Setting up childcare policies. (Checklist 098).

This checklist provides guidance for those responsible for the implementation of a childcare policy within an organisation. It focuses on the general principles and considerations involved; specific policy options, such as workplace nurseries or childcare vouchers, are described in the Glossary of terms.

The provision of help with childcare is increasingly viewed as a valuable benefit by employees, as it assists them in balancing work and domestic responsibilities. On the employer's side, childcare is seen as a means of retaining staff and contributing towards equal opportunities objectives.

Management Standards

This checklist has relevance to the MSC National Occupational Standards for Management: Key Roles B and C--Manage Resources and Manage People.

Definition

A childcare policy is a voluntary scheme put into practice by the employer to provide, or to help to provide, care for the children of employees during working hours. The aim of such a policy is to enable primary carers to return to work despite childcare responsibilities. Care may be provided for children of all ages and can be implemented in a single scheme, or as a combination of a number of childcare options (see the Glossary of terms). To comply with equal opportunities legislation, childcare provision has to be made available to both male and female employees.

Advantages of setting up childcare policies

* Experienced and skilled staff are able to return to/continue in work, reducing recruitment and training costs.

* A wider range of applicants may be attracted for vacant positions.

* The image of the firm is enhanced, as it is seen to be a caring and employee-friendly organisation.

Workplace nurseries

* Parent and child are on site allowing access for parents to their children at lunchtimes or in emergencies.

* Workplace nurseries are a tax-free benefit.

* Nurseries can provide a beneficial environment for children.

Buying places at local nurseries

* Start-up costs for employers are eliminated.

* Nursery management responsibilities are avoided.

Childcare allowances

* These are much cheaper than paying for nursery provision and can be used in the parents' local area.

* Parents are able to choose the form of childcare they prefer.

Childcare vouchers

* can purchase almost any form of childcare

* can only be cashed in exchange for childcare

* are subject to a number of tax benefits for employers and employees

* can be used in the parents' local area.

Information/Advisory services

* This is a low cost scheme which requires less management and administration to run than other options.

Disadvantages of setting up childcare policies

* Staff without children may feel resentful of benefits they will not receive.

Workplace nurseries

* They are expensive to set up and run.

* They must be registered with the local authority's social services department and are subject to annual inspection.

* Not all parents would wish, or find it possible, to commute with their children to work every day.

* Facilities have to be found to house the nursery within the building or nearby, which could prove costly and deny space to other departments in the organisation.

Buying places at local nurseries

* This option can be expensive and may be considered a taxable benefit.

* Nurseries where places have been bought may not be convenient for all.

Childcare allowances

* These are subject to tax and national insurance.

* Administration is needed to establish selection criteria for employees entitled to financial assistance.

* There is no guarantee that the allowance will be spent on childcare.

Childcare vouchers

* Service charges have to be paid to the issuing company.

* Their usefulness is limited if there is inadequate childcare provision in the area where the recipients of vouchers live.

Action checklist

1. Examine the short term and long term needs of the firm for the provision of childcare

Will a childcare policy benefit the organisation in the long term justifying high initial costs* Is there a demand for a childcare policy?

2. Obtain the full commitment of top management to the implementation of a childcare policy and appoint a project team

Without overt commitment from the top, the policy has little chance of success. Establish who will be responsible for the implementation and management of the policy. This is important, as the implementation of a childcare policy is a long term commitment and quality of provision is essential. Consequently the individuals involved must be prepared to be scheme champions. A project team should be assembled to collect and assess information and help formulate policy. This should include a member of the Personnel Department.

3. Ascertain all the policy options available

Ensure that the implications of each policy are thoroughly researched, including: costs; legal regulations; which options are and are not available in the immediate vicinity of the workplace; and the location of the workforce in relation to the workplace.

4. Consult employees

Having decided which options would be practical to implement, present them to employees and survey their attitudes to the choices open to them. Which policy would they prefer and why?

5. Formulate policy

Taking the views of employees into full account, and the requirements and preferences of the firm, choose one, or a combination, of the options.

6. Draw up a business plan detailing policy

Set time scales for implementation, and estimate implementation and ongoing costs. Ensure that regulations governing each method of childcare provision are adhered to and that all relevant organisations are kept informed of the implementation of policy. The scope of provision should be outlined in the plan. Establish the rate of any fees / allowances / contributions. If applicable, decide the range of hours provision will cover, and ascertain any limits in numbers of employees who will be covered by provision.

7. Launch the scheme

Inform employees of the final childcare policy decision some time in advance of the scheme's launch, as many parents in work will already have made childcare arrangements with family, friends or providers of childcare in their area. After the launch, allow time for parents to adjust to the service, and for numbers of participants in the scheme to increase.

8. Review the scheme

Assess and monitor standards continuously to ensure that childcare policies meet the needs of the organisation, the employees and their children.

Dos and don'ts for setting up childcare policies

Do

* Recognise that a childcare policy is a long term commitment.

* Plan thoroughly, exploring every childcare option available.

* Seek advice on legal and financial implications of any policy decision.

Don't

* Rush planning or implementing a childcare policy.

* Impose a policy on staff without consulting them.

* Expect immediate, quantifiable results.

Glossary of terms

Workplace nurseries are usually on site or located in nearby premises provided by the employer. They can be run in-house or by a contractor who specialises in nursery care provision. Some organisations work in partnership with another firm to provide nursery facilities, thus sharing the costs and management responsibilities.

Purchased places in nurseries enable employers to provide their employees with guaranteed places in local nurseries for their children. In some cases the costs are absorbed by the firm, in others they are passed on to the employee.

Childcare allowances are paid directly to the individual employee in the form of a cash payment, or are placed in a childcare fund.

Childcare vouchers work in a similar way to luncheon vouchers and are issued by Childcare Vouchers Ltd., a division of Luncheon Vouchers Ltd. Employers obtain vouchers up to a certain value, which they then distribute to employees who need them. Vouchers can obtain any form of childcare provision and the provider then redeems them from the issuer at face value.

Holiday/After school provision enables parents, who have children of school age and whose hours of work do not correspond with school times, to obtain care. These are often run by local councils, church groups or local clubs and societies. A government initiative provides funding distributed through local TECs for those establishing out-of-school group provision.

Flexible working means that the working hours for employees deviate from the 9-5 norm. Options include flexible working hours, term time working, job share schemes and voluntary reduced work time.

Useful reading Families at work: step-by-step guide for employers about childcare and family-friendly options London: Family Life Solutions, 1998 Employers and childcare, IDS Study, no 633, Spetember 1997 Childcare providers, IDS Personnel Products and Services, March 1996 Close to home: family friendly services, Julia Carter London: London enterprise Agency, 1995

Useful addresses National Childminding Association, 8 Masons Hill, Bromley, Kent, BR2 9EY Tel: 020 8464 6164 Childcare Vouchers and Childcare Solutions, 50 Vauxhall Bridge Road, London SW1V 2RS Tel: 020 7834 6666 Daycare Trust, Shoreditch Town Hall Annexe, 380 Old Street, London, EC1V 9LT Tel: 020 7739 2866 Parents at Work, 45 Beech Street, London, EC2Y 4AD Tel: 020 7628 3565

Related checklists

* Introducing flexible working into your organisation

* Undertaking an employee attitude survey

Thought starters

* What is your labour turnover rate?

* How many people with childcare responsibilities leave* How much does it cost to replace them?

* Do you know people in your organisation who would value help with childcare?

Further information

Checklists are available in the following formats:

* Individual checklists.

* A complete set of 175 on CD-ROM or in hard copy.

* Checklists with permission to photocopy.

Full details of the range of checklists that are available can be obtained from:

Lavis Marketing, 73, Lime Walk, Headington, Oxford, OX3 7AD Tel: 0845 702 3736 (local call rate) Fax: +44 1865 750079 or from Checkpoint on the Chartered Management Institute's website at www.managers.org.uk