Upstate Group releases 2007 Employer Family Friendly Benefit Survey

In Spring 2007, 140 Upstate SC employers completed a comprehensive Family Friendly Benefit Survey.  This survey compared and contrasts upstate employers with employers across the nation, as survey questions were aligned with those conducted by the National Society of Human Resource.   The survey was completed to help employers to identify strategies that they could employ; and, for employers to better understand how they compare with other local employers when considering the family friendly workplace benefits offered to their employees.   

The group conducting the survey, Future Investments in Children, is a taskforce of United Way of Greenville County led by Ann Robinson and Jim Burns.  Organizations participating in this taskforce include:  Bank of America, Carolina First Bank, Center for Community Services, Child Care Resource & Referral of the Upstate, City of Greenville, City of Mauldin, City of Spartanburg, Clemson ICAR, County of Greenville, Greater Greenville Chamber of Commerce, Greenville Area Development Corporation, Greer Development Corporation, Mary Black Foundation, Spartanburg County First Steps, Spartanburg Regional Hospital System Child Development Program, United Way of Greenville County, United Way of the Piedmont and Verizon Wireless.

I.  Identifying the Problem

Parents depend on reliable, affordable child care so that they can work to support their families.  Nationwide nearly 12 million children under age 6 are in some kind of child care setting – two thirds of them are in formal care every week.  In the Greenville Spartanburg Community – 64% of all children under age 6 are in a formal child care setting; and, 73% of children 6 – 12 years old are in a formal after-school setting enabling parents to work.  Our community has seen substantial change in the workforce since 1960 when 42% of mothers with children under 6 were in the labor force. 

Employers and economic developers are faced with new challenges to obtain and retain a quality work force.  Child care and/or dependent care benefits are more common throughout the nation.  Alleviating   the stress related to the availability and affordability of quality child care is the focus of this executive summary – as, our community strives to be a community of change and meet the needs of a global workforce.
  
II. Spotlight on the Upstate Community:  Upstate vs. National Employers, how do we compare? 
 
The employer survey was disseminated through the Greer, Greenville, Mauldin, and Spartanburg Chambers.  Additionally, the Greenville and Spartanburg Chapters of SHRM (Society for Human Resource Management) disseminated the survey.  The result was 145 surveys completed by employers in Greenville and Spartanburg Counties; of these employers the following highlights the size of the business:

• 46% small employers (1 – 99 employees)
• 30% medium employers (100 – 499 employees)
• 24% large employers (500+ employees) 

The data was analyzed from an overall standpoint as well as by business category and size of organization.  Additionally, so that employers may be able to see how local family friendly benefit practices compare and contrast with national practices, we have included select data from SHRM’s 2007 Annual Benefits Survey as well.  While the entire report focused on the entire spectrum of family friendly benefits, the executive survey highlights Employer Child Care Options.  The United Way taskforce that produced this survey selected child care as a priority, as quality child care is a critical element of school readiness, high school graduation and ultimately a workforce that can meet the global demands of South Carolina’s future.  The survey found:

The most popular benefit (69%) related to dependent care services are pre-tax flexible spending arrangements, a form of cafeteria plan benefit for dependent care assistance (Section 125 plan). These plans are popular with employees due to the fact that, in essence, they can pay for child care with pre-tax dollars, thereby saving income which otherwise would have been taxable. 

Providing child care resource and referral (CCR&R) information to employees was the next most commonly offered benefit, with nearly one in four employers (24%) offering this benefit to their employees.  Fifteen percent of employers took an important proactive action by providing employee training and/or information on choosing quality child care. 

Sick and emergency care was the third most important benefit to employers (17%).  Local employers were four times more likely to offer this benefit to employees as compared to companies who responded to the National/SHRM survey. 

The least common benefit offered by upstate employers was subsidizing all or a portion of employees’ child care cost.  While it was the least offered, know that subsidizing employee child care costs is one of the best strategies that could help to offset the struggle working families have in affording child care.  Employers who offer this benefit would also qualify for the SC Child Care Tax Credit. 

Not unexpected, larger employers were more likely than small or medium size employers to offer all benefits related to dependent care. 

Finally one in four upstate respondents indicated that they have workforce related concerns regarding early care and education in our region.  Concerns identified by these employers were:  cost of child care, lack of available quality child care, limited hours of care, education and/or skill level of child care professionals, needing more oversight of current child care programs, early education is critical to quality education, affects ability to recruit new employees to the area; and, a lack of available quality child care effects current employee productivity. 

III.    Developing a Solution:  Engaging Business as Partners in improving the Workforce of Today and Tomorrow

The survey serves as a catalyst to employers to rethink policies and practices that would aide the families in their workforce.  The following child care options are suggestions to employers: 

1. Parent Seminars on quality child care and child development
2. Child Care Resource and Referral Services
3. Alternative Work Schedules
4. Parental Leave Policies
5. Dependent Care Assistance Plan
6. Subsidized Child Care
7. Purchase of Space/Discount Program
8. Sick Child Care
9. Consortium Child Care Center
10. Employer Sponsored Child Care Center
    

The support of community leaders is vital to ensuring that every child comes to school ready to succeed.  In the public, private, and nonprofit sectors, individual leaders can set an example and take action to support young children and their families.  The survey identified the top ten strategies that individual employers could consider in their own workplace that would aide their employees and help move the quality child care needle.  Media leaders can also support early learning in this area by creating and disseminating public affairs messages that inform the public about the importance of the early years.  Make sure the coverage includes the state of children and the workforce in our community, highlighting the problems and solutions such as this effort undertook by United Way Business and Community Leaders.

CCR&R is available to guide businesses to implement one of the child care options listed above.  CCR&R can be reached at 864.467.7800.  Child Care Resource & Referral of the Upstate (CCR&R) is a program funded by the South Carolina Department of Social Services (DSS) Child Care Licensing and United Way of Greenville County.

Copies of the executive survey are available at United Way or the full survey is on-line at www.unitedwaygc.org or www.childcarehelpline.org.