Funding the Frontline: A Comparison of Funding Model Effects on Residential Childcare Staff Retention

Abstract

ABSTRACT In this study, we seek to explore the demographic features of the frontline residential workforce (especially during the COVID-19 pandemic) and the potential impact of different funding models on the retention of residential care staff. More specifically, we compare the effects of a per-diem funding model and a budget-based funding model on the turnover rates of frontline child-care staff members at The Children’s Village, a large child welfare agency in Dobbs Ferry, NY, USA. This study includes analysis of employee data from two cohorts over a period of five years (2017- 2021), with an average annual point in time cohort of 1,263 employees over the five year sample period. Using descriptive analyses, we find the following: (1) the impact of the COVID-19 pandemic is visible in several key ways; (2) the budget-based programs showed a higher median length of stay, but a lower average and (3) turnover in per diem programs was higher than in budget-based programs in four out of five years, and overall across the five-year sample. We offer possible reasons for our findings, relevant implications, and areas for future research.