THE BENEFITS AND CHALLENGES OF A WORKPLACE CRÈCHE EMPLOYER-SUPPORTED CHILDCARE IN INDIA ABOUT IFC ABOUT BRIGHT HORIZONS IFC—a sister organization of the World Bank and Bright Horizons, a global provider of early education member of the World Bank Group—is the largest global and preschools, employer-supported childcare, backup development institution focused on the private sector care, educational advisory services, and other work- in emerging markets. We work with more than 2,000 life solutions, provides consultation on international businesses worldwide, using our capital, expertise, and childcare systems and employer work-life supports. influence to create markets and opportunities in the For more information, visit www.brighthorizons.com. toughest areas of the world. In fiscal year 2018, we delivered more than $23 billion in long-term financing for developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity. 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April 2019 TABLE OF CONTENTS PARTNERS 2 CHAPTER 5 RECOMMENDATIONS 41 Recommendations for Employers 41 ACKNOWLEDGEMENTS 3 Consider Worksite Crèche Approach 42 IFC FOREWORD 4 Create Comprehensive BRIGHT HORIZONS FOREWORD 5 Return-to-Work Benefits 44 Recommendations for Government 44 EXECUTIVE SUMMARY 6 Clarify Mandate Guidelines and CHAPTER 1 INTRODUCTION 11 Compliance for Employers 44 Maternity Benefit (Amendment) Act 12 Promote Space for Crèches to Methodology 16 Increase Supply 45 Provide Resources and Support CHAPTER 2 BENEFITS OF for Crèche Development 45 WORKPLACE CRÈCHE INVESTMENTS 19 Recommendations for Investors 46 Benefits to Business 21 Recommendations for Donors 47 Benefits to Parents 21 Benefits to Children 23 CHAPTER 6 CONCLUSION 49 CHAPTER 3 EMPLOYER CRÈCHE MANDATE 24 REFERENCES 50 Utilization 24 APPENDIX A: E-PULSE SURVEY Workforce Size Requirement 25 RESPONDENT PROFILE 52 Elements of Employee Demand 26 APPENDIX B: INITIATIVE PARTNERS 55 CHAPTER 4 EMPLOYER-SUPPORTED CHILDCARE SOLUTIONS 28 Flexwork 28 Manager Training 28 Family Care Benefits 29 Diversity and Inclusion 29 Corporate Social Responsibility (CSR) 30 Crèche Provisions at the Workplace 31 Working Definitions 31 Challenges Implementing a Crèche 33 Quality 33 Location 33 Transportation 35 Compliance and Liability 36 Financial Considerations for a Crèche 38 1 PARTNERS This report The Benefits and Challenges of a Workplace Crèche: Employer-Supported Childcare in India was produced by the Gender Secretariat of the International Finance Corporation (IFC) in partnership with Bright Horizons, a global provider of early education and preschools, employer-supported childcare, backup care, educational advisory services, and other work-life solutions. Project partners included: Goldman Sachs, a global investment banking, securities, and investment management firm that provides a wide range of financial services to a substantial and diversified client base; J. Sagar Associates (JSA), a national law firm in India focused on providing legal solutions in the chosen practice areas with a strong emphasis on ethics; and, NASSCOM (National Association of Software and Services Companies), a nonprofit trade association of Indian information technology and business process outsourcing industries. 2 ACKNOWLEDGEMENTS The Benefits and Challenges of a Workplace Crèche: Employer-Supported Childcare in India was produced by the Gender Secretariat of the International Finance Corporation (IFC) in partnership with Bright Horizons. It was developed under the overall guidance Henriette Kolb (Head, IFC Gender Secretariat). This initiative was led by Carmen Niethammer and Roshika Singh (IFC) as well as Andrea Wicks Bowles, Kristin Henderson, and Jennifer Vena (Bright Horizons). Project partners included Rupa Parasuram, Aruna Wunnava, and Subheksha Sharma (Goldman Sachs); Sajai Singh and Lakshmi Ramachandran (J. Sagar Associates [JSA]); Ashok Pamidi, Deepak Arora, and Archana Eshwarlal (National Association of Software and Services Companies [NASSCOM]); and Shabnam Sinha and Kartik Pental (World Bank). Appreciations are also extended to the Government of India, especially the Honorable Manish Gupta, Joint Secretary, Ministry of Labour and Employment, and H. L. Meena, Economic Advisor, Ministry of Labour and Employment, for their commitment to promoting women’s labor force participation and their support to the initiative. In this context, the report team would also like to thank K. V. Subramanian (Labour Commissioner of Bengaluru, State of Karnataka), Durga Prasad (Labour Officer, Bengaluru, State of Karnataka), Salim Pathan Khan (Deputy Chief Labour Commissioner, City of Mumbai and City of Nagpur), and A. K. Aggrewal (Regional Labour Commissioner, State of Gujarat) for their active participation at the roundtables. The report also benefits from valuable contributions made by peer reviewers Henriette Kolb, Rudaba Nasir, Shalaka Joshi, and Nathalie Hoffmann (IFC). Appreciations are also extended to Vikramjit Singh, Ramesh Ramanathan and Monica Chander (IFC) for their valuable support and strategic guidance. Many thanks also to Nagasubramanian Kodimangalam Sundaram and Raina Vaswani (IFC) for their logistical support to the roundtables and the design team at Bright Horizons who were critical in producing this report. 3 IFC FOREWORD No country, community or economy can achieve its positively impact key business drivers such as talent potential to meet the challenges of the 21st century management, parents’ (including women’s) retention, and without the full and equal participation of women. To ‘Employer of Choice’ status. encourage more parents (especially mothers) to join and remain in the labor force, reliable, affordable and good- Our aim is that this publication will reach hundreds quality childcare is essential. of policy makers and businesses globally who can learn from India’s innovative experience and replicate Recognizing the impact that childcare provision can have solutions. It is also a call to action for key stakeholders on women’s employment, countries like Bangladesh, to embrace the business case for employer-supported Brazil, India, and Jordan have unveiled policies requiring childcare in India and to invest in and support quality companies to provide childcare options. Even when not childcare solutions. driven by regulatory compliance, companies can support childcare and reap business benefits. The lack of access to On behalf of IFC, I would like to thank our report such care not only affects early childhood development, partners Bright Horizons, Goldman Sachs, J. Sagar but can also hurt businesses that depend on acquiring Associates, and the National Association for Software and retaining a skilled workforce. When companies and Services Companies (NASSCOM) for their valuable support their employees with their childcare needs, they contributions. In addition, I would like to extend my can hire and retain talent, which in turn boosts profits appreciation to the more almost 300 employers who and productivity. In addition, children who have access participated in our survey and generously shared their to early childhood education are more likely to perform experiences. Only through partnerships with the public well in school, be healthier, and be more productive as and private sectors will we be able to better support adults. this important agenda for which the Indian Ministry of Labour and Employment has taken an important As the world’s largest global development institution leadership role that we can all learn from. focused exclusively on the private sector, IFC is dedicated to closing gender gaps in employment. IFC promotes At IFC, we are committed to operationalizing our employer-supported childcare to reduce barriers to knowledge and—in line with our vision focused on women’s access to more and better jobs. This report, creating markets—look forward to further collaboration The Benefits and Challenges of a Workplace Crèche: with private and public sector partners which will Employer-supported Childcare in India, highlights India’s score a triple win for all: employees and their children, unique policy approach and employers’ initial response employers, and economies. to the 2017 Maternity Benefit (Amendment) Act. With the explicit requirement that organizations with more than 50 employees at a worksite invest in workplace child care provisions, the report contributes to a better Nena Stoiljkovic understanding of employers’ obstacles and opportunities IFC Regional Vice President (real and perceived) to comply with the new mandate. Asia and Pacific Importantly it shows how the new regulation can 4 BRIGHT HORIZONS FOREWORD Around the globe, the lack of quality childcare has At Bright Horizons, we believe every child should have continued to be a major barrier to allowing parents, and the opportunity to experience a high-quality early particularly women, to participate fully in the workforce. education. We are honored to have partnered with And at the same time, employers are struggling more the International Finance Corporation (IFC), J. Sagar than ever to address their talent needs, with India among Associates, Goldman Sachs, and the National Association the most impacted markets. The talent is there, but many of Software and Services Companies (NASSCOM) on are unable to meet the seemingly dueling responsibilities this research and to offer our expertise in workplace of family and career. But it doesn’t have to be that way. childcare provisions and high-quality early education to help move the implementation of the Maternity Benefit The 2017 Maternity Benefit (Amendment) Act provides (Amendment) Act forward. a significant opportunity in India—both for working parents to remain in the workforce and have access to reliable childcare and for businesses to benefit from a workforce that is focused, engaged, and productive. We have watched our clients—including several employers Stephen Kramer in India—make childcare an important part of their CEO employee effectiveness strategies and experience Bright Horizons significant positive impacts to their recruitment and retention efforts as a result. By providing access to childcare solutions, employers will eliminate a major source of stress, worry, and distraction for their employees. But accessibility and availability of childcare aren’t the only factors for employers to consider. Since the early years of a child’s life are especially critical to brain development, the importance of a quality early education environment can’t be stressed enough, particularly as it relates to the standards expected or enforced in each country. The availability of a childcare solution can only go so far if it doesn’t meet the quality standards that a parent expects or a child deserves. 5 EXECUTIVE SUMMARY India is considered one of the fastest-growing major that support employees and their families including: economies. India has a young workforce, with most employees under the age of 30. Women’s labor force • Increased paid maternity leave from the existing 12 participation in India, however, has declined steadily weeks to 26 weeks from 30 percent to 27 percent over four years (ILO • Maternity leave for adoptive and commissioning 2017). Social factors such as the prominence of (surrogacy) mothers gender-biased views on women’s roles in the economic • Work from home option, which may be exercised and political landscape in countries comparable to after the end of the paid leave period India and lower recruitment contribute to this decline, but issues around retention of women and the “leaky • Employee awareness, mandatory for employers, pipeline” are also influences. to educate women about the available maternity benefits at the time of their appointment Working parents significantly contribute to their • Crèche facility, mandatory for every establishment companies and to the larger Indian economy, yet they employing 50 or more employees (women often juggle work responsibilities with supporting employees would be permitted to visit the crèche and caring for their children and families. Across four times during the day) the world, childcare still remains a responsibility primarily carried out by women. Globally, women The International Finance Corporation (IFC) is spend approximately three times the amount of building on its contribution to employer-supported time spent by men on unpaid work, which includes childcare solutions in India following the release of childcare (McKinsey Global Institute 2015). In India, Tackling Childcare: The Business Case for Employer- however, this number is much greater: McKinsey’s supported Childcare (2017). IFC plans to leverage its research (Bhalla 2017) reveals that women spend close global experience of promoting employer-supported to 10 times more time than men in unpaid care work. childcare—and knowledge that regulations can be Without access to quality childcare support, mothers good for business—to advise the private sector. often must choose between their job and caring for IFC led a partnership comprising a global childcare their child. When mothers choose the latter, it results provider, an industry body, a local law firm, and a in derailing, or often ending, their career. Providing financial institution in India. IFC, Bright Horizons, J. employer-supported childcare services can boost Sagar Associates, National Association of Software women’s labor force participation, enhance firms’ and Services Companies (NASSCOM), and Goldman performance, and contribute to economic growth in Sachs collaborated to assess the opportunity and India. implications of the MB (Amendment) Act. The project first entailed a survey of 255 employers throughout MATERNITY BENEFIT the country followed by roundtable discussions with (AMENDMENT) ACT employers, childcare providers, and government In India, the government has made a concerted effort representatives in Bengaluru, Delhi, and Mumbai. to remove childcare as a barrier to parents’—and in IFC closely collaborated with the federal Ministry of particular women’s—participation in the workforce. Labour and Employment, the responsible entity for In 2017, the Indian government passed an amendment the MB (Amendment) Act. Because each state will to the Maternity Benefit Act of 1961. The MB create its own guidelines for implementation and (Amendment) Act requires employers to offer benefits enforcement of the Act, the IFC invited state labor commissioners in each state in which a roundtable 6 discussion was held to share information and engage in dialogue with private sector representatives and employers who will be impacted by the Act. This process has created guidance for those who will create and implement the Act. This report identifies how employers can implement a crèche strategy to not only meet the MB (Amendment) Act but also to help working parents, young children, and employers’ bottom line. This report addresses the business benefits of the Act, quality indicators for crèche programming, financial implications of crèche provisions, crèche models, and employee demand. The report shares data from the e-pulse survey administered by IFC and Bright Horizons in 2018. Survey respondents were predominantly from large multinational organizations in the formal sector in Mumbai and Bengaluru. Many organizations were NASSCOM members, and therefore in the information technology (IT) industry, although there was also significant representation from the banking, financial services, and insurance sectors. The report also presents significant findings from the roundtable discussions. It concludes with recommendations for employers, the government, and investors or donors as to how they might leverage the Act to benefit children and families, employers, and the economic well-being of the country. BENEFITS OF THE MB (AMENDMENT) ACT E-PULSE SURVEY To understand how employers are responding to the MB (Amendment) Act, an e-pulse survey was administered by email. The survey took less than 15 minutes to complete and participation was anonymous. It had 49 multiple-choice questions and was shared with companies in the urban areas. There was strong familiarity with the Act among survey participants (88 percent). Most expressed positive opinions of the legislation in terms of improving gender diversity in the workforce (79 percent) and helping India better invest in children’s educational outcomes (63 percent). Most respondents agreed that the Act will have positive business impacts, including in such areas as employee work-life balance, the ability for women to return to work, women’s advancement, and employee retention. See figure ES.1. “It is a progressive move in line with many developed countries.” —e-Pulse Survey Respondent Figure ES.1 Survey Response: “Impact of the MB (Amendment) Act” Employee work/life balance 91 Ability for women to return to work 89 Women's advancement 86 Employee retention 85 Workplace culture 82 Employee engagement 81 Employee productivity 70 Talent acquisition 68 0 20 40 60 80 100 Percent Source: IFC/Bright Horizons data. Note: An IFC/Bright Horizons survey (2018) asked 255 Indian employers questions related to the MB (Amendment) Act. Number of responses to this question varied from 224 to 250. 7 A workplace crèche, if implemented with educational “[As a result of the MB (Amendment) Act], support, can have important benefits to working we have seen retention of employees, talent parents, children, and society (IFC 2017). Educational experiences for young children can enhance (or hinder, acquisition, and an increase in women workforce if not provided) future cognitive and emotional well- participation to 30 percent.” being and adult outcomes. The delivery of services —e-Pulse Survey Respondent to young children is therefore a critical part of the crèche provision. Understanding quality, educational experiences for young children and challenges supporting While many survey respondents and roundtable childcare workers are integral to the success of a crèche participants acknowledged the positive intentions of the solution. By recognizing the fiscal impact on crèche MB (Amendment) Act, some expressed concern. One provisions based on decisions about employee demand, area of apprehension is the potential for companies to crèche models, quality standards, liability, and accepted be discouraged from employing women due to the cost best practices, employers can make strategic investments associated with mandates in the Act. The government is that support the goals of the business and the needs of considering ways to address these concerns, including employees. Finally, the ongoing acknowledgement of the establishment of a proposed Maternity Benefit Fund, the potential benefit from employer involvement in the which is in the Draft Labour Code for Social Security provisions of high-quality care and education for young and Welfare. It is envisaged that the proposed fund will children and working parents cannot be understated and shift liability of maternity benefits to the Maternity should be evaluated going forward. Benefit Fund, so if an employer fails to cover employees under the maternity benefit scheme, the workers can “We have been able to hire a lot of women from be provided the benefits from the fund. Despite some concerns, compliance with the Act is high among survey diverse backgrounds, reskill them, and provide respondents: most employers responding to the survey a much more dignified model of employment. have implemented the maternity leave increase to 26 This has brought a lot of inclusiveness in weeks (90 percent), the protocol for informing women terms of hiring and greater empathy and better about the Act (82 percent), and a process that allows the understanding of all backgrounds.” option for working mothers to work from home (67 percent). —e-Pulse Survey Respondent with Crèche at Facility EMPLOYER CRÈCHE MANDATE Of all the components outlined in the MB (Amendment) Act, findings from the survey indicate meeting the RECOMMENDATIONS mandate to provide a crèche provision at worksites While state-level government has responsibility for the with at least 50 employees is particularly challenging. guidelines of the MB (Amendment) Act, this report Just under half (49 percent) of the survey respondents offers insights on what employers request to successfully provide access to a crèche provision. Key challenges with implement the Act’s requirements. Childcare is a working providing a crèche as indicated by survey respondents parents’ challenge—and not just a challenge for women. include: Top leadership should be engaged in embedding childcare in overall family-friendly policies. Crèche provision is • Quality. Finding existing crèches that meet quality one potential way for employers to support their staff standards needs. It is recommended for employers to partner with • Location. Finding or locating care near the worksite childcare providers, either commercial providers or nongovernmental organizations (NGOs), to meet their • Compliance. Needing guidelines for compliance with employees’ childcare needs. the Act 8 EMPLOYERS The three main steps for an employer in determining the best crèche approach for each worksite with 50 or more employees are (i) clarifying the organization’s business goals, (ii) identifying employee demand, and (iii) determining the community supply of childcare near the worksite. After these assessments, an employer can determine whether an onsite crèche, a consortium crèche with other nearby employers, or a tie-up with an existing community crèche is the best approach. Employers with multiple locations may find that the best approach will vary by worksite. After a decision is made, the next step is to measure and track the value of the crèche against the organization’s business objectives. Figure ES.2 Crèche Component of the Maternity Benefit (Amendment) Act Mandate Determine Clarify business Identify employee community goals demand supply Decide on best approach for each worksite On-site crèche Consortium Tie-up GOVERNMENT Recommendations on how the Indian government can support successful employer compliance of the MB (Amendment) Act fall into three categories. The first centers on encouraging states to enact their guidelines while facilitating outreach to stakeholders so their voices can be included in the development and monitoring of the guidelines. The second category determines ways to increase the availability of space for crèches near employer worksites, such as enacting crèche requirements in office building developments or providing real estate tax relief for employers or developers that establish crèches. The third category provides employers with resources necessary to comply with the Act and increase the quality care for India’s children through efforts such as technical assistance for crèche planning, educational training systems to build the supply of trained crèche teachers, and an online childcare registry system to match trained teachers with crèche facilities needing workers. Figure ES.3 Recommendations for the Government to Support Success of Maternity Benefit (Amendment) Act Clarify mandate Promote space Provide resources guidelines and for crèches to and support compliance increase supply 9 INVESTORS AND DONORS Investors and donors can support the sustained growth of a childcare economy. This includes partnering with crèche providers, funding ongoing efforts for quality standards, promoting high-quality education for children across India, and supporting the training and certification of childcare workers who will be required to meet the demand of the growing crèche market. To ensure sustained growth of this emerging sector, more investors are needed to provide growth capital to entrepreneurs. Investment will be needed for market entry, expansion of infrastructure, and rollout of locations for childcare providers. Capital will be needed for teacher training and introducing new approaches toward childcare provision. Investment will accelerate the development of this sector, which promises to deliver transformative results throughout the country. CONCLUSION To benefit working parents and young children in India, it will be essential that the MB (Amendment) Act implementation be informed by this report. The government’s commitment and consideration for access to a crèche provision will enable working parents, and in particular women, to remain in the workplace after the birth or adoption of a child. Awareness campaigns, roundtable discussions, and dialogue will showcase to employers that the impact of providing childcare through their benefits program will often outweigh the expense. The cost of retaining talent through employee benefits that include childcare may be far lower than the cost of hiring and training new talent. Employers will benefit from tapping into an underused talent pool, particularly of women, by implementing strategies that allow talented parents to join, fully participate, and stay in the workforce. 10 CHAPTER 1 INTRODUCTION This report aims to contribute to the growing need gaps when it comes to labor force participation, with for India-based organizations to support employees women generating only 17 percent of gross domestic and their dependent care needs. Understanding how product (GDP) (McKinsey Global Institute 2018). childcare provisions can support employees, including Despite gender gaps in education narrowing rapidly their mobility, retention, and career aspiration, is in India, such social factors as the lack of job creation one area of focus. Childcare provisions benefit the that attracts women; lower recruitment that accounts competitiveness and productivity of companies while for the decline in female labor force participation; and improving parents’ (including women’s) access to the role of caregiving in women’s employment can lead better job opportunities and income; ultimately these to issues around retention of women and the “leaky provisions support the closing of gender gaps. pipeline” contributing further to this decrease. Closing the gender gap in India could add US$700 billion to its This report identifies how employers can implement a GDP by 2025, with India having the highest relative crèche strategy to not only meet the Maternity Benefit potential for GDP growth from advancing women’s (MB) (Amendment) Act but also to do so in a way equality compared to other economies (McKinsey that can help working parents, young children, and Global Institute 2015). employers’ bottom line. The International Finance Corporation (IFC) led a partnership to conduct A significant amount of women do not participate research on the current state of employer readiness in the workforce, or quit their jobs to take care of to implement employer-supported childcare, and to children and the elderly. OECD (2018) data reveal that identify the characteristics of key business drivers that Indian women spend approximately 352 minutes a day are important to address in meeting the mandate of on unpaid work as compared to that of 51.8 minutes the MB (Amendment) Act. The partnership comprised by men. a global childcare provider, Bright Horizons; an Indian information technology (IT) body, the National With increased urban migration, families no longer Association of Software and Services Companies have the social infrastructure to help with childcare. (NASSCOM); an Indian law firm, J. Sagar Associates; In India, the number of children aged five or younger and a global financial institution, Goldman Sachs. according to UNICEF (2017) is approximately The partners surveyed nearly 300 firms, organized 120 million with a low pre-primary school gross roundtables to solicit qualitative information, enrollment ratio of 13 percent for boys and 12 percent and published a report with recommendations for for girls, suggesting that more than 100 million stakeholders to increase private sector compliance children are not enrolled. with the new childcare law. The partnership had a Across the globe, childcare remains a key economic twofold agenda: (i) to promote the business case and barrier to working parents and women in particular, business drivers for employer-supported childcare because of the reliance on unpaid, mostly female labor in India, and (ii) to offer potential solutions for to care for children. World Bank data finds that at employer-supported childcare in India. most, half of the children aged three to five years old India has a young workforce, with most employees in low-income countries (LICs) participate in some in many organizations under the age of 30. Women’s form of early childhood education, typically a few labor force participation in India has declined from hours daily1. Parents cannot participate fully in the 30 percent to 27 percent in the last four years (ILO workforce with care being available for only a few 2017), and India has one of the world’s largest gender hours a day. 1 See the World Bank database WBL, https://wbl.worldbank.org, accessed 2018. 11 In India, the government has made a concerted effort to offer benefits that support employees and their families. Key remove childcare as a barrier to parents’—particularly aspects of the MB (Amendment) Act include: women’s—participation in the workforce. Embedded in India’s 2017 MB (Amendment) Act is a provision to • Increased paid maternity leave: the duration of paid address childcare in the workplace. The mandate requires maternity leave available for women employees from that employers with 50 or more employees at a worksite the existing 12 weeks to 26 weeks provide a workplace crèche solution. See table 1.1. • Prenatal leave extended to eight weeks Table 1.1 India Policies • Maternity leave of 12 weeks for adoptive and commissioning (surrogacy) mothers LEAVE POLICIES • Work from home option: may be exercised after the Paid maternity leave Yes (182 Days) expiration of the 26-week leave period Paid paternity leave No • Employee awareness: mandatory for employers to LEGAL OBLIGATION FOR EMPLOYERS educate women about the maternity benefits available TO SUPPORT CHILDCARE 0–2 YEARS, 3–5 YEARS to them at the time of their appointment Obligation for employers to • Crèche facility: mandatory for every establishment Yes support childcare employing 50 or more employees; women employees Based on the number would be permitted to visit the crèche four times No of female employees during the day Based on the number Yes (50 or more employees at of employees regardless worksite) One component of the new MB (Amendment) Act GOVERNMENT INCENTIVES TO mandates that companies with more than 50 employees, EMPLOYERS TO SUPPORT CHILDCARE regardless of the gender, must provide a childcare facility Tax benefits to employers to either on company premises or in the community from Yes support childcare which they source employees. The guidelines will be QUALITY OF PRIVATE CHILDCARE SERVICES rolled out state by state, with each state in India having its own set of guidelines. Many states have not yet License or Yes provided guidance on how the MB (Amendment) Act registration required will be enforced and what penalties organizations are Zoning requirements No to expect, but the roundtables held as part of the IFC/ Bright Horizons study brought together state labor Source: IFC 2017. commissioners and stakeholders from the private sector MATERNITY BENEFIT to discuss what to expect. (AMENDMENT) ACT In the absence of state guidelines, companies are looking The MB Act (1961) regulates and protects the at other legislation for guidance, including the 1948 employment of women after childbirth and entitles Factories Act, the 1966 Mine Crèche Rules, and the a woman to a “maternity benefit” that is fully paid 2017 Maternity Benefit (Mines and Circus) Amendment when absent from work to take care of her child. The Rules. The guidelines exist for mine operators because Act is applicable to all establishments employing 10 or the mines are covered by federal law, whereas other more people. To be eligible for the maternity benefit, a industry sectors, such as commercial establishments, are woman must have been working as an employee in the covered by state law. See box 1.1 for highlights of the establishment for at least 80 days in the past 12 months. 1966 Mine Crèche Rules. These existing guidelines may Payment during the leave period is based on the average influence or shape the guidelines that each state must daily wage for the period of actual absence. devise to oversee the implementation of the mandate. The findings from this report may also help inform the The MB (Amendment) Act (2017) includes several new states’ guidelines. mandates that greatly enhance employers’ responsibility to 12 Many have acknowledged the positive intentions of the MB (Amendment) Act for India, but some have expressed Box 1.1 Provisions of the 1966 Mine concern. One area of apprehension is the potential for Crèche Rules companies to be discouraged from employing women due to the cost associated with mandates in the Act, Important provisions of the 1966 Mine Crèche Rules that including extended maternity leave. Governments pay mine establishments need to comply with are outlined 100 percent of maternity leave benefits in 96 of the 189 below. Employers may want to familiarize themselves with economies included in the Women, Business and the Law the Crèche Rules, which could serve as a reference in (WBL) database and 50 percent or more in another 27 further developing state guidance on the topic. economies2. In comparison, employers pay 100 percent of leave benefits in 53 of the economies covered. Some • Definition of crèche. Crèche means a room or rooms economies are shifting away from separate maternity with ancillary accommodation reserved for the use of and paternity leave language in favor of parental leave children up to six years old. terminology. India is considering ways to address costs related to maternity leave. At the Delhi roundtable, as • Types of crèches. Four types of crèches: A, B, C, and part of this study, the joint secretary, Ministry of Labour D, depending on the number of women. The Crèche and Employment, shared preliminary thoughts on the Rules schedule provides description of these. proposed Maternity Benefit Fund for India. A part of the new Labour Code on Social Security, the Fund would • Setup standards. The standards to be adhered to with address this concern (Labour Code on Social Security respect to setting up of a crèche, such as: 2018, Version 2.0, March 2018). He shared that “the • It has to be adequately lit, properly ventilated, and proposed fund is intended to shift liability of maternity afford effective protection from all kinds of weather. benefits to the Maternity Benefit Fund, in which the • The flooring should be of cement or stone and the subscription amounts will come from the contribution ceiling should be at least four meters high. received. If an employer fails to cover employees under the maternity benefit scheme, the workers shall be • The interior walls should be lime-washed at least provided the benefits from the fund, and recoveries can every six months and woodwork should be lime- be made by the employer from the fund.” In addition, washed every three years. employers whose employees are covered by Employees’ • Clean and sanitary conditions should be State Insurance (ESI) may be able to mitigate costs of the maintained. maternity leave requirement by accessing ESI. (See box 1.2.) • Distance of crèche. It should be within 500 meters of Increasing maternity leave, considering a work-from- the establishment. home option, and providing access to a workplace crèche can have many implications for employers. This report • Opening and closing of crèche. It should remain takes a deep dive into areas requiring further exploration open, day and night, when female employees are and seeks to identify strategies to help several of the working. stakeholders (federal and state governments, employers, childcare providers, and investors) respond to the • Use of crèche. It should be restricted to children, employee supports outlined in the MB (Amendment) their attendants, the supervisory staff, and such other Act. Working families in India along with employers can persons as may be related to or concerned with the benefit from a successful rollout of the MB (Amendment) children in the crèche. The use of the crèche facility is Act that in its implementation should be supportive proposed to be extended to children of temporary, daily of both employees’ needs and employer workforce wage, consultant, and contractual workers. priorities. 2 See the World Bank database WBL, https://wbl.worldbank.org, accessed 2018. 13 Box 1.2 Employees’ State Insurance Act The Employees’ State Insurance (ESI) Act (1948) is applicable to all factories and other select establishments. Establishments whose female employees’ wages are up to Re 21,000 and who have contributed for a period of at least 70 days are covered by ESI. While the MB (Amendment) Act applies to all female employees, companies whose employees are covered by ESI will not have to pay the remuneration for maternity leave for eligible employees. Childcare Trilemma: A Global Issue AF FO Y IT RD AL AB QU ILI TY ACCESSIBILITY Many working parents around the world share a common experience: the childcare trilemma. Parents need high- quality early education for their children that is accessible and affordable. Employers have played an important role helping their employees navigate the issues of the childcare trilemma by providing benefits and supports. Examples of employer-supported resources used by organizations to help working parents include financial support, information, direct care, workplace policies, and programs. Table 1.2 is derived from Bright Horizons’ employer resources and additional resources provided by IFC (2017). 14 Table 1.2 Types of Employer-Family Supports Direct care • Worksite crèche. Full-day early care and education at or near the worksite for employees’ children. • Tie-up. Employee childcare arranged at an existing crèche in the community that is negotiated by the employer. • Consortium crèche. Full-day early care and education provided in cooperation with other businesses to finance childcare. • Backup/emergency childcare. Occasional, temporary childcare arrangement that employees might use when their primary care is not available. • School-age vacation/holiday care. Care for school-age children (ages six to 14) available when school is closed or over summer months when parents have to work. • Extended hours. Expanding the hours of operation of preceding programs to accommodate early mornings, late evenings, or weekends. Financial support • Childcare voucher. Voucher subsidy that can be used to help pay for childcare arrangements that meet certain requirements. • Employer-supported sliding fee scale. Funding of childcare program to offer reduced tuition to financially eligible families. • Crèche discounts. Negotiated discount rates at one or more community-based crèches. Informational services • Information and referral services. Similar to an employee assistance program, this service provides employees counseling on choosing childcare and other relevant information (e.g., locally available childcare, fees, and hours). • Resource fairs. Worksite events at which local vendors distribute information to employees about community resources. Workplace policies • Parental leave. Time off from work to care for a new family member. • Flexible scheduling. Allowing employees to select from various schedules such as varied starting and stopping times within employer limits, compressed work weeks, and reduced schedules. • Telecommuting. Ability to work all or part of the time from home or another virtual location. • Use of sick days for dependent care needs. Allowing employees to access unused sick days for times when children are sick or otherwise at home. Workplace programs • Return to work (“returnship”) supports. Programs to assist new parents in returning to work, including, for example, mentoring programs, lactation support, new parent coaching, phasing back to work, and sensitization programs for managers. • Family care affinity groups. Workplace networks of employees with shared experiences on childcare, parenting, and work-life integration. 15 While financial supports such as childcare vouchers can Nationally, early education has been viewed as a critical provide working families with help paying for childcare factor for all children and families. The relationship with the employer, either reimbursing the employee between access to early education for young children for care or paying the provider directly, they do not and child outcomes continues to be measured through necessarily help increase the supply or quality of care. research, including Singh and Mukherjee (2017), Although sharing information about existing programs which focuses on child poverty. Its work demonstrates can be an important support strategy, this is not likely to the relationship between the quality of preschool, as increase the supply, quality, or affordability of existing perceived by caregivers, and the three developmental care either. These options work well only if there is a variables at age 12. The research shows that children of sufficient supply of high-quality care in the market that caregivers who perceived the preschool to be of good meets the needs (hours and location) of families looking quality performed better in cognitive tests and had for childcare. higher subjective well-being compared to children whose parents reported their child’s preschool to be of “bad” Depending on the local challenge, employers can address quality. the childcare trilemma for their employees by providing high-quality, affordable, and conveniently located METHODOLOGY care. In doing so, employers can eliminate a significant Two methodologies were used to gather data for this source of worry, stress, and distraction, and as a result report. A survey identified potential opportunities, can benefit from engaged and committed employees barriers, and challenges to how organizations will who are often willing and able to put forth their best respond to the mandate and potentially go beyond performances and are less likely to leave the company. compliance, including organizations’ perceived preferences of employees to ensure that solutions are “The most immediate concern for policy makers, informed by demand. The additional methodology of therefore, should be to alleviate the constraints using roundtable discussions for data gathering was to that women face in choosing to enter the labour provide a medium to obtain qualitative data and validate the preliminary findings from the survey. market and address the barriers they are confronted with once they are in the workplace.” E-pulse survey. An e-pulse survey is an online survey —International Labour Organization 2017 designed to take a “pulse” or snapshot on a particular area of focus. Designed by IFC and Bright Horizons with inputs from its private sector partners, an electronic Early care and education are becoming essential survey was distributed to approximately 300 employers components of employer strategies for talent acquisition throughout India between April 9, 2018, and May in India. The Talent Shortage Survey database, released 28, 2018. The tool has questions about the worksite, in June 2018 by the ManpowerGroup, finds that around such as number of employees, status of dependent care the world, “employers are facing the most acute talent supports, and benefits. Questions about the business shortage in 12 years.”3 India is among the top 10 most- challenges are categorized to help analysts understand affected markets. Attracting employees and retaining how the organization might benefit from specific them across the life stages are increasingly viewed as workplace supports. Respondents shared whether or being critical to an employer’s success. Young parents not a workplace crèche is offered, how it is provisioned, often struggle with increased conflicts between work and its use. The survey identified awareness of the MB and family, which in some cases can result in employers (Amendment) Act, levels of compliance, and challenges losing employees. Recognizing the importance of these to complying. The survey was anonymous to encourage critical demographic groups and the connection between respondents to be candid. employees’ family care responsibilities and their ability to be productive at work, numerous employers have made childcare an important part of their employee effectiveness strategies. 16 3 See the ManpowerGroup’s Talent Shortage Survey database, https://go.manpowergroup.com/talent-shortage-2018, accessed June 2018. Over 175 participants shared their views and questions Over half (58 percent) of the data collected in at these sessions. Participants included employers, the e-pulse survey came from respondents with childcare practitioners, researchers, and state and federal government representatives. Findings from the senior-level positions, including the C-Suite. roundtable discussions are highlighted throughout the Senior-level engagement on these issues is report in relevant sections (see box 1.3 for highlights). an important indicator for organizations being The three roundtable dates and locations were (i) May strategic in integrating compliance with the 14, 2018, in Delhi, hosted by the World Bank with 53 mandates of the MB (Amendment) Act and their participants; (ii) May 18, 2018, in Mumbai, hosted by the IFC with 62 participants; and (iii) May 22, business objectives. 2018, in Bengaluru, hosted by Goldman Sachs with 62 participants. Benefiting from all partners’ networks, invitations to participate were sent to senior leaders and professionals Box 1.3 Ministry Roundtable through different means (including social media) to Contributions afford inclusion from employers of various industries and workforce sizes. The profile of the final 255 survey • In Mumbai, the ministry representative clarified that respondents can be found in the appendix A, table the spirit of the law intends to focus on “employees” A.1. One-third of the respondents are from domestic (women and men) in regard to the crèche mandate, firms (33 percent), while two-thirds (67 percent) are while the other features primarily focus on women, multinationals. Most respondents were from the IT such as maternity leave extended to 26 weeks. sector, because they were NASSCOM members. • The ministry representative in Delhi shared that the Roundtable discussions. Roundtable sessions added more government’s focus on empowerment of women qualitative explanation to the study findings. Given that through initiatives is aimed at increasing their financial the responsibility for developing guidelines that govern inclusion, providing education for girls, and using the MB (Amendment) Act implementation lies with childcare to promote retention of women in the different states, roundtable discussions were held in three workforce. The ministry representative also mentioned states with key stakeholders to share the preliminary establishing the Maternity Benefit Fund to address the results of the survey; hear from the government (federal concern of the cost of providing maternity benefits. and state representatives from the Ministry of Labor and Employment) about the MB (Amendment) Act • In Bengaluru, the ministry representative stated intentions; and engage employers on the topic of that the purpose of the provision was to protect the implementation by hearing their questions, comments, employment of women and that corporations should and best practices. The roundtables provided advice and not look to cut corners toward compliance. He also insights to stakeholders about best practices for investing mentioned that to reach India’s inclusive growth in a workplace crèche to meet the needs of the business targets, this is a necessary and important piece of as well as the needs of employees and their families. legislation to help the 1.8 million women workers in Government representatives shared insights on the spirit the formal sector and to promote more female labor of the legislation and the role that state governments are participation. likely to play in implementing the mandates. The crèche provision of the MB (Amendment) Act became effective on July 1, 2017, but most state guidelines are still being Findings. The e-pulse survey to employers provided data written. Employers could ask government representatives that shaped the focus of the report. Just under half (49 questions about the MB (Amendment) Act and seek percent) of the surveyed respondents had a workplace clarifications. Many questions and comments had to do crèche provision, demonstrating difficulty in responding with the implementation of the crèche component to the to this aspect of the MB (Amendment) Act. In fact, 21 mandate. percent of respondents have yet to consider the crèche 17 component of the MB (Amendment) Act, even though the requirement for a workplace crèche option went into effect in July 2017. Since that time, one in five organizations have yet to consider how they will move forward in the crèche provision. Survey respondents were also asked about the status of implementing three other key provisions of the MB (Amendment) Act: (i) implementation of the 26-week maternity leave; (ii) a protocol for informing women about the MB (Amendment) Act; and (iii) a work-from-home process. Almost all respondents (90 percent) have the 26-week maternity leave, 82 percent have a protocol in place for informing women about the MB (Amendment) Act, and 67 percent have instituted the flexibility for women to work from home. Figure 1.1 Survey Responses: “Status Implementation of the MB (Amendment) Act” Implement maternity leave In place prior to the Act 29 61 22 6 increase to 26 weeks In place after the Act Under development Protocol for informing Early planning stage women about the MB 45 37 9 3 6 Have yet to consider (Amendment) Act Establish a process that allows option for working 52 15 14 3 16 mothers to work from home Crèche facility provision 22 27 22 9 21 0 10 20 30 40 50 60 70 80 90 100 Percent Source: IFC/Bright Horizons data. Note: An IFC/Bright Horizons survey (2018) asked 255 Indian employers questions related to the MB (Amendment) Act. Number of responses to this question was 255. “Returning mothers are encouraged to consider work continuity rather than choosing to stay at home and ignore their careers.” —e-Pulse Survey Respondent Given the lower compliance with the crèche provision and that respondents indicated that the crèche facility provision of the MB (Amendment) Act is the most challenging component to implement, this report focuses on information and strategies that can help an organization take the first step toward crèche implementation. The report discusses implications for employers who seek to meet and exceed the mandates of the MB (Amendment) Act and how employers can leverage the process to support business outcomes such as retention and productivity. It also presents insights on the employer-supported childcare business case and quality indicators for a workplace crèche, along with recommendations that may greatly enhance the employer response and overall implementation of crèche provisions. It is hoped that this information will be useful to the government, particularly at the state level, when enacting the guidelines that will govern the law. 18 CHAPTER 2 BENEFITS OF WORKPLACE CRÈCHE INVESTMENTS Many employers around the world acknowledge the business case for investing in a high-quality childcare program for employees. Mindtree has a goal of increasing Whether it is targeting specific workplace settings, such as a call center its gender diversity, particularly at environment, or responding to local competitive challenges, employer- management levels. This global supported childcare can be leveraged to address business needs. One IT consulting company is in a successful example is Mindtree, India’s global IT consultancy company highly competitive labor market. headquartered in Bengaluru, which has a comprehensive approach to be a “best-in-class” employer. Featured in IFC’s global Tackling To address challenges of retaining Childcare report (2017), Mindtree’s childcare center is contributing women in leadership roles, to a steady increase in the proportion of women among new Mindtree Mindtree has “tackled childcare” recruits in India, rising from 26 percent in 2013–14 to 31 percent in by: 2015–16. After deciding to make a concerted effort to address gender diversity, Mindtree created Little Critters, a full-service crèche onsite at • Providing access to childcare the Bengaluru worksite in 2009. It is highly valued by their employees. onsite or nearby that responds Supporting employees outside of Bengaluru required additional supports to the needs of working parents that leveraged the local resources in the communities. This included a tie-up in some locations, and programs onsite for backup childcare for • Negotiating “tie-up” access to employees. As a result, in 2016, almost one-third of the workforce was local childcare providers at a women (28 percent), many of whom have young children. Mindtree was subsidized fee also recognized as one of the top 10 firms for women in India in 2016. • Offering a Baby’s Day Out Another example is a global financial company that engaged Bright backup care program for Horizons to develop a strategy to respond to recruitment issues in call parents to bring their child centers. This strategy targeted five call center settings and resulted in to work, which provides workplace childcare centers to respond to the increase in demand for work space for parents, toys childcare, particularly for infants. A key differentiator of these childcare and materials for children, facilities was the emphasis on educational programming and a sliding equipment, and a helper to fee scale used to subsidize the cost of care for income-eligible employees support activities and their families. Call center employees typically have lower household incomes, which can make affording childcare challenging. The approach is outlined in table 2.1. The examples of Mindtree (IFC 2017) and Bright Horizon’s strategy for the global financial organization illustrate how companies can use the support of childcare provisions to address both business needs and employee childcare challenges. 19 Table 2.1 Case Study of Onsite Childcare Strategy Employer GLOBAL FINANCIAL TRANSACTION COMPANY • Operates in more than 100 countries • Serves hundreds of millions of customers worldwide Challenge • Developed call centers in areas in which space and labor costs are low • Workforce demographics: 64% female, 69% under age 45 • Difficult to attract employees because of childcare issues: availability, affordability, and quality, especially for infant care • Organization has a strong focus on education • Partnered with Bright Horizons to develop an onsite childcare strategy • Built onsite centers managed by Bright Horizons at five call center locations Strategy • Subsidized tuitions for employees on a sliding fee scale at 35% to 40% off market rates • Marketed the high quality of early education centers to potential applicants, especially hard-to- recruit millennial managers Outcome • Very positive return on investment quantified in the early years of the centers • Higher retention and performance, along with lower absenteeism for center users versus the overall population • Business continuity maintained during emergencies (critical staff and children accommodated 24/7) • Lower-income employees’ children were provided with strong tools to prepare them for future educational success Many global companies go beyond regulatory requirements and view workplace crèche provisions as an investment. Workplace crèches can be a key part of an organization’s talent management strategy. Understanding how a crèche can impact the business was an important part of this study’s investigation. The e-pulse survey was designed to collect information about business priorities to determine what the organizational challenges are at the worksite. The top five priorities identified by survey respondents were growth, diversity and inclusion, employee engagement, leadership development, and innovation (see figure 2.1). Figure 2.1 Survey Responses: “In the Next 12 Months, What Are Your Organization’s Greatest Business Priorities? Please Select the Top Three” Growth 37 Diveristy and inclusion 35 Employee engagement 33 Leadership development 31 Innovation 28 0 5 10 15 20 25 30 35 40 Percent Source: IFC/Bright Horizons data. Note: An IFC/Bright Horizons survey (2018) asked 255 Indian employers questions related to the MB (Amendment) Act. Number of responses to this question was 213. 20 BENEFITS TO BUSINESS Respondents to the IFC/Bright Horizons e-pulse survey recognize that the MB (Amendment) Act can have a positive impact on many aspects of business, specifically employee work-life balance, the ability for women to return to work, women’s advancement, employee retention, workplace culture, and employee engagement. These findings can be useful as human resource professionals seek to engage senior leaders in “connecting the dots” as to how implementing the MB (Amendment) Act can support key business drivers. See figure 2.2. What impact will the MB (Amendment) Act have on an employer’s business drivers? 79% of respondents agree that the MB (Amendment) Act will improve gender diversity 71% agree it will help promote employee productivity —e-Pulse Survey Data How has the MB (Amendment) Act influenced your workplace? “It makes for an inclusive culture that strongly benefits the overall culture of the organization.” —e-Pulse Survey C-Suite/Executive Respondent Figure 2.2 Survey Responses: “Positive Business Impact of the MB (Amendment) Act” Employee work/life balance 91 Ability for women to return to work 89 Women's advancement 86 Employee retention 85 Workplace culture 82 Employee engagement 81 Employee productivity 70 Talent acquisition 68 0 20 40 60 80 100 Percent Source: IFC/Bright Horizons data. Note: An IFC/Bright Horizons survey (2018) asked 255 Indian employers questions related to the MB (Amendment) Act. Number of responses to this question varied from 224 to 250. BENEFITS TO PARENTS While the MB (Amendment) Act has specific requirements for women, the crèche component is gender neutral. Parents at the worksite can benefit from the provision of a crèche. In fact, many companies have revised existing policies and benefits, such as paid leave, to include fathers. At Deutsche Bank, a new parental leave policy rolled out in 2017 in India refers to the “primary caregiver” as eligible for leave. Gender-neutral language allows fathers to take up to six months parental leave. Johnson & Johnson in India allows eight weeks paid leave to new fathers. These efforts are critical to building the support for working parents. An interesting 2018 study of 1,700 fathers was conducted by Flipkart, one of India’s major e-commerce companies. The study finds that a growing number of Indian fathers are “putting in as much work raising their kids as the moms are.” It documented the hopes and dreams of today’s fathers, 21 and how fatherhood changes the aspiration of men. Findings show fathers in Bengaluru contributed the most time for their children, and fathers in Hyderabad contributed the least. Eighty percent of fathers attend school activities regularly and half said they wouldn’t mind being a stay-at-home dad. “Affordable daycare is essential to empowering women.” —Arijit Nandi, IDRC/CRDI 2016 A father interviewed for the 2017 IFC Mindtree business case study4 said: “I was offered a salary from another company that was 30 percent higher, but declined the offer, as I wanted to stay at Mindtree, where I could visit my young son two or three times a day in the onsite crèche.” “Women can return to work after the six months break. We’ve had more women opting to return to work rather than taking a break in their career.” —e-Pulse Survey Respondent with Crèche in Place Data from 2013 research by Bright Horizons and a financial institution in India highlight how employees felt about becoming a working parent and about successfully maintaining career aspirations. In focus groups, employees commented on the absence of a high-quality care option for young children as one of the key reasons women elect not to return to work after the birth or adoption of a child. Researchers note that this phenomenon, women taking career breaks, has contributed to the gender pay gap disparity between men and women5. The economy suffers when women are unable to fully participate in paid labor. Developing strategies that will support parents to be successful at work is one of the top areas of focus by employers’ diversity and inclusion efforts, and childcare provisions are an important benefit to consider. According to a 2013 survey of 330 human resources professionals (Bright Horizons/NHRD 2016), more than half (59 percent) identified a workplace crèche as “very effective” in supporting the retention of women. Bright Horizons data (2017) from parents using a workplace center find the following impacts on working parents: • Eighty-four percent of female managers reported the childcare center has positively impacted their ability to pursue or accept a higher position • Ninety-four percent of all respondents (men and women) reported the center has positively impacted their ability to integrate their personal and professional demands • Seventy-nine percent of all respondents said access to an employer-sponsored center reduces the amount of stress they face in managing their work and personal responsibilities By eliminating stress and supporting work-life integration, the impact of a workplace crèche benefit can make a big difference in the retention of mothers and fathers as they raise a family. In addition, with the importance of career aspirations growing as steadily as India’s middle class, the option to have dual-earning households with children is further enabled with the investments toward childcare. 22 4 Niethammer 2018 5 See the Monster Salary Index 2016: Gender Pay Report (database), accessed 2017. https://media.monsterindia.com/logos/research_report/MSI_Gender_Ready_Reckoner_March_2017.pdf. BENEFITS TO CHILDREN Data on the importance of the early years for children are well documented. A Harvard University (2017) report highlights how early childhood experiences affect the quality of the architecture of the brain by establishing either a sturdy or a fragile foundation for all the learning, health, and behavior to follow. In the first few years of life, more than 1 million neural connections are formed every second. The type of care and education children receive in the first few years of life is critical for their future success as adults. Almost two-thirds of respondents to the IFC/Bright Horizons e-pulse survey (63 percent) agreed that the MB (Amendment) Act will help India better invest in children’s educational outcomes and therefore contribute to the country’s overall ability to thrive. “Children in India who entered preschool at an early age (below four years old) were more likely to have good cognitive achievement scores and subjective well-being than children who entered preschool at a later age.” —Singh and Mukherjee 2017 The benefits of early care and education to children are outlined in The India Early Childhood Education Impact Study, a five-year longitudinal look at India’s young children (ASER Centre 2017). The report establishes the link between school readiness and early care and education. Working parents are looking for opportunities that not only find care but also education for their children while they are at work. With commutes and long workdays, many parents view care at home in informal settings such as “house help” or with relatives as a viable option, but they are not always preferred primary care arrangements. 23 CHAPTER 3 EMPLOYER CRÈCHE MANDATE Forty-nine percent of e-pulse survey respondents currently offer a workplace crèche to employees (22 percent of all respondents had a crèche in place before the MB (Amendment) Act and 27 percent began offering a crèche since the passing of the MB (Amendment) Act. In fact, early compliance to the MB (Amendment) Act was one of the top motivations of many respondents (43 percent) for providing the crèche benefit. In the e-pulse survey, the respondents with a crèche in place were more likely to identify “diversity and inclusion” as a business priority as compared to respondents whose institutions had yet to offer employees access to a workplace crèche. It should also be noted that respondents with crèche provisions were more likely to be a part of a multinational company and to be at worksites with larger employee populations. In the Mumbai and Bengaluru roundtable sessions, attendees cited reasons why more employers have not begun offering a crèche, including concerns on “how to do this,” lack of high-quality supply locally, and confusion about expectations for compliance. E-pulse survey respondents with crèche provisions are more likely than those who do not have a crèche to: • Be a multinational corporation • Have a larger employee population at the worksite • Indicate “diversity and inclusion” as a business priority UTILIZATION Use of crèches fluctuates and can be influenced by such factors as size of the workforce, age of employees, cost to employees, and the care environment. One survey respondent’s crèche served the children of 300 employees; on average, however, programs served the children of 29 employees. Approximately three-quarters of the crèches represented in the survey are already accessible to the children of male employees and accommodate part-time schedules. Just under half of the programs are open to contractors or consultants to the employer sponsoring the crèche. Sixty-three percent of the crèches serve children under one year old. See table 3.1. 76% offer access to male employees Survey respondents 72% offer part-time schedules for care that have 46% offer access to contractors/consultants a crèche provision 63% serve children under a year old 24 Table 3.1 Roundtable Learnings: Utilization and Demand, 2018 CITY FINDINGS Mumbai • Participants asked a number of questions about the crèche mandate regarding access to contract workers, and to men, and the implications on demand. Bengaluru • A consulting firm asked what companies should do if there was no demand. Their employees may prefer to leave their children with family, based on social norms and the joint families (extended family members living together). The government representative answered by stating that “the law is the law” and needs to be adhered to. A company must make a provision and inform women upon appointment of such benefits that they can avail, regardless of whether the company expects any actual uptake of the crèche provision. WORKFORCE SIZE REQUIREMENT The crèche mandates are worksite-specific, and relevant to any location that has at least 50 employees. Therefore, employers with multiple worksites will have to consider the size of the employee population in each location. In the e-pulse survey, 38 percent of the respondents are at a worksite with less than 250 employees, and 12 percent work at a location with an employee population of 5,000 or more. The number of employees at a worksite is a well-known approach the Government of India has used to define when a law is relevant for a workplace crèche requirement. The minimum worksite population is listed here for significant acts: • Factories Act (1948): 30 women • Plantation Labour Act (1951): 20 women • Maternity Benefits Act (1961): 50 employees • Construction Workers Act (1996): 50 employees • MB (Amendment) Act (2017): 50 employees During a discussion at the Delhi roundtable, a participant shared the concern that the MB (Amendment) Act could discourage firms from hiring women or set the bar much higher for potential female candidates. In response, a different participant shared that their organization provided sensitization training to their managers to avoid such issues. The survey identifies a potential pitfall of the MB (Amendment) Act. Respondents were asked if they felt the mandate that work locations with 50 or more employees are required to provide a workplace crèche would impact organizational growth, or at least physical placement of employees (i.e., more small worksites instead of one large worksite). Respondents were divided on their response as to whether they anticipate that organizations will limit the size of their worksites to fewer than 50 employees as a result of the MB (Amendment) Act. See figure 3.1. Two- thirds of survey respondents do not think it will limit worksite size, while one-third said that it might or will limit worksite size. In roundtable discussions, participants noted concerns about the Act’s potential negative impact on hiring women. Advocates, diversity and inclusion representatives, and government should monitor the impact and consequences of the Act and share findings. 25 Figure 3.1: Survey Responses: “Do You The size of the workforce at each site and future Anticipate that Organizations Will Limit projections of growth are important metrics. While the Size of Individual Worksites to under 50 there are no hard and fast rules predicting demand Employees as a Result of because of the variables in each worksite, it is important the Act?” to consider future needs. Supporting an operationally cost-effective, employer-sponsored crèche demand from a larger worksite is likely preferable. For smaller worksites, meeting the requirements of the mandate with 6% a tie-up (an arrangement with an existing crèche in the community) may be more feasible. 27% Yes The gender makeup of the workforce is important Possibly because the presence of a high percentage of female 67% No employees is likely to drive up potential demand for childcare support. Women may be more likely to be the primary user of a workplace crèche provision. The age of the workforce impacts demand. Employees in their 20s and early 30s are at the typical life stage for marriage and starting families. When education and Source: IFC/Bright Horizons data. career aspirations are taken into account, average age Note: An IFC/Bright Horizons survey (2018) asked 255 Indian increases. According to the World Economic Forum employers questions related to the MB (Amendment) Act. (2017), the mean age for women giving birth to a first Number of respondents to this question was 218. child in India is 27 years and the average number of children per woman is 2.33. ELEMENTS OF EMPLOYEE DEMAND The workplace crèche mandate raises questions by Employee commutes will impact use of a crèche. employers about how to proceed. For example, what Transportation was a focus during the roundtable is the demand for childcare services from employees? discussions. In the survey, 76 percent of respondents In the e-pulse survey, 6 percent of respondents whose noted that “most commutes” for employees were one institutions had a crèche in place before the MB hour or more to get to work. Top modes of commutes (Amendment) Act reported no employee utilization included the following: private vehicle, two-wheeler, taxi, of the crèche, compared to 35 percent of respondents and company-provided. whose institutions developed crèches after the Act was mandated. Employees’ work hours will also impact demand. The crèche solution should fit employees’ schedules. Working nights and weekends may represent a lower demand Across the world, the average age at which for care because of family logistics. However, in some mothers give birth to their first child varies from industries, care during nontraditional hours such as 18 to slightly above 30. nights and weekends may represent the biggest need, —Chartmix 2016 because often childcare providers do not operate during those hours. Since the mandate is site-specific, employers may have The number of employees that might use a workplace some locations with 100 employees and others with more crèche provision will vary over time. The typical than 1,000 employees. As employers begin to consider window of need will be for families with children under the demand for childcare, there are several elements that six years old. Afterward, a child may transition to an will be useful to understand. The evaluation for each educational institution linked to the primary education in worksite should be explored separately. anticipation of primary school. 26 One employer that has provided access to a crèche facility to its employees for a number of years has benefited greatly from this investment. Through developing an employer-supported crèche in Bengaluru, Goldman Sachs has shared the firm’s learnings and suggested best practices for employers as they strive to meet the MB (Amendment) Act mandate for a crèche. (See box 3.1.) Box 3.1 Goldman Sachs’ Best Practices for Designing and Running a Crèche Facility Companies would need to make many decisions ranging from quality of care and security of the facility to provision of backup or emergency care while designing policies. Cost versus return on investment (especially in case of an onsite center) should be considered. Here are a few key considerations that companies may find useful: • A childcare strategy works best when it is a part of a holistic program benefiting the work-life balance of both mothers and fathers. • Companies may want to explore onsite childcare options as well as partnering with existing centers in proximity to the workplace and compare the pros and cons of both arrangements before finalizing on one. • Companies may want to internally assess the organization’s target or goal and ensure that the childcare center is aligned. Understanding what the employees want will assure successful implementation of the organizational childcare framework. • Organizations may want to consider factors such as risk, security, accessibility, and working hours that they would like to focus on and determine those thresholds. • A holistic curriculum is needed to enhance children’s developmental goals. Training and qualifications of professionals are key to ensure quality of care. • An onsite center may give companies flexibility to customize offerings, such as extension of hours and provision of emergency care. 27 CHAPTER 4 EMPLOYER-SUPPORTED CHILDCARE SOLUTIONS Successful organizations need to have full engagement having flexible work hours is critical. There is a of the workforce. The IFC/Bright Horizons e-pulse higher focus by women than men on the need for survey queried organizations on the work-life benefits childcare supports. they are currently offering, providing insights into how • When comparing Bright Horizons/NHRD study employers are supporting their employees’ work-life respondents with and without children, flexible work needs today. Bright Horizons/NHRD (2016) published is in the top two desired supports. Respondents results of a 2013 study to better understand the barriers without young children state having a workplace professionals face in engaging in the workplace and childcare crèche for children and emergency backup managing career aspirations in India’s business climate. care for children in their top six desired supports. The report also explores strategies for organizations This may indicate that they anticipate needing these to consider that can allow work-life integration to be supports in the future, or they realize the value of more successful for parents, particularly those who these supports in assisting their co-workers, which have or plan to have family care responsibilities such as ultimately makes their work-life balance better as well. childcare or caring for an older family member. The Bright Horizons/NHRD (2016) report on human FLEXWORK resource professionals finds that career aspirations are Almost three-quarters of IFC/Bright Horizons e-pulse similar between men and women. However, women survey organizations (73 percent) currently offer were more likely to say they do not feel they can flexible work hours, and most offer some form of advance in their career. There are a number of effective telecommuting (60 percent) and home connectivity programmatic strategies to help reduce the challenge (56 percent). This relatively high percentage suggests for employees in general—and women in particular— that the work-from-home option outlined in the MB to manage their careers and their responsibilities (Amendment) Act may be easy to meet for many outside of work successfully. employers. At the Mumbai roundtable session, an employer suggested the idea of allowing women to As employees progress through the life stages and stagger the 26 weeks of maternity leave should they reach key milestones—including finishing one’s so choose. This level of flexibility can be valuable for education, marriage, becoming a parent, home those women who may want to transition back to ownership, or caring for relatives—they can face work, slowly reconnecting to their careers while also disruptions in the workplace. Today’s organizations having time with their new child. will benefit from anticipating these somewhat universal milestones and considering strategies to MANAGER TRAINING impact how well employees progress and continue to The “employee and manager training on how meet the needs of the organization. Bright Horizons/ to balance work-life issues” benefit was “in NHRD (2016) highlights these key benefits to development” for approximately one-quarter of employees by parental status and gender: responding companies (27 percent), with close to • Flexibility around the hours worked is typically half (44 percent) already offering it. Employers that a top three priority for all employees, with or prioritize training on work-life balance, particularly without young children. And while flexibility for managers, can further leverage this benefit to help can be positioned as important to women, the the organization integrate the new provisions of the data indicate that men and women find that MB (Amendment) Act and enlist managers who need to be involved in employee access of the Act’s benefits. 28 FAMILY CARE BENEFITS Responding employers offered benefits that addressed the needs of working parents: • Seven out of 10 organizations currently offer paid paternity leave • Fifty-five percent offer maternity return-to-work supports • More than one-third (37 percent) offer adoption assistance • Almost one-third (29 percent) provide dedicated time off to care for sick children Return-to-work programs are deliberate supports and strategies designed to address the period before, during, and after a woman is on maternity leave. Supports can include preleave seminars, buddy programs that match new moms with “veteran” moms who have returned to work, lactation support, access to online resources while on leave, and orientation to reenter the workplace. Workplace crèche programs can be leveraged with a return-to-work benefit. Together, these programs can make it possible for mothers to return to work more successfully and feel less alienated after 26 weeks of leave. Manager training also aids the integration of the working experience for new parents. Understanding company benefits and practices, considering adapting work requirements, and communicating a culture of workplace respect for new parents can make a big difference in how employees experience this important life stage. Responses to the e-pulse survey indicate that most organizations are not providing emergency backup care solutions for their employees and will probably not in the future. While the benefits of backup care are well-documented in other countries, such childcare solutions have not yet emerged as a priority in India. “We have been able to hire a lot of women from disadvantaged backgrounds, reskill them, and provide a dignified model of employment. This has brought a lot of inclusiveness in terms of hiring and greater empathy and a better understanding of all backgrounds.” —e-Pulse Survey Respondent DIVERSITY AND INCLUSION Some employers sent their diversity and inclusion managers to participate in the IFC/Bright Horizons facilitated roundtable sessions. Leveraging the MB (Amendment) Act and existing workplace efforts to support diversity and inclusion efforts within the organization were widely discussed. Removing barriers for inclusion could include the provision of childcare and programs that can engage women after career disruptions associated with maternity leaves. According to Catalyst (2011), a global nonprofit that works with CEOs and conducts research on diversity and women’s advancement, “understanding this connection between business goals and diversity goals is the first step leadership takes when choosing to advance women or other underrepresented groups into leadership positions.” The e-pulse survey asked employers about their organizations’ current and future diversity and inclusion efforts. See figure 4.1. 29 Figure 4.1 Survey Responses: “Please Identify which Policies, Programs, or Supports Your Organization Currently Offers, or Plans to Offer, in the Next 12 Months” A performance appraisal system taking into Currently offer consideration that the female employee was on 62 15 maternity leave for 6 months Don't offer, but plan to in the next 12 months Recruitment and promotion panels focused on making gender-balanced personnel decisions 56 15 Diversity councils 44 20 Women's affinity groups 43 19 0 20 40 60 80 100 Percent Source: IFC/Bright Horizons data. Note: An IFC/Bright Horizons survey (2018) asked 255 Indian employers questions related to the MB (Amendment) Act. Number of responses to this question varied from 214 to 220. CORPORATE SOCIAL RESPONSIBILITY (CSR) Indian law requires companies meeting specified financial thresholds to contribute 2 percent of average net profits toward corporate social responsibility (CSR) activities. Seventy-nine percent of e-pulse survey respondent organizations have a CSR program. Community-based childcare solutions in rural India are still at a nascent stage. Because providing childcare support could help parents, especially mothers, enter and—more importantly—stay in the labor force, community-based childcare models could be a viable CSR initiative. A few models at the anganwadi (block level) and balwadi (community level), run by local nongovernmental organizations (NGOs) and funded by large corporate CSR programs, could be further expanded. The increased awareness of the benefits of providing childcare and demand for crèche provisions and impact to the childcare industry may be an opportunity for companies to support childcare provision in ways that promote quality and availability of care in the affordable segment. The e-pulse survey asked, “Would affordable childcare fit as an initiative in your company’s CSR efforts?” Over one-quarter of the respondents said yes, and 36 percent said they didn’t know. While 37 percent did not feel childcare would fit as a CSR initiative, the recommendations outlined in this report highlight the need to strengthen the childcare delivery ecosystem across all segments of India to respond to the increased demand for employer-supported crèche facilities. “(Childcare) fits as part of our (CSR) HR efforts.” —e-Pulse Survey Respondent, Senior Director CSR funds could be used to support and strengthen the childcare infrastructure at the community level in India, spreading impact beyond the large cities. Strengthening the national childcare system could have a positive influence on early education and development of children in India. India has an ambitious CSR approach. In 2013, it enacted sect. 135 of the Indian Companies Act prescribing that companies spend “2 percent of average net profits … during the three immediately preceding financial years” on CSR which is applicable to all companies meeting specified financial thresholds. 30 CRÈCHE PROVISIONS AT THE WORKPLACE “If people now need to comply with the (crèche) mandate, we need to talk with neighboring WORKING DEFINITIONS companies to do something. It’s not really about The working definitions for the arrangements made differentiation. It is an opportunity for companies by survey respondents that currently provide childcare support for employees are provided here. These models to collaborate.” deliver childcare support to working parents. —Mumbai Roundtable Participant An onsite crèche at the workplace is often highly valued by working parents, particularly if they are nursing mothers. Workplace supports, such as a crèche facility or other Worksites with employee populations of more than 750 benefits that enable working parents to access childcare, employees might consider an onsite crèche option (or near can be part of the company culture. Employers have site) that meets the current and future demand for care. invested in a childcare solution in many ways, with a focus on meeting employee needs and supporting the A tie-up is a negotiated arrangement by an employer on business. The e-pulse survey gave insights into how behalf of its employees with a locally operated childcare employers have provided childcare. The approaches crèche. The employer arranges access (buys space, differ and are generally predicated on such influencers negotiates priority access, pays tuition, and so on) to a as employee demographics, population, local available childcare provider near the worksite. This contractual resources, available space, and financial resources. agreement can include negotiated elements to support the needs of employees, such as extended hours and reduced Employers can structure a workplace crèche investment fees. This model can provide flexibility for employers for their workforce using different approaches. It can to meet the changing demand for care, assuming that be a highly customizable benefit and include a variety the crèche will have space. Worksites with less than 500 of services. This employer investment is influenced employees may benefit, particularly if a high-quality by the type of relationship and level of accountability option exists close to the worksite. agreed upon with the provider or vendor operating the program. While some employers self-operate the crèche and internally manage its operations, outsourcing the Twenty-six percent of e-pulse survey management of a workplace crèche is more typical. respondents said it was challenging to find a crèche that matches the hours of the workforce. A workplace crèche that limits enrollment to serve only employees of the sponsoring organization can provide a customizable and controllable model. While A workplace consortium allows multiple employers to the investment level of a childcare tie-up is likely to be collaborate and share a crèche provision typically on substantially less, this approach offers the lowest level or near the worksite. This model is often successful in a of control and accountability among options. Use of business park, campus, or office building with multiple either a tie-up or a workplace crèche is an indicator employer tenants. While it can be time-intensive to of success. However, understanding which types of arrange because of the facilitation between employers, employees are using the program and which are not, but the consortium model shares the financial investment might benefit if they did, are also important metrics to to develop the crèche, ongoing expenses for the track. For organizations that had a crèche before the MB management and operations of the crèche, and access (Amendment) Act, the most common model is an onsite for employees to the spaces in the program. This model crèche operated by their organization. Conversely, for is worth considering in areas with limited availability of those organizations that began offering a crèche since existing childcare provisions near the workplace, high enactment of the Act, the preferred option is to offer real estate costs for first-floor space, and limited first- access to a tie-up. See figure 4.2. floor space. This shared services approach can ultimately be cost-effective. 31 Figure 4.2 Survey Responses: “Type of Crèche Provision by When Crèche Was Made Available” In place BEFORE the MB (Amendment) Act Tie-Up 25 75 In place AFTER the MB (Amendment) Act Workplace Crèche 73 27 0 20 40 60 80 100 Percent Source: IFC/Bright Horizons data. Note: An IFC/Bright Horizons survey (2018) asked 255 Indian employers questions related to the MB (Amendment) Act. Number of responses to this question was 63 for a tie-up and 37 for a workplace crèche. A tie-up is employee childcare arranged at an existing crèche in the community that is negotiated by the employer. E-pulse survey respondents who reported having a worksite crèche were asked to select the model they use for employees at their worksite. Among all survey respondents with a crèche, a shared crèche arrangement with other employers is the most common model (58 percent). See figure 4.3. The e-pulse survey respondents with a crèche in place reported that the top drivers for establishing it were employee retention (54 percent), a diversity and inclusion initiative (51 percent), and addressing employee needs (48 percent). Figure 4.3 Survey Responses: “How Is Your Worksite Crèche Delivered?” Partnership with other employers 58 in a shared crèche arrangement Onsite crèche operated by 19 an external crèche company Onsite crèche operated by 15 your organization Near-site partnership with 5 established crèche company Other 4 0 10 20 30 40 50 60 70 Percent Source: IFC/Bright Horizons data. Note: An IFC/Bright Horizons survey (2018) asked 255 Indian employers questions related to the MB (Amendment) Act. Number of responses to this question was 109. 32 CHALLENGES IMPLEMENTING A CRÈCHE High-quality early education programs are designed and Exploring how organizations can respond to the crèche delivered in an age-appropriate way to meet the needs of component of the MB (Amendment) Act is going to be essential for employers with 50 or more employees young children in group settings. Key areas of focus: (male or female). The survey queried respondents about • Health and safety • Child-adult ratio any challenges they experienced with implementing the Act, focusing on a crèche in particular. According to • Staff training and • Classroom group size development the survey data, 46 percent of respondents viewed the • Indoor activity space crèche component of the Act as “moderately challenging/ • Curriculum very challenging” to meet. Employers were asked to identify from a list of resources what would help their organization meet the crèche mandates. The top three At Bengaluru roundtable, employers were looking for resources selected were: technical assistance on “what needs to be included in a • Guidance on the characteristics of high-quality care childcare facility,” vendor selection information, and the (49 percent) importance of quality and employer brand when it comes • Information on how compliance will be measured or to crèche benefits for employees. monitored (46 percent) • Guidelines on setting up a crèche (43 percent) Crèche Challenge At the Bengaluru roundtable, a leading information technology (IT) company shared that all its employees at 35% report employee perceptions of its five sites want the provision of an onsite crèche, but crèche quality its C-Suite is concerned with the liability issue and the —e-Pulse Survey Respondents possible reputational issue if something goes wrong. This is a common internal debate across many companies. Guidance through examples or help designing their LOCATION crèche offering was viewed as being valuable. Other During the roundtable discussions, participants were implementation challenges were also an employer focus looking for clarity about location expectations for the of the roundtable discussions. crèche provision. See table 4.1. Just over one-third of the QUALITY e-pulse survey respondents that offered a crèche option (39 percent) noted that the program was located more Participants in the roundtable discussions asked questions than 500 meters from the worksite. See figure 4.4. As about how the crèche component of the mandate would state governments outline guidelines for implementing be evaluated. Employers requested support identifying the crèche mandate, awareness of how employers are quality, childcare vendor selection, and implications currently offering crèche benefits can be useful. For on liability. Over one-third of employers responding example, childcare providers to contract with for a tie-up to the e-pulse survey identified “finding an existing are not always located near worksites. While 64 percent crèche that meets quality standards” (38 percent) and of e-pulse survey respondents reported that privately run “the employees’ perception of quality” (35 percent) as crèches currently exist near their worksite, just under challenges while exploring or planning workplace crèche one-third reported an existing crèche within 500 meters provisions. Understanding how to assess quality, how of their worksite. See figure 4.5. childcare support is delivered, and how to assess disparities in different locations were mentioned as particularly challenging for employers with multiple locations. 33 Figure 4.4 Survey Responses: “How Far is the Crèche from Your Worksite?” 3 km or more 9% 1–2 km 16% On worksite 34% More than 500 m but less than 1 km 14% 500 m or less 27% Source: IFC/Bright Horizons data. Note: An IFC/Bright Horizons survey (2018) asked 255 Indian employers questions related to the MB (Amendment) Act. Number of responses to this question was 106. “It is simply not feasible for SMEs having more than 50 employees [to implement a crèche] due to the insufficient number of crèches in every nook and corner of the country.” —e-Pulse Survey Respondent, C-Suite Figure 4.5 Survey Results: “How Far Away Are the Existing Crèches from Your Worksite? (Click All that Apply)” 500 m or less 32 More than 500 m but less than 1 km 36 1–2 km 45 3–4 km 21 More than 4 km 9 0 10 20 30 40 50 Percent Source: IFC/Bright Horizons data. Note: An IFC/Bright Horizons survey (2018) asked 255 Indian employers questions related to the MB (Amendment) Act. Number of responses to this question was 47. 34 Table 4.1 Roundtable Learnings: Challenges with Location and Space, 2018 CITY FINDINGS Mumbai • Given the general commuting practices in a city such as Mumbai, there was discussion that a crèche provision near homes would be preferable. Many employees take a local train to work or have an hour-long commute by car or bus and would not want to bring their child on such commutes. • One childcare provider shared results of a local survey that revealed that most respondents want their children near them (near the office) until they were of an age where they could communicate. • Another childcare provider noted that many families prefer childcare closer to work for very young children (up to two years old). • Roundtable participants wondered how the MB (Amendment) Act would impact those employees “working from home.” • It was suggested that builders may be able to differentiate themselves by providing space for crèches in their new construction projects. A recommendation was to mandate large builders to innovate space for crèches in new constructions, in the same way that bathrooms and refuge areas are mandatory. Space and cost of real estate is an issue for childcare provision, so this could potentially pave the way for future developments. • Participants voiced interest in collaboration to develop crèche solutions. “Lots of organizations are moving to a campus location.” “If we now need to comply with the crèche mandate, we need to talk with neighboring companies to do something.” • One suggestion was for a “real estate task force” to make recommendations to the government for real estate on how co-located employers can offer a crèche provision onsite or near site at a business park. Bengaluru • A leading childcare provider has considered many areas near prospective corporate clients and noted that some neighborhoods are not safe. The representative asked whether the guidelines will most likely stipulate that the crèche must be near the employer, to allow for nursing visits per the Act, and if any exceptions could be made based on safety. TRANSPORTATION A workplace crèche assumes that employees will travel to work with their child. Getting to work, long commutes, and the challenges of transportation need to be explored. One employer at the Delhi roundtable noted the lack of transportation to the worksite and challenges associated with traffic that have negatively impacted the use of a near- site crèche option for their employees. In addition, employers in areas with few available childcare options are likely to have difficulty meeting the mandate if they must rely on developing their own onsite solution. The cost of space in some key cities can make a workplace childcare program an expensive proposition. “How will a parent come with their six-month-old child in a public bus or a two-wheeler in all the traffic and pollution?” —e-Pulse Survey Respondent 35 Crèche Challenge 35% report employees not wanting to commute to the worksite with their child 34% report complications regarding transportation for employees with children —e-Pulse Survey Respondents Liability questions around including very young children as part of employer-supported transportation were discussed. See table 4.2. In general, employers were not interested in including young children in their employer transportation system. This raises questions about how employees will get to work and whether they will want to bring their young children with them. Table 4.2 Roundtable Learnings: Challenges with Transportation, 2018 CITY FINDINGS Mumbai • Insights and questions about transportation with regard to risk and liability were discussed based on Mumbai traffic, trains, and general congestion, and traveling with a very young child. Delhi • A leading multinational company shared that transport to its office was an issue. It had provided a high-quality crèche onsite, but there was low usage and uptake due to the difficulty of bringing children to the site. The crèche is not on the school bus routes, so the employer is rethinking the crèche location and looking into the possibility of providing transport for children. • One company raised concern about voluntary transport provisions (with children) at night. • Lawyers acknowledged that transportation of children would be a complex issue to consider. If buses are currently used to transport employees, would they have enough seats to also accommodate children? Are there seatbelts or car seats? How would parents manage to keep children on their laps for the journey, as is often the norm in India, and so forth? Some suggested liability issues to transport children would have to be clearly communicated and managed with parents. • Lawyers suggested that employers would need to be careful about the liability issue around transport and have parents sign acceptance forms. COMPLIANCE AND LIABILITY The crèche provision under the MB (Amendment) Act has been in effect since July 1, 2017. Employers at the roundtables asked many questions of the labor and employment ministry representatives about guidelines and compliance with the Act. The interest in employers getting clarity on what was expected of them was a central theme in many of the roundtable discussions. See table 4.3. 36 Table 4.3 Roundtable Learnings: Challenges with Compliance and Liability, 2018 CITY FINDINGS • There were suggestions that the rules governing the implementation of the MB (Amendment) Act should be informed by “best practices” from the industry. UNICEF has supported the development Mumbai of detailed guidelines that can help inform the process.a • There was a discussion on compliance and noncompliance of the Act, with participants wanting additional clarity on what to expect (including penalties). • This group of mostly Mumbai-based employers felt it was important to understand what was required and how it would be implemented. • Participants explored how flexibility could be supported by the Act. There was interest in the option of staggering the 26-week maternity leave as opposed to all at once. Delhi • Ministry representatives shared that the central government had written to state governments with a model law, but acknowledged that progress had been slow. Following the roundtables, the Minister of Labour & Employment issued a follow-up advisory to all states, requesting the states to expedite the action to finalize the crèche rules by the state governments because the crèche provision in the Act has been in effect since July 1, 2017. Most state governments have not yet framed and notified rules for the crèche facilities. • Discussions acknowledged that “there is a lack of adequacy norms” that would help outline what should be required. Both risks and liability were raised as areas of concern. • A leading childcare provider shared that many companies ask if their premises are safe. Employers need to comply with the mandate, but beyond the liability issue, employers are concerned about safety and standards and do not have knowledge of norms. • A large multinational corporation with office locations across India raised the difficulty of following different guidelines in different states, and still being able to provide equal, universal, and fair maternity benefits to its employees. The representative was concerned, for example, that one state may have a provision that stipulates the crèche must be near the office, whereas another state may allow it near a home, and how would employees react? Would they see it as unfair? Participants expressed that it would be difficult for employers to roll out and manage different policies under their centralized human resource group. • Participants suggested that the government consider grace periods, given that the childcare quality provision matters. • Participants highlighted the importance of nursing breaks for breastfeeding mothers with potential positive impacts on productivity. Bengaluru • “How do we respond if we have worksites in more than one place?” Interest in a “hybrid model that allows care in other locations,” employer liability, and crèche quality were key areas of focus. • The State Labour Commissioner shared how enforcement in his state is likely to be rolled out. He outlined that the penalties for noncompliance could be a fine (in the range of INR 50,000–2 lakhs), court-ordered community service, and the possibility of imprisonment up to six months. a. India Times 2017 37 FINANCIAL CONSIDERATIONS FOR A CRÈCHE Any new investment that supports employees and their Box 4.1 Crèche Funding and User Fees ability to successfully integrate work demands and family When employers invest in supporting workplace crèche care concerns is an investment in society. According to the provisions, determining how much of the user fee to charge World Bank (2017), an assessment of legal and regulatory economies that shape private childcare services in 50 employees to use the program can be a part of the strategy. economies shows how countries fund childcare provisions: The following are three models employers can consider: 60 percent of economies provide childcare benefits to parents; 54 percent, to private childcare providers; and 34 • Scholarships. Setting aside a certain amount of percent, to employers (World Bank 2017). money that will be accessed to cover all or part of the tuition for a certain number of “income eligible” According to World Bank Group Women Business and employees. Law (WBL) research, economies with policies to help make childcare more affordable can enable parents to • Sliding scale. Charging tuitions differently to work6. Financial support can come through personal employees based on their employment status, income tax deductions for childcare fees (done in 33 of household income, job function, or other characteristic. the 189 economies covered) or through directly providing This means some employees pay more, while others childcare services or subsidizing private childcare services pay a lower rate. (done in more than two-thirds of the economies covered). • Multichild discount. Charging the second (or third) Higher enrollment of children in preprimary education child a lower tuition to help families afford care. can be found in economies that provide deductions for childcare fees when compared to economies that do not. The cost of care is an ongoing employer responsibility. Cost-effective strategies should strengthen the ability Understanding the financial responsibility of the crèche component of the MB (Amendment) Act was a topic of the program to deliver quality care, minimize parent discussed at the roundtables by childcare providers contributions related to their ability to pay, and create cost- and employers. See table 4.4. The childcare industry effective use. in India continues to evolve and with it comes a better understanding of the financials. Generally, private childcare programs around the world typically have Crèche provisions have ongoing operating expenses. relied on one funding source: parent fees (also referred to Understanding these expenses and their relationship as user fees or tuitions). Employer-supported provisions to quality, safety, and business outcomes can be vital offer an important financial input into the industry and to employer leadership commitment. High-quality can help shape its evolution. Considering the financial care is influenced by such including access to trained process and how it relates to quality, safety, and employer and experienced caregivers, age-appropriate space and impact is one of several areas of interest and concern by equipment, and a lower child-to-adult ratio. Helping employers. employers identify and arrange for quality provisions can be important to the children and families being served as Forty percent of the e-pulse survey respondents that offer well as to the employer and the employer’s positioning in crèche provisions to their employees reported paying 100 the business marketplace. percent of the user fees. Paying some or all of the user fees for employees can help working parents significantly Around the world, most crèche provisions in the private with the ability to access childcare while also ensuring sector offset their operating expenses by charging parents that the childcare provider is receiving the necessary user a user fee or tuition. This is often the only source of fees to operate a quality program. See box 4.1. revenue for the program. If this tuition is in any way compromised, such as employer-negotiated discounts for employees, there is often an impact on the quality of the program. Less revenue reduces the amount a crèche can 38 6 See the World Bank database WBL, https://wbl.worldbank.org, accessed 2018. pay teachers in salaries or the number of teachers the crèche can employ. The number of children per adult and the substance of the adult-to-child interactions are key components of a high-quality childcare program. Liability and risk management are critical to managing the fiscal process for childcare. Without adequate funding, programs can operate in a less-than-optimal way that may influence safety, education, and overall child outcomes. Operating a high-quality program can be a useful way to mitigate liability exposure. In addition, many employers desire high-quality programs because a workplace crèche facility can be viewed as an extension of the employer brand: a visible expression of the commitment to employees and their families. “…there is need for children to be provided with developmentally appropriate early learning opportunities at preschool and early primary stage in continuum, which in turn, helps to promote their school readiness and ensure a smooth and seamless transition into formal learning.” —National Council of Education Research and Training 2018 Onsite or near site crèche development (brick-and-mortar solutions) require a substantial investment in infrastructure, and it can be challenging to find space. However, it can be worth the investment as respondents to the IFC/Bright Horizons e-pulse survey indicated higher levels of use in an onsite solution as compared to offering a tie-up care option to employees. Respondents to the e-pulse survey noted the following financial challenges related to the crèche provision (see figure 4.7). In addition, 30 percent of respondents expressed interest in resources providing guidance on how to finance a crèche, and 32 percent are interested in government subsidies to use toward crèche costs. Figure 4.7 Survey Responses: Financial Challenges for Employers Paying crèche operating 36 expenses is a challenge Paying for crèche 36 infrastructure is a challenge Paying crèche user 31 fees is a challenge 28 30 32 34 36 38 Percent Source: IFC/Bright Horizons data. Note: An IFC/Bright Horizons survey (2018) asked 255 Indian employers questions related to the MB (Amendment) Act. Number of responses to this question was 134. 39 Table 4.4 Roundtable Learnings: Financial Considerations, 2018 CITY FINDINGS Mumbai • Many participants asked questions about the financial implications of the crèche mandate and sought clarity on whether employees can have a co-pay model for care provision. • A leading bank representative suggested a shared model with other companies is preferable to an onsite crèche accessible only to one employer in terms of promoting high-quality childcare and managing costs. • Transportation is an issue that companies would have to pay for, on top of crèche provision. Delhi • Discussions took place about crèche use and challenges with transportation, financial requirements, and user fees. • There were many questions around what the employer had to pay for in terms of the crèche provision. The government representative stated that employers had to cover the cost of the crèche facility—the brick-and-mortar part of the crèche—but went on to clarify that additional tuition can be paid for by the users or employees. • The government representative stated that at present, the maternity benefit use is an employer liability, but for those employers concerned about covering costs, he outlined the proposed Maternity Benefit Fund in the new Labour Code on Social Security, which is intended to shift financial liability of maternity benefits away from the employer. • The government representative shared that under the draft code proposed in the Social Security Act, the MB (Amendment) Act would be universalized and be applicable to self-employed women. The government would cover the cost for the informal sector, including marginal farmers and landless laborers. Bengaluru • Participants discussed models for user fees. One example was an employee co-pay model for employees who can afford to pay for access to the crèche. • There were many questions about financing, quality monitoring, and liability. Participants expressed an interest in supporting the workforce, but were mindful of the liability and financial implications. 40 CHAPTER 5 RECOMMENDATIONS Insights from this research point to several ways employers can implement key elements of the MB (Amendment) Act, in particular the workplace crèche mandate. Here are recommendations and areas that employers, government, state and local decisions makers, and investors might explore in order for the legislation to maximize outcomes for both employers and employees and, in turn, Indian society. RECOMMENDATIONS FOR EMPLOYERS The e-pulse survey asked employers what resources would be most helpful in order for them to meet the MB (Amendment) Act crèche provision. The top responses are shown in the chart below and were also mentioned during the roundtable discussions. Potential solutions addressing these concerns might come from the state and local government through the implementation of the guidelines and are noted in the government recommendations section. See figure 5.1. Figure 5.1 Survey Responses: “Most Helpful Resource for Employers to Meet Crèche Provision” 49% Guidance on "high-quality" care Information on how compliance will 46% be measured/monitored 43% Government guidelines 33% Information on liability Source: IFC/Bright Horizons data. Note: An IFC/Bright Horizons survey (2018) asked 255 Indian employers questions related to the MB (Amendment) Act. Number of responses to this question was 233. To maximize the impact of the Act on employers and their employees, it is recommended that employers begin by determining the best approach to a crèche for their organization and focus on comprehensive return-to-work benefits that are integrated with the workplace culture. See figure 5.2. 41 Figure 5.2 Employer Focus Determine best Create comprehensive crèche approach return-to-work benefits CONSIDER WORKSITE CRÈCHE APPROACH Figure 5.3 provides a recommended process for employers to determine the best approach for their organizations to address the crèche component of the mandate. Those employers with multiple locations will need to assess each location to decide on the best approach. Employers may use different options for different locations. Figure 5.3 Crèche Component of the Maternity Benefit (Amendment) Act Mandate Determine Clarify business Identify employee community goals demand supply Decide on best approach for each worksite On-site crèche Consortium Tie-up Negotiate: Number of spaces Identify local Hours potential partners Quality standards Cost Determine tuition split between employer Negotiate with and employees Space partners on: Operator Communicate benefit to employees 42 Managing a crèche investment requires a level of • Affordability understanding about the service, the needs of employees, • Interest in specific care options and what exists in the community. Organizations with multiple worksites have to consider each location • Future demand for childcare services separately. The crèche can be an important part of an • Profile of the potential crèche users organization’s talent management strategy. Employer decisions about what option to develop and how to Determine community supply. A childcare market proceed should be informed by an analysis of business analysis will help employers understand what is priorities, employee needs, and community childcare available in formal childcare settings to employees in supply. the community. It is important to gather concrete and more subjective information. Concrete information can Clarify business goals. To integrate a crèche into be gathered through phone calls or internet research the fabric of an organization, the business needs of regarding the location of the existing programs, the organization need to be determined so a crèche hours of operation, ages served, adult-to-child ratios, response can be customized to address the organization’s group sizes, and tuition rates. The more subjective business objectives. The ideal way to identify these information will most likely require visits to the local needs and priorities is to interview the decision makers programs to understand the curriculum and adult-to- within the organization. This can be done internally child interactions that are occurring, the policies around or by a consultant who has an understanding of talent parent involvement and health and safety standards, and management strategies and the intersection with the program’s approach to working with employers. potential benefits of a worksite crèche. Decide on the best approach. After gathering data, Assess employee demand. An assessment of the current employers need to decide on the best approach to address and future needs for childcare can be done in-house or their workforce’s needs and preferences, business goals, with a consultant. On the e-pulse survey, 29 percent of and ability to maximize community resources. For respondents reported that best practices for assessing example, an onsite crèche is most likely the preferred employee demand was a desired resource. The goal is to option for larger employers that have a strong business project demand for and use of a crèche solution, keeping need to attract and retain parents and increase female in mind the MB (Amendment) Act mandate for a crèche representation in leadership positions. It also may be the is worksite-specific. The process can include analysis only option for employers in areas without community of both quantitative and qualitative data, including crèches for tie-ups. an analysis of workforce demographics, residential locations, commute distances and patterns, survey Measure the impact. After the decision is made about data regarding current and future childcare needs and a crèche provision, the organization needs to have preferences, and employee focus groups to understand measurement practices to track the value of the crèche the nuances of employees’ work-life needs. For example, against its objectives. Establishing a baseline before a in the roundtables, participants recognized challenges crèche is put into place is an effective way to assess the associated with shift work and some professions impact. For example, voluntary turnover rates before requiring 24/7 work schedules. The objective is to gather and after the crèche is available to employees can be data that will provide learnings about: compared along with other measurements such as the return-to-work rate from maternity leave, the promotion • Employee demographics rates of women, volume of call outs or absenteeism, and • Number and ages of current children other important factors. • Type of care currently used and costs If a crèche is in place and data are not available prior • Hours of care needed to the crèche’s establishment, company data on current crèche users can be compared to nonusers, trying to • Transportation realities (local infrastructure) control for demographic variables such as employees 43 with young children (or in a certain age range if parental status is unknown). Using self-reported data from the crèche users in terms of the impact of the crèche on them at work is another approach. Employees can rate the degree to which the crèche has impacted their productivity, commitment, job satisfaction, engagement, and desire to remain with their employer. CREATE COMPREHENSIVE RETURN-TO-WORK BENEFITS “Return-to-work” supports can be linked to the MB (Amendment) Act efforts. Creating a holistic approach to supporting women during their maternity process to lessen stress, increase well-being, and support career continuity is recommended. It’s important to consider: • Starting support before the employee goes out on maternity leave • Supporting managers, including clarification on the company’s policies, benefits, and expectations • Manager coaching that facilitates conversations before and during leave so employees can stay connected or not, depending on their preference • Lactation rooms for women after they return to work • Options for a phased return-to-work schedule (the MB (Amendment) Act includes considerations for working from home after maternity leave ends) • Resource groups for working parents • Maternity mentoring programs linking senior women who have successfully transitioned back to work after starting a family to working women who are embarking on this journey A return-to-work program is designed to support the process of career interruption due to the birth or adoption of a child and ensure a healthy transition back to work. RECOMMENDATIONS FOR GOVERNMENT Recommendations for the government fall into three categories. See figure 5.4. Figure 5.4 Recommendations for Government to Support Success of MB (Amendment) Act Clarify mandate Promote space Provide resources guidelines and for crèches to and supports compliance increase supply CLARIFY MANDATE GUIDELINES AND COMPLIANCE FOR EMPLOYERS • Require state governments to provide more details to employers regarding the MB (Amendment) Act guidelines and what is required for compliance. It is recommended that the state governments consider the learnings from this report when developing the guidelines and encourage ongoing feedback from employers regarding the rules governing the mandate, especially around the proximity of the crèche, financial responsibility, and quality. • Encourage state government outreach to stakeholders and include their voices in the development and monitoring of the guidelines that will define how the Act will be implemented. 44 • Consider implications from the perspective of small –– Invest in educational training systems to establish to medium-sized enterprises (SMEs), and identify and build the supply of trained providers, teachers, measures that recognize the unique environments for and crèche nursery workers who educate and care employers in this category. for young children. –– Within the educational training system, fund the In the Mumbai roundtable, there was interest in establishment of a “train the trainers” process understanding the crèche business case for SMEs. to promote access to provider training into rural areas. Include funding for travel and technical assistance to strengthen access. PROMOTE SPACE FOR CRÈCHES TO INCREASE –– Establish an online childcare registry system to SUPPLY match trained workers with crèche facilities. This • Amend requirements for new office building might include capturing details such as experience, development to include space set aside for crèche age preferences, service area availability, and facilities. This would build the supply for crèche references. The system might also be used to provisions and offer employers in the building access provide technical assistance for successful to a workplace crèche solution. onboarding of childcare workers into programs. • Provide real estate tax relief for employers or real –– Establish baseline metrics that can be tracked to estate developers on space investments for the measure future impact (e.g., training, turnover, provisions of crèche facilities. safety). • Include childcare providers in the discussions on space, –– Identify and negotiate state-level “preferred safety, and access when developing state-level guidelines. vendors” that specialize in, for example, age- appropriate materials, equipment, and furniture PROVIDE RESOURCES AND SUPPORT FOR for crèche facilities. These savings can be passed CRÈCHE DEVELOPMENT along to the childcare providers and would serve • Help employers comply with the Mandate and foster to encourage quality materials and equipment in the increase in high-quality care for India’s children the programs. through a variety of efforts. It will be important to consider these efforts as multiyear activities with • Evaluate the overall crèche investments being made ongoing support to ensure success. against key social trends. This can include outcomes for young children and educational achievement, –– Establish a technical assistance fund for small and impact on women’s retention and career mobility, medium-sized enterprises (SMEs) to have access economic impact on women returning to work, to crèche planning and developing expertise. Fees economic impact of women who are working in could be charged for large employers. crèche programs, and child outcomes. Research on the system as it grows and dissemination of outcomes –– Establish an annual employer-supported crèche will be important to the ongoing commitment to technical assistance conference, to be held for children and families in India. the next five years, to build capabilities for employers to invest in high-quality programming. • Encourage public-private partnerships (PPPs) with the Funding would be used to bring in experts in private sector (employers or childcare providers) to crèche building design, human resource (HR) collaborate on expanding the provision of childcare. project management for crèche development and There are many successful examples of PPPs for management, high-quality programming, and childcare that can be replicated and be built upon liability and risk management, and to showcase for the India context. IFC’s Tackling Childcare successful strategies and solutions. The target report (2017) includes examples from Turkey (with audience would be employers, government, Borusan, a heavy manufacturing plant) and the investors, and childcare providers. Netherlands (with a hospital, Schön Klinik) that are 45 highlighted in box 5.1 and box 5.2, respectively. The government can promote childcare provision Box 5.2 PPP for an Onsite Childcare through PPP models to expand the stock of childcare Center in Germany spaces. Models to consider include providing or subsidizing the real estate costs of childcare facilities The Schön Klinik hospital in Germany partnered with for a private sector company or industry body or the local city government to build an onsite crèche for providing the infrastructure in special economic children on the hospital grounds (IFC 2017). The company zones (SEZs) or industry parks, which may have provided the land and paid most of the construction a large concentration of private sector companies. costs, and the city leased the property for 25 years and The government’s involvement in PPPs could have many benefits toward accelerating the provision is responsible for all operations, including employing of childcare due to potentially reducing regulatory the childcare teachers. According to the crèche director, obstacles for private sector companies setting up partnering with the local government significantly reduced childcare solutions and cost sharing the establishment the regulatory obstacles that Schön Klinik otherwise would and running of childcare centers. PPP models could have faced, reducing the planning and construction time to provide community-based solutions for workers who have difficult commutes by providing space in just nine months. Schön Klinik employees are guaranteed communities, and having the employers and parents 10 of the 20 infant and toddler places. Users pay fees cover the usage costs. directly to the center, and the city and Schön Klinik share any costs not covered by fees or federal and local Box 5.1 PPP to Support Provision of subsidies. Crèches in Industrial Zones, Turkey Borusan, a heavy manufacturing company in Turkey, is RECOMMENDATIONS funding the establishment of 10 crèches in organized FOR INVESTORS industrial zones (OIZs) in areas with particularly high The childcare delivery system will need to increase its levels of female unemployment (IFC 2017). The project capacity to serve the growing number of organizations is delivered through a PPP with the Turkish government, that will provide care to children and families at the workplace, both in terms of supply and standards. the Ministry of Families and Social Policy (MoFSP), and Investment in this sector is needed to support this growth the Ministry of Science, Industry, and Technology (MoSIT). and accelerate development. If done well, India stands The government selects the crèches’ locations according to gain from a new generation of young children who to the actual and potential levels of women’s employment. have had early education experiences that can promote The Borusan Kocabıyık Foundation (the company’s educational achievement and health outcomes in the future. charitable foundation) finances the construction of the crèches, with additional funds provided by the Borusan There are several private equity firms, investment Group for toys and equipment. The childcare centers are companies, nonbank financial institutions (NBFIs) and funds focused on the education sector in India. The IFC open to children up to six years old whose mothers work is a limited partner in one fund, focused on education in the OIZs. The OIZ management operates the facilities, in India. That fund raised capital for equity investments including hiring teachers and obtaining operating licenses from several large finance institutions, including the for the crèches from the MoFSP. Swiss Investment Fund for Emerging Markets, UBS Fund of Funds, and so forth. Private sector investments have typically been in strategic education companies and a few childcare providers. Most of the investments have taken place in education, rather than childcare, but given the 46 MB (Amendment) Act, investors and fund managers may promote visibility of these standards, why they want to explore this market opportunity and potential are important, and the implications to society. It is further. There is still room for first mover advantage as a suggested that collateral be developed to allow for funder. The pipeline for investing in childcare providers dissemination to all stakeholders. is growing as more providers emerge in a market looking • Promote the establishment of a childcare sector skill for quality and standards to meet the need mandated council, or training and certification of childcare by the government. CRISIL research in 2017 estimates workers through a skill council, to build a quality that India’s preschool market will grow at a compound workforce. This would promote the development of annual rate of 20 percent to reach INR 16,500 crore in a trained workforce that could command a higher 2017–18, up from INR 8,000 crore in 2013–14. salary for childcare provision, with certification and proof of training. It could benefit many entering the With the mandated growth for the childcare segment workforce, particularly women. on the demand side, there is a growing opportunity for investors to tap into the supply side of the market • Increase the number of trained early childhood and deepen the availability of growth capital for educators in quality approaches to serving young entrepreneurs focused on childcare provision. Guidance children and their families. through teams with operations and investment • Develop and promote local “best practices” sessions experience is required to strengthen Indian institutions to engage existing providers in quality, allow for local and their market leadership positions. Several customs opportunities, and promote safety and child international, highly regarded childcare providers are outcomes. looking to enter the Indian market and are actively exploring investment partners. Joint ventures can lower • Extend the professional credentialing to create the risk of investments in this sector by demonstrating career paths, and encourage career aspirations for the high financial appeal and impact, while sharing individuals who care for young children to continue some of the quality control and liability risks. their education. Investment will be needed for market entry, expansion • Promote an employer webinar series that shares of infrastructure, and rollout of locations for home- expert information on such topics as liability, center grown childcare providers, and capital will be needed for management, early education and child outcomes, teacher and childcare provider training and introducing and benefit management. new approaches toward childcare provision in India. • Fund the development and implementation of a “train Recommendations include providing financial investment the trainer” approach for disseminating best practices into this nascent, but growing segment of childcare and providing access to training materials and providers and early education providers to be in line with educators in the field across the country. This would the rapidly growing demand. promote the creation of shared adequacy norms and improve the baseline provisions of care. RECOMMENDATIONS FOR DONORS • Provide technical assistance and thought leadership to Donors can enhance the overall quality of care and capture the potential intersection of corporate social education for India’s youngest citizens and promote responsibility (CSR) efforts and the growing focus on positive outcomes for their future and the future of India. high-quality workplace childcare in the affordable • Fund the ongoing effort for the establishment of a segment. standard that exceeds the mandate and promotes • Promote initiatives to expand business case evidence, high-quality education for children and families accelerate implementation of good practices, and in settings across India. This multiyear process improve the enabling environment to support access can include consensus building among childcare to high-quality childcare for all working parents, with advocates, government, parents, and employers that a focus on working to eliminate gender gaps in the allow for inclusion of thoughts, ideas, research, and private sector and enabling companies and economies recognition of local culture. The initiative would to improve their performance. 47 • Share knowledge of and good practices on employer- supported childcare, and create global guidance on best-in-class practices for employer-supported childcare.  • Create funding mechanisms within CSR that can be used to strengthen the early care and education system to support the social good. • Create community-level CSR investments that can target anganwadi and balwadi programs to enhance access, quality, and overall provisions of education and care. 48 CHAPTER 6 CONCLUSION The Government of India has taken a very important step by introducing the MB (Amendment) Act. Employers are now mandated to support employees with important resources concerning childcare provisions, maternity leave, and options for working from home. While implementation remains a key focus, employers have the opportunity to potentially leverage the crèche mandate to support the talent management and benefit strategies to contribute positively toward recruitment and retention in their workplace. Children and families in India stand to benefit from the Act if the provisions are successfully executed against such variables as quality provisions, evaluation and best practices dissemination, and if additional funding becomes available to the childcare system in general and small and medium-sized enterprise (SME) employers in particular. There are challenges to address, highlighted by responses from some employers (33 percent) that participated in the e-pulse survey, who said organizations may limit worksite size to fewer than 50 employees to be excluded from the crèche mandate, as well as roundtable discussions regarding the challenges of affording the mandates. The government’s Maternity Benefit Fund is a critical step toward addressing concerns around the cost of providing childcare. Awareness campaigns, roundtable discussions, and dialogue are needed to showcase to employers that the impact of providing childcare through their benefits program can outweigh costs. Examples of organizations that have successfully implemented employer-supported childcare strategies are needed as models for others. Often, the cost of retaining talent through employee benefits that include childcare provision may be lower than the associated costs of hiring and retraining new talent. Employers stand to benefit from tapping into an underused talent pool, particularly of women, by implementing strategies that allow talented parents to join and stay in the workforce. As state governments develop, disseminate, and ultimately monitor the guidelines for implementation of the MB (Amendment) Act, it may be useful for local employers and childcare providers to remain engaged and active in shaping this ongoing process. There is currently an opportunity to help India’s young children of working parents participate in early care programming through high-quality crèche provisions. Supporting parents (particularly women) to participate in the workforce before and after the birth or adoption of a child can enable the country to maximize the contribution of its citizens. Working parents, including women who are currently underrepresented in India’s workforce, are essential to the economy, and so is the education and care of young children. It is hoped that this report contributes knowledge and learning to this important agenda. 49 REFERENCES ASER Centre. 2017. India Early Childhood Education Impact (IECEI) Study. 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Cologny, Switzerland: World Economic Forum. https://www.weforum.org/reports/the-global-gender-gap-report-2017. 51 APPENDIX A: E-PULSE SURVEY RESPONDENT PROFILE Table A.1 e-Pulse Survey Respondent Profile PERCENT TYPE OF ORGANIZATION N=255 Multinational corporation with multiple worksites in India 48 Domestic organization with multiple worksites 26 Multinational corporation with a single worksite in India 19 Domestic organization with a single worksite 7 INDUSTRY N=255 IT/ITeS 42 BFSI 18 Services 5 Education 4 Professional services 4 Consumer business 3 Engineering 3 Manufacturing 2 Media/telecom 2 Other 16 SIZE OF WORKFORCE IN INDIA N=255 Fewer than 50 8 50–99 6 100–249 14 250–749 19 750–999 6 1,000–2,499 11 2,500–4,999 11 5,000–9,999 9 10,000 or more 17 52 WORKSITE CITY N=255 Mumbai 28 Bengaluru 27 Pune 10 Delhi NCR 9 Gurgaon 7 Hyderabad 7 Chennai 2 Noida 2 Other 8 WORKSITE SIZE N=255 Fewer than 50 10 50–99 9 100–249 19 250–749 18 750–999 7 1,000–2,499 15 2,500–4,999 9 5,000–9,999 8 10,000 or more 4 WORKSITE SHIFTS N=255 Daytime shifts 92 Evening shifts 36 Weekday shifts 24 Rotating shifts 26 Overnight shifts 21 Weekend shifts 17 Extended hour shifts (more than 10 hours) 14 53 POSITION OF RESPONDENT N=187 Individual contributor/frontline employee 9 Supervisor 4 Manager/director 29 Sr. manager/sr. director 24 Sr. vice president/vice president 17 Executive/C-Suite 17 Outside consultant 1 HR DECISION MAKER N=255 Yes 84 No 16 GENDER N=191 Male 39 Female 61 GENERATION N=203 iGen (1996 or later) 0 Millennials (1980–95) 47 Gen X (1961–79) 52 Baby boomer (1946–60) 1 Note: BFSI = banking, financial services and insurance; HR = human resource; IT = information technology; IT/ITeS = information technology enable services. 54 APPENDIX B: INITIATIVE PARTNERS Bright Horizons, a leading global provider of early education and preschools, employer-supported childcare, backup care, educational advisory services, and other work-life solutions, provides consultation on international childcare systems and employer work-life supports. Goldman Sachs is a leading investment banking, securities, and investment management firm that provides a wide range of financial services to a substantial and diversified client base. IFC, a sister organization of the World Bank and member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. IFC works with more than 2,000 businesses worldwide, using its capital, expertise, and influence to create markets and opportunities in the toughest areas of the world. JSA is a leading national law firm in India. Its mission is to provide outstanding legal solutions in the chosen practice areas with a strong emphasis on ethics.  NASSCOM is a nonprofit trade association of Indian information technology and business process outsourcing industries. 55 NOTES 56 IFC C-62, 6th Floor, G Block, Vibgyor Towers, Bandra Kurla Complex, Bandra East, Mumbai, Maharashtra 400051 India Phone: +91 22 4230 2400 Bright Horizons 200 Talcott Avenue Watertown, MA 02472 USA Phone: +1 617-673-8000 April 2019