MEMO

TO: Jim Ronald, Regional Midwest Campus Director

CC: Jaquise Hamilton, Admissions Director
FROM: Sherrel Julion, Admissions Team
DATE: February 19, 2013
SUBJECT: On-Campus Daycare Center

The Hazelwood campus is suffering a dramatic decrease in student retention rates.

Retention Problems
Calculated student survey responses have shown that 83% of our student population have
problems with finding reliable childcare. This memo recognizes business loss affected by those
retention rates, and provides recommendations for a positive solution; utilizing leasing spaces in
the complex and supporting a child care facility for our day and evening students.

Reported statistics show that 57% of college students are low income and 3.9 million students
are parents. Our student population totals 75% single mothers working towards their college
education, and 95% of our students are low-income. Providing an on-campus daycare facility
will not only increase student retention rate it will also provide an increase in employee
performance. (IWPR.com, 2010)
According to weekly LDA (last date attendance) reports we are losing an average of 50 students
every 5 week term. Although we are enrolling an average of 100 students every 5 week term, we
are losing 50% of expected revenue due to the company not meeting student demands; providing
an on-campus daycare facility.
Calculated Business Loss
Average tuition cost (18 month programs): $22,650
Books and Supplies: $6,600
Total: $29,250

Average student enrollments (5 week term): $2,925,000

100(avg. student enrollment per 5 week term) x $29,250 (tuition, books and supplies)
Average student drops (5 week term): $1,462,500
50 (student drops) x $29,250
 MEMO

Our campus is losing an expected revenue of $1,462,500 each five week term, and annually
losing a shocking $17,550,000 in expected revenue. (CEC, 2012)
Our sister school, Sanford Brown Institute, in Tampa, Florida have increased their students and
faculty productivity by 80%. There positive actions were rewarded by a 75% increase in sales
revenue, and to date are reported as the #1 campus in business growth of Career Education
Corporation. Their efforts were the result of providing an on-campus daycare for their students
and faculty.
My recommendations for the Hazelwood campus daycare facility are expressed as followed.
Benefits of On-Campus Daycare Facility
Student Benefits
 Less absences from school
 Low cost pricing provided with student aid
Employee Benefits
 Increase in employee job performance
 Less absences from work
 Employee packaging pricing
Providing our students and staff with a childcare facility is sure to increase work productivity.
The students and staff members will be mentally capable to perform their task accordingly
knowing there children are in a safe environment; within close range. Processing easy payment
methods for both student and staff member also allows daycare expenses prevention of being too
costly.
Staff supported in the daycare facility will be our newly integrated Child Development
program’s students and faculty. This method provides low cost to the company and allows
student’s an on-campus interning program. Simply adding child care cost in with all student’s
financial aid, maps easier payment processing; for our employees adding flat rates to our benefits
packaging and retrieving daycare payments from payroll.
Facility
The location of the facility is within the Village Square complex; building #11 is used for
multiple school events. This option allows the company to add an extra annex building to our
leasing agreement, and permits us having a facility in close vicinity.
Expenses
Leasing Annex Building: $3,000 (per month)
Daycare Supplies: $2,000 (per month)
(Diapers, wipes, etc.)
Furnishing: $15,000
(Sleeping supplies included)
 MEMO

Food: $2,000(per month)

Toys (annual cost with donations): $5,000
Safety permits (annual rate): $150
Sanitation permits (annual rate): $150
Staff Pay: Company Salary pay
Student Pay: Internships; included in tuition cost
Playground Installation: $1200
DVN certification: $50 (included in student’s tuition cost)
Grand Total: $10, 550

These totals will not affect staff and student pay. The facility provides a hands on opportunity for
our Child Development program students and faculty to experience authentic business
environments while they are attending school. This approach will provide our students with
absolute success because they are interacting with the children; which will provide addition for
work experiences to their resumes, in hopes of our student’s landing a job or starting their own
business.

Membership

Our facility will only be available for our students, faculty and staff. This allows our campus to
develop properly and expectations of positive growth revenue. Applying student monthly
payments in with tuition cost assures the business receives payments in a timely manner; which
allows the company to pay any monthly expenses needed to continue its services. Also students
who are receiving state benefits are applicable to provide payment directly to our company; with
staff who have certified DVN (departmental vendor number) it makes payroll simple and
provides our business with state certified child care providers.

Cost
Children (6mnths-1): $130 per week
Children (2-4) $100per week
Children (5-7) $75 per week
Children (8-12) $50 per week
Unit holds 100 children

If we enroll 25 per age group our company can will receive an expected revenue of the
following:

Children (6mnths-1) $16,250

$130 x 25 (children) x 5 week term
Children (2-4) $12,500
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$100 x 25 x 5
Children (5-7) $9,375
$75 x 25 x 5
Children (8-12) $6,250
$50 x25x 5
Grand Total: $44,375 per month
Annual Grand Total: $532,500
Calculations show that our company could expect a revenue of $532,500 which will put our
company well above expected sales for the Hazelwood campus; which calculates to 70% chance
in business growth.
Conclusion
Providing an on-campus daycare will provide our campus with positive growth we desire. These
services will allow our student retention rate to increase and is a giant step towards achievement
for the Hazelwood location. The cost to expected monthly revenue ratio are immeasurable and
we are sure to receive positive financial feedback.
This business change allows our company to connect with our staff and student needs.
Acknowledging that connection will help increase productivity in both student and staff
members; focusing on things that matter so they become successful without having to focus on
the most important things in their lives; which is finding reliable childcare.
 MEMO

References
IWPR.com. (2010). Access to Higher Education. Retrieved from:
http://www.iwpr.org/initiatives/access-to-higher-education

Student Drops Report. Rep. no. CAMPVUE216. N.p.: n.p., n.d. Web. Jan.-Feb. 2010.
<http://www.campvue2000.careered.com/student-drop-report126