Nontraditional Benefits that Appeal to Women in the Workforce

1. Nontraditional Benefits that Appeal to Women in the Workforce Beth Juiris Erin Stein FIN 434 November 27, 2007

2. Overview • Trends • Women in the workforce • Their effect on employers and benefits provided • Family-Focused Benefits • Childcare • Sick Daycare • Flexible Work Arrangements

3. Female Employee Trends 1900: 18% of the labor force Today: 46% of the labor force

4. Working Women with Children Under Age 18 • 1975: 47% • 2005: 71%

5. A Shift in Desirable Benefits • Less emphasis on traditional benefits; more emphasis on nontraditional benefits • Prudential’s Group Insurance Survey • Paid Time off>Retirement Benefits • Job Flexibility>Disability, Life, and Dental Insurance

6. Child-Care Assistance Programs • In 2000, 13% of private industry employees had access to child care assistance programs, while in 2007 15% of private industry workers had the same access. • A slowly increasing trend among employers

7. Why Should Employers Provide Child-Care Assistance? • Recruitment tool • Although it is expensive… • Less on-the-job stress • Less absenteeism and tardiness • Improved Morale • Improved Work Performance

8. Forms of Child-Care Assistance • Flexible Spending Accounts • Most popular method • Child-Care Referral Services • Onsite Child-Care facilities

9. Sick Child Day Care Centers • 14% of large organizations currently offer sick child-care benefits • Peace of mind for parents • Working mothers stay home from work 5-29 days each year • Company costs in paid sick leave, lost productivity, and temporary staffing services • “For every dollar spent for such day care there is a $2.50 return in the form of [these] avoided costs.” (HR Magazine)

10. Flexible Work Arrangements • Mothers demand flexibility to manage both their parenting and career responsibilities • 90% of all women executives have used some type of flexible work arrangement at some point in their careers • Three types of arrangements utilized • Flexible work schedules • Telecommuting • Job sharing

11. What are Flexible Work Schedules? • This type of arrangement allows employees to work hours that differ from the traditional “nine-to-five” work day • Employers in the following sectors are most likely to provide employees with flexible work schedules • Information • Financial • Professional • Business services • Personal anecdote

12. The Employer-Effect of Flexible Work Schedules • Employers can increase female-employee retention • Employees are more productive • They work harder during allotted work hours • They avoid having work conflict with work responsibilities

13. Flexible Work Schedule Trends The number of full-time workers who are offered flexible work schedules has decreased from 29 million in 2001 to 27.4 million in 2004. (U.S. Department of Labor) The percentage of employers who provided flexible work schedules for their employees decreased from 64% in 2002 to 56% in 2005. (Society of Human Resource Management) Much of the declining trend can be attributed to the prevalence of outsourcing.

14. What is Telecommuting? Telecommuting allows employees to work regularly from home for at least a portion of the workweek 12% of employers offer this flexible work arrangement.

15. The Benefits of Telecommuting • Telecommuters work just as well or better than in-office employees • They recognize that shirking their job responsibility can result in losing: • Their telecommuting privileges, or • Their jobs • Many employees are willing to take a salary reduction to work for an employer who allows telecommuting. • Employers can save money on compensation by offering this benefit.

16. What is Job Sharing? • This arrangement allows two employees to share one full-time position and one salary. • Employees set different hours • Each employee could work 2 ½ days per week • One employee could work mornings and the other could work afternoons • Employees trade higher salaries for increased time outside the workplace. • 11% of employees provide job-sharing opportunities.

17. Disadvantages of Job sharing Some jobs do not lend themselves well to job sharing. Employees will lose some control over their projects. Employees may not be able to cooperate well with their job-sharing partners. Employees who share jobs may miss out on potential career opportunities and may not be able to meet career goals Some employees may not be able to afford to reduce their salaries.

18. Job Sharing and Employers • Many employers are not eager to provide job-sharing opportunities. • They mistakenly believe they will be required to pay twice the traditional benefits. • Some group health insurance premiums will increase due to headcount. • They will actually save money in not having to hire new employees • Turning over and training employees can cost an employer up to 150% of the position’s salary.

19. Conclusion Women’s profound effects on Employee Benefits Childcare assistance, sick-child care assistance, flexible work schedules, telecommuting, and job sharing Important for employers to consider employees’ needs to attract and retain them Questions?