Southern Business Leadership Council

Transcription

1 August 2009 Southern Business Leadership Council Employment Stability Action Plan Recommendations for the Public and Private Sectors to Support Stable Employment in the Low-wage Workforce Southern Institute on Children and Families

2 Founded in 1990, the Southern Institute on Children and Families is a non-profit organization dedicated to improving the well-being of children and families, especially those who are economically disadvantaged. We create opportunities to meet basic needs through achievement of innovative, research-based policies, effective policy implementation and efficient service delivery. In pursuit of these goals, we generate knowledge and build leadership that result in action. This report is available for download on the Southern Institute Web site: August 2009 Southern Institute on Children and Families PO Box 786 Lexington, SC P (803)

3 Southern Business Leadership Council The Southern Institute on Children and Families established the Southern Business Leadership Council (SBLC) to lead a southern regional initiative to engage business and public policy leaders in the development and implementation of comprehensive solutions to societal issues that impede stable employment of the low-wage workforce and restrict opportunities for child development. The participation of business leaders elevates the goal of improving the wellbeing of children and establishes a connection to strategic growth and economic development. The SBLC is co-chaired by former U.S. Secretary of Education Richard W. Riley and Wells Fargo Executive Vice President, Anne Doss. It is composed of local, state and national business leaders (see membership list below). Co-Chair - Richard W. Riley, Nelson Mullins Riley & Scarborough LLP; former Governor of South Carolina; former U.S. Secretary of Education Co-Chair - Anne Doss, Executive Vice President, Wells Fargo AT&T - Cindy Cox, Vice President, Regulatory and External Affairs Bank of America - Natalie J. Brown, Senior Vice President and Market Development Manager BlueCross BlueShield of South Carolina - George L. Johnson, Vice President for Federal Affairs and Foundations Capital Guardian Trust Company - C. Jeff Cook, Senior Vice President, Personal Investment Management Coca-Cola Bottling Co. Consolidated - Tony Norwood, Vice President of Human Resources Services Columbus Regional Healthcare System - Kevin C. Sass, FACHE, Vice President, Professional Services Conceptual MindWorks, Inc. - Elaine Mendoza, President Florida State Hispanic Chamber of Commerce - Julio Fuentes, President Greater Columbia Chamber of Commerce - Donald G. (Ike) McLeese, President InterContinental Hotels Group - W. Todd Brown, Global Brand Management, Consumer Insights Lang-Mekra North America, LLC - Sabine Lang, Managing Director Michelin North America - Herb Johnson, Director, Community Relations Republic Powdered Metals, Inc. - John E. Davis, Manufacturer Representative; Member, Texas House of Representatives Results, LLC - William F. O Connor, Jr., President Spartanburg Regional Healthcare System - Ingo Angermeier, FACHE, President/CEO U.S. Chamber of Commerce - Stephen Jordan, Director of the Business Civic Leadership Center United Way of America - Charlotte Lunsford Berry, Board of Trustees, United Way of America University of Texas at Austin - Ray Marshall, Professor Emeritus, Rapoport Centennial Chair in Economics and Public Affairs; former Secretary of the U.S. Department of Labor Southern Institute on Children and Families August ii

4 Letter from Co-Chairs The Southern Business Leadership Council (SBLC) Employment Stability Action Plan is the culmination of several years of research focused on low-wage workers. Employees who earn low wages face daily struggles in meeting basic needs and the challenges they face can affect their stability and productivity on the job. Low-wage workers include the cashiers at the grocery store, the gardener who maintains the yard and the waitress at the local restaurant, among others. Hard work is a key feature of the American economy and there is no segment of the workforce where hard work is more apparent than in the low-wage category. Yet, for too many of the lowwage workforce, if they do not work, they do not get paid. This Action Plan is not a procedural manual for tackling the challenges faced by the low-wage workforce. Instead, this ground-breaking document provides concepts and strategies that improve opportunities for low-wage workers. The American and international economies currently are facing great challenges. However, during the most trying times in our economic history, American business ingenuity has not failed. New or improved businesses are created and launched during these times, as well as during an economic upswing. This Action Plan can help new businesses or those re-engineering their products and services to improve the quality of their workforce and their business. More importantly, the strategies presented in this Action Plan can help existing businesses. Successful implementation of the concepts and strategies in the Action Plan will result in mutual benefit to employers, low-wage workers, the families of low-wage workers and the entire community. As co-chairs of the SBLC, we thank each of the SBLC members who provided their expertise and consultation in the development of the Action Plan. Also, we thank all of the employers who participated in the SBLC survey, the employer dialogue sessions and those who provided their input on the issues facing low-wage workers and the strategies for addressing those challenges. Finally, we thank the staff of the Southern Institute, especially former President and CEO, the late Sarah Shuptrine, whose vision led to the creation of the SBLC and the concept of the Action Plan. We hope this Action Plan will serve you well in developing or improving your business. Sincerely, Richard W. Riley Co-Chair, SBLC Anne Doss Co-Chair, SBLC Southern Institute on Children and Families August iii

5 Acknowledgements We want to acknowledge and express appreciation to the following organizations and foundations for their support of this initiative: Annie E. Casey Foundation AT&T Bank of America Charitable Foundation BI-LO, LLC BlueCross BlueShield of South Carolina The Capital Group Companies of Charitable Foundation Coca-Cola Bottling Co. Consolidated David and Lucile Packard Foundation Ford Foundation GlaxoSmithKline Greenville Hospital System Mary Black Foundation Michelin North America, Inc. National Center for Children in Poverty Nelson Mullins Riley & Scarborough, LLP Spartanburg Regional Healthcare System Wachovia Foundation Washington Area Women s Foundation We want to thank the employers that completed the employer survey, participated in the employer dialogue sessions and provided their expertise related to the low-wage workforce. In addition, we want to thank Jodi Levin-Epstein of the Center for Law and Social Policy for her input and suggestions on drafting this report. Appreciation also is expressed to the Robert Wood Johnson Foundation for their in-kind contribution of the assistance of Covering Kids & Families staff in support of the Southern Business Leadership Council Initiative. While the Southern Business Leadership Council (SBLC) members provided their consultation and expertise in the development of the information in the Employment Stability Action Plan, no endorsement of the Employment Stability Action Plan should be implied or inferred by the SBLC members organizations. This Employment Stability Action Plan was written by the Southern Institute on Children and Families. The findings and views contained in this report do not necessarily reflect those of the SBLC members organizations or the funders that provided support for the development of the Employment Stability Action Plan. Southern Institute on Children and Families August iv

6 Contents 1 Introduction 6 Issue Areas 6 Issue 1: Health Coverage and Health Care 9 Issue 2: Child Care 12 Issue 3: Transportation 14 Issue 4: Basic Education and Life Skills Training 17 Issue 5: Professional Development 19 Issue 6: Dependent Adult Care 21 Issue 7: Public Sponsored Benefits 24 Issue 8: Employer Sponsored Benefits and Incentives 27 Promising Practices 56 References 58 Staff and Consultants Southern Institute on Children and Families August v

7 Introduction There is a palpable feeling of change in the U.S. right now, spurred partly by a weakened national and international economy and a transition in the presidency. As of June 2009 the national unemployment rate is 9.5 percent. During the time period since December 2007, when the recession began, the number of unemployed grew by 7.2 million bringing the total number of unemployed people to 14.7 million. The economy has suffered big losses in retail, manufacturing, construction, temporary help and other sectors, industries that employ a large number of low-wage workers. The current debates on how to rebuild and restore the U.S. financial infrastructure center around creating jobs, improving people s ability to spend and lessening U.S. dependency on foreign products, such as oil. Some American citizens have begun to enroll in colleges, universities and trade programs in hopes of increasing their employability. But other aspects greatly influence whether or not an individual stays on the job besides educational experience, especially for those who are low-income workers. Availability of benefits such as health care, sick and vacation leave, and flexible work schedules have much more influence on the satisfaction and productivity of employees and help to insure that they are stable on the job. Unfortunately, many low-wage jobs lack these added benefits that help to maintain work stability. Low-wage Workers It is estimated that 44 million workers have low-wage jobs. Low-wage workers perform some of the most important jobs that help support the U.S. economy. Bank tellers, grocery store clerks, construction workers, health care aides, retail and other low-wage workers provide services that impact our daily lives. There are more than 25% of working families who are low-income ($42,400 or less for a family of four) and many of them live in poverty ($21,200 or less for a family of four). More than half of the lowincome, working families are headed by married parents who work multiple jobs in order to make ends meet. Many low-wage workers duties cannot be performed by telecommuting or accomplished only on the weekends. Their jobs require that they are at their business locations ready and willing to work at any given time and day of the week for their employers and provide customer service for those they serve. Lack of available, reliable transportation presents challenges to low-wage workers especially those across the South where public transportation is inadequate. Limited, affordable, quality child care creates disruptions in the daily routines to which many low-wage workers must adhere. The absence of a leave policy for parents results in many low-wage workers having little flexibility in addressing child care, dependent care, illness and other challenges that may arise within a family. Further, a lack of health care coverage for the employee or his or her dependents to pay for services when there is a family illness puts a tremendous strain on the budgets of low-wage workers. Inability to pay medical expenses is the number one reason individuals file for bankruptcy. All of these challenges can contribute to unstable employment among the low-wage workforce. Southern Institute on Children and Families August

8 Employment Stability Workforce issues faced by low-wage individuals are reflected in high absenteeism, high turnover and low morale. Low-wage parents, particularly single parents, face barriers that interfere with job stability. Difficulty in securing employment and an inability to retain employment are stressful and disruptive for families. These factors also contribute to higher training costs and result in lost productivity for businesses. There is no standard for turnover in employment, which varies based on industry and positions within an industry, but averages between 15 and 25%. Retail, hospitality and other private sector industries that employ a large number of low-wage workers tend to experience higher rates of turnover. Turnover can have a tremendous impact on not just the employee and his or her family, but employers experience a loss in productivity and quality of services and products. The reasons for turnover are multi-faceted. Researchers have reported that most turnover is related to voluntary departure from a job usually within a short period of time on the job. So employers are in a cycle of continuous recruitment and training of new employees. Stability in the work place also is impacted by high levels of employee tardiness and absenteeism. Managers and other key decision-makers are faced with improvising and shifting responsibilities to deal with absent employees. This oftentimes leads to instability of performance and production for an employer. Perspectives: What Affects Employment Stability The Southern Institute on Children and Families conducted research with employers in the South who employ low-wage workers, to obtain their perspectives on the reasons their low-wage workers experience tardiness/attendance issues and leave their employ (turnover). Also, if employers experienced tardiness, attendance and turnover issues, they were asked to share any innovative strategies they used to minimize the impact of these issues on their businesses. Child care, health of the employee or employee s relative(s) and transportation were the major reasons employers believe their employees were challenged with getting to work or getting to work on time. Higher wages, better benefits, disciplinary problems and better advancement opportunities were identified by employers as the major reasons employees departed their businesses. The research also obtained information on the extent to which these employers offered benefits. The chart on the following page describes the benefits offered by employers who participated in the survey. It should be noted that because a benefit was offered does not indicate that an employee received the benefit. For instance, employers were asked to indicate how many of their employees participated in the businesses health insurance program if one was offered. Forty percent (40%) of the employers had a less than 75% participation rate in their health insurance program citing cost as the major deterrent. Southern Institute on Children and Families August

9 Benefits Offered by Employers Paid Vacation Health Insurance Pension/Retirement Plans Paid Sick Leave Flexible Work Options Health Insurance for Dependents Long-term Disability Short-term Disability Paid Maternity Leave Investment Planning Tuition Reimbursement Cafeteria Plan/Flexible Spending Accounts Employee Assistance Programs Paid Sick Dependent Leave Transportation Paid Paternity Leave Information about Public Benefits and Programs Child Care Advance Earned Income Tax Credit Housing Assistance Dependent Adult Care Adoption Assistance Other Don't Know None 17.9% 17.9% 13.1% 12.7% 12.0% 9.2% 8.4% 8.0% 7.2% 5.6% 4.0% 3.2% 1.6% 0.8% 18.4% 1.6% 15.9% 38.6% 37.8% 34.3% 31.9% 30.7% 29.9% 64.9% 62.9% The Southern Institute also reviewed literature to assess the impressions of employees on the issue of work stability. The findings from this literature review mirrored the results of the employer research. Employees indicated they were more likely to experience job satisfaction if they could obtain the following: Affiliation in that the worker feels valued by the company Work performed is important to the overall business of the company Benefits Career advancement opportunities Greater job control Job security Southern Institute on Children and Families August

10 In addition, employees felt more connected to a business if they had a sense of humanity, dignity, a supportive environment and equality or distributive justice. Compensation also was a factor, but its meaning lies in the fact that it is compatible with the above attributes. For instance, the level of compensation reflects a worker s value to a business. SBLC Action Plan Initiative The Southern Institute on Children and Families established the Southern Business Leadership Council (SBLC) in 2002 to engage southern business, community and public policy leaders in the development of comprehensive solutions to societal issues that impede stable employment of the low-wage workforce. The SBLC also supports efforts to achieve greater opportunities for child development. Discussions regarding how to identify strategic public and private sector actions to improve employment stability in the low-wage workforce led to the SBLC decision to develop and promote the SBLC Employment Stability Action Plan. A focus on employment stability is a goal that resonates with both the business and public policy communities and it provides the opportunity for collaboration toward a common goal that benefits low-income families and children. The SBLC Employment Stability Action Plan recommends public policy and private sector actions, as well as public/private partnerships to improve the ability of low-wage employees to obtain and retain employment, with special attention to working parents and other caregivers. It also provides profiles on public and private sector promising practices that can be replicated in communities across the South and the nation, including information on design, implementation and who to contact for additional information on specific strategies, when available. There are three phases of the SBLC Action Plan Initiative. Phase I was focused on research to assist the SBLC in developing the SBLC Employment Stability Action Plan. Phase II included the preparation and release of the SBLC Employment Stability Action Plan. Phase III will focus on active dissemination and promotion of the public policy and private sector actions included in the SBLC Employment Stability Action Plan. SBLC Employment Stability Action Plan Following is the SBLC Employment Stability Action Plan which is the culmination of the work of the SBLC members. Their efforts focused on creating a document that was timely, relevant and would continue to live long after its release. This is a unique document that not only recommends strategies for workforce development, but takes a comprehensive approach and proposes employer and government strategies for workplace development. Knowing that neither employers nor government can make these improvements alone, there also are public/private strategies included. The Action Plan recommendations are related to eight key issue areas. These issue areas were chosen because employer and employee research indicated the need to focus on them. In addition, the opinion of the SBLC was that others should be included because improvements in these areas can have a significant impact on the employment stability of a large portion of low-wage workers. Southern Institute on Children and Families August

11 The Action Plan key issue areas, listed in order of importance, are: Health Coverage and Health Care Child Care Transportation Basic Education and Life Skills Training Professional Development Dependent Adult Care Public Sponsored Benefits Employer Sponsored Benefits and Incentives Each of the issue areas above includes the following components: BACKGROUND Description of the issue STRATEGIC OBJECTIVE Overall recommendation related to the issue RECOMMENDATIONS Action steps that can be employed to support and fulfill the strategic objective by each of the following entities: Government Employers Public/Private Partnerships PROMISING PRACTICES Briefs on implemented government, employer and public/private partnership strategies that relate to the recommended action steps. A full description of each promising practice also is included later in this document. The recommendations and action steps proposed in this document are practical and achievable. The SBLC Employment Stability Action Plan is intended to be used as a blueprint for improving employment stability of the low-wage workforce. Each of us has a role to play in meeting this goal so borrow generously from the SBLC Employment Stability Action Plan, test these strategies often and broadly implement those that are successful. We are in the midst of one of the worst financial and economic crises in U.S. history. Bold and aggressive strategies are needed to dig out of the hole into which we have fallen. As the saying goes, Insanity is doing the same thing over and over again and expecting different results. Now is the time for change. Southern Institute on Children and Families August

12 ISSUE 1 Health Coverage and Health Care BACKGROUND The number of Americans without health coverage continues to escalate. It is estimated that there are 47 million individuals in America who are uninsured, nine million of which are children. There are an additional 25 million individuals who are underinsured. The consequences of being uninsured and its impact on employees, especially those with children, and their ability to perform on the job are well documented. Uninsured Americans are four times more likely to require avoidable hospitalizations and emergency hospital care. Uninsured women receive fewer prenatal services. Uninsured newborns are more likely to be low birthweight or to die. Uninsured children are 70% more likely not to receive care for common conditions like ear infections. Uninsured children are 30% less likely to receive medical attention for injuries. Employer-sponsored health insurance is one of the most commonly offered employee benefits and insured Americans are more likely to obtain their health coverage through an employer-sponsored health plan. However, many low-wage workers do not have access to health coverage because their employers do not offer health insurance. Businesses with a higher proportion of low-wage workers are less likely than businesses with fewer low-wage workers to offer health benefits (40% versus 68%). In the SBLC Employer Survey of low-wage employers, more than half (55.9%) of employers that did not offer health insurance indicated cost too expensive as the reason for not offering health insurance as a benefit to employees. Health coverage for a family averages $12,680 per year. Employers who participated in the SBLC Employer Dialogue Sessions recognized that health coverage is not affordable for low-wage employees and indicated a lack of health coverage is an employment stability issue. Employers discussed how their businesses are experiencing increases in the cost of health care plans and these increases are a major concern. Even if employer-sponsored health coverage is offered, many low-wage employees may not be able to participate because the costs of premiums and deductibles are too high. Results from the SBLC Employer Survey showed 23.3% * of employers with five or more low-wage workers indicated cost too expensive as the reason employees in their business do not participate in the employer-sponsored health insurance plan. Workers in the South contribute a larger portion (30%) to the cost of family coverage than workers in other sections of the United States. Most of the nine million uninsured children are in low-income families. Almost three-fourths of uninsured children (70%) live in families with at least one full-time worker. Medicaid and the Children s Health Insurance Program (CHIP) are publicly funded by federal and state governments and provide coverage for low-income children who meet citizenship and other requirements. Nearly three-fourths of uninsured children are potentially eligible for Medicaid or CHIP, but are not receiving that coverage. This number will grow as a result of the reauthorization and expansion of CHIP. Research shows that Medicaid and CHIP significantly improve access to preventive and primary care for children. Children with Medicaid are 26% * Statistically significant at the 95% level Southern Institute on Children and Families August

13 more likely than uninsured children to have a well-child visit and only 3% of Medicaid children delayed care due to cost, compared to 17% of uninsured children. In most states, eligibility for adults for government health programs such as Medicaid and CHIP are much more limited. Community health centers serve an important function in the provision of health care, especially for those who are low-income and uninsured. One quarter of all low-income persons receive their care from health centers. Community health centers are the nation s largest single source of comprehensive, primary health care with approximately 1,000 sites, providing care to about 15 million patients in Care is available at community health centers to uninsured, publicly insured and underinsured low-income patients. Community health centers are facing a financial crisis as their ability to continue to serve the uninsured is outstripped by the increasing number of patients in need. The number of private physicians willing to accept Medicaid or CHIP has been decreasing and the number of privately insured patients who seek community health center care is increasing as many patients cannot pay the deductibles in their private plans. As a result, ever more patients seek their care at a community health center and pay for services rendered based on their ability to pay. The financial strain on community health centers to provide care to those other than the uninsured is deteriorating as an important safety net in the provision of quality health care. Providing health coverage through public programs and/or employer-sponsored coverage will increase access to cost-effective preventive and primary care. Additionally, making health coverage available and affordable will significantly reduce the cost shifting that takes place today whereby insured patients pay higher rates to cover the cost of caring for the uninsured. These higher rates contribute to the high cost of health insurance, which in turn impacts the ability of businesses, especially small businesses, to offer health insurance plans to their employees. STRATEGIC OBJECTIVE 1 Make health coverage and care available and affordable for low-wage employees and their dependents. RECOMMENDATIONS Government 1.1 Maximize the participation of eligible children and adults in Medicaid and CHIP programs in order to make health coverage more affordable for low-wage families. 1.2 Expand public health coverage programs to offer more low-wage employees and their families coverage and also to cover low-income, working adults without children. 1.3 Reduce barriers, such as extensive paperwork requirements, to employer participation in Medicaid and CHIP premium assistance programs. Premium assistance programs allow Medicaid and CHIP programs to pay the premiums for employer-sponsored health coverage for employees and/or their dependents. 1.4 Fund community health centers based on a formula that adequately reflects the increased usage of health centers by uninsured, publicly insured and privately insured patients. Southern Institute on Children and Families August

14 Employers 1.5 Provide employer-sponsored health coverage for employees and their dependents and subsidize the cost of health coverage for low-wage employees and their dependents to help them take advantage of employer-sponsored health benefits. 1.6 Make part-time employees and their dependents eligible for employer-sponsored health benefits. 1.7 Participate in employer partnerships to implement premium assistance programs through Medicaid and CHIP. 1.8 Partner with other businesses to develop strategies to provide health coverage benefits for employees and their families in order to make coverage more affordable and increase participation in employer-sponsored health benefit programs. Public/Private Partnerships 1.9 Form public and private partnerships to promote participation in premium assistance programs under Medicaid and CHIP to help employees take advantage of employer-sponsored health benefits Form public and private partnerships to inform employees about the availability of community health centers to obtain affordable, quality health care Implement policies that allow self-employed individuals and small businesses to buy into a larger health insurance program such as a state or local health insurance plan or a business/ professional association s health insurance plan to make coverage more affordable Promote transparency to identify the source and impact of cost shifting resulting from inadequate private and public health coverage funding and utilize this information to develop plans to improve access to health coverage and health care. PROMISING PRACTICES Tiered Structure for Health Coverage Costs Wachovia, a Wells Fargo Company, offers health benefit premiums based on employee salaries in order to make health coverage more affordable for all employees. Employees are assigned to one of four salary tiers for determining their premiums; regardless of tier assignment, the health care plans and deductibles for covered services are the same for all employees. Access Health Program Access Health is a public-private partnership that subsidizes the cost of health coverage for uninsured, working families employed by small and mid-size businesses. This cost sharing model distributes the health coverage cost equally between the employer, employee and the community. The community s share is supported by federal funds. Subsidized Health Coverage for Small Businesses Insure Oklahoma provides subsidies to help small businesses offer health insurance to their low to moderate income employees and employees spouses. Individual plans for low-income employees of businesses that do not participate in Insure Oklahoma also are available. Southern Institute on Children and Families August

15 ISSUE 2 Child Care BACKGROUND More than two-thirds (69%) of children under age five with low-wage mothers are being cared for regularly by someone other than a parent and 39% of these children are in care for a minimum of 35 hours a week. Child care is an important work support to assist low-wage workers in being stable and productive employees. Research shows that low-wage mothers are more likely to remain in the workforce if they have child care. Child care expenses can pose considerable burdens on many low-wage families. The national average annual cost of child care in a center for a four-year-old ranges from $3,800 to $10,900 per child and the average annual cost of child care in a center for one infant ranges from $4,400 to $14,600 per child. It has been estimated that low-income families with at least one full-time working adult spend 12% of their annual income on average to pay for child care services. Survey results from the SBLC Employer Surveys showed 40% * of employers with five or more low-wage workers cited child care issues as contributing to attendance and tardiness problems in their businesses. Employers participating in the SBLC Employer Dialogue Sessions indicated child care issues are a significant factor affecting employment stability and also indicated employees, particularly single parents, are more likely to miss work or be unable to fulfill work requirements due to the lack of a personal support system to help with unexpected personal and job-related events. State and federal child care subsidies are significantly underfunded and available resources target parents involved with the Temporary Assistance for Needy Families (TANF) program, often referred to as the welfare program. Targeting state/federal subsidies to welfare families leaves few resources for low-income, working families not associated with welfare. This public policy is counterproductive to supporting lowwage employees and discouraging welfare. Some employers have taken the lead in assisting employees with child care needs by offering on-site child care or discounts through child care providers. However, child care benefits through employers are not widespread. STRATEGIC OBJECTIVE 2 Increase the availability and accessibility of affordable, quality child care for low-wage employees. RECOMMENDATIONS Government 2.1 Provide state and federal funding for child care subsidies to families with incomes up to 200% of the federal poverty level ($44,100 annual income for a family of four), based on ability-to-pay. * Statistically significant at the 95% level Southern Institute on Children and Families August

16 2.2 Provide state and federal matching funds to establish and operate child care purchasing pools to which employers, community organizations and philanthropic organizations can contribute funds to provide families with financial assistance for child care. Funds from multiple employers and other organizations are combined or pooled in order to leverage state and federal funding for child care. Child care purchasing pools also can be established by local governments. 2.3 Provide grants and other resources to support development of quality child care services, giving special attention to rural areas where the supply of child care services can be particularly limited. 2.4 Make corporate tax credits available for child care costs associated with child care subsidies for employees and/or for child care facilities. 2.5 Provide tax credits, subsidies and/or incentives to providers that increase access for low-income families. Employers 2.6 Offer child care subsidies and/or discounted rates to employees through a contract with local child care centers. 2.7 Provide on-site child care for employees and provide financial assistance for low-wage employees to promote participation. 2.8 Form partnerships with multiple employers to provide child care services for employees: Offer child care subsidies and/or discounted rates to employees through partnerships with other employers and child care centers. Address special circumstances, such as child care for shift workers and child care during school holidays and breaks, to provide resources for employees and improve attendance. Work with hospitals and/or other health care providers to offer child care services to severely or chronically ill children. Provide information on child care providers in the area and/or partner with child care referral agencies. 2.9 Make flexible work options, such as flexible work hours, compressed work weeks, job sharing, schedule trading and telecommuting, available to allow employees to care for the needs of children, when possible Offer flexible spending or child care accounts which allow employees to place money into a tax-free account that can be used to pay for child care services Advocate for tort reform to help reduce the high cost of safe, quality child care. Public/Private Partnerships 2.12 Create partnerships to provide local information on quality child care providers Form community consortiums of employers to work with the public sector to construct and/or operate a child care center. Southern Institute on Children and Families August

17 2.14 Create child care purchasing pools that allow businesses, non-profits, philanthropic organizations and government entities to contribute to the creation of child care subsidies. PROMISING PRACTICES Child Care Executive Partnership Florida s Agency for Workforce Innovation administers a public-private partnership among businesses, nonprofits and government agencies designed to defray the costs and increase the availability of child care for low-income, working parents. Support is provided through child care subsidies offered through employers or purchasing pools and through financial assistance for on-site child care facilities. Child Care Plus Bank of America reimburses employees for a portion of their child care expenses through its Child Care Plus program. The program is available for children enrolled in licensed child care facilities as well as those cared for through informal child care arrangements. Employer Tax Credits for Child Care Subsidies The state of Oregon offers businesses tax credits for helping employees pay for child care expenses. An employer can offset 50% of its child care expenditures against its state tax liability. On-site Child Care Facilities AFLAC subsidizes the cost of child care for its predominantly female workforce through on-site child care facilities. Child care is offered at a reduced cost for employees children and grandchildren. Southern Institute on Children and Families August

18 ISSUE 3 Transportation BACKGROUND With a mean travel time to work of 25 minutes nationwide, many employees choose public transportation. In a recent transportation survey conducted from 2000 to 2005, it was calculated that 54% of the trips on public transportation were for commuting to work. The median household income of public transit users was $39,000 as compared to $44,389 for the population as a whole. Twenty percent (20%) of passengers reported an annual family income of less than $15,000 and 46% reported annual family incomes of $15,000 to $49,000. Transportation can pose a barrier to employment stability for low-wage workers. Many low-wage employees do not have access to public transportation and many do not own vehicles. For those who do have access to public transportation, getting to and from work can still be problematic if the employee has non-traditional work hours and the transportation system does not operate during that time period. Additionally, low-wage employees who live in rural areas typically do not have access to a public transportation system. Employers participating in SBLC Employer Dialogue Sessions identified transportation as a significant problem that impacts the employment stability of their low-wage employees. Employers reported that in some areas no public transportation or limited public transportation is available, which creates challenges for their low-wage workers. Employers also described employment stability problems related to low-wage employees who have to depend on family members or co-workers for transportation to work. Relying on others for transportation often was not dependable. Some employers participating in the SBLC Employer Dialogue Sessions indicated increasing gas prices are affecting turnover among their low-wage workers. The stress over transportation caused by higher gas prices has led low-wage workers who commute long distances to look for jobs closer to home. Employers who had businesses on a bus route spoke of the importance of the bus system to their business. Some employers indicated problems with routes and hours of operation create problems for their businesses. The high cost of downtown parking also was described by employers as problematic for low-wage employees. In the SBLC Employer Survey results, 45% of the employers who had problems with attendance cited transportation as a major reason for employee attendance problems. Those with 50 or more employees were significantly more likely to agree that transportation was a problem than were those with fewer than 50 employees. Many low-wage employees depend on public transportation to commute to work. Low-wage employees need access to affordable and dependable transportation to increase employment stability and allow those with stretched budgets to better meet the needs of their families. The lack of public transportation is particularly burdensome for low-wage employees. STRATEGIC OBJECTIVE 3 Increase availability and accessibility to affordable public transportation to meet workforce needs and assist employees with transportation costs. Southern Institute on Children and Families August

19 RECOMMENDATIONS Government 3.1 Provide stable financial support for public transportation systems to extend service routes and hours to better meet the needs of local employers and employees. 3.2 Provide expanded public transportation services to suburban and rural areas to help low-wage employees in those areas access and retain employment. Employers 3.3 Facilitate carpooling arrangements among employees who want to share transportation costs. 3.4 Offer private van service to employees where public transportation is unavailable. 3.5 Negotiate with public transportation officials to offer reduced fares based on riders ability to pay. 3.6 Provide transportation discounts or fully subsidize work-related transportation expenses, such as free or discounted public transportation passes and free or discounted parking, to assist employees. 3.7 Advocate for accessible and affordable public transportation, including entering into discussions with public officials regarding extended routes and hours. 3.8 Allow employees to work from home or via satellite offices, when appropriate. Public/Private Partnerships 3.9 Form state and local alliances to foster improved public transportation systems that are responsive to the needs of the low-wage workforce Consolidate transportation programs created to serve targeted populations, such as the disabled, elderly and medically needy, in order to achieve transportation efficiencies that provide resources for expanded general transportation services Provide affordable housing near highly populated business centers. PROMISING PRACTICES No-fare Public Transportation Universities and cities, such as Clemson University and the city of Clemson, South Carolina and the University of North Carolina and the city of Chapel Hill, North Carolina have partnered to provide no-fare public transportation systems. By pooling University transportation subsidies and fees with public transportation funds, bus service is provided at no cost to students and city residents. Commuter Tax Credit The state of Maryland offers a Commuter Tax Credit to employers who help pay their employees commuting costs. Tax credits are available for the following expenses: employer-provided transit passes or vouchers, subsidized vanpool expenses, cash allowances to offset parking fees, and transportation provided to employees participating in the commuter benefits program in the event of a personal emergency or unscheduled overtime. Southern Institute on Children and Families August

20 ISSUE 4 Basic Education and Life Skills BACKGROUND A quality education prepares children for success. Likewise, an inadequate education impedes the ability of children to succeed in school and later in the workforce. In 2003, the percentage of Grade 4 public school students scoring below basic in reading achievement in the southern states ranged from 29% to 69%. In 2001, the South had the lowest high school graduation rate of all regions in the United States. These statistics do not bode well for the South s current and future workforce. Employers attending the SBLC Employer Dialogue Sessions described the lack of basic skills in reading and math as a significant contributing factor affecting stable employment of many low-wage workers. Poor reading and math skills limit employment opportunities for low-wage workers and inhibit economic stability for their families. Additionally, employers attending the SBLC Employer Dialogue Sessions indicated the inability to demonstrate life skills on the job, such as communication, appearance and work ethic, creates challenges for both employers and employees that affect employment stability. Nearly one-third of small businesses and almost 40% of large businesses participating in the SBLC Employer Surveys indicated they had a problem with attendance and/or tardiness and cited multiple reasons. Lack of work ethic and sense of responsibility were cited by a significant number of small businesses as contributing to attendance and/or tardiness problems. Lack of basic skills in reading and math and a lack of work ethic can impact the ability of low-wage workers to obtain and maintain employment. Further, a lack of education can impact a person s earning potential. On average, a college graduate earns about $45,000 a year, a high school graduate earns about $26,000 and a high school dropout earns about $19,000. STRATEGIC OBJECTIVE 4 Improve the effectiveness of basic reading, math, problem-solving and inter-personal skills and provide life skills education to prepare individuals for success in school or in the workplace. RECOMMENDATIONS Government 4.1 Provide information on the benefits of early childhood education to parents and other caretakers prior to birth, at the time of birth and at checkups during the early years. 4.2 Assure the availability and accessibility of quality early education for all children. 4.3 Improve elementary and secondary public education to assure all students attain proficiency in reading and math. 4.4 Require courses in life skills in middle and high schools to better prepare children for educational and workforce success. Southern Institute on Children and Families August

21 4.5 Provide vocational and technical training courses for middle and high school students. 4.6 Create incentives to encourage all students to complete high school and to pursue additional opportunities for higher education. 4.7 Provide adequate funding for workforce development programs aimed at helping adults improve reading and math skills and life skills. Employers 4.8 Advocate for efforts to improve public schools. 4.9 Advocate for early education programs for all children and effective elementary education programs to assure all students gain proficiency in reading and math Support workplace and community programs and incentives for employees to improve reading and math skills and life skills Offer and increase awareness of workplace life skills training programs to improve the ability of employees to effectively manage work/life demands and improve work ethics Offer business-to-business mentoring opportunities to assist in the design and implementation of programs to help employees with work/life demands and to assist employees in improving work ethics Create industry-specific awareness and career planning programs for middle and high schools to educate students on job opportunities. Public/Private Partnerships 4.14 Provide quality early education programs to all children to increase the likelihood they will gain proficiency in reading and math and at a minimum graduate from high school Create local and statewide public/private partnerships that support the achievement of reading and math skills and life skills Form partnerships between businesses and schools to develop mutually beneficial strategies for training targeted to improving employment stability Develop apprenticeship programs with national standards to provide training for specific job skills leading to certification credentials. The apprenticeship programs should provide formal courses and on-the-job paid training for students Create partnerships to design and implement programs for middle and high school students to learn about various career paths and include mentoring opportunities with employees at local businesses Offer and fund alternative education opportunities for middle and high school students. Southern Institute on Children and Families August

22 PROMISING PRACTICES Bridge to Learning and Literacy Harvard University offers hourly employees and members of the Union of Clerical and Technical Workers the opportunity to improve skills needed for their current or future positions. Classes designed to improve reading, listening, writing and speaking skills are offered on campus during work hours. Ready for the Real World America s Promise Alliance partners with schools, non-profit organizations and businesses to engage middle school students in service learning, civic engagement and career exploration. Partners provide a range of resources and real-life experiences, such as job shadowing and mentoring. Southern Institute on Children and Families August

23 ISSUE 5 Professional Development BACKGROUND Training and skill-building help low-wage employees more effectively perform work and place them in a better position to be promoted. However, opportunities for professional development in the workplace or in the community are often limited or not offered at all to low-wage employees. Research findings show employees with the highest incomes and the most formal education receive the most workplace training, while low earning employees and employees with the lowest educational levels receive less workplace training. Employers participating in the SBLC Employer Dialogue Sessions also indicated professional development programs are most often offered to higher-income employees. Some employers mentioned low-wage employees do not take advantage of training opportunities and other employers indicated that if training is not available during work hours it is inaccessible to low-wage employees. Employers participating in SBLC Employer Dialogue Sessions observed that a lack of a specific career path can have a negative impact on turnover among low-wage workers. Without a career path, low-wage employees are more likely to look for short-term gains in pay and take similar jobs with other employers. Professional development can be beneficial to employers and employees. When low-wage employees obtain additional skills and education, employees are better able to perform assignments and are put on a path to advance career-wise and economically. In return, employers gain a more skilled workforce and employees are able to make positive contributions to their organizations. STRATEGIC OBJECTIVE 5 Provide professional development opportunities for low-wage employees to be more effective in their current positions, to advance professionally and to offer greater benefits in the future to their employers and communities. RECOMMENDATIONS Government 5.1 Provide support to workforce entities such as community organizations, employer organizations, community colleges, temporary staffing agencies, workforce investment boards and other organizations to enable them to provide training and career development opportunities to build capacity in the low-income workforce. Employers 5.2 Offer training programs targeted to low-wage employees during work hours. 5.3 Establish career ladder programs which align and encourage specific education and training needed for advancement. Southern Institute on Children and Families August

24 5.4 Offer tuition assistance/reimbursement for employees to enable them to gain knowledge and skills. 5.5 Provide rewards and incentives for employees who participate in professional development opportunities. 5.6 Provide opportunities for employees to learn a second language to address workplace needs, e.g., English as a Second Language (ESL) and/or train employees to learn the language of the customer base. 5.7 Encourage community volunteerism to build leadership and other skills by offering paid time off. Public/Private Partnerships 5.8 Create partnerships with participation from employers, the public sector and community-based workforce organizations to serve both employers skill needs and employees skill building, including life skills and career paths for the low-wage workforce. PROMISING PRACTICES Baltimore Alliance for Careers in Healthcare The Baltimore Alliance for Careers in Healthcare, a consortium of seven hospitals, offers underemployed hospital workers free training for higher paying health industry jobs. Employees in non-clinical areas such as food services can receive training and certification for clinical positions such as nursing assistants and medical laboratory technicians. Regional Learning Centers CVS Caremark operates Regional Learning Centers that offer training focused on developing communication, work place and general management skills in a simulated work environment for new and existing employees. CVS targets disadvantaged individuals currently or recently on public assistance in their employee recruiting efforts. Southern Institute on Children and Families August

25 ISSUE 6 Dependent Adult Care BACKGROUND With an increasingly aging population, employers and public sector organizations are beginning to pay greater attention to the challenges faced by families with dependent adults. Caregivers, particularly those with limited income, often face financial and other hardships. More than 44 million Americans age 18 or older, or an estimated 21% of the adult population, provide care for an adult family member or friend age 18 or older. It is estimated that 25% of caregivers have household incomes of less than $25,000 a year. Further, research has found that family caregivers with the lowest income have the highest burden of care in terms of both the number of hours they spend helping their family members and proportion of their income spent on care. A recent study on caregivers in general found that 48% of caregivers are employed full-time and 11% are part-time employees. While working, these caregivers have to conduct business and make the required accommodations to care for a dependent adult. As a result, there may be workplace interruptions such as employees leaving work early, coming in late or having to take unplanned time off, all of which can impact productivity. Productivity loss to U.S. businesses of employees who must make workplace accommodations as a result of care giving responsibilities is estimated to be between $17.1 billion and $33.6 billion annually. Of the employers participating in the SBLC Employer Survey who reported attendance problems at work, 11.2% cited dependent adult care as a reason. Some employers attending the SBLC Employer Dialogue Sessions mentioned dependent adult care as an employment stability issue for some employees, particularly older employees. It is highly likely that employee responsibilities related to adult dependent care will become a more prevalent problem in the workforce as the aging population increases. Proactive policy and programs to support employees caring for dependent adults can help to alleviate the workplace stresses that affect both employees and employers now and in the future. STRATEGIC OBJECTIVE 6 Provide resources that help support low-wage employees who are caregivers for dependent adults. RECOMMENDATIONS Government 6.1 Increase funding and availability of adult day care, transportation and other community-based services that provide support for employed caregivers of older adults, based on ability-to pay. 6.2 Provide and promote corporate income tax credits for employee dependent adult care assistance costs or contributions to flexible benefit plans. 6.3 Develop a national resource database that helps long-distance caregivers seeking information on dependent adult care services. Southern Institute on Children and Families August

26 Employers 6.4 Make flexible work options available, when possible, such as flexible work hours, compressed work weeks, job sharing, schedule trading and telecommuting, to allow employees to care for the needs of dependent adults. 6.5 Offer dependent adult care subsidies and/or negotiate discounted rates for employees to help pay for adult day care and other community-based services. 6.6 Offer flexible spending or dependent adult care accounts which allow employees to place money into a tax-free account that can be used to pay for dependent adult care services. 6.7 Provide information to employees with care giving responsibilities about available community and organization services that support dependent adult caregivers. 6.8 Provide opportunities for employee support or affinity groups and communication forums on issues related to dependent adult care. Public/Private Partnerships 6.9 Create greater awareness and encourage planning on the current and future needs for dependent adult care Form partnerships to assure the availability of information on community resources that can support employed dependent adult caregivers. PROMISING PRACTICES Dependent Care Assistance Program As part of a broader initiative, the American Business Collaboration supports Dependent Care Assistance Programs that allow employees to set aside a portion of their pre-tax earnings to pay for caring for adult and child dependents. Up to $5,000 per year can be set aside to cover eligible expenses such as adult day care facility fees and in-home care for qualified dependents. Southern Institute on Children and Families August

27 ISSUE 7 Public Sponsored Benefits BACKGROUND Publicly funded benefits play a critical role in supporting the efforts of low-wage workers to obtain and retain employment. Research has shown public benefits, such as health coverage, can contribute to improved worker retention. Additionally, public health coverage, supplemental nutrition assistance, the Earned Income Tax Credit, child care subsidies and housing subsidies assist low-wage employees in accessing resources that help meet basic needs. For instance, the Earned Income Tax Credit has helped millions of low-wage families with children move out of poverty. Despite the support such public benefits can provide for low-income individuals and families, many are not aware of the benefits or they experience admission barriers while accessing benefits for which they are eligible. For example, in 2005 the participation rate in the Supplemental Nutrition Assistance Program (formerly the Food Stamp Program) for eligible working, poor individuals was only 57%. Further, many employers are unaware of public benefits and/or do not have information on how to assist their employees in filing applications. For instance, many employers attending the SBLC Employer Dialogue Sessions were unaware that public benefits were available to low-wage workers and their families. Public child health coverage is an area where public reforms have been enacted to increase access. While employer-sponsored benefits such as health insurance are declining, public health insurance programs such as Medicaid and CHIP offer a viable option for children in low-income families. For employers who do not offer dependent health benefits or whose low-wage workers cannot afford to participate in the employersponsored health plan, providing information about public health coverage can provide an avenue to dependent health care that would otherwise be unattainable to low-wage employees. Child care subsidies are another work support that assists low-wage workers in getting and maintaining employment. The national average annual cost of child care in a center for a four-year-old ranges from $3,800 to $10,900 per child and the average annual cost for one infant ranges from $4,400 to $14,600 per child. A study found mothers of young children who received child care subsidy assistance were more likely to be employed two to three years later than those who did not receive assistance. Unfortunately, in 2004, more than half of the states had waiting lists for public child care subsidies. Low-wage employees being aware of and having access to public health insurance, child care and other public benefits and work supports can create positive outcomes for low-income families, employers and the community. STRATEGIC OBJECTIVE 7 Increase general public and employer awareness of public benefits as work supports for low-wage employees and improve opportunities to access public benefits. Southern Institute on Children and Families August

28 RECOMMENDATIONS Government 7.1 Invest in outreach materials and activities that increase awareness of public benefits for employees and their families. 7.2 Provide multiple ways to submit applications and renewal forms for public benefits in addition to the local eligibility office. 7.3 Improve accessibility where in-person interviews are required by state regulation by offering nontraditional office hours at local eligibility offices to allow working families to apply for public benefits without taking time off from work. 7.4 Provide technical assistance to employers who are interested in learning about strategies to coordinate employer benefits with public benefits. Employers 7.5 Make information about the value of public benefits available to employees at employer sites and to employers through professional and business associations. 7.6 Provide opportunities for employees to apply for or renew public benefits on-site or by offering time off, trading of work schedules or flex-time. 7.7 Provide timely assistance to employees in obtaining eligibility documentation related to income and earnings as required for public benefits applications and renewal forms. 7.8 Be open to strategies that pair employer-sponsored benefits with public benefits to the advantage of both the employee and the employer. 7.9 Advocate for greater outreach to enroll eligible individuals in public programs. Public/Private Partnerships 7.10 Form collaborations and partnerships between business and civic leaders to leverage greater financial and other resources to reach out to employees. Provide information on the range of available public benefits as part of an overall strategy to assist low-wage employees. Examples of partnerships include: Pool funds to match federal funds that can be used for outreach activities. Support printing and distribution of employer and employee brochures that provide information on the availability of public benefits. Jointly fund fairs, events and other activities to provide information on public benefits. Provide joint training opportunities for business and public agency staff on public benefits and how to apply for or renew benefits. Southern Institute on Children and Families August

29 7.11 Form partnerships between public agencies and employers to provide on-site public benefits awareness activities and application/renewal assistance Develop strategies to help facilitate public benefit applications and renewals. PROMISING PRACTICES Outreach Business Partnership The Children s Defense Fund of Houston partners with Fiesta Mart, Inc., a local grocery store chain, to hold Medicaid and CHIP enrollment events at their stores. City-wide outreach events target families with children eligible for Medicaid and CHIP are held twice a year and involve local media outlets in publicizing the events. Outreach Through Career Centers Rhode Island KIDS COUNT in collaboration with the Rhode Island One-Stop Career Centers conducts outreach to unemployed workers and workers in transition to make them aware of Medicaid and CHIP benefits for which their families may be eligible and to provide application assistance. Rhode Island KIDS COUNT participates on the rapid response team providing training to local businesses and providing health coverage information to workers impacted by layoffs or business closings. Southern Institute on Children and Families August

30 ISSUE 8 Employer Sponsored Benefits and Incentives BACKGROUND Research shows employee benefits are important to employee retention, morale and job satisfaction. Employers who offer benefits such as paid vacation, paid sick leave, health insurance, paid maternity leave, retirement plans and investment planning are less likely to report problems with employee tardiness, absenteeism and turnover. Businesses with a large workforce typically offer more attractive and a greater range of employee benefits than do smaller businesses. For example, in the SBLC Employer Survey, businesses with 50 or more employees were significantly more likely to offer benefits such as employee health insurance, dependent health insurance, paid sick leave, paid sick dependent leave, paid maternity/paternity leave and retirement plans. Almost 18% of businesses with less than 50 employees in the SBLC Employer Survey offered no benefits, while all the businesses with 50 or more employees offered at least one benefit. Affordability is reported to be a major issue for employers who do not offer benefits. For example, in the SBLC Employer Survey, more than half of the employers who did not offer a health coverage plan cited cost as the barrier to doing so. Even if low-wage employees are offered benefits through their employer, they often face obstacles to participation when employer-sponsored benefits require employee financial contributions. For example, low-wage employees may not be able to afford the premiums, co-payments and deductibles required to participate in a company health coverage plan. Flexible schedules can be an important benefit for low-wage employees. Employers attending the SBLC Employer Dialogue Sessions indicated employees who work multiple jobs present challenges to employment stability, such as higher rates of absenteeism and turnover. Flexible work schedules can help alleviate some of the problems faced by low-wage employees and their employers when employees find it economically necessary to work two and three jobs. Further, flexibility in performing work is strongly related to job satisfaction. In the SBLC Employer Survey, 46% of those experiencing a turnover problem stated employees leave to obtain better benefits elsewhere. In contrast, 47% of those without a turnover problem believed fostering an excellent work environment was a key factor in reducing turnover. One aspect of this positive work environment is the incentives employers give to recognize their workers. In the SBLC Employer Dialogue Sessions many employers were enthusiastic about the results they had experienced by offering rewards and incentives to recognize the efforts of employees. Offering benefits to employees, particularly part-time workers, who are more likely to be low-wage workers, can serve as a turnover reduction tool for employers. For low-wage workers, benefits such as paid sick and vacation leave and health insurance can make a difference in these employees being able to meet basic needs. Additionally, reward and incentive programs can make employees feel valued and appreciated. Southern Institute on Children and Families August

31 STRATEGIC OBJECTIVE 8 Offer and assist low-wage employees in participating in employee benefits, incentives and other employee engagement programs which can help them effectively participate in work. RECOMMENDATIONS Government 8.1 Provide tax incentives to businesses that provide benefits to both part-time and full-time employees to enable employers to offer greater access to employer sponsored benefits. Employers 8.2 Offer comprehensive employee benefits, such as paid sick, holiday and vacation leave, retirement plans, health coverage, flexible benefit plans, flexible work hours and paid maternity, paternity and adoption leave, to increase employee loyalty and retention. 8.3 Create workplace programs that effectively communicate the value of taking advantage of employee benefits, illustrating how such benefits are part of a total compensation package. 8.4 Explore outsourcing Human Resources services to allow small employers greater access to resources for group benefits such as health, life and disability insurance, retirement options and college savings plans. 8.5 Advocate for public sector support in assisting employers in paying for employee and dependent health coverage. 8.6 Extend benefits to employee dependents and provide financial and other assistance to encourage participation. 8.7 Allow employees to donate sick leave or vacation time to other employees in need. 8.8 Offer flexible work schedule options for employees, when possible, such as flexible work hours, compressed work weeks, job sharing, schedule trading and telecommuting to reduce work and family stress that leads to increased absenteeism, tardiness and turnover. 8.9 Provide benefits to all employees part-time and full-time to ensure equal access to incomeenhancing benefits Offer employee incentives and rewards including: Negotiate with local businesses for employee discounts on goods and services to increase employees buying power. Offer profit sharing to part-time employees to increase their income. Subsidize housing costs through forgivable loans to be used for a down payment on a home. Engage employees at all levels in creating rewards programs that recognize achievement. Southern Institute on Children and Families August

32 8.11 Appropriately engage all employees in fulfilling the organization s mission Create partnerships or mentoring opportunities between large and small businesses to leverage best practices or resources related to employee benefits and incentives. Public/Private Partnerships 8.13 Work with other businesses and local or state governments to establish and create awareness of programs for obtaining group benefit rates in order to offer affordable benefits to employees. PROMISING PRACTICES Firstpower Prime Time First Horizon National Corporation offers flexible work options to full-time and part-time employees. Options include more flexible work schedules to enhance work and family life balance and creating parttime work opportunities with continued benefits. Flexible Work Options Program Greenville Hospital System in Greenville, South Carolina allows employees to trade work days or shifts with equally qualified co-workers. Flexibility in work schedules provides employees with the opportunity to take care of personal business and family responsibilities and minimize disruptions to work schedules. Ways to Work Ways to Work, Inc. provides low-cost loans, used primarily for purchasing used vehicles, and financial education to working poor families with challenging credit histories. Program goals involve strengthening job attachment, repairing credit worthiness and enhancing family economic stability. Southern Institute on Children and Families August

33 Promising Practices Health Coverage and Health Care 28 Tiered Structure for Health Coverage Costs 30 Access Health Program 32 Subsidized Health Coverage for Small Businesses Child Care 33 Child Care Executive Partnership 35 Child Care Plus 36 Employer Tax Credits for Child Care Subsidies 37 On-site Child Care Facilities Transportation 38 No-fare Public Transportation 40 Commuter Tax Credit Basic Education and Life Skills Training 42 Bridge to Learning and Literacy 43 Ready for the Real World Professional Development 45 Baltimore Alliance for Careers in Healthcare 46 Regional Learning Centers Dependent Adult Care 47 Dependent Care Assistance Program Public Sponsored Benefits 48 Outreach Business Partnership 50 Outreach Through Career Centers Employer Sponsored Benefits and Incentives 52 Firstpower Prime Time 53 Flexible Work Options Program 54 Ways to Work Southern Institute on Children and Families August

34 Promising Practice Program Description Eligibility Tiered Structure for Health Coverage Costs Wachovia, a Wells Fargo Company, has developed a tiered structure of health coverage cost assessment to make health care affordable for employees at all income levels. Health benefit premiums are based on a four-tiered structure of employee salaries. All employees are assigned to one of the four tiers, depending on their salary. During annual enrollment employees receive information indicating their tier and the plans for which they are eligible along with the corresponding premium contributions for those plans. Currently, most employees have a choice of four options for medical coverage: 1) Preferred Provider Organization (PPO) 2) Health Maintenance Organization (HMO) or Point of Service (POS) 3) $1,500 Deductible 4) $2,000 Deductible With tiered pricing, Wachovia is able to offer health care to all employees, and therefore better manage their risk pool. Coverage is equitable, since the same health care plans are offered to all four tiers of employees. Health insurance deductibles are the same for all tiers of employees. All full-time employees are eligible to participate in the health benefit program. At Wachovia, employees who are hired to work 20 hours or more per week are considered full-time employees. New employees become eligible for health benefits the first of the month following 30 days of employment. For example, a person whose employment begins on May 15 will become eligible for coverage on July 1. Benefits Lessons Learned Benefits to Employer Ability to offer affordable health care coverage to all employees Ability to better manage their risk pool Satisfied employees Benefits to Employees and Families Affordable health insurance coverage Outcomes Wachovia has been able to make health care coverage more affordable for the lower-salaried employees. The corporate-wide program serves 100% of all eligible employees. At the onset of the program only a very small percent of the more than 90,000 employees had complaints. No complaints have been received from existing staff. The company is seeing more of a leveling across the tiers because of this action. The program, which has been in operation for three years, has received media attention as a model and is being considered for replication by other companies. Southern Institute on Children and Families August

35 Contact Information Wachovia Corporation, A Wells Fargo Company 301 South College Street, Suite 4000 One Wachovia Center Charlotte, NC Jim Beaver (704) jim.beaver@wachovia.com Southern Institute on Children and Families August

36 Promising Practice Program Description Access Health Program Access Health is an innovative public/private partnership providing health care coverage to uninsured, working families employed by small businesses. Access Health is known as a Three-Share model distributing the benefit cost equally between employer, employee and the community. This cost sharing model enables small and mid-size businesses to provide a comprehensive mainstream benefit plan to their employees. The community s share is supported through federal funds. As of June 2005, the monthly premium cost for Access Health coverage was approximately $122 per month for adult coverage shared by the three partners. Annually, approximately 420 local small businesses and 1,500 people participate. Eligibility Benefits Employees of participating small and mid-size businesses located within Muskegon and Northern Ottawa Counties are eligible to enroll in the health care coverage plan. Employers are eligible if they have not offered health insurance for at least 12 months. Open to employers with a median wage of workers below $11.50/hour. Employees must work at least 15.5 hours per week over a 13-week period before they are eligible. Employees and dependents must be uninsured and not eligible for public health coverage programs. Benefits to Employers Ability to recruit and retain good employees Reduction in high costs of employee turnover Higher productivity Benefits to Employees and Families Access to comprehensive health care services, including inpatient and outpatient services, primary and preventive care, emergency room care and prescription drugs. Health care services are provided only within Muskegon County. Fewer incidences of illnesses Less absenteeism and turnover Improved work quality Better employee morale Southern Institute on Children and Families August

37 Lessons Learned Developing a common vision of change and establishing collaboration among stakeholders is challenging due to entrenched interests. Planning and execution of the program with key stakeholders involved interruptions and conflict, calling for flexibility and conflict resolution in the process. The problems the program faces are employee sustainability due to reliance on uncertain continued availability of funding that subsidizes the program and entrenched interests that impede progress in developing a common vision of change and in establishing collaboration among stakeholders. Contact Information Muskegon Access Health Program Laura Fitzpatrick (231) lfitzpatrick@mchp.org Southern Institute on Children and Families August

38 Promising Practice Program Description Eligibility Benefits Lessons Learned Contact Information Subsidized Health Coverage for Small Businesses Insure Oklahoma provides health coverage subsidies to help small business owners make health insurance available to their low to moderate income employees and employees' spouses. The program is funded by Oklahoma's tobacco tax along with matching federal money. Employees who participate in Insure Oklahoma save on health insurance premiums provided by their employers. Individuals who participate in the Individual Plan gain access to an affordable health care option. To qualify a business should have 50 or fewer full-time employees, be located in Oklahoma, offer a qualified health plan, complete an application packet and contribute at least 25% of premiums for qualified employees. For small employers to participate, the employee and spouse must be: Oklahoma residents U.S. citizens or qualified aliens Between the ages of 19 and 64 Within income guidelines Ineligible for Medicaid or Medicare Able to contribute up to 15% of premium costs For individuals to participate in the Individual Plan the individual must: Be an Oklahoma resident Be a U.S. citizen or qualified alien Be between the ages of 19 and 64 Not be enrolled in or have an open application for Medicaid or Medicare Not be eligible for enrollment in the Insure Oklahoma employer program Provide a social security number for all household members Have an annual gross household income within the eligibility guidelines (less than or equal to 200% of the federal poverty level) Proof of income may be required Insure Oklahoma pays 60% or more of the employee's premium cost. The employer pays 25% and the employee pays 15% of the premium cost. Insure Oklahoma also pays 85% or more of the premium cost for the employee's spouse, leaving them with only 15% of the premium cost as well. The program s marketing campaign increased program participation by more than 80%. Employers believe that participation in the Insure Oklahoma/O-EPIC ESI program improved the morale of their employees which improved productivity. Enrollment for the program is very labor intensive and many people don't understand why they need to provide so much information. Insure Oklahoma Nicole Altobello (405) nicole.altobello@okhca.org Southern Institute on Children and Families August

39 Promising Practice Program Description Child Care Executive Partnership The Child Care Executive Partnership (CCEP) is a public-private partnership formed between businesses, non-profit organizations and/or government entities to help defray the costs and increase the availability of child care for low-income working parents. Federal funding is matched dollar-for-dollar with contributions from employers, local governments and charitable foundations. CCEP was created by the Florida Legislature in 1996 and is administratively assigned to the Agency for Workforce Innovation (AWI). Funding is authorized by the Legislature through the AWI Office of Early Learning. This federal funding is part of the Federal Child Care and Development Fund. CCEP is guided by a statewide board, appointed by the Governor. The Office of Early Learning provides staff support for the CCEP board. Early learning coalitions administer the program, manage contributions and conduct eligibility determinations. Families participate in the CCEP by working with local early learning coalitions. These local early learning coalitions are also the contact for employers. CCEP was appropriated $15 million for FY Money is allocated based on the priority of the participating partner. The three priorities are as follows: 1) Private Business 2) Non-profit Organization 3) Government Entity During the FY, CCEP served roughly 20,000 children with participation from 173 businesses. In , $15 million of CCEP funding went to child care subsidies for eligible children. When matched by employers, local government and/or charitable foundations, the total amount available for child care subsidies was $30 million statewide. The majority of employers participating in CCEP are small businesses. There are three ways to participate in the CCEP Program: 1) Employee Benefit Employers designate child care financial assistance contributions for eligible employees. 2) Purchasing Pool Employers, non-profit organizations and/or government entities designate child care financial assistance contributions to purchasing pools for any eligible children who are on the waiting list. 3) On-site Child Care Facility Employers, non-profit organizations and/or government entities can establish and operate a child care center. This option has the lowest amount of participation from employers. Eligibility Families earning at or below 200% of the federal poverty guidelines are eligible. Participants must be employed a minimum of 20 hours per week to be eligible. Families are required to pay a portion of the child care costs based on a sliding fee schedule. The balance of the child care costs (after parent fees owed have been deducted from the total child care costs) are shared by the local purchasing pool or employer and the CCEP program at 50% each. Participants are not required to participate in their employer s on-site child care. Employers may not limit parental choice when providing child care benefits to eligible employees. Southern Institute on Children and Families August

40 Benefits Benefits to Employers Increased productivity Improved work quality Less absenteeism and turnover Improved morale Attract and retain better employees Business Expense Deductions Charitable Contribution Deduction Start-Up and Capital Expenses, if starting a child care center Dependent Care Assistance Plans Benefits to Families Access to affordable, quality child care Reduced tardiness and absenteeism Retain employment (job stability) Ability to stay focused Dependent Care Tax Credit Earned Income Tax Credit Dependent Care Assistance Plans Benefits to Child Care Providers The State of Florida offers Corporate Income Tax or Insurance Premium Tax Credits for certain child care costs or contributions to non-profit organizations for child care purposes. Two million dollars are allocated annually on a firstcome, first-served basis for costs associated with start-up costs for child care facilities, operation of a child care facility and payments to a child care facility on behalf of a corporation s employees. Lessons Learned Contact Information While only providing benefits to employees eligible for CCEP presents a challenge, businesses have the option of expanding child care benefits to all employees yet only receive match for those eligible. In addition, limited CCEP funding will always be an issue. Because of limited funding, participating government entities may not receive match for the entire amount they contribute, and large counties participating in the program may not receive match for the full amount of their request. Coalitions do have the opportunity to apply for other grant dollars and may still use the full amount donated by participating government agencies but may not receive CCEP match for their full request. Child Care Executive Partnership Program Office of Early Learning 107 East Madison Street Caldwell Building, MSC 140 Tallahassee, FL Natalie K. Sellars Business Development Analyst (850) natalie.sellars@flaawi.com Southern Institute on Children and Families August

41 Promising Practice Program Description Child Care Plus Child Care Plus reimburses employees for a portion of their child care expenses. Child Care Plus is a work/life benefit offered by Bank of America to its associates. This initiative helps associates pay for child care expenses by reimbursing a portion of the costs for each child in care. The company contribution is determined by age of child and type of care (licensed or informal). The Child Care Plus program began in 1989 in response to an employee study that showed a strong connection between child care and absenteeism. The program was pilot-tested in call centers and eventually expanded company-wide after receiving positive results in absenteeism reduction. Bank of America contributes 75% of its Work/Life Program s budget towards the Child Care Plus program. Approximately 9,000 associates participate in the program. Benefits Lessons Learned Contact Information Reduced absenteeism Increased productivity Greater employee loyalty parents who participate in the program are twice as likely to stay with the company as those who do not participate in the program Less anxiety about child care for employees Establishing regionally sensitive eligibility criteria and administering the Child Care Plus program in an efficient and timely manner has been a challenge. Bank of America 100 North Tryon Street Charlotte, NC Dianna Byers Vice President of Work/Life Programs (704) dianna.m.byers@bankofamerica.com Southern Institute on Children and Families August

42 Promising Practice Program Description Eligibility Benefits Lessons Learned Contact Information Employer Tax Credits for Child Care Subsidies Employers can obtain state tax credits for providing employees child care subsidies. Oregon has two tax credit programs that can assist employers when they help their employees pay for their child care expenses. There also is a federal tax credit that can help with child care cost. Oregon's tax credit permits an employer to offset 50% of its child care expenditures against its state tax liability. The credit allows an annual limit of $2,500 per employee. Any employer who has state tax liability can participate in the program. Helps low-income parents pay for child care. The tax credit has helped to decrease absenteeism, increase productivity and decrease presentism" the employee is at work, but is not engaged mentally or emotionally. Tax credits have helped many families; although, some families still struggle to come up with the rest of the money to pay for child care. Some employers use the state tax credit for child care as a recruitment strategy for new employees. Oregon Tax Credits 805 Liberty Street NE, Suite 2 Salem, OR Cynthia Hurkes, Business Liaison (503) Southern Institute on Children and Families August

43 Promising Practice Program Description On-site Child Care Facilities On-site child care is available for employees. AFLAC has the largest on-site child care center in Georgia, offering two child care centers for each campus. Since AFLAC s workforce is made up of almost 70% women, they are pleased to have an on-site child care center for their employees children. Hundreds of children are cared for at the on-site child care facilities. One child care center is open from 6:00 am - 6:00 pm and the other is open from 6:00 am - 11:30 pm, accommodating different work shifts for workers. In addition, lactation rooms are available. Eligibility Benefits Lessons Learned Contact Information Children or grandchildren of any employee are eligible for the reduced cost on-site child care center. Infants as young as six weeks old are eligible. Employees have access to reduced cost child care. Employees have the flexibility to see their child. Parents feel at ease knowing their child is on-site and they are close if their child needs them. There is a parent council which allows parents voices to be heard. By keeping the parents involved and letting them voice their opinions the company is able to listen to their employees needs. AFLAC Laura Kane Media (706) lkane@aflac.com Southern Institute on Children and Families August

44 Promising Practice Program Description No-Fare Public Transportation Universities and cities have formed partnerships in order to offer no-fare public transportation systems. Anyone is eligible to ride for free, regardless of student or resident status. Two examples of universities partnering with their local communities to provide no-fare public transportation are the University of North Carolina (UNC) at Chapel Hill and Clemson University in South Carolina. Prior to the implementation of the no-fare transportation system, the University of North Carolina at Chapel Hill had a subsidized bus system to which the university contributed $2 million per year. In order to provide no-fare services to all riders, which cost an additional $2 million per year to implement, UNC students agreed to pay an increase in student fees. Fees rose by about $8.50 per student, which offset the $4 million per year operating cost for the no-fare system. Clemson Area Transit was created in 1995 through a partnership between the City of Clemson and Clemson University in response to high traffic congestion. Clemson University agreed to contribute the $350,000 it previously paid per year to operate a shuttle service on campus and the City of Clemson agreed to assume responsibility for the service. Clemson Area Transit is now the largest fare-free bus line in the United States in terms of ridership and the most frequently used transit system in South Carolina. It provides transportation to four colleges and universities and five cities and towns in a three-county service area. Each contributes funds to the operation of the system and is further financed through federal grants and matching funds. Eligibility All standard Chapel Hill Transit routes are fare-free. Fares are still charged for Tar Heel Express, Orange County Public Transportation and Triangle Transit Authority. Shared Ride Evening/Sunday Service requires the use of Chapel Hill Transit bus tickets. Special EZ Rider service is provided for mobility challenged passengers who meet Americans with Disabilities Act (ADA) requirements. Clemson Area Transit is available to students of four major College/Universities in the area as well as to the public in three different counties. ADA transportation also is available for the mobility challenged. Benefits Free public transportation is available to everyone in the community, and provides transportation options for the low-wage workforce in the community. Benefits to riders include lower gas costs associated with using less gasoline in work commutes, as well as the benefit to the community of reduced pollution from personal vehicles. Southern Institute on Children and Families August

45 Lessons Learned Directors of the Chapel Hill Transit learned they needed to be ready for an increase in patrons when ridership grew from two to six million passengers. The operating budget had to be increased to buy more buses and to hire more employees. To fund this increase, students at the University of North Carolina at Chapel Hill voted to raise their student fees. The Clemson Area Transit has grown substantially. The system started with only three buses and has already grown to 26 buses. Contact Information Chapel Hill Transit 6900 Millhouse Road Chapel Hill, NC Stephen Spade (919) Clemson Area Transit 1200 Tiger Boulevard, Suite 2 Clemson, SC Holly Brown (864) hbrown@cityofclemson.org Southern Institute on Children and Families August

46 Promising Practice Program Description Commuter Tax Credit Employers who defray their employees commuting costs receive a tax benefit from the state. Maryland offers a Commuter Tax Credit to employers who help pay their employees' commuting costs through Commuter Choice Maryland programs. An employer can receive a tax credit for 50% of the amount of the commuter benefit given to employees up to a maximum credit of $50 per participating employee, per month throughout the tax year. The maximum $50 credit per participating employee per month limit applies whether benefits are provided separately or combined with other eligible transit instruments, vanpools, guaranteed ride home programs or parking cash out programs. The credit is applicable to the following four types of commuting expenses: 1) Employer-Provided Transit Passes or Vouchers These include passes, tokens, fare cards, vouchers or similar items. Any instrument entitling a person, at no added cost or at reduced fare, to transportation to or from a location in the State of Maryland on a publicly or privately owned mass transit system other than a taxi service is eligible. Transit vouchers are eligible if they are redeemable at a transit pass sales outlet for the purpose above. Maximum taxfree commuter benefits value that can be contributed to an employee for this expense type in 2008 is $115. Maximum tax credit an employer can receive per employee, per month is $50. 2) Vanpool Expenses Vanpools are arrangements in which a number of employees commute together in a van. To qualify for the tax credit, the van must have seating capacity for at least eight adults; and at least 80% of the van's annual mileage is between work and residence, with at least one half of the vehicle's adult seating capacity being used. Also included are vehicle and related costs of capital expenditures to support a participating employee commuter vanpool program, including van purchases and leases, fuel, insurance, maintenance, safety and equal access upgrades that are paid directly by the employer. Maximum tax-free commuter benefits value that can be contributed to an employee for this expense type in 2008 is $115. Maximum tax credit an employer can receive per employee, per month is $50. 3) Parking Cash Out Under parking cash out, an employer offers to provide a taxable cash allowance to an employee instead of a free parking space. Maximum tax-free commuter benefits value that can be contributed to an employee for this expense type in 2008 is $115. Maximum tax credit an employer can receive per employee, per month is $50. 4) Guaranteed Ride Home Program Under guaranteed ride home programs, employers offer transportation home to employees currently participating in a commuter benefits program (employees who take mass transit, vanpool, or commute by way of a non-motorized method of transportation), in the event of a personal emergency or unscheduled overtime. Maximum tax-free commuter benefits value that can be contributed to an employee for this expense type in 2008 is $115. Maximum tax credit an employer can receive per employee, per month is $50. Southern Institute on Children and Families August

47 Eligibility Benefits Lessons Learned Contact Information Any employer conducting or operating a trade or business within the State of Maryland, either for-profit or non-profit 501(c) (3) or (c) (4), is eligible for the Maryland Commuter Tax Credit. Employees receive assistance for transportation costs to and from work. Employers receive a tax credit for helping employees with transportation costs. The program is attractive to employees and employers alike because it offers discounted transportation to employees and tax deductions and credits to employers. There are over four hundred employers and 17,000 employees participating in the program. Maryland Transit Administration Office of Communications & Marketing 6 St. Paul Street, 2 nd Floor Baltimore, MD Buddy Alves Commuter Choice Project Manager (410) Southern Institute on Children and Families August

48 Promising Practice Program Description Eligibility Benefits Lessons Learned Contact Information Bridge to Learning and Literacy Harvard University provides employees the opportunity to take a variety of courses for personal and professional development. The Harvard Bridge to Learning and Literacy is a worker education program open to all hourly employees and to members of the Harvard Union of Clerical and Technical Workers. Employees interested in improving their skills in their current positions or gaining new skills for different positions attend two-hour classes twice a week. Classes are offered on campus during work hours. The Bridge Program offers classes in the following subjects: literacy, English as a Second Language (ESL), Speaking and Listening, Advanced Pronunciation, an Adult Diploma Program (ADP), Test of English as a Foreign Language (TOEFL) preparation, college preparation, computers and citizenship preparation. This program focuses on reading, listening, writing and speaking skills. Individual tutoring and career counseling services also are available. All hourly employees and members of the Harvard Union of Clerical, and Technical Workers are eligible for the Bridge to Learning and Literacy Program. Employers gain a better educated workforce. Employees are able to improve their work potential with more education and professional development. Employees are better able to take advantage of educational opportunities since classes are offered on campus during work hours. The curriculum continues to be developed based on the needs of the employees/ students. The program started with 38 students in the pilot program and grew to 550 students in the program. The Harvard Bridge to Learning and Literacy Program 124 Mt. Auburn Street, 3 rd floor Cambridge, MA Carol Kolenik (617) carol_kolenik@harvard.edu Southern Institute on Children and Families August

49 Promising Practice Program Description Ready for the Real World Through its Ready for the Real World strategy, America s Promise Alliance seeks to engage middle-school students in service learning, civic engagement and career exploration. By designing real-world experiences relevant to them, the goal of the Ready for the Real World strategy is to increase the motivation of 11 to 14-year-olds to achieve in their schools and communities. The choices young people make in early adolescence often set them on a course for active citizenship and engaged learning or down a path of risky behavior and potential failure. Many students who ultimately drop out of school say they become disengaged during the middle-school years. Not enough opportunities currently exist for middle school aged children to engage in active learning through real-world experiences such as school or communitybased learning and career exploration. The Ready for the Real World strategy suggests that experiential learning will motivate youth to achieve academically, pursue higher goals and see themselves as positive contributors to their communities. America s Promise partners with professional societies and businesses looking for ways to connect with and prepare their future workforce. Current partners provide a range of resources and real-life experiences, such as job shadowing, funding service-learning activities and mentoring. The components of the Ready for the Real World strategy could involve after-school and summer programs for youth who are too old for daycare and too young for jobs. Service-learning and career exploration programs also can be integrated into school curriculum so that school experience connects young people to the world beyond middle school. Eligibility Benefits This strategy targets 6 th, 7 th and 8 th grade students. Benefits to Community Partners Businesses are able to make inroads to their future workforce and provide the students with realistic work and life experiences. Benefits to Students Helps ensure a smooth transition to high school and helps youth identify their interests and abilities at an earlier age. Youth are provided with a meaningful way to connect positively with their communities and develop goals for their future. Lessons Learned Most companies enjoy getting their name out into the public, so it is relatively easy to convince them to become community partners. However, schools, non-profit organizations and corporations each have distinct cultures, and it is difficult to communicate across cultural barriers without an intermediary who understands the cultures and needs of the different groups. For example, a teacher might have a hard time organizing transportation and logistics for school-age children to visit a company, which results in a late arrival. The business sees time as money and is offended to be kept waiting. This work can t be done without partnering. Southern Institute on Children and Families August

50 Contact Information America s Promise Alliance 1110 Vermont Avenue, NW Washington, DC Elaine Leibsohn Vice President, National Action Strategies (800) x0622 elainel@americaspromise.org World.aspx Southern Institute on Children and Families August

51 Promising Practice Program Description Eligibility Benefits Lessons Learned Contact Information Baltimore Alliance for Careers in Healthcare Employee training program for higher income jobs. The Baltimore Alliance for Careers in Healthcare (BACH), a nonprofit workforce development consortium that includes seven local hospitals, has chosen to train underemployed hospital workers for higher-paying health industry jobs. The program addresses health care resource needs in the state as well as the country by hiring more employees in the critical needs areas. The 12-week bridge program is funded through the Robert Wood Johnson Foundation. The alliance has been awarded about $950,000 in grant money to support the bridge program as well as career counseling programs at five local hospitals. The alliance focuses on seven positions in which the hospital has reported the most openings: certified nursing assistants, radiology technicians, surgery technicians, medical laboratory technicians, pharmacy technicians, nurse extenders and respiratory therapists. The Maryland Center for Arts and Technology (Community College) hosts the medical classes. Hospital workers who do not work in clinical areas such as security, receptionist and food service. The "back-fill" employees, who fill in for the employees while they are in class, also are eligible for the program and training. Employees must pass an entry exam (math and reading) to attend the Community College and qualify to be a part of the program. Better jobs, increased wages and income. Training classes are free. Employees are paid for the hours they miss at work. Mentors and training coaches are available. The employees are very receptive. The mentors and training coaches need to help those who want to participate in the program but may not have the appropriate math skills. The mentors and training coaches help employees study and prepare for the test so that they can pass the entry exam to attend. Having mentors available to work and talk with these employees is a very critical piece of the program. Baltimore Alliance for Careers in Healthcare 3700 Koppers Street, Suite 116 Baltimore, MD (443) rhearn@baltimorealliance.org Southern Institute on Children and Families August

52 Promising Practice Program Description Regional Learning Centers Employee training and development is provided in a simulated work environment. The CVS Regional Learning Centers (RLCs) provide in-depth training in a stimulated work environment to help prepare future employees. Individuals who seek training have the option of working with the pharmacy, photo lab or management. There are now six RLC locations that focus on developing important communication, work place and general management skills. Each RLC operates according to its location s needs, and the RLC is facilitated by local community organizations. The RLCs are also used for further educational training after employment begins. Most RLCs train from the associate to director s level. RLCs are located in the following cities: Washington, DC (2) Detroit, MI Boston, MA Cleveland, OH South Jersey, NJ Eligibility Benefits Lessons Learned Contact Information CVS partners with government and community organizations to recruit employees. Positions are open to anyone who qualifies. CVS generally targets disadvantaged individuals currently or recently on public assistance and tries to help them get on a work path. About 60,000 of their employees are former welfare recipients who all came from different backgrounds, 99% of them being minorities. Employee retention rate has been excellent. Training is provided at no cost to employees. Part-time and full-time employees can get health care benefits, 401K savings and can qualify for low-interest loans. Partnerships with CVS work with individuals to improve their credit. It takes a lot of time to develop a trusting relationship. Some barriers to employment are child care and health care benefits. It is very hard for some employees to be full-time starting out. CVS develops trust with local agencies allowing them to work through any barriers and continue to grow their partnerships. Retention rate continues to be excellent. CVS Regional Learning Centers 1920 Enterprise Parkway Twinsburg, OH Steve Wing Director of Workforce Initiative (216) smwing@cvs.com Southern Institute on Children and Families August

53 Promising Practice Program Description Dependent Care Assistance Program Pre-tax set asides for adult dependent care expenses. Dependent Care Assistance Programs (DCAP) let employees set aside part of their salary pre-tax each pay period to pay for eligible expenses incurred for the care of a young child, disabled spouse, elderly parent or other dependent who is physically or mentally incapable of self-care, so that someone may work or actively look for work. The American Business Collaboration implements and facilitates the programs according to the companies desires. Companies participating include the following: Deloitte & Touche Exxon Mobil Corporation IBM Corporation Johnson & Johnson Texas Instruments Eligibility Benefits To be eligible, one must be an employee of a participating company and the company must have implemented the service. Currently eligible expenses include day care facility fees, local day camp fees and babysitting fees for at-home care for qualified dependents while the employee and spouse are working. The amount families can set aside each year is currently limited to $5,000. Benefits for Employers Improved productivity Reduced absenteeism Retention of talented employees Decreased turnover costs Benefits for Employees Less stress related to dependent care Better able to concentrate on job Increased productivity Lessons Learned Contact Information They know their $125 million investment in child, school age and elder care programs, which includes pre-tax set asides for dependent care expenses, is paying off in increased job satisfaction, in the participating companies ability to compete for and retain talent and by reducing absenteeism and related costs. ABC Dependent Care 55 Chapel Street Newton, MA (800) Southern Institute on Children and Families August

54 Promising Practice Program Description Outreach Business Partnership Collaborate with a local grocery store chain to facilitate citywide outreach to families with eligible Medicaid and CHIP children through enrollment events at the stores. The Children s Defense Fund of Houston collaborated with Fiesta Mart, Inc. to facilitate citywide Medicaid and CHIP outreach drives, reaching more than 20,000 eligible, uninsured children. The one-day campaigns occurred twice a year. During each one-day outreach event application assistance was provided at 10 to 15 Fiesta locations throughout Houston and Harris County. Community-based outreach organizations managed the initiative at individual stores. More than 200 volunteers representing the local Covering Kids & Families coalition, including the Texas Department of Human Services Children s Medicaid Program, the Harris County Hospital District, AARP, the Better Business Bureau, local health and social service programs and area high school, college and medical students supported the sign-up events. Volunteers were recruited and trained to provide on-site application assistance at the Fiesta stores for each of the citywide drives. The outreach drives were led by extensive upfront media, particularly with the Spanish media, promoting the outreach events and informing parents what documents they needed to bring with them to enroll their children at the outreach events. Fiesta Mart, Inc. corporate offices arranged the sign-up locations in their stores and provided promotional information in their marketing circulars. Fiesta hosted and sponsored press conferences, publicized enrollment drives in its store circular and provided their mascot for press events and enrollment activities. The Fiesta outreach events were also supported by a general targeted media blitz about health care coverage for lower-income families. Eligibility Benefits Uninsured children eligible for health coverage in Medicaid or CHIP programs. As of May, 2008, 18 Fiesta outreach drives have been conducted assisting nearly 10,000 families and more than 20,000 children in applying for health care coverage. Based on the success of the Fiesta drives, the local Covering Kids & Families project was able to expand outreach to other local partnerships, including McDonald s, and to statewide business partnerships. The success of the Fiesta drives motivated the local project staff and coalition members to develop an extensive outreach agenda with other businesses, schools and the faith community. Southern Institute on Children and Families August

55 Lessons Learned Contact Information Strong buy-in from Fiesta Mart, Inc. was critical to the success of the project. Development of media relationships enabled an effective media campaign that helped raise awareness. Specific announcements in the Fiesta supermarket circular, as well as English and Spanish language public service announcements building up to the outreach drives, helped more families learn about health coverage. The outreach drives helped create and develop instrumental public and private sector partnerships vital to sustaining outreach initiatives. Coalition members made the outreach drives more inclusive by providing application assistance in Chinese, Spanish, Urdu and Vietnamese through translators. Children s Defense Fund - Houston Barbara Best (713) bbest@childrensdefense.org Southern Institute on Children and Families August

56 Promising Practice Program Description Outreach Through Career Centers Conduct outreach through the human resources departments of local businesses and the Rhode Island One-Stop Career Centers to individuals in employment transition and unemployed workers and their families for Medicaid and CHIP health care coverage. The Rhode Island statewide Covering Kids & Families project, Rhode Island KIDS COUNT, partnered with networkri, Rhode Island s One-Stop Career Center System, to conduct Medicaid and CHIP outreach to individuals in employment transition and unemployed workers and their families. The One-Stop Career Center System works in partnership with the Rhode Island Department of Labor and Training. The networkri centers match jobseekers and employers through quality employment programs and services. Rhode Island s One-Stop Career Centers provide general information on Medicaid and CHIP and refer individuals in employment transition, such as those laid off or about to be unemployed through business closings, to a statewide Covering Kids & Families project Outreach Worker for application assistance. The Outreach Worker also became a vital member of the One-Stop Career Center s rapid response team, providing information and training to local businesses; providing health coverage information to workers who were losing employment due to layoffs or plant or business closings; and providing application assistance to individuals and families. The networkri One-Stop centers also provided Medicaid and CHIP health coverage information to uninsured individuals who visited or called the One-Stop Career Centers seeking unemployment benefits or prospective employment. Flyers with Medicaid and CHIP information were placed in as many as 17,000 unemployment checks making certain that families that lose private health coverage are aware of the public benefits available to them. Eligibility Benefits Individuals in employment transition and unemployed workers and their families are targeted. The networkri staff incorporated questions related to health coverage into the One-Stop Web site information and as part of the initial screening tool. The networkri sites continue to provide applications and information to individuals and families using their services. The networkri staff makes referrals to the state s toll-free information line and provides contact information for family resource counselors within the community. Southern Institute on Children and Families August

57 Lessons Learned Contact Information Institutionalize information dissemination by working with an established and funded related service entity, such as the publicly funded One-Stop Career Centers. Incorporate health insurance screening at the point-of-entry (front desk) for all clients applying for One-Stop services. Working with rapid response teams was a fruitful way to capture soon-to-be unemployed workers who were often unfamiliar with benefits available to them through the public health coverage programs. Rhode Island KIDS COUNT Catherine Walsh (401) cbwalsh@rikidscount.org Southern Institute on Children and Families August

58 Promising Practice Program Description Firstpower Prime Time Firstpower Prime Time offers employees flexible work options. During the 1990's, First Horizon National Corporation re-visited its attendance policies based on the belief that happy employees would lead to happy customers which in turn would lead to profitability. The employees were given a survey to find out what would keep them employed with the company. The employees stated that they wanted to be empowered to make decisions and they wanted flexibility. From these surveys, the company developed a new culture called Firstpower Prime Time which allowed employees to have workplace flexibility. First Horizon National Corporation removed all company attendance policies and allowed the employees and managers at each branch to determine the appropriate attendance policies. The company also created part-time work opportunities with continued benefits. Eligibility Benefits When a part-time or full-time employee has worked with the company for a year or more, he or she is then eligible for the workplace flexibility with benefits. Eligibility generally is determined by each local manager and geared towards employees with families. Benefits to Employees More flexible schedules Increased satisfaction with work-life balance Benefits to Employers Increased satisfaction of employees Lower turnover rate Saved at least $3 million in turnover costs Increased productivity Increased customer satisfaction Lessons Learned There was a direct relationship between the satisfaction of the employees and the satisfaction of the customers. The longer the employee worked with the company, the longer the customers remained with the company. Identifying individuals who are eligible is difficult. Some single employees want to participate in the work-life program. First Horizon National Corporation has chosen not to define family in any of their company policies in order to encourage supervisors to work with each individual and his or her needs. Contact Information First Horizon National Corporation Vicki Dye Work Family Coordinator (901) or (901) vld@firsthorizon.com Southern Institute on Children and Families August

59 Promising Practice Program Description Flexible Work Options Program Flexible Work Options Program allows employees to trade work schedules. Greenville Hospital System in Greenville, South Carolina allows employees flexibility in their work schedules by providing the opportunity to trade work days or shifts. By offering the option to switch shifts with equally qualified individuals, workers can take care of personal business and family responsibilities, particularly when unexpected events occur. Arrangements are agreed upon in advance and must be approved by the employees supervisor. Eligibility All employees are eligible to apply for the Flexible Work Options program. In order to participate in the program, employees must be performing their work duties at an acceptable level, not be on probation and receive their supervisor s permission. Benefits Gives employees the capability to take care of personal and family needs Minimizes disruptions to work schedule and ensures shifts are covered. Lessons Learned Contact Information There must be accountability in the system and trading work schedule agreements should be outlined in writing and approved by a supervisor. A form for recording and approving these agreements was identified as needed. Greenville Hospital System Ronnie Galloway Environmental Services Manager (864) rgalloway@ghs.org Southern Institute on Children and Families August

60 Promising Practice Program Description Eligibility Benefits Ways to Work The Ways to Work program provides financial education and short-term, low-interest loans to low-income, working families who would otherwise be ineligible for affordable credit through conventional lending sources. Ways to Work, Inc. operates a financial assistance and loan program through a franchise business model dispersed across the country. It supports and manages a network of loan offices, all housed and operated within member agencies of the Alliance for Children and Families. The Ways to Work program provides low cost loans, used primarily for the purchase of used vehicles, and targeted financial education to working, poor families with challenging credit histories. The program sees itself as an alternative to predatory lenders for people with a demonstrated commitment to achieving increased self sufficiency and intent on pursuing a higher degree of success in mainstream financial markets. The core goals of the program involve strengthening job attachment, credit repair and enhancing family economic stability. The minimum loan eligibility criteria for applicants are: Continuous employment for at least six months or full-time student in a post high school educational program Involved parent(s) of at least one dependent child Have exhausted conventional loan resources (i.e., low credit score) Have disposable income sufficient to make repayment (up to $4,000 loan, with a two year term at 8% interest rate) Have a household income no greater than 80% of the area s median Reside in the geographic service area of a local program office Borrowers have experienced a 41% average increase in take-home pay. Within 36 months of program entry 67% of borrowers have opened some type of bank account significant credit score improvement. More than 90% of program participants indicate that their car loan has helped them maintain or improve their employment situation. More than 80% of borrowers with young children have moved their children to more appropriate child care providers. The car helped roughly half of the borrowers obtain education or training. A majority of borrowers reported that the Ways to Work car helped them improve their quality of life. Survey participants reported that the program had allowed them to provide better care for their children in a variety of ways. Southern Institute on Children and Families August

61 Lessons Learned Contact Information Modeling the program as a reflection of the financial real world that borrowers will face after completing the program is critical to long-term success for the program and the participants. The combination of high expectations, accountability and case management supports maximizes success for all concerned. The program has demonstrated the ability to make character-based loans to individuals deemed non-creditworthy by mainstream lenders while maintaining an 87% repayment rate since Evaluation by an outside entity has validated what is working well and led to further improvements in the program. Ways to Work, Inc West Lake Park Drive Milwaukee, WI Jeff Faulkner (414) x2 jfaulkner@waystowork.org Southern Institute on Children and Families August

62 References Ahlstrand, A.L., L.J. Bassi and D. P. McMurrer Workplace Education for Low-Wage Workers. Kalamazoo, MI: W.E. Upjohn Institute for Employment Research. American FactFinder United States: Selected Economic Characteristics. Washington, DC: American FactFinder, U.S. Census Bureau. American Public Transportation Association A Profile of Public Transportation Passenger Demographics and Travel Characteristics Reported on On-Board Surveys. Washington, DC: American Public Transportation Association. Assessing the New Federalism Low-Income Working Families: Facts and Figures. Washington, DC: The Urban Institute. Bank Administration Institute Small Business Payments in 2006: Finally Poised for Technology Solutions that Address Long-Standing Problems and New Opportunities. Chicago, IL: Bank Administration Institute. Bond, J.T., and E. Galinsky How can Employers Increase the Productivity and Retention of Entry-Level, Hourly Employees? New York, NY: Families and Work Institute. Boushey, H., L. Moughari, S. Sattelmeyer and M. Waller Work-Life Policies for the Twenty-First Century Economy. Washington, DC: The Mobility Agenda, A Special Initiative of Inclusion at the Center for Economic Policy and Research. Boushey, H., S. Fremstad, R. Gragg and M. Waller Understanding Low-Wage Work in the United States. Washington, DC: The Mobility Agenda, A Special Initiative of Inclusion at the Center for Economic Policy and Research. Bureau of National Affairs, Inc Benefit Costs Up in 2001, Chamber of Commerce Says. Washington, DC: The Bureau of National Affairs. CCH,Inc CCH Unscheduled Absence Survey: Costly Problem of Unscheduled Absenteeism Continues to Perplex Employers. Riverwoods, IL: CCH, Inc. CCH,Inc CCH Survey Finds Unscheduled Absenteeism Up in U.S. Workplaces. Riverwoods, IL: CCH, Inc. CIPD Employee turnover and retention. London, UK: CIPD. Collins, S.R., K. Davis and A. Ho A Shared Responsibility: U.S. Employers and the Provision of Health Insurance to Employees. Inquiry, Spring 2005, 42 (1): 615. Elswick, J Part-time workers gain full-time benefits. BenefitNews.com: Employee Benefit News, Evercare Family Caregivers What They Spend, What They Sacrifice. Minnetonka, MN and Bethesda, MD: Evercare and National Alliance for Caregiving. Finance Project Work Supports and Low-Wage Workers: The Promise of Employer Involvement. Washington, DC: Finance Project. Greenberg, M., I. Dutta-Gupta and E.Minor From Poverty to Prosperity, A National Strategy to Cut Poverty in Half, Report and Recommendations of the Center for American Progress Task Force on Poverty. Washington, DC: Center for American Progress. Gunsch, D. Benefits Leverage Hiring and Retention Efforts. Irvine, CA: Workforce Management. Honceck, J. and V. Lovell Staying Employed: Trends in Medicaid, Child Care, and Head Start in Ohio. Cleveland, OH and Washington, DC: Policy Matters Ohio and Institute for Women's Policy Research. Lambert, S.J Lower-Wage Workers and the New Realities of Work and Family. The Annals of the American Academy of Political and Social Science Vol. 562, No. 1, (1999), accessed online at Southern Institute on Children and Families August

63 Lambert, S.J Passing the buck: Labor flexibility practices that transfer risk onto hourly workers. Human Relations, Vol 61(9): Los Angeles, CA: The Tavistock Sage Publications. Leon, J., J. Marainen and J. Marcotte Pennsylvania s Frontline Workers in Long Term Care: The Provider Organization Perspective. A Report to the Pennsylvania Intra-Government Council on Long Term Care. Jenkintown, PA: Polisher Research Institute at the Philadelphia Geriatric Center. Levin-Epstein, J Responsive Workplaces, The business case for employment that values fairness and families. Washington, DC: Center for Law and Social Policy (CLASP). MetLife Mature Market Institute and the National Alliance for Caregiving The MetLife Caregiving Cost Study: Productivity Losses to U.S. Business. Westport, CT and Bethesda, MD: MetLife Mature Market Institute and National Alliance for Caregiving. National Alliance for Caregiving and AARP Caregiving in the U.S. Bethesda, MD and Washington, DC: National Alliance for Caregiving and AARP. National Association of Child Care Resource & Referral Agencies (NACCRRA) Price of Child Care. Accessed online at National Federation of Independent Business Free Benefits You Can Offer Employees. Nashville, TN: The National Federation of Independent Business. Ravenell, N and K. Luchock Southern Business Leadership Council South Carolina Employer Survey Project Report. Columbia, SC: Southern Institute on Children and Families. Rosenblum, E The Art of Effective Business & Non-Profit Partnerships: Finding the Intersection of Business Need and Social Good. Washington, DC: Corporate Voices for Working Families. Schunk, D.L A Profile of the Southern Economy: Living Standards, Economic Structure, and Lower Income Workers. Columbia, SC: Southern Institute on Children and Families. Seavey, D The Cost of Frontline Turnover in Long-Term Care. Washington, DC: Better Jobs Better Care, Institute for the Future of Aging Services. Small Business Administration, Office of Advocacy. Cost of Employee Benefits in Small and Large Businesses. Washington, DC: Small Business Research Summary, Number 262. Southern Institute on Children and Families Southern Business Leadership Council DC Metro Area Employer Initiative Project Report. Columbia, SC: Southern Institute on Children and Families. Southern Institute on Children and Families Southern Business Leadership Council Charlotte Metro Area Employer Initiative Project Report. Columbia, SC: Southern Institute on Children and Families. Southern Institute on Children and Families Southern Business Leadership Council Upstate South Carolina Employer Initiative Project Report. Columbia, SC: Southern Institute on Children and Families. U.S. General Accounting Office Food Stamp Program: Steps Have Been Taken to Increase Participation of Working Families, but Better Tracking of Efforts Is Needed. Washington, DC: United States General Accounting Office. Urban Institute Low-Income Working Families: Facts and Figures. Washington, DC: Urban Institute. Waldron, T., B. Roberts, A. Reamer, S. Rab and S. Ressler Working Hard Falling Short: America's Working Families and the Pursuit of Economic Security. Chevy Chase, MD: Working Poor Families Project, Brandon Roberts and Associates. Watson Wyatt Worldwide The Business Case for Superior People Management, WFD Consulting Workplace Flexibility for Lower Wage Workers. Washington, DC: Corporate Voices for Working Families. Southern Institute on Children and Families August

64 Staff and Consultants We want to recognize and give our thanks to the following Southern Institute on Children and Families staff and consultants for their work on and contribution to the SBLC Employment Stability Action Plan Initiative: Southern Institute on Children and Families Staff Nicole Ravenell Nancy Pursley Former Staff Bob Amundson LaCrystal Jackson Kathryn Luchok Elizabeth Shine Jill Shirey Michael Stafford Consultants Frank Brown, MarketSearch Melinda Mukofsky, MarketSearch Jeanna Steele, Steele Thomas, LLC Ashley Thomas, Steele Thomas, LLC Southern Institute on Children and Families August

65 Our Mission Founded in 1990, the Southern Institute on Children and Families is a non-profit organization dedicated to improving the well-being of children and families, especially those who are economically disadvantaged. We create opportunities to meet basic needs through achievement of innovative, research-based policies, effective policy implementation and efficient service delivery. In pursuit of these goals, we generate knowledge and build leadership that result in action. Southern Institute on Children and Families Board of Directors Beegie Truesdale Chairman Producer Los Angeles, California Judy Langford Vice Chairman Senior Fellow Center for the Study of Social Policy Washington, DC Sergio Bendixen President Bendixen and Associates Coral Gables, Florida Unita Blackwell President Emeritus National Conference of Black Mayors Mayersville, Mississippi Michael N. Castle Congressman At Large, Delaware US House of Representatives Washington, DC David Mathews President and CEO The Kettering Foundation Dayton, Ohio Natasha Metcalf Secretary-Treasurer Associate General Counsel and Vice President Contract Management Corrections Corporation of America Nashville, Tennessee Nicole Ravenell President and CEO Southern Institute on Children and Families Columbia, South Carolina Richard W. Riley Senior Partner Nelson Mullins Riley & Scarborough, LLP Greenville, South Carolina Sarah C. Shuptrine (In Memoriam) Founder Southern Institute on Children and Families Columbia, South Carolina Paul M. Starnes Consultant Chattanooga, Tennessee Candy Y. Waites Director of Community Programs The Leadership Institute Columbia College Columbia, South Carolina