1. Saint Mary’s College Employee Benefits Advisory Committee (EBAC)
Spring 2013 Meeting
March 11, 2013

2. Dependent Care Demand and Cost Projection Study Findings
Presented to: Presented by:
February 27, 2013

3. Agenda Introductions Scope of Dependent Care Study
The Child Care Trilemma
Our Findings
Our Recommendations
© 2013 Horizons Workforce Consulting

4. Scope of Dependent Care Study
Objective to answer two questions:
Is there demand for a campus child care center?
Is there demand for dependent back-up care services?
These questions were answered via:
Stakeholder interviews
Demographic analysis of faculty, staff, and students
Geographic analysis of faculty, staff, and students
Child care market overview
© 2013 Horizons Workforce Consulting

5. The Child Care Trilemma
ACCESSIBILITY
Less than 10% of U.S. centers meet national standards of best practice as defined by the National Association for the Education of Young Children (NAEYC). NAEYC accreditation is a voluntary nationally recognized measure of high-quality care in the early care and education field.
There are no NAEYC accredited centers in Moraga and only three within Lafayette and Orinda. Of the three centers, none offer infant care and two are part-day preschool programs.
AFFORDABILITY
Reflects high-cost/low- return business reality.
Creates severe lack of infant/toddler care due to higher ratios.
Operating efficiencies limit days and hours of care.
Average monthly cost of center-based care within five miles of Saint Mary’s is $1,300 for preschoolers and $1,600 for infants.
QUALITY
Entails more labor intensive ratios and smaller group sizes. For example, California licensing allows 1 teacher for 12 two-year-olds, but quality centers reduce that in half to one teacher for six children.
Requires educated, trained workforce which drives higher salary requirements.
Exceeds minimum licensing standards of health and safety.
QUALITY
AFFORDABILITY
ACCESSIBILITY
To se the stage – all dual income parents or single parents face the child care trilemma.
Finding affordable high quality child care presents a challenge for working parents as high quality and affordable care are at direct odds with each other. High-quality care is expensive to provide as there are fewer children per teacher and the teachers are typically paid a higher salary with benefits in order to attract and retain experienced personnel. In order to offer more affordable tuition rates, centers need to have more children per teacher, pay lower salaries, and/or not offer benefits to their teachers to keep expenses down. These programs do not provide the high quality care parents desire. For parents who can afford high quality care, there are often waiting lists as the programs are far and few between. Lastly, infant care is the most expensive to provide with a 1:4 teacher-to-child ratio required in California and is often not offered in many community centers due to the inability to charge parents the true cost of care.
© 2013 Horizons Workforce Consulting
© 2012 Horizons Workforce Consulting

6. Factors for Saint Mary’s
There are three factors for Saint Mary’s to consider in providing campus child care:
Is there demand for child care services among faculty, staff, and students?
Is there space on or near the campus to place a child care center?
Does the College have the resources to finance this undertaking?
1. Demand 3.
Cost 2.
Space
© 2013 Horizons Workforce Consulting

7. Child Care Center Demand
There is not enough demand to support campus child care
Few children under six years of age given mature workforce and overall small full-time workforce size
Long commutes for many faculty, staff, and graduate students
Faculty not on campus daily
Graduate students primarily on campus nights and weekends
Affordability challenges for staff and undergraduates especially
Faculty
Staff
Graduate Students
Undergraduate Students
Existence of Children Under 6 Years
Commute to Campus Daily
Proximity of Residence to Campus
Ability to Afford Center-Based Care
Overall Demand
Low Demand
Medium Demand
High Demand
Key:
© 2013 Horizons Workforce Consulting

8. Child Care Center Space and Cost
Space is not available
The campus is maxed out on space with current priority going to faculty offices and housing.
The campus has challenges in expansion given the uneven terrain requiring costly grading or land fill.
The one off-site location owned by the College has a site permit requiring the amount of parking spaces be maintained thereby prohibiting the construction of a playground on the parking lot.
Finances are not available to fund a center without making trade-offs
Saint Mary’s primary revenue source is student tuition.
The recession impacted Saint Mary’s, necessitating a few staff and adjunct faculty layoffs and some budget cutbacks.
The College has recently reached the point of adding back some of the items that had to be reduced during the recession, and is looking to prioritize where it will spend any additional revenue.
Some current priorities are the pension, retired medical insurance, and then child care, elder care, and transportation services.
A capital campaign would be needed to fund the start-up of the program and an ongoing campaign may be required to fund the annual operating costs.
Even with market rate tuitions, the center would require ongoing operating support from the College, and given staff and student affordability challenges, the College would also need to subsidize their tuitions.
© 2013 Horizons Workforce Consulting

9. Back-Up Dependent Care
A program that allows faculty and staff to work when regular forms of dependent care are not available
Provides care for:
Well children of all ages
Mildly-ill children of all ages
Adult/elder care
Provides emergency back-up care as well as planned gaps in care
Provides care for faculty and staff throughout the country – work travel, elders who live elsewhere, etc.
© 2013 Horizons Workforce Consulting

10. Child and Adult/Elder Back-Up Care Demand
Given their older average ages, many faculty and staff members are mostly likely facing elder care issues, which can be addressed by this program to relieve stress, improve attendance and productivity, and provide peace of mind.
Faculty and staff have a larger number of school-age children than children under six years of age. Back-up care can address the care needs when school is out or school-age children are mildly-ill and cannot attend school.
Given staff’s affordability challenges for center-based child care, many are using family members and family child care homes. Child care that relies on one person tends to break down more frequently as these individual caregivers become ill, go on vacation, and have other life emergencies of their own. Back-up care will provide a safety net for these employees allowing them to have quality back-up care in a center or in their home so they can come to work.
When children are mildly ill, they cannot attend school or center-based child care and therefore back-up care will benefit faculty and staff by providing care in their home so they can work.
Other universities in the Bay Area that have this type of back-up care program include Santa Clara University, Stanford University, UC Berkeley, and UCSF.
Both graduate and undergraduate students could benefit from having a back-up system in place when their child care breaks down as well, so they do not miss class.
© 2013 Horizons Workforce Consulting

11. How The Program Works
Network of pre-screened child care centers and in-home agencies provides coverage for all faculty and staff
Faculty and staff register for the program and reserve care through a customized website or by telephone via our 24/7 call centers
Each employee is allowed fixed number of back-up care days per year
Faculty and staff members can request care up to 30 days in advance or on an emergency basis on the same day the care is needed
Care options are identified by consultants and co-payment is collected via debit/credit card at time of reservation
Turnkey program for Saint Mary’s
Marketing support provided during program implementation through a wide range of communication materials and on-site meetings
Ongoing support includes quarterly utilization reports along with seasonal marketing materials
Employee feedback encouraged through an evaluation survey after each use
© 2013 Horizons Workforce Consulting

12. Back-Up Care Proven Results
89%
Eighty-nine percent of survey respondents said the Back-Up Care Advantage Program enhances their productivity.1
Respondents reported that those who have used back-up care for their child within the past six months saved an average of 6 work days.2
Back-up care for children and adult/elder relatives enables 86% of employees to work a day they otherwise would have missed.2
Highly engaged employee companies enjoy 26% higher employee productivity, lower turnover, higher talent attraction, and greater shareholder return.3
Of organizations that offered emergency back-up child care, 51% report a moderate to high impact on retention.4
Employees without access to dependent care supports were nearly one-third more likely to report being down, depressed, or hopeless in the last month. Overall, respondents that had used a dependent care support within the past six months were significantly less likely to report mental health issues.5
6 days
86%
26%
51%
1/3
YTD Back-Up Quarterly Survey Results
2 Bright Horizons “Lasting Impact of Employer-Sponsored Back-Up Care” study
3 Taleo Research White Paper: Profitable Talent Management (2011)
4 WorldatWork, November, 2007
5 Bright Horizons’ Consulting/Dr. Jamie Ladge, North Eastern University: Enhanced Employee Health, Well-Being, and Engagement through Dependent Care Supports (2010)
© 2013 Horizons Workforce Consulting

13. Program Accessibility
Where An Employee Needs It
The industry’s strongest, deepest, and broadest network
340 Bright Horizons’ child care centers
2,200 network child care centers
200,000+ contracted in-home caregivers from contracted agencies
Continuous network development
Through dedicated provider relations team
“Nominate Your Provider” Program
Saint Mary’s campus is a 100% match to center and in-home providers
Faculty and Staff Home Zip Codes: 98.6% match to center-based care; 99.6% match to in-home providers
When An Employee Needs It
Care requests fulfilled
99% in 2012, 99% in 2011, and 98% in 2010
90% fill rate guaranteed for all clients
Employees can contact the program hours per day, 7 days per week
© 2013 Horizons Workforce Consulting

14. Arranging Care 24/7 Service Access Back-Up Care Connecting to
Dedicated
Consultant Team
Adult/Elder Care
In-home care by licensed and credentialed caregivers
Can be used for adult spouses and elders
Back-Up Well Child Care
Center-based or in-home
National network includes:
Bright Horizons centers
Other quality centers
In-home care by licensed caregivers
Mildly-Ill Child Care
In-home care by trained and credentialed caregivers
Care for Business Travel
In-hotel care by trained and credentialed caregivers
Center-based care
Fast Turnaround
Quality Providers
© 2013 Horizons Workforce Consulting

15. Business Model Turnkey program for Saint Mary’s College
Named account manager
Extensive support during program implementation
Wide range of employee communication materials
Comprehensive usage reporting capabilities
Program elements are customized based on Saint Mary’s College’s needs
All faculty and staff have specified annual use allowance
Minimal employee co-payment
Fixed annual fee based on expected stabilized utilization
© 2013 Horizons Workforce Consulting

16. Back-Up Care Advantage Program Cost
Program Components
Projected Annual Utilization
Program Cost
15 annual uses per employee
148 uses per year
$50,000 annual fee with reduced co-pays
Start-Up Fee
$5,000 one-time fee includes:
Communications development plan, including webinars or on-site events
Website and collateral development
Network preparation
Assumptions:
Based on Saint Mary’s 497 faculty and 444 staff (941 users)
Co-pays: Center $15/child and $25/family per day; In-home $4/hour with 4 hour minimum (reduced in-home co-pay from standard $6/hour based on staff affordability challenges)
Minimum contract 3 years
5% increase in program cost per year
© 2013 Horizons Workforce Consulting

17. Saint Mary’s Student Population
Saint Mary’s has 1,278 graduate students of which 64% are female and 36% are male and the average age is 34 years
Saint Mary’s has an undergraduate population of 2,841 with 60% female and 40% male and the average age is 20 years
Given the above statistics:
Is there value to Saint Mary’s in offering back-up care to students?
Is this a benefit students would put at the top of their list of desired campus programs?
© 2013 Horizons Workforce Consulting

18. Project Summary Our objective was to answer two questions:
Is there demand for a campus child care center? - No
There is not enough demand for Saint Mary’s to pursue a campus child care center based on the small number of faculty and staff on campus, their older average age, commutes, and affordability issues, making the financial viability of the center more than the College can bear.
Is there demand for dependent back-up care services? - Yes
There is projected demand for a dependent back-up care program based on the types of care faculty and staff are currently using for their young children, the larger number of school-age children faculty and staff have, and the fact that adult/elder care is likely a growing need among faculty and staff given their older average ages.
© 2013 Horizons Workforce Consulting

19. Recommendation
Upon completion of the study we recommend that Saint Mary’s College:
Offer back-up dependent care to faculty and staff
Assess whether back-up dependent care is a desired benefit among graduate and undergraduate students
© 2013 Horizons Workforce Consulting

20. Next Steps © 2013 Horizons Workforce Consulting