Corporation |
Cost: Year 1 Operating Support |
Published Study |
| Lost Arrow Corporation Ventura, California |
Return on Investment (ROI): $1:$1 $247,000 saved in shorter maternity leaves and reduced training costs |
Internal Unpublished Study |
| Lancaster Labs Lancaster, Pennsylvania |
Retention: 98% of women on maternity leave returned since opening an on-site child care center. Turnover: 38% lower than industry average |
National Report on Work & Family Conducted April 13, 1990 |
| Virginia Mason Hospital Seattle, Washington |
Turnover: Reduced by 22% Estimated Value: $866,000 |
National Report on Work & Family Conducted April 13, 1990 |
| St. Luke Rush Presbyterian Hospital Chicago, Illinois |
Retention: 85% of center users retained |
Internal Study |
| Baptist Memorial Hospital Gadsden, Alabama |
Since opening its 24-hour a day, 7 days a week on-site child care center all of its nursing positions have been filled which it found notable during the nursing shortage. The hospital has drawn nurses from other cities |
Los Angeles Times Conducted November 7, 1992 |
| Methodist Hospital Lubbock, Texas |
11 out of 100 employees with children in its on-site center would have left the hospital if it were not for the center |
Wall Street Journal Conducted November 15, 1991 |
| Arnold & Porter Washington D.C. |
Absenteeism: Saved $400,000 in its first year of operation of an on-site emergency child care center |
Working Mother Conducted June 1991 |
Source: Burud & Associates
It costs 75% - 150% of the average annual salary to replace a working parent.
Source: Friedman, Dana, et al.,Parental Leave and Productivity: Current Research, Families and Work Institute, 1992
Do These Programs Benefit Employers as Much as Employees?
- 10 years of research done by the Ford Foundation shows that family-friendly policies and programs reduce stress and absenteeism and improve morale.
- Aetna has experienced a 14% (from 77 to 91%) improvement in retaining its highest performers after the implementation of family-friendly policies.
- Commerce Clearing House documented hidden costs savings of unscheduled absences ranging from "...$45,000 for small firms to more than $1.5 million for companies with up to 5,000 employees".
- GMAC Mortgage company found that family programs improved profitability through decreasing lateness, unplanned absenteeism, and turnover while also enhancing it's image.
- Emergency or back-up care cut absences and increased productivity for Putnam Companies of Boston, MA.
- Fel-Pro, Inc. of Skokie, Illinois with a Chicago University study found family-friendly programs were "instrumental in reducing turnover".
- The Benjamin Group, Campbell, California has found that retaining employees through family-friendly programs has saved the company $20,000 for each employee that they do not use a head-hunter's service (which is 97 percent of the time).
- Chase Manhattan Banking estimates a savings of $800,000 per year in absenteeism costs saved by a back-up child care center.
- Cigna (Health Care, Insurance, and Financial Services) estimates that their prenatal education program has saved the company $2.5 million in medical costs, and their corporate lactation program has significantly cut sick days for both moms and babies. They have also seen a 27% drop in absenteeism for mom's illnesses as will as a 36% decrease in absenteeism for infant illnesses.
Working Mother's Magazine, 100 Best Companies for Working Mothers,October 1999
Balancing Work and Family: Working with Your Employer, North Dakota State University, NDSU Extension Services, http://www.ext.nodak.edu/extpubs/yf/famsci/fs514w.htm
Source:Child Care Partnership Project