysis of the true cost of quality child care in the county, and estimates the funding "gap" between the true cost of care and current funding available. In discussing employer-sponsored child care, it states:

    Santa Clara County has only a small number of employers that contribute to their employees’ efforts to find and afford child care. Examples of local employers offering child care benefits follow.

Santa Clara County Employers

Assistance Provided

Cisco Systems,
San Jose

Cisco Family Connection provides on-site child care for its employees. The center, with a capacity for 400 children, provides full-time, part-time, and extended hours, back-up care, and summer and holiday programs.

Intuit Inc.,
Mountain View

On-site child care.

Sun Microsystems,
Palo Alto

On-site child care.

Santa Clara Valley Medical Center,
San Jose

On-site child care.

Adobe Systems,
San Jose

Dependent Care Reimbursement Account- Set aside up to $5,000 pre-tax per calendar year for qualified day care expenses. Adobe provides a nontaxable $100 per month gift if you elect coverage and have children under age 12 in day care

Apple Computer, Cupertino

Offers FlexBenefits, providing FlexDollars to purchase basic benefits including help employees pay for child care costs.

Hewlett-Packard, Palo Alto

Child Care Resource and Referral services and Work/Life programs.

Intel,
Santa Clara

Child Care Resource and Referral services and Work/Life programs.

Mentor Graphics,
San Jose

Near site child care for children age 8 weeks to 5 years old. Dependent care referral program.
(pages 19-20)

This resource is available on the Web at http://www.childcareoptions.org/pdf/True-Cost.pdf.

  • Making Ends Meet: A Guide for Business Leaders and Policymakers (June 2002), by Nisha Patel, Mark Greenberg, Steve Savner, and Vicki Turetsky, Center for Law and Social Policy (CLASP), provides general background on six work support programs: the Earned Income Tax Credit, child care, Food Stamps, health care, Temporary Assistance for Needy Families, and child support. For each, they offer a brief overview description of the program, information about how it helps promote family financial security and employment retention, and evidence about barriers to participation among eligible workers. The Appendix offers resources for business leaders and policy-makers about where to go for more information about strategies to encourage participation in each program. This resource is available on the Web at http://www.clasp.org/DMS/Documents/1023218370.89/Making%20Ends%20Meet.pdf.
  • Taking Care: An Employer’s Guide to Child Care Options (2002), by Elizabeth Cushing Payne, Judith David Bloomfield, Hollace Veldhuis, and Amanda Walsh, the Bay Area Employer Work & Family Association, provides information about programs that reserve slots in local child care centers and develop on- or near-site child care centers, including sick and school-age care. This guide is divided into four sections: "The Business Case;" "Key Considerations;", Profiles of Employer-Sponsored Child Care Programs;" and "Strategic Tools." Sample employee and community needs assessments are provided. The overview is available on the Web at http://www.onesmallstep.org/TakingCare.pdf. The complete publication is available from One Small Step: The Bay Area Employer Work and Family Association at http://www.onesmallstep.org/OSS_publications.html.
  • "Employer Supports for Parents with Young Children" (Spring/Summer 2001), by Dana E. Friedman, in Future of Children, examines the supports that employers provide to help parents with young children juggle demands on their time and attention. It reviews the availability of traditional benefits, such as vacation and health insurance, and describes family-friendly initiatives. The following table has information about companies that support child care:

Table 2: Employer Work/Life Programs Vary by Company Size

Percentage of Companies Offering the Program

Employer Program

All Companies with 100+ Employees

100 to 250 Employees

250-999 Employees

1,000+ Employees

On-Site Services

9%

7%

5%

18%

	Child care center

4%

3%

3%

8%

	Backup child care

5%

4%

5%

9%

Child care resource and referral (ccr&r)

36%

24%

39%

50%

Broad Child Care Supports

        

	Community contribution

9%

6%

9%

13%

	Public/private projects

11%

16%

7%

9%

(page 70)	

This resource is available on the Web at http://www.futureofchildren.org/usr_doc/vol11no1ART5%2Epdf.

  • "Report from the Field: The Military Child Care Connection" (Spring/Summer 2001),in Future of Children, by M.A. Lucas, describes the military’s approach to providing flexible, high-quality, affordable infant and toddler child care. This resource is available on the Web at http://www.futureofchildren.org/information2827/information_show.htm?doc_id=79402.
  • Illinois Child Care: Options for Employers (2001), by the Illinois Department of Human Services and the Illinois Network of Child Care Resource and Referral Agencies, outlines available options for assisting employees with child care and provides agency and organizational contacts who can provide technical assistance to employers throughout the process. The introduction is available on the Web at http://www.commerce.state.il.us/doingbusiness/First_Stop/empintro.pdf. Additional chapters are available on the Web at http://www.commerce.state.il.us/doingbusiness/First_Stop/empinterior.pdf.
  • Bringing Business to the Table: A Stakeholders Roundtable (2001), by Child Care Action Campaign (CCAC), sponsored by the Claremont Graduate University, describes proceedings from a working meeting on involving business in systematic child care solutions. It includes examples of business leadership, describes barriers and challenges to engaging business, and highlights numerous initiatives from around the country where business is actively engaged and where improvements in the early care and education system have been accomplished. The Greater Kansas City’s regional early education initiative is described in detail as a model initiative. Additional information on organizations and initiatives is available in the appendix to the proceedings. This resource is available on the Web at http://www.cebcglobal.org/WorkLife/Reports/BringingBusinessToTheTable.pdf.
  • Smart Solutions: Helping Your New Workers Meet Their Child Care Needs (2000), by the Welfare to Work Partnership, notes that the child care dilemma is nearly universal for working parents, but it is especially challenging for welfare recipients. It suggests a wide variety of child care benefits and supports that employers can offer their employees, including some that can be implemented solely within a company and some that are part of a larger community initiative. This resource is available on the Web at http://www.welfaretowork.org/publications/smart%20solutions/Helping%20Child%20Care%20Needs.pdf.
  • Other Incentives for Employer-Supported Child Care Enacted Legislation (February 2000), by the National Conference of State Legislatures (NCSL), describes State legislation in Arkansas, California, Florida, Maine, Nevada, Oklahoma, and South Carolina. This resource is available on the Web at http://www.ncsl.org/programs/cyf/ccincent.htm.
  • Labor’s Role in Addressing the Child Care Crisis (December 1999), in the Working Paper Series, published by the Foundation for Child Development, Labor Project for Working Families, includes detailed appendices that provide examples of successful union achievements in working with employers on child care issues, including collective bargaining strategies for child care, action plans for pursuing them, illustrations of their implementation in many parts of the country, and recommendations for increasing union activism on child care issues. This resource is available on the Web at http://www.laborproject.org/publications/pdf/wp1.pdf.
  • "It’s Good Business to Invest in Child Care" (1999), in Engaging Business Partners: An Employer Toolkit Template, by the Child Care Partnership Project, describes benefits to employers from investing in child care including boosting recruitment, dampening turnover, lowering absenteeism, increasing productivity, and strengthening the image of the business. This resource is available on the Web at http://nccic.org/ccpartnerships/resource.htm#toolkit.
  • Investing in Child Care: Challenges Facing Working Parents and the Private Sector Response (1998), published by the U.S. Department of the Treasury, discusses what businesses can do to promote access to affordable, high-quality child care for their employees. It notes that a 1995 Conference Board survey found that many companies believe there are substantial benefits from offering child care services, including higher morale, reduced absenteeism, increased productivity, and lower turnover. The report cites successful examples of on-site child care from SC Johnson Wax and Lancaster Laboratories. This resource is available on the Web at http://www.treas.gov/press/releases/docs/chdcare.pdf.
  • The 1998 Business Work-Life Study: A Sourcebook (1998), by Families and Work Institute (FWI), was developed to complement The 1997 National Study of the Changing Workforce. The Sourcebook studies how U.S. companies respond to the work-life needs of their employees. The "Executive Summary" is available on the Web at http://familiesandwork.org/summary/worklife.pdf.
  • The 1997 National Study of the Changing Workforce (1998), by Families and Work Institute (FWI), provides a model for understanding how work, family, and personal life fit together. The "Executive Summary" is available on the Web at http://www.familiesandwork.org/summary/nscw.pdf.
  • Ahead of the Curve: Why America’s Leading Employers Are Addressing the Needs of New and Expectant Parents (1998), by Families and Work Institute (FWI), draws on a wide range of research and incorporates case studies of businesses in the area of family and work. The "Executive Summary" is available on the Web at http://www.familiesandwork.org/summary/curve.pdf.
  • Meeting the Needs of Today’s Workforce: Child Care Best Practices (1998), prepared by the Women’s Bureau of the U.S. Department of Labor, highlights innovative child care practices initiated by employers across the country to address the needs of working parents. The initiatives include on-site child care, and the report highlights some exemplary programs from Trout-Blue Chelan, DuPont Company, and AlliedSignal, Inc. This resource is available on the Web at http://www.dol.gov/wb/childcare/child3.pdf.
  • Reframing the Business Case for Work-Life Initiatives (1998), by Families and Work Institute (FWI), uses a historical perspective to examine the emerging "bottom line" arguments for work-life initiatives as their focus shifts from programs and policies to culture change, the work environment, and connecting with communities. For additional information, contact FWI at 212-465-2044 or on the Web at http://www.familiesandwork.org.

Related Resource

  • “The Strange History of Employer-Sponsored Child Care: Interested Actors, Uncertainty, and the Transformation of Law in Organizational Fields” (November 2003), in the American Journal of Sociology Vol. 109 No. 3, by Erin L. Kelly, published by University of Chicago Press, examines the development and diffusion of two “family friendly” employment benefits: dependent care expense accounts and employer-sponsored child care centers. Using over-time analysis of the adoption of these programs in 389 U.S. organizations, historical research, and interviews with human resources managers, this study demonstrates that organizations added dependent care expense accounts in response to changes in tax law and, in particular, to the creative interpretation by benefits consultants of a seemingly concrete law. This resource is available on the Web at http://www.soc.umn.edu/~elkelly/Kelly2003CCAJS.pdf.

Updated January 2005