Small- and medium-sized (SMEs) manufacturers are often looking for step-function type change to increase their competitiveness. After reviewing several issues SMEs are experiences that are limiting productivity, offering daycare options for staff members has shown to be a significant step in improving retention rates, and reducing lead times.
For a small scale company, low retention rates can be detrimental to overall success. Taking the time and resources to train new staff regularly is a costly endeavor that can make it difficult to maintain production expectations.
Many companies, when analyzing the situation, have found that high turnover rates are primarily caused by single mothers lacking childcare needs. Some owners have made agreements with local daycare services to provide a mutually beneficial situation. Discount rates were offered to current staff members, having the offset cost paid by the company. The daycare benefitted from the significant increase in children to care for. For most, this did wonders for decreasing the turnover rate and in the end, ultimately cost less than the ongoing turnover.
The Changing Nature of Workforce Benefits
Professionals, regardless of the industry they belong believe employers are not doing enough to support parents. There is a rising cost in childcare, and as an employee, paying attention to these needs would help to reduce workforce turnover. You will also be able to attract talents into your workforce with a childcare focused incentive. It is already established that the absence of quality healthcare could be a hindrance to allowing parents, especially women, are being focused in the workplace; single fathers are not also exempted.
Applying daycare and other childcare focused incentives will not only reduce employee turnover. In the long-term, it will affect productivity as parents will be more focused on their job knowing their children are close by in a secure environment.
In India, for example, there is the Maternity Benefit Act, which mandates that in any establishment with more than 50 people on its payroll, the employer is mandated to provide a Creche facility. Moreso, the mothers would be permitted to check on their children not less than four times during the working hours.
What SMEs Stand To Gain
There’s a lot at stake for SMEs beyond reducing workforce turnover. According to Childcare Aware, businesses in the United States lose around $4.4 annually as a result of childcare related absenteeism. As an SME, it’s not just enough to build Daycare centers, you can also consider childcare subsidies for nursing mothers to find affordable and reliable childcare centers.
In a report, it was noted that businesses that offer childcare assistance report a 54% positive impact on absenteeism. With childcare, you can boost your productivity with reduced absenteeism. The most important is that there will be a reduction in turnover by at least 60% and you can attract more talent as a business.
With the change in how people work, there is a need for attention to be shifted to providing the infrastructure that caters to childcare. This will be more practical if the employees, employees, and government pay more attention to solving these issues.