Rose Marcario, President and CEO of Patagonia, writes in LinkedIn about the business case for supporting working families in a social environment in which up to 35% of working women in the US who give birth never return to their jobs. Marcario estimates that her company recovers 91% of its costs for family support programs.
Qualified child care programs get a federal annual tax credit of $150,000 and the company can deduct 35% of unrecovered costs from corporate taxes.
In the past 5 years, Patagonia has had all working mothers return to work after family leave, saving the company turnover costs ranging from 35% of salary for a non-managerial employee to 125% for a manager and a “couple year’s pay” for a director or VP.
High quality on-site child care results in increased employee engagement and, because of the better financial performance, the high worker engagements recoups 11% of the company’s family support costs.