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

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.