Nontraditional Benefits that Appeal to Women in the

WorkforceBeth JuirisErin Stein

FIN 434November 27, 2007

Overview

Trends Women in the workforce Their effect on employers and benefits

provided

Family-Focused Benefits Childcare Sick Daycare Flexible Work Arrangements

Female Employee Trends

1900: 18% of the labor force Today: 46% of the labor force

Working Women with Children Under Age 18

1975: 47% 2005: 71%

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

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

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

Forms of Child-Care Assistance

Flexible Spending Accounts Most popular method

Child-Care Referral Services Onsite Child-Care facilities

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)

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

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

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

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.

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.

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.

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.

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.

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.

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?