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Summary
The last quarter century has produced a fundamental change in the com-
position of American families and the participation of women in the work
force. Women now constitute 45 percent of the labor force, and the domi-
nant pattern is for both parents to be employed, even when children are very
young. The proportion of households headed by a single adult, usually the
mother, has also increased sharply almost a quarter of all workers who
maintain families. Although social institutions are gradually adapting to the
new work force configuration, the process is slow and there is little consen-
sus about how the burden of adaptation should be shared. The Panel on
Employer Policies and Working Families was asked to synthesize and as-
sess what we know about these changes, to evaluate policy alternatives, and
to assess the need for further research. Although the research on many of
the relevant topics is limited, analysis of the available data and discussions
with experts in the field enabled the panel to assess the major areas of
conflict between work and family responsibilities and possible ways of eas-
ing them.
Our examination focuses on existing policies and programs, recognizing
both the possibilities and the limitations of employer actions within the
broader context of current economic conditions and public policies. Thus
our findings and conclusions are embedded in a perspective that recognizes
not only the needs of workers, but also the constraints faced by employers
in attempting to improve their operations and maintain the financial health
of their organizations. Some consideration is thus given to a range of
related government policies addressing issues of economic security, equal
opportunity, dependent care, and health care.
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2
WORK AND FAMILY: POLICIES FOR A CHANGING WORK FORCE
CONSEQUENCES FOR FAMILIES AND FOR WORKPLACES
An estimated one-half of U.S. employees have responsibility for at least
one dependent, 37 percent have children under the age of 18, and fewer
than one-third have a spouse at home full time. In 1988, 57 percent of
married women with children under the age of 6 were in the labor force
compared with 19 percent in 1960. Approximately 10 percent of full-time
employees are actual or potential caregivers for elderly relatives. This
group is expected to increase substantially over the next several years, as
both the number of elderly people requiring care and the number of em-
ployed women continue to grow. An estimated 2 to 3 percent of employed
people are caring for working-age adults.
Employers now provide an extensive base of benefits, accounting on av-
erage for about 28 percent of total compensation. Benefits arrived at volun-
tarily or as the result of collective bargaining account for about 19 percent
of compensation. Commonly provided benefits include vacations, health
insurance, sick leave, and pensions. Recently, some employers have added
new types of benefits, such as child and other forms of dependent care. The
availability of these types of benefits, however, is very uneven across
organizations, industries, and occupations. Paralleling the emergence of
new family-oriented benefits, many employers have begun to reduce health
insurance coverage particularly dependent care. The loss of health insur-
ance protection increases the likelihood that family members will not re-
ceive necessary health services and exposes families to the threat of finan-
cial ruin. Over 30 million people in this country have no health insurance,
including 12 million children, most of whom live in families with an
employed adult.
While the number of firms offering family-related benefits has been growing,
many employers have not yet adapted to the legitimate needs of workers
with family care responsibilities. In some firms, workers lack benefits that
are now considered essential in mainstream employment. It appears that the
majority of employed women have no paid leave for pregnancy and child-
birth, and a small number of employees have no leave for their own illness.
Small, less profitable, and more labor-intensive firms, often in the retail
trade and service sectors, tend to provide few benefits. Only 46 percent of
employees in small firms have paid sick leave, compared with 67 percent in
large firms. While small firms are somewhat more likely to offer part-time
work and flexible schedules, part-time jobs usually pay less and have fewer
benefits than comparable full-time jobs. Small firms employ 38 percent of
all workers and a large proportion of women and minorities, so the absence
of benefits places already vulnerable groups at increased risk.
While research shows that many results of combining work and family
are positive, there are negative results as well, particularly for women, who
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SUMMARY
continue to be the primary caretakers. Especially for families with single
parents, there is evidence that economic and psychological stress has nega-
tive developmental effects, particularly on children from low-income fami-
lies, which includes many minority children. For employers, there is tenta-
tive evidence that family responsibilities exacerbate such workplace problems
as retention, absenteeism, tardiness, and work interruptions. Factors found
to be associated with these concerns include: terms of employment, such as
the number of hours and weeks worked and the degree of flexibility in work
schedules and locations; the availability of services for family members,
such as child care; and the extent to which family concerns are recognized
as legitimate in the workplace. The scarcity of affordable, good-quality
dependent care for children and elderly people, as well as parents' lack of
time to handle family matters, underlie most factors noted.
We believe that families need additional supports. To be successful,
these must involve men as well as women and take into account variations
in family preferences, income and occupation, and different points in the
life cycle. Our reading is that the current system of employee benefits,
although substantial, is inadequate for the new, diverse labor force.
Employers facing tight labor markets, particularly for skilled workers,
will continue to innovate in providing benefits as an aid to recruitment and
retention. These innovations are important for testing new concepts and
establishing their costs and benefits. However, the constellation of tax
policies and rising real incomes that sustained the growth of benefits from
the 1950s through the 1970s has altered. Stagnant real incomes, low in-
come tax rates, and increased domestic and international competition no
longer support widespread growth in benefits. The panel sees little prospect
that benefits will improve for the majority of workers absent government
action.
The panel assessed a range of public policies for family-related benefits,
including tax incentives, regulations, and other legal requirements. Our
conclusions suggest general directions and broad outlines for policies and
programs, but, in the absence of clear evidence pointing toward preferred
options, the panel does not make recommendations on specific public poli-
cies or implementation mechanisms.
CONCLUSIONS
The panel's conclusions are based on the assumptions that family issues
are a legitimate employer responsibility, but that the burden of adapta-
tion should not rest exclusively with employers. A substantial base of
family-related employee benefits and government supports already exists.
We believe improvements will bring about a better match between insti-
tutional practices and social and economic conditions.
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4
WORK AND FAMILY: POLICIES FOR A CHANGING WORK FORCE
Terms of Employment
Because flexible policies and choices among a variety of programs are
likely to reduce work and family tensions, the panel concludes that open-
ness to experimentation on the part of both managers and workers is impor-
tant in solving existing problems and meeting constantly changing cor~di-
tions. The panel concludes that:
For the economic, physical, and psychological well-being of employees
and their dependents, some form of paid sick leave, including paid leave
for medical-related disabilities for pregnancy and childbirth, and some
form of family leave, to care for infants and ill family members, are
essential. The panel urges policy makers to explore various approaches
to financing and phasing in such benefits so as to minimize economic
disruption, spread costs equitably among the community at large, and
prevent discrimination against those who use leave.
On the basis of experiences in this country and Western Europe, em-
ployers and unions should consider increasing a variety of options, in-
cluding part-time work, flexible schedules, and alternative work loca-
tions. Ensuring that unintended negative effects, such as the loss of
benefits, do not occur is also essential.
Direct Provision of Services
The panel found that employers can in some circumstances efficient!
gather and disseminate information about the availability and quality of
family services, provide services or supports when they are not available
elsewhere, and offer indirect support for services through flexible benefit
systems, thus increasing employee choices The panel draws the following
1 .
conclusions:
As far as economic conditions permit, employers and unions are en-
couraged to support the development and expansion of resource and
referral programs, employee assistance programs, and various types of
direct and indirect assistance for the care of children and elderly and
disabled family members.
Employers should review the structure of their current benefit systems,
on the basis of needs assessments of current employees and an examina-
tion of utilization data on existing benefits. Employers are encouraged
to consider adopting flexible benefit packages, balancing the need for
core benefits against the advantages of more choice.
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SUMMARY
s
While recognizing the need for health care cost containment, we strongly
encourage employers who provide health insurance to maintain cover-
age for workers and their dependents. Employers offering very minimal
health coverage are encouraged to improve it when possible. Access to
health insurance and health care services is an urgent national problem
that deserves a place high on the national agenda.
Program Implementation and Dissemination
Because changes in organizations are likely to meet with resistance, spe-
cial efforts must be made to encourage the adoption of programs and to
facilitate their implementation. The panel encourages:
Managers and union representatives to reassess the needs and prefer-
ences of employees, taking into account occupational, income, and cul-
tural differences and to give high priority to identified programs and
needs.
The development of training programs for manager, workers, and union
representatives to help them recognize the importance of family issues
and to encourage the participation of both men and women in family-
oriented programs.
Governments (federal, state, and local) to support employers in the
development and implementation of useful programs and demonstra-
tion projects, including education and dissemination.
Data Collection and Research
We have noted throughout the report where the research evidence is
weak or contradictory and where there is simply a need for more data.
Collecting and analyzing information is costly, however, and a good many
decisions can be made without waiting for further research. We therefore
urge collection and analysis of additional data only when they are necessary
for formulating policies and when they are most likely to be cost-effective.
The panel concludes that priority should be given to two areas:
Augment data collection efforts at both the individual and the firm
level, including institutionalizing the national longitudinal data collec-
tion efforts that have made possible a great deal of useful research on
important issues, as well as developing better measures of time use,
benefits, and working conditions and expanding the collection of
establishment-level data.
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6
WORK AND FAMILY: POLICIES FOR A CHANGING WORK FORCE
Expand the research agenda to include more research on the long-term
effects of various ways of caring for children on their development, on
the work performance of caregivers in general, and on the changing
roles of men and women at home and at work. Additional research is
also needed on program evaluation and on differences in work and
family issues by occupation, income, and race and ethnicity.
In summary, this study offers an ambitious agenda for employers and
suggests the need for additional public policies. We note, however, that
some employers, particularly large firms, are already doing more than what
is suggested in this report. New programs would nonetheless increase the
costs for others, especially small and labor-intensive firms, as well as for
taxpayers and consumers. In return, however, the large and growing pro-
portion of working people with responsibilities to job and family would be
helped to do justice to both.
In terms of national interest, it is difficult to overstate the importance of
finding a new equilibrium for work and family. Greater awareness on the
part of all interested parties of the extent to which their interests coincide is
crucial in meeting workplace challenges. Conflicts are inevitable, but much
can be achieved by relying not only on altruism, but also on the far-sighted
self-interest of all the parties involved.
Representative terms from entire chapter:
dependent care
