South-Western - Management  
Providing the Killer Perk
Topic Human Resources Management
Key Words child care, strategy
InfoTrac Reference A86829368
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News Story

After years of public service, Roger Brown and Linda Mason saw a need and set out to fill it. In 1986, they launched Bright Horizons, a provider of child care services for major employers. Their goal was to provide quality child care at the work site. The company currently has more than 400 child care centers for about 300 employers. Part of their success lies in the fact that they provide higher wages to their employees than their competitors, and provide benefits like 401(k)s and health insurance.

Companies are willing to shell out the money to pay for the facilities for these services because on-site child care improves productivity and morale and reduces turnover. Overall, the clients of Bright Horizons feel they get a good return on their investment.

Only about 10% of big companies provide on-site child care, so Bright Horizons has plenty of room to grow.

Questions
1.

You are a manager who is trying to hire a new employee in a competitive situation. How do you use your Bright Horizons on-site child care program as a means to convince this employee to work for your company?

Source William C. Symonds, "Providing the Killer Perk," Business Week June 10, 2002.
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