Child-care benefits shift to lower-wage workers

HR Magazine, Sept, 1995 by Bill Leonard

"There are plants where the company has said 'no' to providing child-care options like the ones in Missouri and Arkansas," Romeo said. "My recommendation to any employer that wants to explore dependent-care benefits options is to have the ability to say no."

Romeo said Armour Swift conducts needs assessments and feasibility studies of its work sites before deciding to implement dependent-care programs. The company also tracks the success of the program by examining factors such as productivity and turnover ratios. Armour Swift has seen improvement in both categories at its Arkansas and Missouri plants. The company also evaluates the success of the programs by examining employees' use of the benefits.

"Underutilization is a dead giveaway that the benefits program isn't working as it should," he said.

The key to Armour Swift's success with its dependent-care program has been the company's flexibility. "The labor availability issue means that the company is experiencing a real culture change from the bottom up and not the top down," Romeo said. "It means that the company has to adjust to the needs of entry-level employees to attract and keep the workers that we need."

Romeo believes housing benefits could eclipse dependent-care as the hot employment issue within the next couple of years.

"Housing benefits are another big issue that we are just starting to deal with," he said. "And I expect it to get bigger."

Bill Leonard is staff writer with HRMagazine.