Business case for Breastfeeding: High-yield Return on Investment

Companies which invest in worksite lactation programs see a significant Return on Investment (ROI).

  • For every $1 invested in a basic lactation program, such as the time and space accommodation required by Oregons Rest Breaks for Breast Milk Expression law, there is a $2 ROI.
  • For every $1 invested in a comprehensive lactation program, such as allowing for flex-time, providing breastpumps, educational resources, or insuring lactation consultations, there is a $3 ROI.

 

In recognition of this compelling research, the US government spent five years in research and development of a comprehensive Business Case for Breastfeeding Toolkit.

 

Excerpted from the federal Business Case for Breastfeeding Toolkit:

Supporting breastfeeding employees saves money. Here's How.

Breastfeeding employees miss work less often

One-day absences to care for sick children occur more than twice as often for mothers of formula feeding infants.

Breastfeeding lowers health care costs

The insurance company CIGNA conducted a 2-year study of 343 employees who participated in their lactation support program, and found that the program resulted in an annual savings of $240,000 in health care expenses, 62 percent fewer prescriptions, and $60,000 savings in reduced absenteeism rates.

Investing in a worksite lactation support program can yield substantial dividends to the company.

Lower turnover rates. Employees are more likely to return-to-work after childbirth when their workplace provides a supportive environment for continued breastfeeding.

  • Mutual of Omahas lactation program led to a retention rate of 83 percent of their maternity workforce compared to the national average of only 59 percent.
  • Another study of several companies with lactation programs showed a retention rate after childbirth of 94.2 percent.
  • A New Zealand study estimated $75,000 in savings for each employee who returns to work after maternity leave.

Additional Health Care Savings. Companies that provide comprehensive onsite lactation support programs [going beyond the minimum time and space requirements of the Oregon law, to provide breastpumps and/or lactation consultations, for example] enjoy additional health care cost savings.

  • Mutual of Omaha found that health care costs for newborns are three times lower for babies whose mothers participate in their company's maternity and lactation program. Per person health care costs were $2,146 more for employees who did not participate in the program, with a yearly savings of $115,881 in health care claims for all the breastfeeding mothers and babies participating in the program.

Higher Productivity and Loyalty. Employees whose companies provide breastfeeding support consistently report improved morale, better satisfaction with their jobs, and higher productivity. They also feel the support eases their transition back to work and enables them to return from maternity leave sooner.

  • Although 80 percent of its employees are male, the Los Angeles Department of Water and Power found that a lactation support program for mothers, fathers, and partners of male employees made a dramatic difference in reducing turnover and absenteeism rates for both male and female workers. They also found that 83 percent of employees were more positive about the company as a result of the program, and 67 percent intended to make it their log-term employer.

Positive Public Relations. Providing a supportive environment for breastfeeding employees improves the company's image overall and enhances its ability to recruit top-notch staff. Many companies with support programs receive local, state, and national recognition and media attention, a positive boost to recruitment efforts and general goodwill in the community.