On Site Daycare

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1 On-Site Daycare Student’s Name Course Institution Topic: Should there be On-Site Daycare as part of Employee Benefits? Executive Summary One of the commonly overlooked struggles by many employers in the current times is the struggle that working parents go through to find affordable, reliable, and convenient childcare services. In fact, only 9% of the companies in the US provide on-site childcare to their employees. Today, whether by circumstance or choice, many parents around the globe work. Although many parents make an effort to choose a nurturing and safe environment, many of the childcare facilities in the US are expensive with many low-income parents unable to afford them. In this regard, childcare has emerged as one of the major expense and cause of stress for working parents which in turn affects their productivity in the workplace. Therefore, to counter this growing problem, many companies have opted to establish on-site daycare facilities, which benefit both the employer and employee. Some of the benefits of such a program are that it helps in retaining and attracting employees, promotes convenience and flexibility, creates good morale, reduces absenteeism, offers emotional security, improves productivity, and increases employee satisfaction. Besides, employers stand to gain from this program through tax deductions, increase employee loyalty and publicity. However, when establishing on-site child care, many employers face many obstacles such as increased liability for potential child injuries, local licensing laws, vetting of the childcare providers, and ensuring that there are sufficient utilities and space for the

2 children among other factors. To counter these challenges and make the program more effective, it is recommended that all daycare employees must go through extensive background checks and have the relevant certification for nurturing and protecting children. In addition, with proper procedures and policies in place, the benefits that this program provides can be very rewarding for the business owner, child, and parents. Introduction In today’s society, working parents usually struggle in achieving a work-life balance. It is crucial to note that employees are not simply workers but also people who have personal lives. Since personal lives greatly affect workplace productivity, commitment, and morale of employees, employers should seek to offer benefits that support working parents. One of the commonly overlooked struggles by many employers in the current times is the struggle that working parents go through to find affordable, reliable, and convenient childcare services. Despite this fact, offering childcare services at the places of work has remained an underrated solution to this menace. In fact, only 9% of the companies in the US provide on-site childcare to their employees (Gaidhani 78). For example, Google Company established two-day care centers within its premises with the ability to host up to two hundred children each. The daycare program was able to meet the demands of the working parents for affordability and convenience. According to available studies, both the employee and employer stand to gain from the establishment of the on-site daycare program. For instance, the employees are able to achieve the affordability and convenience of child-care services and the employers are able to gain bragging rights of awarding the employees with extra incentives. When a company invests in its human resource, its most crucial asset, there are higher chances for the company’s success (Gaidhani 82). Therefore, the research seeks to explore whether companies should incorporate on-site

3 daycare programs as part of employee benefits, the pro-and counter-arguments for this program, and provide recommendations for improving the effectiveness of this program. Problem Statement Today, whether by circumstance or choice, many parents around the globe work. With childcare being one of the main functions of a family, many working parents are left looking for childcare services. According to the Bureau of Labor Statistics, more than 60% of the children in the US have both their parents employed. Gone are the days when many of the mothers would just stay home taking care of their children and other domestic duties (Snyder et al. 365). Instead, today’s modern women have opted to join the workforce, pulling the double duty as both employee and mother. Therefore, this makes childcare a necessity for these working parents. When selecting childcare services, these parents usually consider the cost, the level of communication between them and the childcare facility, and convenience. Although many parents make an effort to choose a nurturing and safe environment, many of the childcare facilities in the US are expensive with many low-income parents unable to afford them (Snyder et al. 367). In this regard, childcare has emerged as one of the major expense and cause of stress for working parents which in turn affects their productivity in the workplace. To counter this problem, many organizations have started to offer on-site childcare services for the employees as a means of reducing turnover rates and improving productivity. Through the on-site daycare program, working parents will be able to experience greater reassurance and peace of mind in knowing that their children are safe, well-taken care and nearby them in the same facility. Besides, this program provides parents with greater convenience since they do not have to transport their children to a different location hence able to arrive on time at work achieving maximum productivity. Through an on-site daycare program,

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4 key issues and concerns will be addressed including the increasing number of families that have both parents working (Ratnasingam et al. 401). Today, many parents seek to become income earners to help maintain and sustain the current unbearable living standards. This in turn has left many working parents with little or no time for the children. Another alarming issue is the increasing number of employees who are single parents. For instance, available statistics show that single parenting is on the rise with about 34% of children being raised by a solo parent (Ratnasingam et al. 24). For such parents, childcare costs sometimes even exceed their annual incomes. Thus, single parents, widowers, and widows all have to work extra hard and long hours to sustain their families. Without the help of friends or family members, such parents usually go through a tedious and long process of choosing the correct house help or nanny to help them in the childcare services. Many companies have consequently lost many qualified and experienced candidates since some are forced to choose between career and family. Considering all these facts, a daycare program at work is one of the overlooked solutions to the critical issues that working parents face. Therefore, as personal and work time become more integrated, it is imperative that employers consider programs that will ensure the work-life balance is maintained Discussion (Pro and Counter Arguments) Today, many organizations have come to realize that the benefits of having an on-site daycare program as part of employee incentives have more benefits compared to the costs and liability of operating this program. Since human resource is a great asset and success factor for all companies, many usually strive to hire the best employees in the market. Many job seekers usually base their employment preferences on the nature and type of benefits that the employer is offering particularly on-site care (Mayhew). Therefore, one of the pro-argument towards having a childcare facility at the workplace is that helps in retaining and attracting top talent. According

5 to a survey conducted by Bright Horizons, 93 percent of the parents pointed out that having an on-site daycare at the workplace weighed into their decision on whether to accept the job offer or not (Mayhew 12). In other words, this program has become a huge deciding factor for many working parents. Additionally, in the Fortune 100 best companies to work for, 25 employers out of those in the top 100 usually offer on-site child benefits to their employees. Consequently, this could be one of the main reasons why these companies are considered the best to work for (Mayhew). Therefore, offering childcare today can be a competitive advantage and the best way of attracting the best talent in the job market. The second pro-argument for having on-site daycare is that it improves productivity and reduces absenteeism. According to available studies, one of the frequent reasons that many employees give why they cannot make it work is related to childcare. Some point out that the childcare arrangements they had failed or they have a sick child who cannot go to the regular daycare facility. Although on-site centers may have some of the same rules about contagious illnesses and sick children, working parents who have unreliable childcare providers can tremendously benefit from an on-site provider (Trautner 23). By reducing the incidences of employee absences, the company is able to save millions of dollars annually. Besides, reduced absenteeism results in improved productivity. For instance, according to a recent survey conducted by Bright Horizons, a company that has on-site daycare centers results in more than 90 percent of the parents reporting increased productivity and concentration on the job (Trautner 32). This is because; the attention of the employee is on the work and not worried about their children’s welfare or safety. Trautner, further points out employers who sponsor childcare benefits usually record increased productivity, reduced turnover and absenteeism, and improved employee morale. When an employer offers childcare benefits, it shows that they value the work-

6 life balance of the employees enough to set a convenient onsite babysitter. This in turn makes employees feel appreciated, values, and most importantly motivated. The third argument why many people are advocating for on-site daycare is that it offers employees’ great flexibility and convenience that otherwise could not have been possible. In the current economy, money has become tighter than ever before and working parents have to find ways to reduce expenses including those involving childcare services. Therefore, having on-site daycare services can be a great relief for many working parents. Some companies offer these services free while others provide them at reduced costs up to 50 percent off the regular prices charged in outside daycare services or even employing a nanny (Trautner). For instance, according to a research study conducted, the majority of employees are willing to pay on average between $125 and $225 annually so that that they can subsidize the on-site daycare services whether or not they have young kids (Okerglicki and Katy 44). This shows that many employees want their colleagues who are parents to be productive and available as much as possible, which in turn will make all employees more productive. Besides, through an on-site daycare, parents are assured of quality services and save them the drop-off time. Notably, it allows parents to commute together with children to work and spend break and lunchtime together if they choose hence minimizes the time they spend apart. In general, it is evident that on-site childcare benefits both the employer and employee. Despite the many pro-arguments about the need to have an on-site daycare program, there are some counter-arguments against this program. One of the arguments against the provision of on-site childcare is the high cost associated with running this program. A common concern among all organizations is the high cost of operating a full child service center on-site (Okerglicki and Katy). Staffing costs, materials, insurance, rent, and furniture can be

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7 overwhelming for some companies but the rewards of productivity can also be enormous. The high costs associated with this program are due to the simple fact that a company that is not in the business of providing daycare services as part of its routine service has to outsource this function. Setting up a childcare facility is a very expensive venture for many employers especially considering different factors such as the costs of building a separate facility, hiring child development experts, and monitoring the insurance costs (Okerglicki and Katy 63). Therefore, the only way some companies can sustain the on-site childcare program is by passing along some of the associated costs to the employees. The second argument against the establishment of workplace nurseries is that it results in destruction at the workplace. For some working parents, having their children so close to them can be very distracting. The frequent visits by the parent to the daycare facility during working hours can negatively affect work productivity as well as hurt the opportunity of a child to establish relationships with other children (Mayhew). When children are on-site, many parents usually are unable to resist the temptation of looking in on their children at coffee breaks, lunch breaks, or with any excuse, which a distraction. We all know that children can be handfuls they have behavioral issues, feel unwell, or get hurt during the course of the day. Such occurrences might distract the parent from working. It is crucial to note that when parents leave their parents in other daycare facilities, they may have no idea that anything wrong happened during the day. However, having parents nearby, it would be tough for an employer to deny a parent permission to take a child home who is screaming in the facility. Another argument against the on-site daycare program is that it comes along with many liabilities for the employer. There are various unforeseen liabilities for having childcare centers on the premises. The licensing requirements and sponsoring of licensed professionals to run the

8 facility can be difficult for many employers. In addition, if any liability issue arises, the employees are more likely to blame both the childcare worker and the employer hence destroying the employee-employer relationship (Okerglicki and Katy 72). While the liability and costs of having an on-site daycare can be discouraging, the benefits that the business can derive from this program are overwhelming. With procedures and policies in place, the benefits that this program provides can be very rewarding for the business owner, child, and parents. Furthermore, having children in the workplace can add cheer and energy. Recommendations In today’s competitive job market, on-site childcare has emerged as one of the resilient benefits that many companies have started to offer. However, the cost, infrastructure as well liability involving in having a childcare facility is enormous. Therefore, to improve the effectiveness of the on-site childcare program, an organization must come up with procedures and policies on how the whole program will be run. For instance, to avoid distractions, the company may require parents to see their children during tea and lunch breaks only or prohibit such visits altogether. Notably, to avoid the possible legal issues that may arise from having an on-site daycare facility such as possible injuries, kidnappings, and employment contracts, the company must establish some rules. For example, all daycare employees must go through extensive background checks and have the relevant certification for nurturing and protecting children. Besides, companies should seek to collaborate with other childcare providers through in-house center services or a center near the office. Alternatively, the company can offer backup childcare arrangements or subsidies (Rife and Rosalie ). If subsidies are not a viable option, a company can create a caring work culture through small gestures that support the working parents. For instance, the company may establish new policies that allow for more flexibility and

9 create a working environment where the parent feel valued and supported to advance their careers. It is imperative that a company ensures that working parents do not feel torn between being a good parent and a good employee. Having both in the current busy world is not only an option but also a necessity for an outstanding culture and workforce Conclusion In conclusion, the most valuable asset and resource for any company is its human resource. Therefore, to ensure that companies maximize the potential of their employees, they must secure attractive incentives for their workers. Such incentives may include establishing an on-site childcare center that brings children closer to their parents. Some of the benefits of such a program are that it helps in retaining and attracting employees, promotes convenience and flexibility, creates good morale, reduces absenteeism, offers emotional security, improves productivity, and increases employee satisfaction. Besides, employers stand to gain from this program through tax deductions, increase employee loyalty and publicity. However, this program has some drawbacks in that it is associated with high cost, the distraction of working parents, and unforeseen liabilities, Therefore, although these can be discouraging, the benefits that a company can derive from this program outweigh its costs and liability. With good procedures and policies in place, having daycare matters more to working parents in ways that other perks cannot. Thus, having an on-site daycare center is not just the right thing for a company but also a smart thing that has many long-term benefits.

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10 Work Cited Gaidhani, Shilpa. "Employer-Sponsored Childcare Program: A New Fringe Benefit." International Journal for Advance Research and Development 3.3 (2018): 78- 85. Hixson-Somanchi, Stephanie LaRae. "Working Mothers' Decisions, Experiences and Feelings about using On-Site Childcare." (2010). Mayhew, Ruth. "The Advantages & Disadvantages of Flexible Staffing." Bizfluent , 2017, bizfluent.com/info-8627792-advantages-disadvantages-flexible-staffing.html Okerglicki, Crystal, and Katy Stangl. "Parents’ Attitudes towards On-site Child Care." Journal of Student (2012): 72. Ratnasingam, Prema, et al. "Can on-site childcare have detrimental work outcomes? Examining the moderating roles of family supportive organization perceptions and childcare satisfaction." Journal of Occupational Health Psychology 17.4 (2012): 435. Rife, Alison A., and Rosalie J. Hall. "Work-life balance." Society for Industrial and Organizational Psychology 4 (2015). Snyder, Rebecca A., et al. "The case for on-site child care in residency training and afterward." Journal of graduate medical education 5.3 (2013): 365. Trautner, Tracy. "Child Care in the Workplace." MSU Extension , 14 Sept. 2016, www.canr.msu.edu/news/child_care_in_the_workplace

On Site Daycare

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