Young mother with toddler child working on the computer from home at night..
Parenting and caregiving can look different for everyone, as can benefits budgets. The good news is that there are plenty of evidence-based solutions that can help companies more effectively engage, support, and retain parents—without breaking the bank.
Unsolved, but no mystery
First, let's zoom out a bit further to better understand how family and caretaking needs affect business. We all know it's a challenge to juggle work both in a professional environment and at home, and data continues to show that this dilemma still disproportionately effects women—creating an imbalance in the workforce:
- According to the World Economic Forum, men spend one third as much time on unpaid caregiving work as women do.
- The pandemic's aftermath left mothers with a greater reduction in working hours, higher unemployment, and less labour-force participation.
- McKinsey found that 45% of mothers of children five and under who left the workforce during the COVID-19 pandemic cited childcare as a major reason, vs. just 14% of fathers.
- Studies have linked 80% of the ongoing gender pay gap to a "motherhood penalty."
This can pose challenges for businesses in terms of reputational risk, lost productivity, and untapped talent—which all can directly affect the bottom line. But this can also become a significant opportunity for growth and differentiation, since better supporting employees with family responsibilities can simultaneously help move the needle for both gender equality and company performance.
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Related: Working parents are looking for help beyond flexible work arrangements, study finds
Here's a path forward:
Address gender imbalances head-on. It's important to address the elephant in the room: What works for male employees or fathers may not automatically translate for female employees or mothers. For example, our research with the Financial Health Network shows women are less likely to say they understand their workplace benefits and more likely to say they want simpler explanations, access, and enrollment.
Reposition your benefits communications and education content to focus on needs and challenges unique to women. Get more specific about helping women at work, especially with benefits where they tend to get left behind like retirement and equity compensation. In both, plan design and communication are some of the most important levers companies can pull to improve women's participation rates and long-term outcomes.
Our stock plan research shows that equity plan features like vesting schedules can unintentionally work against maternity leave and force women to choose between family and career: Among employees who receive 4-5% of their compensation in equity, only 25% are working mothers (vs. 60% who are working fathers). Consider broadening eligibility or adjusting plan design so more women and parents on staff can participate. Run the data. Look for broken rungs on the ladder and fix them.
Broaden benefits choices. Give extra time and attention to communicating with women employees and make sure they leave nothing on the table—but first, make sure there is something for them on the table. If your company is able, consider offering additional benefits related to family needs—for example, student loan repayment, return-to-work programs, and flexible work arrangements. Student loan repayment programs are a solution that many HR teams are exploring and considering even if they don't implement it right away, and can help families tackle education expenses no matter their stage of life.
McKinsey also found that top performing companies demonstrated a strong link between higher representation of women (and women of color) in their ranks and offering personal leave for mental health care, support for miscarriage, emergency backup childcare services, and the ability for parents and caregivers to take extended time off and return to a similar role.
Talk to your benefits providers to see what easy adds may be available and affordable for your company to strategically compliment the work you're already doing each day. And even if this isn't the time for your company to expand its benefits roster, you still can add value by providing tailored financial education and information for families about external support like community- and government-based programs, after-school programs, or local backup care.
Outcomes for women, caregivers, and companies are ultimately interlinked, and by being strategic, we can make a difference for our companies and our employees—which is a win-win for everyone.
Kate Winget is Chief Revenue Officer, US Public Equity Solutions, at Morgan Stanley at Work.
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