January 09, 2020
Recent survey results from Ovia Health found that only 65% of women working at companies with 1,000+ employees feel supported in balancing their work and family lives.
New Moms Leaving the
Workorce
Nearly 1 in 3 (28%) of women working for large employers do not return to their job once they have a baby. Nine percent of those women went to work for a new employer.
More Can Be Done to Retain New Moms
Forty percent of women who left felt that their large employer could have done things differently to keep them, such as providing flexibility.
New Moms are Unaware of Maternity Benefits
Almost 30% of women working for large employers said their employer does not offer any maternity or family benefits, or if benefits are offered, they are unaware of them.
Sources: Ovia Health. Employee Benefits Survey Results (1,000+ employees). March 2018; Ovia Health. Motherhood in America Survey Results (1,000+ employees). 2017.
And it’s not just birth mothers that encounter challenges juggling responsibilities at work and at home. It’s an issue that affects all working parents. That’s why today’s forward-thinking companies are strategically developing inclusive support for all parents — moms & dads, birth parents, adoptive parents & foster parents.
Parental Leave is Good for Business
Women with paid parental leave are more likely to return to work.
Parental leave can pay for itself
By taking a deep dive into the Ovia Health Motherhood in America survey results of associate- level employees working for large (1,000+) employers, it is clear that offering parental leave is a financially smart decision.
In this example, Company X could save $76,000/100 associate-level new moms by offering six weeks of paid parental leave in employee retention alone. Employers can tailor this example using their turnover cost for associate-level employees. According to the 2017 Work Institute Retention Report, turnover cost estimates range from $4,000 per employee to 1.5 times the employee’s salary. Employers see additional savings through tax credits, employee engagement, sustained productivity and customer service and improved health outcomes (for the mother and child), while creating a culture of trust and positive brand image. Company X has 100 new moms at the associate level, each making a salary of $52,000 ($1,000/week). The company grants new moms six weeks of paid parental leave.
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Company X has 100 new moms at the associate level, each making a salary of $52,000 ($1,000/week). The company grants new moms six weeks of paid parental leave. 100 New Moms X $6,000 in Leave = $600,000 Based on the Ovia Health survey results, if Company X did not offer six weeks of paid parental leave, they’d lose 39 more new mom associates. For this example, a turnover cost of 33% of annual salary is used. 39 New Moms X $17,333 in Turnover Costs = $676,000 |
Employers can tailor this example using their turnover cost for associate-level employees. According to the 2017 Work Institute RetentionReport, turnover cost estimates range from $4,000 per employee to 1.5 times the employee’s salary.
Employers see additional savings through tax credits, employee engagement, sustained productivity and customer service and improved health outcomes (for the mother and child), while creating a culture of trust and positive brand image.
More Outcomes of Supporting Parents: Business Case Data with C-Suite Appeal
*The question “If you chose NOT to return to work after having a child/children, when did you first make that decision?” was asked to second time
moms of the Ovia Health Community.
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