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Increasing Child Care Costs: Employer Side

There are fours basic types of child care alternatives that can be provided by an employer: flexible benefits and spending options, referral services, child care consortium, and on sight facilities. Each of the options requires different amount of capital with flexible benefits and spending options taking the least amount of capital and on sight facilities being the most expensive. As such, the decision to implement either one or a combination of alternatives varies from company to company being a factor of labor force structure, company size, employee dedication, and external economic factors. As such, only general guidelines can be suggested as a solution to the problem.

Flexible benefits and spending options is the most easily integrated child care alternative, as it requires only a lump sump investment into the development of the benefits and options that can be used by single mothers, whereas implementation costs could be differentiated away by adding additional obligations on already working employees with fixed monthly payment. Even though this alternative is cheap to implement and is very effective, as it decreases turnover rates and improves job satisfaction, it is still not widely spread among companies throughout the country. Another positive aspect is related to the fact that the alternative can be used by mother of children of all ages and regardless of children needs for care and education. Consequently, this alternative can and should be implemented by every company that has at least any employee benefits available for its workers


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