Navigating Parenthood: Challenges and Benefits of Parental Leave Policies in the Workplace - Free Report

Challenges mothers/fathers may experience when they utilize parental leave.

Parents require parental leave for numerous reasons. However, utilizing this leave has proved to be a challenge for some of these parents. One difficulty parents face is workplace discrimination. Parents, especially mothers, are discriminated against either directly or indirectly. An example is when a company fails to inform one of its staff, a mother on parental leave, about a position opening in her line of work. Several similar cases have been reported proving that it is an issue. It is discrimination because although the parent is fully qualified in terms of skills and experience, the organization does not inform her about the job vacancy. The study has shown that such discrimination cases are common because organizations feel that a parent on leave is "busy." Therefore, she does not need the information (Hideg et al., 2018a).

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Another form of workplace discrimination parents on leave face is underpayment. Over the years, there have been numerous complaints by parents about reduced or delayed paychecks. Research showed that out of ten mothers who take parental leave, six receive reduced pay two months into the leave (Kossek et al., 2017). This result shows that mothers are discriminated against when they take parental leave. Lastly, discrimination against parents on parental leave may be from colleagues. Some parents are excluded or isolated by their co-workers when on parental leave. A mother reported that her friends from work stopped calling or informing her about social activities when she took maternity leave (Hideg et al., 2018b). It shows that colleagues may distance themselves from a co-worker because she is on parental leave.

The second challenge parents face is the fear of showing a lack of devotion. It is a challenge mostly faced by fathers. They are scared that the organization may consider them not committed to their work since a mother plays a more significant role in parental leave. Data from Australia's research showed that one out of twenty fathers takes parental leave (Australian Bureau of Statistics, 2017). The main reason for this was that fathers felt that they would be viewed as not devoted enough by their employers. Some also believed that taking leave may result in more severe repercussions, such as demotion.

The final problem arising as a result of taking parental leave is the issue of permanent job replacement. It is a constant issue that has occurred in numerous organizations. On taking parental leave, the organization has to find a substitute for the job position to ensure smooth operations. However, the replacement should be temporary, and the position must be made available when the parent returns to work. Numerous studies have shown that this is usually not the case. For example, research showed that a mother's probability of maternity leave facing either job demotion or permanent replacement was 38% and 45%, respectively (Hideg et al., 2018a). This data proves that taking parental leave for parents may threaten their job security; hence it becomes a challenging decision.

How progressive parental leave policies may enhance job satisfaction and organizational commitment.

Parental leave policies have done a tremendous job of safeguarding parents' lives either at work or at home. A policy such as the Paid Parental Leave policy has ensured that families are financially stable when on leave. These policies have also improved the parents’ commitment and satisfaction with their jobs. Giving parents paid parental leave has enhanced their job satisfaction because it improves the parents’ mental health. With paid leave, parents do not experience financial pressure. Money is a requirement when parents have a newborn because the child needs a lot of care. If the parents are on paid leave, the money required is readily available; therefore, it reduces the financial pressure. Not having to stress about money during this period gives parents peace of mind, improving their mental health as a result (Kossek et al., 2017). These parents return to work with a clear mind, and they can focus on their jobs, improving their job performance.

Paid parental leave also makes the parents more committed to their work and the company they work for. Study shows that parents are more committed to an organization that offers paid parental leave than the one that does not. Researchers have found that mothers are likely to continue working for a company with a paid parental leave policy compared to a company that does not offer the same benefit (Hideg et al., 2018a). These results indicate that parents are more likely to commit to their jobs when they feel that the employer values their welfare and their family by offering the paid leave benefit.

Parental leave policies have proved to be efficient in improving parents’ job performance when they return. They can focus on their jobs and increase their work rate. Research shows that paid leave increases the probability of mothers later returning to employment. On their return, these mothers work for more hours, therefore earning higher wages in return (Little et al., 2015). It proves that giving parents paid parental leave makes them more motivated to work, increasing their wages. Higher pay means a happier and more satisfied employee.

Equal leave for both mothers and fathers adopted in some companies has had a significant impact on parents and their work performance. It allows both parents to take paid parental leave to take care of their new child. Research shows that parents who take leave together return to work faster than when only one parent takes parental leave (Paustian-Underdahl et al., 2019). There is more emotional and physical pressure on a mother taking care of a baby alone. On returning to work, these mothers feel exhausted and unfocused on their work resulting in poor job performance. Another study showed that mothers are more likely to resume work as soon as their parental leave ends if they feel relaxed about their child’s welfare (Ulker et al., 2011). This calmness is achieved by having both parents take care of their children together.

How progressive parental leave policies may contribute to the sustainability goal of the organization using the Triple Bottom Line framework.

The Triple Bottom Line framework, also known as the 3Ps, focuses on three main parts for an organization to be sustainable. These include people, the planet, and profits. These three parts must correlate with others to ensure a company's sustainability. Parental leave policies have a significant impact on the framework because they affect the people part. Policies such as paid parental leave benefits improve employee job satisfaction, therefore, increasing productivity. Researchers have established that a paid parental leave policy encourages more people to take some time off, especially parents with a low income who would not have taken any leave or entirely dropped out of the workforce after their baby is born (Hideg et al., 2018b). It shows that leave policies play a role in ensuring that an organization's sustainability goals are met because their employees can continue working after completing their leave.

Another way parental leave contributes to a company's sustainability goals is to increase employees' work rate. Parents who have completed their leave seem more "motivated" than others when they resume work. Research shows that mothers who take paid parental leave return to employment and work more hours, earning higher wages in the process (Paustian-Underdahl et al., 2019). Employees working more hours benefit a company by increasing profits; hence it helps it achieve its goals. Another survey in the United Kingdom showed that workplaces with parental leave policies have a 60% chance of reporting above-average financial performance compared to companies without these policies (Little et al., 2015). These findings prove that parental leave policies improve company profits; therefore, they play a significant role in safeguarding an organization's sustainability goals.

To achieve sustainability, a company requires people to help push their goals. It is not possible to improve profits when employees are on strike or are not satisfied. Parental leave policies have helped organizations achieve this by ensuring that there are continued women in the workforce. Research shows that women who take paid parental leave are 93% more likely to be in the workforce for more than nine months after conceiving a child than women with no paid parental leave (Kossek et al., 2017). It shows that women are more encouraged to continue working when offered paid leave; therefore, the policy helps organizations continue enjoying their services. Another way policies help improve a company's sustainability goals is that they help in employee retention. A study on Google showed that extending its paid parental leave from 12 weeks to 18 weeks reduced the number of mothers who dropped out from work by 50% (Hideg et al., 2018a). Another survey on Aetna International, a health insurance company, showed that the percentage of women returning to work improved from 77% to 91% when the company increased its paid maternity leave duration (Paustian-Underdahl et al., 2019). These findings show that parental leave policies help organizations improve their employee retention rates, therefore improving work performance. The company also saves time and money in hiring new employees when such employees can be retained.

References

Australian Bureau of Statistics (ABS). (2017). One in 20 dads take primary parental leave (Media release). Canberra: ABS. Retrieved from www.abs.gov.au/ausstats/abs@.nsf/Lookup/by%20 Subject/4125.0~Sep%202017~Media%20Release~One%20i n%20 20%20dads%20take%20primary%20parental%20leave%20(Media%20 Release)~11

Hideg, I., Krstic, A., Trau, R. N., & Zarina, T. (2018b). The unintended consequences of maternity leaves: How agency interventions mitigate the negative effects of longer legislated maternity leaves. Journal of Applied Psychology, 103(10), 1155.

Hideg, I., Krstic, A., Trau, R., & Zarina, T. (2018a). Do longer maternity leaves hurt women’s careers?.

Kossek, E. E., Su, R., & Wu, L. (2017). “Opting out” or “pushed out”? Integrating perspectives on women’s career equality for gender inclusion and interventions. Journal of Management, 43(1), 228-254.

Little, L. M., Major, V. S., Hinojosa, A. S., & Nelson, D. L. (2015). Professional image maintenance: How women navigate pregnancy in the workplace. Academy of Management Journal, 58(1), 8-37.

Paustian-Underdahl, S. C., Eaton, A. A., Mandeville, A., & Little, L. M. (2019). Pushed out or opting out? Integrating perspectives on gender differences in withdrawal attitudes during pregnancy. Journal of Applied Psychology, 104(8), 985.

Ulker, A., & Guven, C. (2011). Determinants of maternity leave duration in Australia: evidence from the HILDA survey. Economic record, 87(278), 399-413.