Tackling Childcare THE BUSINESS CASE FOR EMPLOYER-SUPPORTED CHILDCAREABOUT IFC IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in emerging markets. Working with more than 2,000 businesses worldwide, we use our capital, expertise, and influence to create markets and opportunities in the toughest areas of the world. In FY17, we delivered a record $19.3 billion in long-term financing for developing countries, leveraging the power of the private sector to help end poverty and boost shared prosperity. For more information, visit ifc COPYRIGHT AND DISCLAIMER NOTICE © International Finance Corporation 2017. All rights reserved. 2121 Pennsylvania Avenue, N.W. Washington, D.C. 20433 Internet: ifc The material in this work is copyrighted. Copying and/or transmitting portions or all of this work without permission may be a violation of applicable law. IFC encourages dissemination of its work and will normally grant permission to reproduce portions of the work promptly, and when the reproduction is for educational and non-commercial purposes, without a fee, subject to such attributions and notices as we may reasonably require. IFC does not guarantee the accuracy, reliability, or completeness of the content included in this work, or for the conclusions or judgments described herein, and accepts no responsibility or liability for any omissions or errors (including, without limitation, typographical errors and technical errors) in the content whatsoever or for reliance thereon. The boundaries, colors, denominations, and other information shown on any map in this work do not imply any judgment on the part of the World Bank Group concerning the legal status of any territory or the endorsement or acceptance of such boundaries. The findings, interpretations, and conclusions expressed in this volume do not necessarily reflect the views of the Executive Directors of the World Bank Group or the governments they represent. The contents of this work are intended for general informational purposes only and are not intended to constitute legal, securities, or investment advice, an opinion regarding the appropriateness of any investment, or a solicitation of any type. IFC or its affiliates may have an investment in, provide other advice or services to, or otherwise have a financial interest in, certain of the companies and parties (including named herein). All other queries on rights and licenses, including subsidiary rights, should be addressed to IFC Communications, 2121 Pennsylvania Avenue, N.W., Washington, D.C. 20433. International Finance Corporation is an international organization established by Articles of Agreement among its member countries, and a member of the World Bank Group. All names, logos and trademarks are the property of IFC and you may not use any of such materials for any purpose without the express written consent of IFC. Additionally, “International Finance Corporation” and “IFC” are registered trademarks of IFC and are protected under international law. September 2017 COVER PHOTOS CLOCKWISE FROM TOP LEFT: DOMINIC CHAVEZ/INTERNATIONAL FINANCE CORPORATION; COURTESY OF MINDTREE; DOMINIC CHAVEZ/INTERNATIONAL FINANCE CORPORATION; DMYTRO DERKACH/WORLD BANK1 Table Of ContentsAbbreviations and Acronyms .2List of Boxes, Figures, and Tables .3Acknowledgements . 4Foreword .5Executive Summary .7 1. TACKLING CHILDCARE: INTRODUCTION . 13Methodology .18 2. BUSINESS CASE FOR EMPLOYER-SUPPORTED CHILDCARE . 21 Business Benefits for Recruitment . 22 Business Benefits for Retention . 25 Business Benefits Through Productivity Gains . 27 Accelerating Parental Return to Employment . 27 Reducing Short-Term Absences .28 Enhancing Employee Concentration, Motivation, and Productivity .31 Increased Workforce Diversity . 32 Corporate Social Responsibility .34 Improved Compliance .36 Enhanced Employee Relations .36 Improved Community Relations . 37 Investment in the Future Workforce .39 3. DESIGNING A CHILDCARE STRATEGY . 41 Assess Employees Needs for Childcare .42 Four Dimensions of Childcare Support .42 Information Gathering on Employees Needs for Childcare .47 Review Options for Meeting Employees Needs for Childcare .51 Options for Meeting Regular Childcare Needs .51 Options for Meeting Intermittent Childcare Needs . 57 Options for Facilitating Parental Caregiving . 60 4. FINALIZING AND IMPLEMENTING A CHILDCARE STRATEGY . 69 Review Business Goals and Resources .69 Understand the Regulations and Partnering Possibilities .71 Determine the Details: Eligibility, Fees, and Scope .74 Communicate Widely and Seek Input . 77 Pilot Programs . 77 Set a Baseline and Establish Metrics . 77 Assess Program Impact and Success .78 Integrate the Childcare Strategy with Broader Corporate Objectives .79 5. TEN TAKE-AWAYS OR RECOMMENDATIONS . 81 6. CASE STUDIES . 85 7. REFERENCES . 233Endnotes .242Annex A. Case Studies: Overview of Research Objectives and Typical Schedule for Interviews .243Annex B. Is an On-Site Crèche the Right Solution? Factors to Consider .248Annex C. Further Reading .2512 Abbreviations and Acronyms B2B Business-to-business CEO Chief Executive Officer CFO Chief Financial Officer CGI Clinton Global Initiative CSO Civil society organization CSR Corporate social responsibility D the team included Lindsey Reichlin Cruse, Asha DuMontier, Gladys McLean, Kelly Rolfes-Haase, and Emma Williams-Baron. A team from Ergon Associates led by Kirsten Newitt and Alastair Usher, supported by Pins Brown, Laura Curtze, and Anne-Marie Lévesque, conducted three of the 10 case studies and contributed to the final drafting of the publication. Sandra Burud provided valuable input on the conception and presentation of the research. The case studies underpinning the report were completed with the active collaboration of 10 companies and our principal counterparts: Adri van Niekerk and Johan van Wyk at Afrifresh; Kim Macdonogh, Sarah Sardella, and Meghan Vagnone at Akamai; Öznur Halilcikolu at Borusan; Nobue Kamba at The Bank of Tokyo-Mitsubishi UFJ, Ltd.; Saadet Çaal, M. Zeyit Damar, Salim Doan, and Hülya Alper Polatcan at Martur; Hani Bostanji, Farhan Ifram, and Bhathiya Karunathilaka at MAS Kreeda Al Safi-Madaba and Eranthi Premaratne at MAS Kreeda; Chitra P. Byregowda and Kanchana Rao at Mindtree; Celia Cristiane Granata and Sergio Tamelini at Pandurata Alimentos Ltda. (Bauducco); Karen Basiye, Stephen Chege, and Tabie Kioko at Safaricom; and Michaela Preis at Schön Klinik. We are also grateful for contributions from the following Tackling Childcare Partnership organizations: Afrifresh, AeroMéxico, Care, Clinton Global Initiative (CGI), Danone Nutricia Early Life Nutrition Italy, Dialog Axiata PLC, Grupo M, HBL Bank, the International Labour Organization (ILO), IWPR, Kidogo, MAS Kreeda Al Safi-Madaba, Mindtree, Pandurata Alimentos Ltda. (Bauducco), Safaricom, Sumitomo Chemical Company, UN Global Compact, and UN Women. The report also benefited from valuable contributions made by the members of the World Bank Groups Advisory Council on Gender as well as Ana Maria Munoz Boudet, Tamoya Annika Lois Christie, Namita Datta, Sarah Elizabeth Haddock, Sarah Iqbal, Fareeba Mahmood, Eliana Carolina Rubiano Matulevich, Maria Soledad Requejo, and Oni Lusk-Stover. IFC acknowledges the generous support of the Government of Japan to the Tackling Childcare Initiative. This publication was also made possible through a grant from the World Banks Jobs Umbrella Trust Fund, which is supported by the Department for International Development/UK AID, and the governments of Norway, Germany, Austria, the Austrian Development Agency, and Swedish Development Agency SIDA. Appreciations are also extended to Joan Taylor, the editor of the report, and the design and printing team at Groff Creative, including Jay and Lauren Groff and Tanaquil Baker, who, along with Bhattiprolu B. Murti from IFC, were critical in producing this report. IN COLLABORATION WITH