It's Monday morning, and the HR team receives another email reporting a resignation—another mother leaving the workforce. This scenario has become common since the pandemic, with the average monthly childcare cost for one child now exceeding the average monthly rent in the U.S. According to Child Care Aware of America’s 2023 report, this trend highlights the growing financial burden on families.
It’s tempting to simply post another job opening without questioning how to stop the “flexidus”—the departure of workers seeking roles with more flexibility. However, retaining women in the workforce is essential for businesses striving to thrive in a competitive marketplace. Mothers, especially those aiming for leadership roles, need employers to reassess their benefits and provide more practical support.
The Challenge to Retaining Moms as Employees
Analyzing workforce retention often reveals that women aged 30-50 are the hardest to retain—not because they’re moving to competitors, but because they’re leaving the workforce or choosing more flexible jobs. Coaching and mentorship programs, while helpful, are insufficient. Working mothers juggle numerous responsibilities beyond the office, from household chores to coordinating children's schedules, leading to increased stress and burnout.
Despite higher incomes, women still shoulder an unfair share of household labor compared to their partners, especially in opposite-gender relationships. Additionally, they often bear the brunt of caring for aging parents, creating a “sandwich generation” caught between caring for both parents and children.
Where Most Companies Get Employee Retention Wrong
Today's benefits packages are more comprehensive than ever, yet they still fail to retain some of the best talents. Many companies wrongly assume there is more equal division of responsibilities between men and women at home. They also mistakenly believe women don’t want to work, despite evidence from the 2023 Women in the Workplace study by McKinsey and LeanIn showing women’s ambition fueled by flexibility.
Offering the same benefits to everyone—like mentorship, training, and gym memberships—fails to address the specific needs of working moms, who often don’t have time for the gym.
The Business Case for Better Employee Benefits
Studies repeatedly show that increased diversity among managers and leaders generates better business results. This includes diversity across race, gender, and socioeconomic backgrounds. Retaining and promoting women leads to greater business benefits due to their ability to increase team retention and satisfaction. Working mothers excel at multitasking and pivoting, akin to Olympic gold medalists in juggling responsibilities.
Benefits of Women in Leadership
1. Enhanced Profitability: Companies with greater gender diversity, particularly in leadership, outperform their peers. According to McKinsey, companies in the top quartile for gender diversity on executive teams were 21% more likely to outperform on profitability.
2. Faster Growth: Women-led companies and those with diverse management teams tend to grow faster, thanks to inclusive decision-making processes and a broader range of insights.
3. Better Employee Retention: Women are effective managers, particularly in team retention, creating environments where employees feel valued and engaged, leading to lower turnover rates and higher satisfaction.
How to Get It Right
Mothers often leave corporate jobs because they can’t balance all their responsibilities. While coaching can help navigate careers, it doesn’t address the immediate challenges of balancing work and family life. Innovative family assistant services, which employers are increasingly incorporating into benefits packages, offer substantial assistance by managing everyday tasks. This allows working mothers to focus on their professional responsibilities with greater clarity and balance.
Practical Support Systems
1. Flexible Work Arrangements: Offering flexible hours and remote work options allows mothers to balance work and family commitments more effectively.
2. Childcare Support: Providing on-site childcare or partnerships with local providers reduces the logistical challenges of finding reliable childcare. Even offering a list of pre-vetted daycares and babysitters can be a significant time saver.
3. Aging Parent Support: Services like Naborforce provide in-person companionship to aging parents, a huge relief for caregivers. Employers can cover costs for such support, senior housing search assistance like Dowda Senior Consultants, home care navigation like Commonwise Home Care, and decluttering services like Cut the Clutter.
4. Parental Leave Policies: Implementing generous and flexible parental leave policies supports both mothers and fathers, promoting equitable caregiving responsibilities and smoother transitions back to work. Consider offering phased return-to-work programs and new parent coaching programs from companies like Josie.
5. Real Support Services: Offering family assistant services like Sherah's corporate benefits that provide practical assistance with personal and family tasks can alleviate domestic burdens, helping working mothers focus on their careers with less stress and burnout.
Engaging the CEO and CFO
Improving employee retention is crucial for enhancing productivity and reducing costs. HR professionals should:
1. Conduct Quantitative Analysis: Assess employee retention rates and identify the worst areas. Calculate the costs of turnover, recruitment, and training for new hires.
2. Identify Practical Solutions: Offer unique and individualized services that address specific employee needs and enhance their overall experience.
3. Propose a Test Phase: Start with a smaller budget and test solutions to see what works, setting measurable goals.
4. Identify Key Women Leaders: Focus on women and default caregivers in leadership and rising star roles, especially in middle management, who have the potential to advance.
Watch Her Grow
Retaining and promoting women in the workforce is a strategic imperative that enhances profitability, drives growth, and improves employee retention. By providing real, tangible support and fostering an inclusive culture, companies can create an environment where women thrive both professionally and personally. When women thrive, the entire organization benefits, creating a ripple effect of success and wellbeing for all.
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