Law firm takes a new approach to parenting and whānau support.
This article has been prepared by Buddle Findlay and is being published by NZME as advertorial.
The ‘motherhood penalty’ in New Zealand limits a women’s potential earnings by up to 12.5 per cent over her entire career, leading New Zealand law firm Buddle Findlay has highlighted.
The percentage - which is sourced from Global Women leadership collective data¹ - can quickly translate into hundreds of thousands of dollars in lost income, plus the extra penalty in foregone KiwiSaver contributions.
While the motherhood penalty might play out across a woman’s working life, perhaps the biggest hit comes immediately after the arrival of a child.
Parental leave is an area where Aotearoa significantly underperforms. Among wealthy nations, we ranked third-worst for leave for mothers in Unicef’s 2019 report, and dead last (tied with eight other nations) for leave available to fathers.
Since then, paid parental leave has increased to 26 weeks, but the Government cap is currently $661.12 per week, well below what a person would earn working full-time for minimum wage.
And it’s not only mothers who are impacted; although paid parental leave can be transferred from the primary caregiver, just over 1 per cent of men actually take paid parental leave. And 89 per cent of men say they would like to be more involved with their kids’ lives, but work commitments prevent it from happening, according to a Year Growing up in New Zealand study.
Could a more equitable parental leave system help to close the gender pay gap and help share out family time? Leading New Zealand law firm, Buddle Findlay believed it could and the firm has recently introduced a progressive parental leave package².
It pinpoints four factors that are essential to supporting parents and whānau: financial support, a focus on gender equity, independent coaching to support transitions and decision making, and supportive and empowering leadership.
Using that information, the firm developed a parental leave package that includes
• 26 weeks of paid leave for parents (either or both parents irrespective of gender) while they undertake the primary care of the child which can be taken within the first 24 months of the child being born.
• Full salary and KiwiSaver contributions continue during the 26 weeks, and holiday pay is at full value when parents return.
• Four weeks of paid partner’s leave, which can be taken within the first 24 months of the child being born.
• Coaching before, during and after return from parental leave to support the transition in and out of the workplace.
• Coaching for the supervisor in the team of the returning parent.
“We know how hard it can be to be a parent and maintain your career, and the research tells us this is more challenging for women,” says Charlotte von Dadelszen, Buddle Findlay board member and chair of the firm’s diversity and inclusion committee. “We’ve developed a more equitable parental leave policy, allowing for both parents to take time away from work and play an active and primary role in the care of their child.”
Both mothers and fathers at Buddle Findlay have already benefitted from the new policy, including Buddle Findlay manager, people and culture, Margot Elworthy, who was one of the first to become a parent since the change was implemented.
“The package has allowed us to focus on what’s important and put everything in to giving our child Bowie the best start,” she says. “It means we can enjoy the special moments and time as a whānau with less pressure while away from work. I am looking forward to returning to a workplace that wants the best for their people.”
For senior associate Mark Mulholland, it’s been a net positive for the whole family: “The increased focus on gender equality has given me the opportunity to spend much more quality time with my daughter, while also enabling my wife to continue developing her career. The paid parental leave policy has been really positive for our family.”
Their experiences support the research that indicates how important a good parental leave package can be for Kiwi families. Longer paid parental leave has been linked to reduced financial instability and women returning to work more quickly, supporting a stronger workforce, according to local research³.
Innovative parental leave packages could be an important tool in attracting and retaining the best talent within New Zealand businesses, as well as supporting a lower wage gap and more equal parenting opportunities.
“We are really proud of the new package and entitlements,” says von Dadelszen. “We genuinely believe it reflects the importance Buddle Findlay places on supporting our people and their whānau.”
To learn more about Buddle Findlay visit www.buddlefindlay.com
1. globalwomen.org.nz/the-motherhood-penalty
3. Download local research report.
