Is on-site childcare the key to cutting employee turnover?

Companies hoping to boost their employee retention could benefit from implementing on-site childcare and other perks that address the personal needs of their employees. At least according to one brand, it’s proven to be worth the up-front investment. Rose Marcario, CEO of Patagonia, recently discussed the success the clothing company has had with such programs in Fast Company. The company offers sick time for all employees, paid maternity and paternity leave and on-site childcare at two major facilities. Ms. Marcario argued in the article that on-site childcare helps limit employee attrition, especially by women, and said that after having the service in place for the past five years, 100 percent of mothers who took maternity leave returned to work. The turnover rate for parents who have taken advantage of the program has been 25 percent lower than for the general employee population. She stated that the company recoups 91 percent of its costs per year on benefits offers when taking into account the cost of turnover and other expenses. She also noted less quantifiable returns like employee loyalty and increased trust in the workplace. A report by Glassdoor detailing the benefits offered to employees by big-name companies noted that 57 percent of those polled reported perks as a top consideration when accepting a job. Among the more unique benefits programs listed were from REI, who give employees two paid days off to spend outside and Salesforce’s six days of paid time to volunteer (resulting in a $1,000 grant if they take all six). But the companies offering perks tend to be in tech-centric fields, a fact confirmed by a Department of Labor study cited on Mic. The article reported that paid leave availability rose to 30 percent of workplaces in the tech sector in 2015, but had remained at less than 10 percent in areas like manufacturing and service. Retailers are growing more aware of the cost of turnover, though, as Bloomberg reported last year. Because of training and other associated costs, the publication calculated that a retailer loses an average of $3,400 for each low-wage worker who leaves.

• Patagonia's CEO Explains How To Make On-Site Child Care Pay For Itself – Fast Company
• Family Business – Patagonia
• Top 20 Employee Benefits & Perks – Glassdoor
• Paid Parental Leave: More Americans Are Getting It, But Not the Ones Who Need It Most – Mic
• Why Retailers Are Suddenly Desperate To Keep Their Least-Valuable Workers – Bloomberg