ully for the nanny company.
The concept of the “nanny state” was first used in 1965 by a British Member of Parliament in reference to the Labour government’s decision to impose a 70 miles per hour speed limit. In modern times, however, the term has been applied to companies that provide a variety of services and benefits to their employees. It is time to recognize and applaud the rise of the nanny company.
Historically, companies have provided welfare programs for their employees. For example, US Steel spent millions of dollars in the early 20th century on employee welfare programs, while Milton Hershey created a town with no poverty or nuisances for his chocolate factory workers. Henry Ford inspected his US workers for whiskey bottles and communist literature, and even went so far as to impose a vegetarian diet on the residents of his factory town in Brazil.
The corporate nanny role faded in the late 20th century, as companies focused on their core businesses and lifetime employment became less common. The only exception was US companies continued to provide health care for their workers.
The corporate nanny is back, however, as companies offer their employees benefits such as free food, gym memberships, flu and COVID-19 vaccinations, and more comprehensive healthcare. Companies are also broadening the definition of wellness to include mental health. Some are providing healthy snacks in their canteens and renaming them “nutrition centers,” while others are offering incentives to employees to exercise or lose weight. Buffer, a social media marketing company, even provides an annual “unsick day” for preventative care.
Group exercises, once common in Asian companies, are now spreading to the West, as they are believed to both improve health and encourage group bonding. In Japan, Daiichi Life, a life insurance company, sets targets for reducing obesity among its staff.
Company towns are making a comeback as well, as tech giants such as Google and Meta Platforms plan to build housing and entertainment near their headquarters. Elon Musk is also planning a more modest town near Austin, Texas.
The primary reason for the return of the corporate nanny is competition for talent. Companies add benefits to salaries in order to recruit and retain potential employees, while providing healthy snacks and healthcare benefits helps to ensure optimal performance. Companies are also providing wrap-around services such as free meals, concierge services, on-site laundry, and more so that employees can spend more time working.
The corporate nanny is also filling in where the state can’t. 19th century companies provided welfare to their employees because the welfare state did not yet exist. In South Africa, companies are providing schools, clinics, electricity, water, road repairs, and fire engines due to the state’s disintegration. European companies are providing health benefits due to the state’s inability to provide them in a timely manner, while Silicon Valley companies are addressing housing problems due to the state’s dysfunction.
The rise of the corporate nanny does bring up some troubling questions, however. What about people who do not work for corporations? Will society become increasingly divided between corporate employees with benefits and those without? What about overreach, as companies may demand fealty to progressive beliefs?
On the whole, however, the nanny company should be applauded. It overcomes the major libertarian objection to the nanny state, as employees are free to go elsewhere. Corporate activism harnesses the power of companies to address social problems, and corporate health programs lighten the burden on the state. The rise of the nanny company is truly something to celebrate.