4 ways to support mothers and parents beyond Mother's Day

Each Mother’s Day, partners and children celebrate one of the most important women in their lives with trinkets and treats, but this moment can also serve as a reminder for businesses to spend a minute or two considering how workplace benefits support mothers and parents.

You’re already working hard to take care of your participants, but mothers, parents, women, and caretakers can use some extra attention. Why? For one thing, McKinsey research recently found that parents are more likely to have left their jobs than non-parents, with parents of color contemplating an exit at higher rates than white parents. Similarly, women are leaving the workforce more now than at any other time in the last 33 years, predominantly to take care of children and loved ones. 

This tells us that there is a clear need for more targeted benefits education, engagement, and plan design focused on the needs of parents, mothers, and female employees. I’d even go as far to say that it’s a strategic area of focus, since this segmented attrition directly affects recruitment and retention costs, the bottom line, and wider diversity, equity, and inclusion goals. 

The great news is that research from Bright Horizons shows that most parents believe their employers have played a positive, supportive role throughout the pandemic. But, there is also more that we can do as we move forward: For example, our research has found 81% of female employees think employers should do more to help them get through specific financial troubles, and 93% of employers agree.  

There are a few ways to help make women, parents, and caretakers of all stripes feel valued and supported at work—and it starts with your benefits programs.

Check in on hiring, payroll, and equity compensation practices. 

Career gaps due to caregiving can exacerbate the wage gap women already face and cause parents to miss out on the wealth-building opportunities of workplace benefits. For example, women earned an average of $0.82 to the dollar compared to men in 2021 and make up just 40% of the total equity compensation pool across US companies. 

You may want to start by gathering data on how your current parent employees are doing in terms of their pay, attrition rates, and enrollment in equity comp. How is parental leave affecting their engagement and overall earnings? Is there a “parenthood penalty” at play? Consider leveraging—or starting—return-to-work programs for parents who have had work gaps and identifying areas where your company can increase inclusion for women, mothers, and parents in compensation decisions around recruiting and promotions. For example, since 2014 our Return to Work program has helped nearly 400 people re-enter the workforce in nine cities around the world.

Rethink plan design. 

Plan design is one of the most important ways businesses can help support mothers, women, and parents. Many mothers and parents step away from work to provide care for their families, so look for ways to introduce flexibility: Six in 10 working parents prefer to continue working remotely, half hope employers will offer more flexible hours, and nearly half hope employers will provide some form of childcare or emergency backup care.

It may be as simple as crystalizing a hybrid remote policy. Or, consider holistic solutions that address the full employee experience of your career pathing, paid leave, retirement, backup care, and equity compensation programs for parents and women on staff. Tools like auto-enrollment, auto-escalation, and catch-up contributions can help increase participation rates, help parents personalize their benefits, and improve their financial outcomes over time. 

Highlight topics that matter most for caregivers, like childcare and health care.

Tailor benefits education to specific considerations for mothers, women, and parents, and don’t forget essential financial literacy. Our research with the Financial Health Network shows women are less likely to say they understand workplace financial wellness benefits and more likely to say they want clearer explanations of their benefits, easy access, and simplified enrollment. 

Financial wellness tools can help provide insight into the unique challenges women and parents face to help them maximize their benefit dollars as they balance short-term family caregiving against strategic overall financial needs. For example, childcare can be especially challenging. Even if your company can’t provide onsite childcare, you still can help parents by educating them on their options and connecting them to a wider support community through access to mental health counselors or support groups, accountants, attorneys, Financial Advisors, after-school programs, or local backup care.

Encourage employees to use their benefits. 

Finally, it’s simple, but critical: Many employees are just not plugged in to their workplace benefits. On top of education and engagement campaigns, it’s also important to foster an environment where your workplace benefits are celebrated and employees are encouraged to use them. 

For example, a recent Deloitte survey found less than half of respondents felt that men at their company were comfortable taking parental leave, with 57% of men worried taking parental leave would have a negative impact on how they were perceived at work. Simply making parental leave mandatory for both mothers and fathers can help move the needle, and you can boost participation in benefits programs through tools like auto-enrollment and auto-escalation.

Empowering women, mothers, and parents to better understand their financial needs and the tools available to them through their workplace benefits can help them feel seen and valued at work—and better equip them to build lasting financial security. 

Kate Winget is Head of Corporate and Participant Engagement, Morgan Stanley at Work.

Disclosures: This article has been prepared for informational purposes only. The information and data in the article has been obtained from sources outside of Morgan Stanley. Morgan Stanley makes no representations or guarantees as to the accuracy or completeness of the information or data from sources outside of Morgan Stanley. It does not provide individually tailored investment advice and has been prepared without regard to the individual financial circumstances and objectives of persons who receive it. The strategies and/or investments discussed in this article may not be appropriate for all investors. Morgan Stanley recommends that investors independently evaluate particular investments and strategies, and encourages investors to seek the advice of a Financial Advisor. The appropriateness of a particular investment or strategy will depend on an investor’s individual circumstances and objectives.CRC 4714786   4/22