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The Truth about Enhanced Maternity Pay

  • 22nd April 2021
  • Elizabeth Willetts
  • 6 mins read
The Truth about Enhanced Maternity Pay featured image

Does enhanced maternity pay hurt women’s careers?

This is a question I have been pondering for a while now. To clarify, I am not talking about the pay, per se. Who doesn’t need the extra money when so much paraphernalia is needed when you have a baby (as well as bills to pay)? No, I am talking about the entry barriers to enhanced maternity schemes that so many employers have in place.

In my blog post, I am 1 of the 259,000 women made redundant during the Covid pandemic; I quote the Institute of Fiscal Studies and their findings. Findings show that women’s earnings start ti fall behind men’s BEFORE the birth of their first child. Why?

The best way to get a pay rise is to switch employers

As a Recruiter, I know the best way to get a pay rise is to switch employers. However, many employers stipulate that you are with them for a year before falling pregnant and being eligible for enhanced maternity pay. Women know they may miss out on extra maternity pay if they change employers and become pregnant shortly after.

But here’s the thing—I know from speaking to friends that many women withdraw from the job market WAY before putting their baby-making plans into motion. These friends have confided in me that they have plateaued in their current roles. They would love to find a new position to gain new skills and promotions, but they stopped short of applying for new roles. Why?

Because they don’t want to lose out on the additional pay they may now be entitled to by becoming pregnant shortly after switching employers, they continue to tread water in their current role until one day, often way into the future, they finally fall pregnant.

Moneybox with baby written on the outside

This is such a waste!!! Not only for the ladies in question who miss out on gaining new skills and experience (and climbing a rung on the ladder). It is also a loss for employers. These women are seriously talented. They would be an asset to any organisation and often stagnate in a role they have long outgrown.

In my Open Letter to UK Employers, I highlight that only 2% of couples take advantage of shared parental leave (source: People Management). Men, therefore, have no such qualms. They continue to switch employers and climb the career ladder to their heart’s content. It is at this point that the gender pay gap starts to emerge and widen.

I understand that some organisations feel women have to ‘earn’ the right to maternity pay, whilst offering many other benefits from day one. I, however, believe this is a regressive policy that does more harm than good. Think about the fantastic talent you miss out on because you are so frightened to lose someone for 9 months! Still, employers continue to put policies such as these in place, preventing female talent from risking even applying.

I couldn’t find any statistics (understandably) for the number of women who become pregnant shortly after starting a new job. However, according to the NHS, it can take up to a year for a couple to fall pregnant. I know from my infertility struggles that it can take a lot longer than that. I can recall only one colleague falling pregnant shortly after starting a new role.

Invisible barriers

Sadly for me and many others (1 in 6 couples have trouble conceiving), this wasn’t the case. It ended up taking me YEARS to fall pregnant. I had moments where I thought, ‘Should I go for this job/promotion if I get pregnant next month?’ If teachers taught us that yes, some people do quickly fall pregnant, but it can take months (or longer), women may be more inclined to advance their careers, knowing a pregnancy does not always happen instantaneously.

Are women also putting up more invisible barriers than needed? As someone who had to have IVF, I believe the sex education taught in schools may contribute to this mindset. It is drummed into us to use protection. Well-meaning teachers repeatedly tell our teenage selves that it only takes one slip-up to become pregnant. Based on this, I, like many women, thought that as soon as I threw away my pill packet, I would magically fall pregnant.

Woman looking sad holding a pregnancy test

Women don’t switch employers to game the system and take advantage of enhanced maternity pay. We want to get new jobs for all the reasons men want to get a new job (new experiences, more progression, shorter commute, etc.). But we’re not stupid. We don’t want to be penalised for taking a new role, should we (at some point) fall pregnant.

Consider it this way: Would you walk away from a bonus you accrued? Many employers don’t think twice about buying expensive bonuses to lure candidates away from their current employers. Are enhanced maternity schemes viewed differently because they apply to women, and the buying out of bonuses more typically applies to senior men? 

How can employers afford to miss out on exceptional female talent?

To attract more female talent, employers who can afford to should consider opening enhanced maternity schemes to new starters. I very much doubt your worst fears will come true, and all your new female recruits will announce their pregnancies within a month of starting. You may think you can’t afford to do this – just in case. But by missing out on a broader and more talented candidate pool, how can you afford not to? The long-term benefits surely outweigh any potential downsides.

Interview ResearchAnd while we are at it, one final request: can employers please be more open about the maternity schemes they have in place? Women (and men) want to know! As I said, it is not because we all want to fall pregnant next week. Rather, if you do offer us a job, we need to know the full package details to compare it fairly to any other offers we may have on the table. We need all the details to decide the best long-term offer for us. The onus should not be on the female candidate to have to ask for that information awkwardly. You tell us the details of your fancy gym membership and pension scheme. Please stop shrouding your maternity scheme in mystery.

And here’s a radical thought – if you really want to be seen as a progressive employer, how about including the details of your maternity scheme in your job advert, along with the other benefits you detail? Just a consideration.

What are your thoughts on this? Do you think that if employers removed the entry barriers to their maternity schemes, it would help women progress in the workplace? Or do you think this would be unaffordable for many organisations? Let me know. I love hearing your views.