In the war for talent, employers must carefully consider the way in which they support working parents and carers, who often represent a significant proportion of the workforce. The ageing population means this could become even more of an issue, as increasing numbers of employees find themselves caring for both children and elderly parents simultaneously. The winners, therefore, are those employers which have developed effective strategies of support that go way beyond their legal responsibilities.
Given the wealth of products on offer, employers may mistakenly assume that cramming as many benefits as possible into a package will guarantee staff retention and loyalty. But the key to making benefits work lies in having a well thought-out strategy.
Lucy Daniels, a consultant at the charity Working Families, believes an employer's strategy to support working parents and carers should focus on four key areas. "The first is the most basic level of support and includes tangible benefits such as childcare vouchers and nursery provision, as well as access to practical support through [perks] such as employee assistance programmes (EAPs)," she says.
At the second level of the strategy should be leave provision, including maternity leave and additional holiday for parents, while the third level should consist of flexible working arrangements, job sharing, condensed hours, flexi-time, and team planning.
At the fourth level should sit management training and personal development plans. This is where an organisation's attitude to supporting parents and carers becomes embedded in its culture, so adopting the right approach is important. "During the annual appraisal process, for example, employers should be asking for feedback on work-life balance from all staff," adds Daniels
When starting to build a strategy to support carers employers should look at basic benefits provision, such as childcare voucher schemes, which are offered through salary sacrifice arrangements and are exempt from tax and national insurance contributions (NICs) up to £55 per week. Andy Philpott, marketing director at Accor Services, says these are one of the fastest growing benefits selected by employers. "Workplace nurseries might work for large employers but can be expensive and impractical depending on where they are based and where parents live, while directly contracting childcare will require more administration and limit parents' choice of provider. Childcare voucher schemes are now more popular than these options. As long as employers shop around for a provider that understands their business objectives and offers staff the right level of support, it will be time well invested," he says.
Nursery provision is another popular benefit and staff are eligible for a full tax break if an employer is involved in funding and managing the facility. But in some cases, because of the restrictions on-site creches place on parents' choice of care, and the huge set-up and running costs for the employer, this approach is giving way to more flexible options.
Oliver Black, co-founder of My Family Care, which offers a range of services including emergency childcare and out-of-school care, says: "An effective strategy of support for working parents must be underpinned by choice and flexibility, which fixed workplace nurseries can't always provide."
Workplace nursery partnerships, where employees can use childcare facilities nearer to their home than workplace, offer similar benefits as an on-site facility, but require less funding and management from employers.
"These partnerships have been popular with employers and working parents, but even these are being superseded by more flexible options, such as employer-supported emergency and holiday care options that cater for all eventualities," says Black.
Providing employees with ways to source emergency care arrangements for both children and elderly or disabled dependants should their usual provision let them down can also be a valued perk and provides staff with an alternative to having to take time off at short notice. Enabling staff to work flexibly can also help in such situations, for example, by allowing them to work at home for a day if possible, or swap shifts with other employees.
Some forward-thinking employers offer support for working parents even before their child is born, providing benefits that are aimed specifically at helping staff through their maternity leave. This can either be done in-house or by using a specialist external organisation, such as Managing Maternity, which provides maternity coaching for staff before, during and after their maternity leave.
Managing Maternity founder Anna Hayward says: "The companies we work with have a well-established strategy and are clear about what their employees want and value. As a result, they enjoy extremely high rates of return from maternity leave, and more importantly, when employees do come back, they are engaged, productive, and committed to staying with the company."
Some organisations have also established networking groups, where staff with similar care issues can offer help, advice, information and support to each other. Other employers have gone a stage further, working with organisations such as the Parent Coaching Academy to develop educational initiatives that can be included in their strategy. For example, some have made provision for staff to attend on-site training courses, workshops and seminars, on topics such as 'How to succeed as a working parent'.
Academy founder Lorraine Thomas says: "Organisations supporting working parents and carers in this way are light years ahead of those who simply fulfil legal requirements."
Alongside this practical support, many carers may require emotional support, particularly if caring for disabled or seriously ill relatives. This could be provided by an EAP or other form of counselling service.
Formulating a strategy to support working parents and carers also has advantages for employers. Over time, this approach to employee support will define the corporate culture, which can help with long-term recruitment and retention of top talent, and boost employee engagement.
"Five years ago, people were wary, even afraid of discussing childcare issues at work, as they felt that it was seen as a weakness. Today, the employers that are leading the field are those that are reaching out to their people and asking what they can do to help, which is quite a culture shift," adds Thomas.
If a strategy is to be fully effective, it must be documented in a formal policy, detailing all aspects of a working parent or carer's employment rights, including benefits, maternity entitlement, requests for flexible working arrangements and time off to deal with emergencies.
Provided the employer has consulted staff on a policy's content this should not be a problem. Laura Williams, senior researcher at the Work Foundation, says: "Some employers fear that promoting their strategy for managing working parents [or carers] will alienate staff who are not parents [or carers]. The reality is most people are fair minded, as long as the consultation process is open and inclusive, policies are transparent and clearly communicated, and there are benefits that are of value to everyone."
Responsibility for communicating policy often falls to line managers, so their training and support should be a priority.
As with any business strategy, to succeed, it must be led from the top, says Philpott. "The more that senior management buy into the value of work-life balance, the more likely it is that schemes to support working parents [and carers] will succeed. If you've developed an employee engagement strategy, you should already have set out your corporate values to show what your organisation and its leaders really stand for. If you haven't, now is the time to do it," he concludes.
Current legal requirements
When building a support strategy for working parents and carers, employers must be aware of their legal obligations.
• Flexible working
A parent of a child under the age of six years (or disabled child under the age of 18 years) has the right to request to work flexibly. Both parties must follow a specific statutory procedure when making and considering the request. In addition, employees who care for adults who are their spouse or civil partner, a close relative (including step and in-law relationships) or who they share a home with, have the same right to request flexible working arrangements. James Upton, employment law partner at law firm Hill Dickinson, says: "The employee should make the request in writing, specifying the impact this will have on the company and how, in their view, this impact could be mitigated or resolved."
The government has also announced this right to request flexible working will be extended to all parents of children up to the age of 16 years. The extension is due to come into force in April 2009.
• Maternity leave
All expectant mothers have a right to up to 52 weeks maternity leave, made up of 26 weeks ordinary maternity leave (OML) and 26 weeks additional maternity leave (AML). During this time, staff will receive statutory maternity pay for up to 39 weeks, a period which is expected to rise to 52 weeks from around 2010.
During OML, mothers are entitled to all of their usual contractual benefits, except for salary, while during AML, they are entitled to only the very basic contractual rights. After 5 October 2008, mothers will be entitled to the same rights during AML and OML.†
"The government has also expressed a wish to create shared maternity leave between mother and father, and has started consulting on legislation to introduce this measure," says Hill.
• Paternity leave
Fathers can take up to two weeks paid paternity leave within the first eight weeks after the birth of their child.
• Parental leave
Parents can take up to 13 weeks unpaid leave until the child reaches the age of five years. This right also applies in the first five years after an adopted child is placed with his or her adoptive parents up until the child reaches the age of 18 years.
Accenture offers a number of initiatives to support its working parents. Its Maternity Returners programme, for example, which was introduced in 2005, includes a pre-maternity leave workshop, a website and interactive discussion board for working parents, and checklists for HR representatives, career counsellors and line managers to ensure that they maintain clear, sensitive two-way communication with employees before, during and after their return to work.
Susie Mullan, HR head, human capital and diversity, says: "Many of our employees have parental responsibilities and it is critical that we support them throughout all the stages of their parenting journey."
The programme fits into the company's wider support strategy, which includes a childcare voucher scheme offered through salary sacrifice, access to emergency childcare, and lunchtime seminars on topics ranging from choosing a primary or secondary school to first aid for parents.
A working parents database allows staff to exchange tips and notes, while some working parents act as informal buddies on topics such as coping with pregnancy at work, dealing with teenagers and flexible working arrangements.
Ahead of forthcoming legislative changes, Accenture has increased its maternity leave provision to nine months' fully-paid leave. This is available to all female staff regardless of length of service.
"We also have keep-in-touch days, which are optional, but have more or less 100% take-up. People may not want to return to work just yet, but they still want to know what's going on in the office," adds Mullan.
The strategy appears to have paid off. Since 2006, the number of women returning after maternity leave and staying with the company for a further year or more has risen from 75% to more than 90%.
Accenture
Accenture offers a number of initiatives to support its working parents. Its Maternity Returners programme, for example, which was introduced in 2005, includes a pre-maternity leave workshop, a website and interactive discussion board for working parents, and checklists for HR representatives, career counsellors and line managers to ensure that they maintain clear, sensitive two-way communication with employees before, during and after their return to work.
Susie Mullan, HR head, human capital and diversity, says: “Many of our employees have parental responsibilities and it is critical that we support them throughout all the stages of their parenting journey.”
The programme fits into the company’s wider support strategy, which includes a childcare voucher scheme offered through salary sacrifice, access to emergency childcare, and lunchtime seminars on topics ranging from choosing a primary or secondary school to first aid for parents.
A working parents database allows staff to exchange tips and notes, while some working parents act as informal buddies on topics such as coping with pregnancy at work, dealing with teenagers and flexible working arrangements.
Ahead of forthcoming legislative changes, Accenture has increased its maternity leave provision to nine months’ fully-paid leave. This is available to all female staff regardless of length of service.
“We also have keep-in-touch days, which are optional, but have more or less 100% take-up. People may not want to return to work just yet, but they still want to know what’s going on in the office,” adds Mullan.
The strategy appears to have paid off. Since 2006, the number of women returning after maternity leave and staying with the company for a further year or more has risen from 75% to more than 90%.
