The Mommy
Drain: Employers Beef Up Perks to Lure Back Moms
By
Sue Shellenbarger
From The
Wall Street Journal Online
Amid the joys and rewards of having a baby, taking maternity
leave can touch off a series of losses at work. Stepping out for
childbirth often means giving up perks, status, bosses' attention
and bonds with colleagues. All this can make it easier to break the
umbilical cord -- the one that once bound you to your job, that is
-- and to quit or defect to another employer.
One result for employers has been a damaging loss of skilled
employees. Among working mothers who return to work within a year of
childbirth, the proportion who go back to the same employer is
declining, Census data show.
The mommy drain has become serious enough that a few companies
are embracing some real innovations to stop it. These employers,
from Bank of America and Accenture to Booz Allen Hamilton and
DuPont, are going beyond flexible work arrangements to find
solutions to nitty-gritty problems for mothers on leave such as loss
of pay, bonuses and career prospects.
A 2005 study of 1,092 companies showed a shift away from offering
full pay during maternity leave; only 7% of employers surveyed by
Families and Work Institute, New York, offered new mothers any pay
at all after the initial six- to eight-week period of medical
disability following childbirth. But a separate study, of 87 leading
employers recognized for their family-friendly benefits, showed that
59% offer extended maternity-leave pay.
"The companies that are leading edge are" sweetening the pot for
mothers, says Ellen Galinsky, the institute's president. Fueling the
pattern, says Phil Lacy of consulting firm Towers Perrin, is
competition "for all these high-energy women in their late twenties
or thirties who are having children."
Some employers are seeing grass-roots demand. Bank of America
found in a 2003 survey of more than 100,000 employees that better
maternity benefits was a big concern. The company responded by
offering as many as eight weeks' parental leave at 100% pay -- not
only for mothers, but for fathers as well. Two years ago,
PricewaterhouseCoopers also enriched its parental leave plan by
adding 15 paid days off to the paid disability period for moms.
(Dads get the 15 paid days off, too.)
Other firms are building better alternatives to the Mommy Track.
In a plan called "internal rotation," Booz Allen Hamilton is
creating weighty internal jobs for consultants who need a break from
heavy travel, but still want to do substantive work. After returning
from maternity leave, Cindy Vanderlinde-Kopper, who once traveled
two to four days a week, switched last year to an internal position
as a business-development director. "There have been bumps" in the
road clarifying her new role, she says. "But I've been stimulated
and interested in what I'm doing, and it allows me to progress" on a
career path.
Accenture is helping women extend maternity leaves. Under its
"Future Leave" program, the company early this year began helping
employees set aside part of their pay in anticipation of financing
up to three extra months of leave, with benefits; 12 of the 36
participants so far have been women tacking the time onto their
maternity-leave allowances, says Jill Smart, a senior managing
director. The program enabled Aimee Wilson, a manager in Seattle, to
cobble together a total of 7½ months of time off, including vacation
time, with her new baby this year. Ms. Wilson says she had
considered quitting, but the long leave, plus returning to work part
time, kept her on the job.
Other companies are amending pay-for-performance plans to make
sure women aren't unfairly deprived of bonuses and incentives
because they are out on disability leave, says Michael Carter, a
vice president with Hay Group, a consulting firm. Under such plans,
anyone on disability leave -- women on maternity leave tend to be
the biggest group -- may risk failing to hit annual targets, even
though she may be performing very well while she is at work.
Increasingly, Mr. Carter says, employers are pro-rating annual
targets, enabling such employees who meet the pro-rated objectives
while at work to receive performance rewards.
Many major employers are making improvements in this area. DuPont
formalized written policies in 2003 to ensure managers are
consistent in giving employees on disability leave the performance
rewards they deserve, a spokeswoman says.
To keep mothers in the loop, J.P. Morgan Chase, Ernst & Young
and Deloitte & Touche are offering moms discussion boards and
mentoring through employee networks run by SelectMinds, a corporate
social-networking provider, says Anne Berkowitch, SelectMinds' chief
executive. The networks help mothers keep abreast of career
opportunities and new developments, she says.
Another strategy: Simply making mothers feel wanted. Children's
Healthcare of Atlanta throws parties for expectant mothers with
prizes, gifts and a fashion show of corporate maternity wear. "We
want you back," Linda Matzigkeit, a senior vice president, tells
attendees. The hospital concern is retaining 86% of mothers after
maternity leave, up from 63% in 2004 before the showers began. One
possible reason, says expectant mom and registered nurse Beverly
Alvarez: The events "make us feel like Children's really cares about
us."
Email your comments to sue.shellenbarger@wsj.com.
-- October 02, 2006