DeepSummary
In the town of Floyd, Virginia, a coffee company called Red Rooster Coffee runs a childcare center called The Yellow Hen as a benefit for its employees. Despite initial doubts, the owners decided to offer affordable childcare to help retain their core staff and address the lack of childcare options in the small town. The center charges employees $2 per hour, while Red Rooster subsidizes the remaining costs, spending around $100,000 per year on the facility.
While providing childcare was financially challenging in the beginning, Red Rooster has seen benefits in terms of employee retention, with 77% of those who have used The Yellow Hen still working for the company. The owners believe that offering childcare aligns with their mission and resonates with customers who appreciate supporting a values-driven business.
While uncommon, some larger companies like Marriott, Home Depot, and Patagonia have also started offering on-site or nearby childcare facilities as a way to attract and retain employees. Others, like UPS, have piloted backup childcare programs, which have shown promising results in reducing absenteeism and turnover. However, liability concerns and varying state regulations remain barriers for wider adoption.
Key Episodes Takeaways
- Providing affordable childcare can be a valuable employee benefit for businesses, helping to attract and retain workers, particularly in areas with limited childcare options.
- While offering on-site or nearby childcare facilities can be costly and logistically challenging, especially for smaller businesses, backup or emergency childcare programs may be a more feasible alternative.
- Companies that offer childcare benefits may see reductions in employee absenteeism and turnover, potentially offsetting the costs associated with the programs.
- Liability concerns and varying state regulations can be barriers to companies offering childcare benefits, but some larger corporations have successfully implemented such programs.
- Offering childcare benefits can align with a company's mission and values, resonating with employees and customers who appreciate supporting socially responsible businesses.
- While uncommon, the concept of employer-provided childcare benefits may become more widespread as companies seek ways to attract and retain employees, particularly in industries with labor shortages.
- The decision to offer childcare benefits often involves a cost-benefit analysis, weighing the potential for increased employee retention and productivity against the financial and logistical challenges.
- Successful implementation of childcare benefits may require a phased approach, starting small and scaling as the program proves viable and demand increases.
Top Episodes Quotes
- “The first year of running the daycare was actually really scary.“ by Hayden Paulsino Hensley
- “Work and retention is important for companies because turnover is very expensive. It costs a lot to hire new employees and to train them up. So longer term, it is a big benefit for the companies if they can hold on to people and, you know, offering childcare benefits is one way that they try to do that.“ by Harriet Torry
- “The company itself found that it had a massive impact on retention. Employee turnover among the pilot group dropped from 31% to 4%, which is pretty amazing.“ by Harriet Torry
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Episode Information
The Journal.
The Wall Street Journal & Gimlet
4/11/24
Providing child care for employees may not seem like a savvy business choice, but some companies swear by it. WSJ’s Harriet Torry explores the different approaches – and the benefits – at businesses both large and small.
Further Listening:
- The Labor Shortage That's Causing More Labor Shortages
Further Reading:
- What One Employer Found When It Started Providing Child Care
- More Companies Start to Offer Daycare at Work
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