New realities in the corporate workplace: child care in the nineties.

Introduction

United States businesses lose $3 billion annually from child care-related absences, according to the Child Care Action Campaign (Employee Benefit Plan Review 1991a). IBM is probably typical of many large companies: nearly 60% of its employee population is dual income, 30% are women, and 30% have an elder care need. Companies such as IBM and GE Aerospace feel they have an edge in attracting and retaining high-quality employees with such benefits as flexible scheduling, leaves of absence, temporary part-time work arrangements, assistance in obtaining appropriate child care, and work-at-home arrangements. Such companies see these kinds of benefits and work-life programs greatly enhancing motivation, productivity, and employee loyalty (Employee Benefit Plan Review 1991a, 1991b). However, relatively few companies have this enlightened perspective.

During the 1990s, two out of every three workers will be women. By the year 2000, experts project that 80% of women from ages 25 to 54 will be employed, composing nearly half of the paid labor force (Yalow 1990). Another survey indicates that in the 1990s an estimated 12 million children under age six will have both parents or their only parent working (Colgate 1990). As a result of these demographics, child care in the 1990s will become a critical concern for any corporation intent on remaining competitive in the marketplace.

Child care affects the workplace because problems with child care can contribute to absenteeism and low productivity. A survey of employee-supported child care in the U.S. shows that corporations that address the child care issue have seen lower absenteeism, higher employee retention, various recruitment advantages, higher employee morale, and a better corporate image (Monthly Labor Review 1988, Bischoff 1990, and Thomas and Thomas 1990). In spite of these benefits, only 3,000 of 6,000,000 businesses (0.05%) in the U.S., predominantly large corporations and public agencies, offer employees any type of child-care assistance (Levine, 1989).

There appears to be a consensus that as more women enter the workforce, child care will become more important to a corporation's ability to compete. According to Ewing (1990), corporate and government policies have not kept up with changes in society. Creative answers are needed. Funding for such activities must come from parents, based on their ability to pay, and from government and businesses. Also, information and referral sources will need to be expanded.