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Across many organisations, there has been an ever-increasing recognition of the importance of family-friendly policies within the workplace. These policies not only reflect the values of an organisation but also play a critical role in employee engagement, satisfaction, and overall wellbeing. Reward Heads recently conducted a survey about family-friendly benefits and policies across Retail and Hospitality (which are huge employing sectors), which sheds light on the current landscape of family-friendly benefits offered by companies, highlighting significant trends and areas for improvement.
Maternity and Adoption Benefits
With over 16 million women in employment in the UK, companies who can demonstrate a desirable maternity and adoption benefit offering can be key in attracting and retaining women, especially into professional roles. A substantial 76% of companies surveyed offer enhanced maternity pay, that is above the statutory requirements of Statutory Maternity Pay (SMP). SMP is 90% of someone’s average weekly earnings (before tax) for the first 6 weeks, then £184.03 or 90% of their average weekly earnings (whichever is lower) for the next 33 weeks. Thus, receiving SMP only can be a significant drop in income for those looking to start a family.
However, the range of these offerings varies. When asked how organisations structure their Maternity benefits, there was a range of responses. The most common was a period of full pay, followed by a period at a lower percentage, then moving to SMP. Others offered a period of full pay before moving to SMP and some changed the percentage paid after so many weeks. Additionally, there were some differences in the employee groups that were offered enhanced maternity pay. For the most part all staff received enhanced maternity pay, but some organisations offered it to management only, senior leaders, head office only, or had length of service as a determining factor. Interestingly, 96% surveyed said their adoption policies mirror their maternity policies, indicating a growing recognition of the need for consistent support regardless of the method of family expansion.
Paternity Leave
Our survey found that enhanced paternity pay and leave are offered by 72% of the respondents. This statistic is encouraging as it reflects a shift towards recognising the role of fathers in early childcare. This isn’t just important for society and role models, but can also help to close the Gender Pay Gap overall. However, there is still room for improvement, as for the vast majority 2 weeks of leave is the typical offering.
Neonatal Leave and Pay
One of the most significant upcoming changes is the introduction of the Neonatal Care (Leave and Pay) Bill, which will become law in April 2025. The bill provides a right to additional leave and pay if someone is employed and responsible for children receiving neonatal care. If they meet the eligibility criteria it will offer up to 12 weeks of extra leave and pay. Despite this, our survey reveals that only four respondents have proactively implemented a formal policy in anticipation of this change. 86% of respondents said they are yet to bring in a formal policy as of yet, indicating a potential area of concern for organisations to review and update their policies to reflect these changes.
Fertility and Pregnancy Loss
Support for fertility treatments is another area where employers are beginning to offer benefits, with 38% providing paid time off for fertility leave. The upcoming Fertility Treatment (Employment Rights) Bill requires employers to allow employees to take paid time off from work for appointments in the early stages of fertility treatment and provides for protection against detrimental treatment for exercising the right. The bill aims to provide further protection and support for employees undergoing fertility treatments, which could encourage more companies to enhance their policies in this area.
Support for pregnancy loss is less common, with only 34% of companies offering time off in such circumstances. The Miscarriage Leave Bill intends to grant paid leave to people who have suffered a miscarriage, ectopic pregnancy, or molar pregnancy before 24 weeks of gestation. Currently, paid bereavement leave is only provided in the case of stillbirth after 24 weeks. This bill seeks to address this gap by mandating leave for those experiencing a miscarriage, emphasising the urgent need for more compassionate policies to support employees during these difficult times.
Surrogacy Leave
Surrogacy leave remains a rare benefit, with only 17% respondents confirming they offer such leave. This indicates that more awareness and policy development are needed to support all paths to parenthood adequately.
Compassionate and Carers Leave
Compassionate leave is widely supported, with 90% of respondents having a policy in place, typically offering five days. However, when it comes to carers leave and parental leave, all respondents confirmed they only offer the statutory provision, with no enhancements. This suggests a significant opportunity for companies to stand out by providing additional support for employees with caregiving responsibilities.
Childcare Support
Further support for employees with children comes in various forms, such as family leave, childcare provider discounts, and flexible working arrangements. These benefits are essential in creating a supportive work environment that values and aids employees in balancing their professional and personal lives. Childcare vouchers are now rare but there is no viable alternative for employers.
Legislative Changes and Company Preparedness
The introduction of new laws, such as the ones mentioned in this article, highlights the evolving landscape of family-friendly benefits becoming a more legislative matter. Despite this upcoming change, our survey indicates a lack of readiness among companies and presents a crucial area for companies to focus on to ensure compliance and support for their employees across all areas of family-friendly policies and procedures.
Our survey reveals a significant difference in the offering and quality of family-friendly benefits across companies. While many organisations claim to value family and care, there is often a mismatch between these values and their policies. By enhancing and standardising family-friendly benefits, companies can improve employee engagement, meet legal expectations, and truly support their workforce.
Ever-evolving expectations and legal requirements around family-friendly policies present both challenges and opportunities for employers. By staying ahead of legislative changes and implementing comprehensive, compassionate policies, organisations can develop a more inclusive and supportive workplace for all employees.
If you find yourself needing further guidance on reviewing your family friendly policies and what any potential changes may mean for your organisation and employees, Reward Heads team can support you. Please reach out to Victoria Milford, our CEO, at rewardsolutions@rewardheads.co.uk.
Emma Chamberlain - Senior Consultant