Companies with extended hours operations can achieve reductions in costs due
to employee absenteeism, turnover and overtime by providing child care assistance
to employees working outside the hours of 7 a.m. to 7 p.m., according to a new
study by Circadian Technologies, Inc, which consults businesses with shift operations.
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Download NowThe study found that 11 percent of daytime operations sponsor child care facilities, while another 20 percent offer resource and referral services. But less than 1 percent of companies provide child care assistance to extended hours employees.
Difficulties securing child care are major contributors to the high rates of
absenteeism, turnover and, as a consequence, overtime costs at companies with
extended hours operations, according to the study. The study found:
- Costs associated with absenteeism in extended hours operations decreased
by $300 annually per employee if some form of extended hours child care was
available.
- Turnover rates among extended hour employees decreased to 7.7 percent from
9.3 percent when extended hours childcare services were available, due in
part to improved employee loyalty and morale.
"Child care benefits on site or locally will likely produce even better
results for companies with 24/7 operations," says Jennifer Allen, author
of the study. "Companies running extended hours have higher absenteeism
and turnover to begin with, so a childcare benefit may reduce those costly problems
more dramatically."
The findings are based on a review of existing literature and the firm's annual
survey, which encompasses data from 10,500 extended hours employees in 60 companies
and managers at more than 1,000 companies representing approximately 150,000
employees.