5 Chapter 5: DEPENDENT CARE AND OTHER SERVICES

Learning Objectives

*Describe the need for and different types of dependent care;

*Address the issues surrounding eldercare;

*Address the issues surrounding childcare; and

*Address the trend and issues surrounding pet care.

Introduction

Numerous studies have informed corporate leaders and managers about the work/life program’s impact on productivity, customer service, retention, and savings from no absenteeism (Leger-Hornby & Bleed, 2006; Nelson, 2013, Scotto, 2016; Sawyer, 2001). The need for dependent care is one of the top priorities for employees in juggling for their work/life balance. Employer-supported dependent care programs are a dollar and cents issue that employers can no longer ignore. In order to reduce absenteeism and increase productivity, supporting depend care programs is not only a valuable investment for the employer to take, it is also a good recruiting strategy and public relations campaign.  According to Sawyer (2001), 6000 Americans turned 65 years of age every day in 2001. Since that time, the number of elderly populations over the age of 85 had doubled in 2016. These alarming statistics have shown that eldercare may overtake childcare as the most relevant bottom line issue for employees to handle.

The ever-changing workforce is something that employers must carefully consider. Women no longer retire from their work permanently after giving birth. Over half of the mothers who have children under six years old are working. With the rising of the social norm of gender equality, both parents are able to take parental leave from their work to take care for their children. There is a common phrase, soccer mom, which is used to describe the mothers who have to pick up their kids for sports practices after school or during the weekends. It is not uncommon to see parents scrambling to call and rush to school in the late afternoon to pick up their children (known as the three o’clock syndrome.) To deal with the dependent care issue, more organizations are allowing their employees to work from home (either part-time or full-time), offering flexible work arrangements and job sharing as options.  To further support work/life goals, here is a list of services that employers can offer to make a significant impact with the dependent care issues:

(1) Forming support groups to help those struggling with work/life balance;

(2) Recognizing the employees’ challenges and celebrate a Parents Day;

(3) Implementing onsite childcare services if the space and resources ae adequate; and

(4) Providing resources and referral information to assist employees.

In 2017, 41% of mothers in America were the sole or primary breadwinner for their family (Lenz, 2020). For a heterosexual couples where both parents were employed, mothers are four- to five-time more than fathers likely to reduce their work hours to take care their children and family duties. Although the society may see this phenomenon as a women’s choice, it indeed reflects the failure of our social support system. The reality is that the full-time day care costs more than in-state college tuition, and the nation spent less fund to the entire childcare sector than we did for a single airline, Delta (Lenz, 2020). These facts remind us about the urgent need from the government to pass legislations that ensure equal compensations for both fathers and mothers and improve the existing daycare service.

More employers across the nation are gradually accepting responsibility for assisting their employees’ childcare requirements and expenses. Childcare support has become an increasing trend and a standard part of benefit packages for employees. Many federal agencies in Washington lead as an example by providing daycare services onsite. Employers can make childcare support as a cafeteria plan, so for those who don’t need this service can still have choices for other services and don’t feel there is any discrimination. Overall, employers who assist employees with their childcare costs may gain advantages by achieving higher productivity, maintaining a stable workforce and a competitive recruiting edge (Sawyer, 2001).

To help the top management teams and employers understand the urgency of childcare and obtain their support for the employees, here are some informative statistics to consider. Companies with 300 or more employees spent $88,000 per year due to absenteeism or worker shortages caused by childcare issues. National figures estimate that employers lose $3 billion annually for childcare related absences. Many argue that on-site childcare would alleviate some of these costs. Nearly 10 million children are enrolled in daycare nationwide. For families earning $1,200 to $2,999 per month, childcare costs are 12% of their monthly income (Laughlin, 2013). Apparently, there are still shortages in daycare facilities to accommodate the needs of working parents. The Family Medical Leave Act (FMLA) of 1993 allows many parents the opportunity to miss work in order to care for their newborns on a full-time basis for the first few weeks and up to 12-weeks unpaid, job-guaranteed leave.

Table1 shows the percentage of working moms who wish they could do more to be involved with their kids’ education, according to a report from Time Magazine in 2016. As a nation, there were 74% of registered voters who support mandating paid parental leave. Democrats (83%) are even more supportive than the Republicans (71%) on this issue.

Table 1. The percentage of working moms who wish to involve more with their kids’ education

About Childcare and Its Related Support Services

In addition, to offering flexible work schedules and joining co-ops with other companies to finance a community childcare center, what are other direct approaches that management can do to support their employees? Many companies have discovered that parents will be more productive, if knowing their children are in a well-established childcare center. Although many working individuals still rely on grandmas, aunts, or a babysitters to take care their children, stresses caused by inadequate childcare services and programs still haunt 75% of all mothers who need to work outside of the home. In 2001, 13 million children were under the age of 13 years-old. However, among those 13 million children, only 8.8 million received childcare service (with 1 million in a center-based programs and 7.8 million in family-based services). In 2010, it is estimated that 28.5 million children were under the age of six years-old. Imagine what happens to possibly 20.6 million children whose mothers are working? No wonder we continue to hear about news such as mothers leaving their children in parks or libraries while working for their time shift. According to a national home-based care advocating agency, Home Grown, about 1.12 million paid caretakers who work in-home; however, only 7% of those individuals are fully licensed (n = 86,309)  (Luscombe, 2020). Our daily care service in our society is not just undersupplied, many of the caretakers are also underqualified.

Establishing an onsite Daycare Center

Millions of American parents spent about an annual average of $10,000 per toddler for childcare (Vesoulis, 2020); however, childcare centers are not considered to be lucrative business in our country. According to the Bureau of Labor Statistics, the average daycare operator made about $48,000 per year, and standard childcare workers made just $24,000, respectively (Vesoulis, 2020). There are various issues associated with operating an onsite childcare center, including providing services, facilities, licensing, personnel, establishing hours, associated costs, and insurance. When considering operating an onsite childcare center, it is ideal to form a committee formed to examine the company’s goals and expectations. This planning committee must clearly understand what the center intends to offer to ensure the benefits outweigh the costs.

It is most cost-effective to use the company’s own space and resources to run the center-based facility. The center need to maintain toys and equipment libraries. It is specified that the center cannot be below ground level. The standard physical features of the facility (building) include proper exits, escaping slides (for second story), play space, kitchen, storage rooms, classrooms, bathroom facilities (1 toilet for 15 kids), and area and location of isolation (emergency) room.

The company can finance the childcare center through an interest-free start-up loans. According to state laws, the center can be established as a separate corporation to operate on a not-for-profit basis and receive a tax-free status. Thus, the company’s monetary contributions to the center are also tax-deductible. It is logical to understand that young employees (under 30 years of age) are more likely to contribute to the onsite daycare center than those of 50 years of age or older (Frazee, 1996).

All states have regulations that specify the minimum standards for operating a childcare center. These regulations cover age groups, building safety requirements, maximum group size (n = 80), staff/child ratios, emergency procedures and other health measure. Cities may further control the center through licensing procedures. In general, the center should be near the fire station and be easily accessed by Emergency Medical Teams. It should be located away from heavy commercialized area and liquor stores. In California, all disciplines and regulations related to children’s rights can be found in Section 80072. Local zoning regulations must be made before an application for licensure is made. Staff requirements for the education and experience of the childcare staff also differ significantly. In some states, there are regulations on teachers’ age and degree held (i.e., a master’s degree in early childhood education). In terms of the staff to child ratio, it is ideal to be 1: 4 for the infants & toddlers and 1: 8 for preschoolers. In addition, health measures and issues related to preparation of food and drinking water, nutrition guidelines, environment, and rest time all need to be closely monitored.

Lawsuits and the high cost of liability insurance have been the main reasons for discouragement of companies in establishing childcare centers. Child abuse cases usually represent a very small portion of the childcare lawsuits. The legal issues are mainly associated with negligence. It is a wise idea to consult with the National Association for the Education of Young Children in obtaining the appropriate insurance coverage.

In general, start-up costs include expenses for the physical facility, land, building, playground development, equipment for operations, and personnel costs. The largest single operating expense of a center will be the salary for staff and teachers, which may account for 80% of the total budget. In terms of size of the center, it is recommended that each child should be give free space around 35 square feet indoor and 200 square feet in the outdoor playground area.

Photo 1. T Children Care–Photo Courtesy of Joint Base Langley –Eustis [1]

While the center being operated under normal conditions, the companies will also need to have emergency back-up plans to deal with sudden urgent needs of parents and the care of sick children. The center may also need to face the challenge of opening for non-traditional work hours. Lastly, the companies need to take certain baseline measures to examine the return on its investment and conduct focus group to solicit employees’ feedback about the provided services provided.

Other Benefits and Services Related to Childcare

It may be ideal to have an onsite childcare facility to ease the employees’ worries; however, most companies will not be able to afford to invest in childcare facilities unless it is cost-effective and serves employees at multiple locations. There are several suggested services and options to help employers in addressing childcare issues.

• Providing research and referral services;
• Offering partial reimbursement for off-site daycare facilities;
• Offering before and after school programs;
• Providing more space to accommodate more children;
• Offering intergenerational programs that pair children with elders;
• Partnering with childcare consultants;
• Promoting childcare services through fairs, word of mouth, websites, and brochures;
• Establishing nontaxable accounts for employees to deduct their salaries for childcare; and
• Offering subsidies, voucher programs, and contributions to support a local child development agency.

Home-care refers to the care provided by a caregiver going to a home to provide the babysitting services for the child (or children). Employers can provide a voucher program or subsides to pay for this type of service for employees in need. Dependent care expenses are eligible for reimbursement through the Dependent Care Account (DCA). Employees can claim the DCA reimbursement if their children are under the age of 13 or have a disabled spouse or dependent relative who is capable of self-care and spends at least eight hours a day in the employees’ home. Economic Recovery Tax Act (ERTA) of 1981 makes childcare expenses deductible as business expenses when employers invest money to help their employees. This act offers significant tax benefits as an incentive for employers to support childcare programs.

About Eldercare and Its Related Support Services

As medical technology continues to improve, the global aging population will continue to rise as well. By 2050, Japan will have 42% of its population over the age of 60. More than one-third of the Chinese population (about 34%) will be older than 60 years of age. For the USA, the elderly population of 60 or older will reach 27% by that time (Beech, 2014). The study of HelpAge International in 96 nations reveals that Norway, with its highly rated national welfare coverage and support system, is rated as the best country for the elderly population to live (Time, 2015). The U.S. is No.8 on the list. The overly populated China just ranks in the middle of the pack at No. 48. The growth of the aging population clearly shows the shortcomings of our society in preparing for the early initiatives. People 65 and older are the fastest-growing age demographic group in the U.S. (Purtill, 2019). We don’t educate employees to plan and save for their retirement enough. The overgrowing governmental deficits will soon dry up the social security and pension funds for elderly citizens. There are not adequate nursing homes or senior centers available to address the needs of the elderly citizens.

A difficult issue regarding managing and planning one’s retirement life is financial instability. It was estimated that 52% of US households ages 55 and up have no retirement saving in defined contribution plans or IRAs (Wang, 2016). The median net worth of US households age 55 to 64 with no retirement savings was just $21,000 (Wang, 2016). Households with retirement accounts would have 2.4 times the incomes of those without. To ensure an aging individual to be able to live independently with a sense of security, the person must be constantly aware of his/her financial situation and save appropriate amount of funds for the retirement.

Although eldercare is a common topic that we have seen in the media, it is really a difficult topic for employees to engage. Sawyer (2001) described this issue is situated in an uncharted territory. It is a very sensitive issue for anyone to deal with. We all know we need to face this one day, but we are either too busy to think about it or try to push it off by assuming it is too early to worry about the issue. In reality, we don’t want to face the fact that we are growing old fast and will need help one day as well. Unfortunately, family members often wait until an eldercare crisis actually occur before they begin to deal with the problem. It is not uncommon to witness the corporate culture that employees fear to share their family eldercare issues because they don’t want to be perceived as unavailable or irresponsible. It is estimated the shortfall of caretakers will be around 151,000 people by 2030, and 355,000 by 2040 (Purtill, 2019).The best strategies to alter this culture may be addressing three specific approaches: (1) allowing one’s company to share high quality of information regarding eldercare, (2) framing the issue positively–it is not only about death and dying, and (3) dealing the problem right now—don’t wait until a crisis strikes. Believe it or not, many would trust and rely on social robots to accompany the elderly population as a solution to the lack of caretakers. It is projected that the growth of demand for social robots from 2019 to 2022 will reach at 29% (Purtill, 2019). Here are some excellent tips that assist in making eldercare programs work:

• Make good use of internal communication methods to boost eldercare awareness and participation in employees’ eldercare programs;
• Encourage the power of planning and educate employees about three specific types of programs, such as preventive-based programs (training, lectures, workshops, and articles), professional advisory-based programs (with legal and financial concerns), and crisis management-based programs (referral services and emergency care);
• Supplement existing employee assistance programs;
• Educate employees on their roles as family caregivers–There is only so much one can do. Try to minimize the guilty feeling when a loved elder passes away. And;
• Offer information and referrals.

Photo 2. Protect care for the elderly seniors [2]

How to sell the eldercare program?

According to statistics, there seems to be geographic difference in the offering of eldercare programs among corporate industries. Companies in the Northeast region are more likely to offer the services and programs than those located in the South. Banking and telecommunications are among the leaders in offering eldercare referral services. An early study has shown that women are more likely than men to be interested in dependent care programs, since they are more likely to be the caregiver for the children and elders (Frazee, 1996). There are a couple of good ways to sell an eldercare work/life program to top management. First, offer specific hard-hitting data, such as productivity loss due to the eldercare responsibilities (i.e., about six hours per week) and more than a half of Americans assume that they will be responsible for taking care of their elderly parents or relatives. The second step is to work with what the company already has. There are a lot of ways to offer an effective eldercare program without utilizing a lot of money and resources. Education for this topic can be done by planning lunch workshops and fairs, publishing newsletters and articles, and creating books or videos.

There is nothing magical about the promotion of the benefits of eldercare programs. Like promoting childcare programs, promotion of eldercare needs proper planning, necessary tools, and manpower. Eldercare issues typically surface in two different stages: the proactive planning stage and the crisis-management stage. The management team will need to identify the existing information about the organization’s policies on flex-time and FMLA. The program and information need to be packaged and properly marketed to the employees. The word needs to get out with well-crafted advertising langue that wakes employees up and informs them of the real benefits of participating in the program. Information must be available in forms of e-mails, policies listed in the employee manuals, flyers, and announcement during presentations or meetings, interview sessions and employee orientations.

Practical Implications

The issue of eldercare may sound depressing, if we all think it is just about dealing with aging and sick elderly family members and relatives. If that is our assumption, the commercials of AARP (American Association of Retired People) will probably remind us how wrong we have been. Perhaps we all need to pay more attention to learning and understanding more about the elderly population and their lifestyle, concerns, and hobbies. According to a report from Time Magazine, as of February 2019, more than 20% (perhaps even as high as 29%) of over 65 year-old population still work for pay in America (Law, 2020). In general, the improvement of health is the reason that allows people to stay at their job longer. The life expectancy increased near five years from 1980 to 2019. We have witnessed the age requirement for receiving full Social Security benefits has gradually increased to 67 (Law, 2020). There are still many mentally and physically healthy individuals living their life with vitality, a sense of purpose, and joy. If we can learn more from our elderly parents and relatives and work with each other to plan our course of life, we will all experience more fun and enjoyment while interacting together.

Video Clips

https://www.youtube.com/watch?v=mimD0E6g8AA (Video courtesy of Milwaukee Bucks: Make Elders as Your Most Passionate Fans)

https://www.theatlantic.com/business/archive/2014/02/which-sports-have-the-whitest-richest-oldest-fans/283626/ (An useful website to learn about how to work with older adults: www.asaging.org)

About Petcare

For many single employees, their pets are like family members to them (and being treated like ones as well). Petcare is probably the future trend of the dependent care. During the COVID-19 pandemic, millions of people have adopted pets to be their companions and emotional support. As more companies look to reopen their offices or businesses, thousands of pet owners are experiencing moments of emotional turmoil, because they worry about leaving their furry companions alone at home while returning to work (Chan, 2021). Many employees who are pet owners would demand flexibility to care for their new furry friends. However, are the U.S. companies ready to embrace animal-friendly office (Chan, 2021)? A survey of 3000 pet owners in 2021 found that 69% of owners worried that their pets would suffer separation anxiety as owners return to normal life (Chan, 2021). Another study by Honest Paws showed that 67% of dog owners would consider looking for a different job, if they could not work from home (Chan, 2021).

Like other human beings, pets need to be cared for and loved. The popularity and benefits of petcare programs have been touted in many mainstream media outlets. Many organizations have implemented “Pets day” to allow their employees to bring their pets to work. In 2019, about 11% of U.S. workplaces allow pets (Chan, 2021). According to a 2021 Banfield Pet Hospital Survey, 59% of corporations have adopted new pet-friendly policies at the workplace (Chan, 2021). If employers wish to implement programs and services to meet this new need of employees, they may want to consider elements such as petcare insurance, daily housing space, sanitary concerns, vacation housing, and pet grooming, just to name a few. An interesting problem to have may be the potential risk of losing some productivity, since employees may play too much with these cute animals at the worksite.

FYI: https://www.youtube.com/watch?v=SvJN2De_1k4 (Pets in work place: posted by docstocTV)

Quiz Questions

Q1. A father who has children under age 13 and claims them as dependents on his income tax return is eligible for reimbursement through the Dependent Care Account. True/False

Q2. Child abuse cases represent the majority of legal cases in the childcare field. True/False

Q3. __________ must be met before an application for the childcare center license is made.

1. Staff certification
2. Local zoning regulations
3. Certification of compliance
4. None of the above

Q4. The Family Medical Leave Act allows qualified employees ___ weeks of unpaid, job-guaranteed leave for a new birth or adoption.

1. 16
2. 9
3. 3
4. 12

Q5. The employees’ needs in eldercare service usually include:

1. Advanced planning
2. Workshops or seminars to discuss eldercare
3. Flex-time on an emergency basis
4. All of the above

Q6. Encouraging the power of planning is a key to the successful eldercare programs. True/False

Q7. Which of the following is incorrect?

1. There are approximately 13 million children 13 years of age and under in households where both parents work full-time.
2. More than half of mothers with young children are working outside the home.
3. The number of children needing care is decreasing.
4. The number of childcare centers does not seem to keeping up with the increase of the needs.

Q8. Companies are finding that childcare benefits id them in recruiting workers and provide good public relations. True/False

Q9. Childcare centers may promote their site through:

1. childcare referral services
2. word of mouth
3. mailers
4. all of the above

Q10. Women are more likely to retire permanently from work after the birth of a child now. True/False

Brainstorming Activities

1) The Fathead State University (FSU) has an institution-affiliated daycare center set up to serve the children of faculty and staff. The school also has both early childhood education and sport and recreation management programs on campus. Could you think of a good plan to utilize the strengths and expertise of teachers and students of these programs to provide a high-quality daycare service?

2) The Lifelong Care Center is a proud sponsor of the FSU’s athletic program. However, other than monetary donations to the athletic program, there does not seem to be much partnership or planning between the two entities. As a new marketing director of the athletic program, could you think of any ideas that your department can do by either conducting community services to support the elderly citizens or developing a marketing project to increase attendance of the senior population?

Image Citations

[1] Photo courtesy by Joint Base Langley -Eustis, under public domain.

[2] Image Courtesy by MaxPixel, under public domain.

References

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Beach, B. (2016). Isolation: The emerging crisis for older men. https://independent-age-assets.s3.eu-west-1.amazonaws.com/s3fs-public/2016-05/isolation-the-emerging-crisis-for-older-men-report.pdf

Chan, M. (2021, August 2-9). Not home alone. Time, 198(5-6), 48-51.

Diaz, J. (2021, March 15-22). In times of crisis, women carry the weight. Fortitude comes in many forms. Time, 197(9-10), 65-69.

Dockterman, E. (2021, March 15-22). Love or money. Time, 197(9-10), 71-76.

Ellentuck, A. B. (2014). Establishing a corporate dependent care assistance program: Case study. The Tax Adviser. https://www.thetaxadviser.com/issues/2014/jan/casestudy-jan2014.html

Frazee, V. (1996). FYI: Daycare. Personnel Journal, 75(10), 24.

Laughlin, L. (2013). Who is minding the kids? Childcare arrangement: Spring 2011. https://www.census.gov/prod/2013pubs/p70-135.pdf

Law, T. (2020, February 17). It’s time to retire old: Ideas about retirement. Time, 195(6), 26.

Leger-Hornby, T., & Bleed, R. (2006). Chapter 7: Work and life: Achieving a reasonable balance. https://www.educause.edu/research-and-publications/books/cultivating-careers-professional-development-campus-it/chapter-7-work-and-life-achieving-reasonab

Lenz, L. (2020, August 17-24). America is failing moms. Let’s start over. Time, 196(7-8), 28-29.

Luscombe, B. (2020, November 2). The rise of the “carebnb”. Time, 196(16-17), 57-60.

Nelson, R. (2013). Work/Life balance key to job satisfaction. Evaluation Engineering. https://www.evaluationengineering.com/work-life-balance-key-to-job-satisfaction.php

Purtill, C. (2019, November 4). The robot will help you now. Time, 194(18), 52-57.

Sawyer, T. H. (2001). Employee services management: A key component of human resource            management. Champaign, IL: Sagamore.

Scotto, K. (2016). The importance of work-life balance and health.                http://www.huffingtonpost.com/kristine-scotto/the-importance-of-            worklif_b_10128144.html

Thompson, D. (2014). Which sports have the whitest/richest/oldest fans?    https://www.theatlantic.com/business/archive/2014/02/which-sports-have-the-whitest-         richest-oldest-fans/283626/

Vesoulis, A. (2020, November 2). Day care on the brink. Time, 196(16-17), 54-56.

Wang, P. (2016, October 10). States try to save retirement while Washington waits. Time, 188(14), 14-16.

Jolie, A. (2019, November 4). The care women really need. Time, 194(18), 90-

Abrams, A. (2019, November 4). Doctors for Medicare for all. Time, 194(18), 90-70-72.

56% of doctors supported single-payer health care in 2017

66% of doctors said external factors (3rd party authorization, treatment protocols and electronic health record) hurt patients