Work and family - what are companies doing?

• Author: Deitsch, Mimi
• Position: From FEI

A changing workforce and changes in family roles over the last 30 years have brought the issues of work and family to the forefront. How are companies addressing the needs of a workforce that is nearly half women, and one with many single parents of both sexes? Further, increasing longevity has sandwiched many workers between the needs of their children and those Of their aging parents.

The controversy surrounding the Family-Medical Leave Bill, vetoed by President Bush in 1990, as well as increased activity on the state level, led FEI's committee on Employee Benefits (CEB) to survey FEI members to learn what benefits companies are already providing to accommodate the family needs of their employees. The proposed legislation would mandate providing employees with up to 12 weeks of unpaid leave for the birth or adoption of a child or for the serious illness of the employee or an immediate family member.

As might be expected, the survey reveals that the larger the company, the more benefits it provides. All but two companies responding to the survey offer some type of paid leave of absence. Paid disability leave is offered by 91 percent of the responding companies, followed by bereavement (80 percent) and military (68 percent). Fewer than 25 percent of the respondents provide paid leaves for education, adoption, paternity, or child or elderly care.

Unpaid leaves are already provided by 93 percent of the responding companies. Unpaid personal leave for unspecified reasons is offered by 73 percent, while 55 percent offer unpaid military leave. A substantial number of companies do provide unpaid leave for adoption and paternity (38 percent), child care (34 percent), and elderly care (29 percent). See the chart below for a summary of the leave policies of the survey respondents.

Many businesses are attempting to assist employees with the care of their dependents, Spending accounts to cover dependent care expenses with pre-tax dollars are the most popular benefit offered. These provide employees with important tax advantages at minimal out-of-pocket cost to the employer. Child care spending accounts are offered by 61 percent of the respondents, but only 30 percent offer elderly care spending accounts.

Referral services to assist employees in making dependent care arrangements is the next most often available benefit, but, again, companies are more likely to offer this arrangement for child care (41 percent) than for elderly care (16 percent). A few...