What is the Business Case for Enhanced Parental Leave?

What Is the Business Case for Enhanced Parental leave?

This is article we explore these 3 key areas:

✅ Improves Employee Retention and Recruitment.

✅ Boosts Productivity and Engagement

✅ Supports Gender Equality Goals.

Why Is Enhanced Parental Leave More Important Than Ever?

In this post I’ll be examining how enhanced parental leave policies benefit UK businesses from an economic and cultural standpoint. But, before we get into the details of benefits for companies, let’s first explore what we mean by ‘Enhanced Parental Leave’ and then look at the big picture benefits for societies and families.

a) What is ‘Enhanced Parental Leave.’

The statutory requirements in the UK are very modest, amongst the worst in Europe…

Maternity Leave

“Statutory Maternity Pay (SMP) for eligible employees can be paid for up to 39 weeks, usually as follows:

• the first 6 weeks: 90% of their average weekly earnings (AWE) before tax

• the remaining 33 weeks: £184.03 or 90% of their AWE (whichever is lower)”

https://www.gov.uk/employers-maternity-pay-leave

Paternity leave

“Employees can choose to take either 1 week or 2 consecutive weeks’ leave…

Statutory Paternity Pay for eligible employees is either £184.03 a week or 90% of their average weekly earnings (whichever is lower). Tax and National Insurance need to be deducted.”

https://www.gov.uk/employers-paternity-pay-leave

Shared Parental Leave

In 2015, the UK introduced a shared parental leave policy allowing eligible parents to split up to 50 weeks of leave and up to 37 weeks of pay between them. This pay is at the statutory rates describes above.

The answer in literal terms: Enhanced Parental Leave could be anything above these Statutory levels.

1 week at 50% of pay would, for many men, be an enhancement to their current pay.

Not all enhanced leave is equal

The Inspiring Dads’ Parental Leave Database highlights organisations with:

• Equal Leave - the same leave regardless of how you become a parent.

• Equal Via SPL – where the shared parental leave pay and length of time matches maternity leave time and pay.

• 6 weeks for Dad – leave that matches an organisation’s paternity leave with the statutory maternity provision.

b) The Macro-economic benefits

A Pregnant Then Screwed and Centre for Progressive Policy report in 2023  found that countries with more than six weeks of paid paternity leave have a 4% smaller gender wage gap and 3.7% smaller labour force participation gap. Their analysis also suggested that closing gender employment gaps could increase economic output by £23 billion.

In findings of a similar vein, the World Economic Forum's Global Gender Gap Report 2022 found that 80% of the gender pay gap was driven by Maternity leave. Leave is important for the well being of mothers and babies alike, but inequalities in the length of leave can entrench societal norms, reducing choice and the fuelling the gender pay gap.

c) Societal shift

The Pregnant Then Screwed and Centre for Progressive Policy report also found that just 18% of Brits think 2 weeks paternity leave or less is enough, but one in five (22%) dads and partners that are eligible for paternity leave take no leave at all.

Why would dads not be taking leave? When, according to the research from Zurich of 1,000 new dads, three quarters said they’d like to take up to 12 weeks off work at this time?

d) Because paternity leave doesn’t pay

Crucially it’s about finances.

As Tom Cruise’s character once said – “Show me the money!”

The Fatherhood Institute asked “What price for time with dad?” and calculated that a full-time employed father in the UK, on average earnings, can lose £1,021.04 when they take two weeks of statutory paternity leave.

---

The Business Case

1) Improves Employee Retention and Recruitment 

• Research by Working Families and Bright Horizons shows that 48% of UK parents who have access to enhanced parental leave report higher job satisfaction and engagement, contributing to better long-term employee performance.

• Bright Horizons found that 80% of UK employees feel more committed to their employer if they have access to flexible family-friendly policies, including enhanced parental leave.

• In this article, Flexa look at why parental leave so important, and how does it benefit both employees and businesses?

  “Enhanced parental leave policies contribute to higher employee retention rates and create loyalty among employees. When companies provide ample time off for new parents, it shows that they value their employees' well-being and support their life outside of work. This can lead to increased job satisfaction and a stronger commitment to the company”.

• Meanwhile Zurich talked to dads and discovered that:

“when looking for a new role, 43% of new dads look for paid paternity leave above bonus (42%) and salary (27%)”, which isn’t surprising when the same data showed that “of those that take no time at all, seven out of 10 can’t afford to”, while “a third of new dads were forced to take holiday while 12% resorted to unpaid leave in order to spend time with their new babies.”

2) Boosts Productivity and Engagement

Lisa S. Kaplowitz and Kate Mangino

• The CIPD found that companies offering enhanced parental leave see improved mental health and well-being among returning employees, leading to higher productivity and lower absenteeism.

• Further nuggets from the Pregnant Then Screwed and Centre for Progressive Policy report:

  “We find that a woman’s partner taking parental leave is associated with a 34% increase in the likelihood of a woman being physically able to return to work”

• Lisa S. Kaplowitz and Kate Mangino, researching at Rutgers University identified a wide range of workplace skills that are developed through the process of care giving. Find out more in the HBR article “Caregiver Employees Bring Unique Value to Companies”

3) Supports Gender Equality Goals

• The Fawcett Society, the UK’s leading membership charity campaign for gender equality and women’s rights at work, at home and in public life is seeking government to introduce a dedicated period of leave for fathers “paid closer to replacement earnings rate. Current shared parental leave legislation is welcome, but too few fathers will be able to take it.”

• PWC’s Women in Work 2023 Report highlighted that:

  “In 2021, the OECD found the motherhood penalty accounted for 60% of the gender pay gap across 25 European countries, with factors… In Northern and Western European countries, the motherhood penalty accounted for 75% of the gender pay gap.”

• Research by McKinsey (2020) showed that companies with a strong focus on diversity and inclusion, including robust parental leave policies, are 25% more likely to have above-average profitability, driven by diverse leadership teams that enhance innovation and decision-making.

Bonus reason - Reputational Kudos.

Man on LinkedIn posts sleep deprived picture with his baby. He thanks his employer for the opportunity to take 3 months leave. The comments blow up, the organic reach is astronomical. I notice and the employer makes it the database

In Conclusion

Creating opportunities for your new parents to access well paid extended parental leave, regardless of how they become parents is being increasingly seen as a core part of the employee benefit offer.

As at 9th May 2025, The Inspiring Dads’ Parental Leave Database captures over 370 UK organisations

👏 134 Equal Parental Leave offers.

👏 a further 85 organisations equalising via Shared Parental Leave.

👏 192 organisations in the UK who offer 6 weeks full pay for dads (ringfenced, not hidden within Shared Parental Leave)

The reason those numbers are rising every month is laid out in the evidence above - enhanced and equal parental leave positively impact employee retention, productivity, diversity, and long-term business growth in the UK. Crucially a fairer, better society has to include equality at choice around caring responsibilities. It’s the route to gender equality.  

Campaign to Make Things Better:

PS If you think that Men don’t Want to Take Leave?

Stats around the low update of shared parental leave paint a picture that could easily be misinterpreted but when organisations get the culture and pay ‘right’ and remove the issue of transferring leave men will take the leave they are entitled to.

• Two thirds of new dads at Zurich UK took their full 80 days paternity leave in 2023.

• 80% of men Aviva have taken at least five months out of work when a new child arrives, and 79% of men have taken over five months for subsequent births

Extra Resources

If you are considering introducing an Equal Parental Leave policy, here is a brilliant guide from Business In The Community which explores costs, benefits and tips for successful implementation. Plus see measurement tips and tricks from Careers After Babies.

Photo Credit Vitolda Klein @little_klein via Unsplash

More Parental Leave posts

5 Practical Tips to cope with the Impact of Fatherhood

Practical Impacts of Fatherhood aka “You don't know what you don't know”

Becoming a dad for the first time can be tough, it doesn’t matter how many books you read you can’t know or be prepared for everything.

This blog post walks you through 5 common practical impacts of fatherhood and gives you tips to navigate your way.

·         Sleep Deprivation

·         Social Life

·         Discrimination

·         Money

·         Mental Health

1) Sleep Deprivation

Did you know that babies aren't considered physically able to sleep through the night until they are at least 6 months old? Sure, you can get lucky - our first, Freya was an amazing sleeper, but she screamed all day due to her reflux!

While our babies can’t prioritise sleep, adults have a lot more control, but sometimes sleeping doesn’t appear to be a good use of our time and there is a danger that you put your entertainment time ahead of sleep in the evenings. Yes, we all need to unwind, but allowing that to eat into sleep time is going to counterproductive. 

Consider my client Andy's observation:

"If you can prioritise you and your partners ability to sleep then a lot of the other things fall into place, it makes the hard stuff easier with a clear head.  If you're both sleep deprived, it makes even the minor issues trigger points for disagreement."

While the excellent and thought-provoking book Why We Sleep by Matthew Walker reminds us of the importance of sleep.

"It enhances your memory, makes you more attractive. It keeps you slim and lowers food cravings. It protects you from cancer and dementia. It wards off colds and flu. It lowers your risk of heart attacks and stroke, not to mention diabetes. You’ll even feel happier, less depressed, and less anxious."

2) Social Life (or not)

Photo Credit: @alevisionco via Unsplash

New parents’ lack of social life is a cliché for a reason. Life has changed, it won't be forever, but always remember that babies do not respect a hangover.

You need to think about three things

• "Putting your oxygen mask on first"

• Is it fair?

• Time together

You need to look after yourself to be able look after other people. As they say when you fly, put your own oxygen mask on first. It's important to understand what social life / hobbies you need to stay happy and grounded. Then talk to your partner about how to arrange it and fit it in.

Think about fairness too. 

When is your partner getting a break? Are you facilitating that process? If your partner says they don't want to do anything social, do you take the easy way out and stop asking or do you do everything you can to give them their own space? It can be very easy for new mums to put everyone else's needs first; part of your ‘job’ is to make sure that doesn't happen.

Consider the impact if you're pursuing your hobbies and social life and your partner isn't. It's a sure-fire way to create serious relationship tension.

Time together

It can be tricky in the early days to get time together away from your baby, but even if it's just for a few hours, while someone covers a nap, I guarantee the feeling of being partners and not just parents can be amazing if you let it. 

Don't worry if you find yourself using that time to talk about your baby, we all do it!

Most importantly social life as a new parent requires planning and communication to ensure everyone gets the time "off" that they need, plus I think it's important to recognise and embrace how friendship groups change. You are going to find yourself becoming mates with the dads of your children's friends, embrace it!

3) Discrimination

There are split views on this – the TUC found a fatherhood bonus with dads getting promoted / earning more once they are fathers. Yet there is also research by remote meeting tech firm PowWowNow finding that dads also experience discrimination if they take time off to look after children:

👉 44% of fathers experienced discrimination in the workplace after exercising their right to take time off to look after their child. 

👉 1 in 4 fathers suffered verbal abuse or mockery after taking time off to look after their children.

It’s really tough to be a woman though

Pregnant Then Screwed stats on pregnancy discrimination are eye opening and the combination of potential discrimination against any parent is particularly hard on dual income couples who both want to be active parents and have great careers.

Being clear on your priorities as an individual and as a family is key here. It might be tricky, but forging the right path for you will make you happier in the long run!

4) Money

Having a baby typically leads to more outgoings v potentially less income, you can quickly move from being a ‘DINKY’ couple (Dual Income No Kids Yet) into a ‘SITCOM’ (Single Income Two Children and Oppressive Mortgage).

But it’s no laughing matter if you aren’t prepared.

Do a budget, understand where all your money goes and what are needs and what are nice to haves. Additionally, you should have honest conversations about how you share income. Joint account or allowances? Whose income pays for what or is it all in one shared account?

It’s important to discuss money challenges because they are the number 1 reason marriages fail.  

5) Mental Health

Mental health challenges in new dads are really common – the NCT report that “the number of men who become depressed in the first year after becoming a dad is double that of the general population.”

It’s not surprising when the focus is naturally on mum and baby, and it can feel really important to be strong and supportive for them. It can also be difficult to open up to those close to you, especially if you are not used to it or aren’t comfortable being vulnerable with friends and family.

But it matters. Talking to someone can be life changing or lifesaving, because it’s tough being pulled in different directions.

Photo Credit: @picsea via Unsplash

Men’s Emotional Mental Health & Miscarriage

Freya is nearly 12 and Struan nearly 9, but in common with so many couples, we experienced miscarriages. Our first and third pregnancies ended in early term miscarriage. In this important guest blog post, psychotherapist Noel McDermott looks at the emotional impact of miscarriage and how we can improve support for men. Many men can experience an acute emotional response to the loss of a pregnancy, and it is important to create space for their own experience. Here Noel looks at how loss is a natural process that needs a support approach as we pass through its stages.

Ian, Inspiring Dads

Men’s Emotional Mental Health & Miscarriage

Probably the most important thing to say about this is not that men will or won’t get any particular set of feelings and experiences after a miscarriage, but that the focus will be more on the woman and and the man’s experience will be seen as secondary. Their experience may well be different to their partner, and this may increase the sense that it is secondary. Guys are likely to see themselves as having to be strong in these situations and showing vulnerability and distress as failing in their role as supporter. 

Toxic masculinity - signs of psychological distress

We can say with certainty that men who don’t identify difficult feelings and find support for them, will usually turn to destructive ways of coping. Much of what is termed ‘toxic masculinity’ is an expression of psychological distress. In this case, the lack of identifying and dealing healthily with difficult feelings, can result in excessive drinking, aggression, isolation, loss of sleep, changes in appetite, seeking sexual relationships outside the partnership as ways to cope.

How to deal with feelings in a positive way

There is a need to provide basic information to men going through this and present it in straightforward ways, explaining that there are positive and negative ways of dealing with feelings brought up during times of loss and distress and it’s very much a decision to be made, in therapy this is called a psycho-educational resource. Much distress and the development of maladaptive coping strategies can be avoided by this simple approach, of giving knowledge about what to expect and what is normal in times of psychological challenge. Psychoeducation is in fact one of the cornerstones of modern therapy and is evidenced to be highly effective both in treating distress but also in preventing it.

“What can’t happen is to not have feelings. Men may want to put to one side uncomfortable feelings so as to be better at helping and supporting or just to avoid pain. Emotions cannot exist selectively, it’s not possible to choose which ones to have, we either have them or we don’t. Not having emotions involves highly dysfunctional behaviours such as for example, excessive drug and alcohol consumption.” 

Normalising feelings and emotions

What is normal and indeed healthy in this situation will in fact be a broad range of things, normalising is another tool that is very helpful. Knowing what we are experiencing is normal leads to us developing greater distress tolerance and reduces the likelihood of maladaptive acting out. We cope better being able to tell ourselves that this is just part of the experience. If a man is suffering from grief, he doesn’t necessarily cry, the range of things that might occur are:

• Loss and loneliness

• Anger and sadness

• Numbing out through grief

• Loss of libido or the opposite hyper-sexual responses

• Feeling of guilt or the opposite displacement into blame

• Problems with sleep, mood, emotional regulation, appetite, motivation, having a general sense of dread, not seeing a hopeful future

• Struggles in the relationship as you seem to separate from each other in the hurt and loss

Male bonding: Men’s emotional health

Without a doubt the best therapy in life is the company and support of other humans that we care about and who care about us. The herd is where we feel safe and where we get most boosts from in terms of our health and wellbeing. Simply being in the company of folk we like when we are troubled will reduce our stress responses to our troubles. For men this is often the best approach, not dealing with the problem head on but in a roundabout way by having good social time with mates. Often guys will open up during these contacts but arranging to meet a mate to discuss their difficult feelings can often seem alien and indeed could be counterproductive. Activity based support often work better for men, the distraction of the activity reduces the tension of dealing with challenging feelings, particularly if, as is likely the case with miscarriage, there may be significant feelings of failure and shame.

How to support your partner after a miscarriage

Being able to be honest about how difficult a man is finding the loss, is often very helpful to their partner. Many men don’t intuit this as culturally they are not brought up so, but by actually revealing that you are struggling will help your partner and can in fact potentially reduce their own sense of failure and isolation. Though this won’t be true in all cases it is a general rule that is helpful. In this way the possibility of the relationship breaking up, which is the fear for the guy here, is reduced.

Male psychology as culturally programmed is to be of use, to be able to provide and do stuff, the more intangible support such as being rather doing can be experienced in an awkward manner. It’s an important skill in this though as loss is more of a natural process that needs little actual intervention as such, and more of a support approach as we pass through its stages. 

---

About the Noel McDermott

Noel McDermott is a Psychotherapist with over 25 years’ experience in health, social care, and education. He has created unique, mental health services in the independent sector. Noel’s company offer at-home mental health care and will source, identify and co-ordinate personalised care teams for the individual. They have recently launched a range of online therapy resources to help clients access help without leaving home – www.noelcdermott.net  

 Where to get more help 

The Miscarriage Society produces a leaflet for men simply explaining what they might experience during this time. It legitimises men’s experiences during this time and provides the  information in a way that is accessible and emotionally manageable -

https://www.miscarriageassociation.org.uk/wp-content/uploads/2016/10/Men-and-Miscarriage.pdf 

Watch Noel as a Guest on the Lockdown Dads podcast

---

new Dads are new parents too

New dads are new parents too

Nicki Seignot, Author of 'Mentoring New Parents at Work' and founder of The Parent Mentor talks to James and Ian in episode 36 of Lockdown Dads.

We discuss why supporting new dads matters, the role single dad Phil played to broadening Nicki’s horizons, beyond just supporting the maternity journey and what the post pandemic work landscape could look like.

Plus the usual podcast musings about schools going back, sunshine (!) and looking forward to better future.

Contents

00:50 The power of daylight in the mornings

02:15 Schools going back

02:45 Competitive world book day

04:00 Ian is looking forward to not apologising…

05:30 Christmas presents (!) and Covid

07:10 Nicki’s path-

• Taking maternity leave in the late 1990s.

• Hard choices and work just not working for mums

• Mum2Mum mentoring programme at Asda

• The important role of single dad, Phil

• That 2011 program became The Parent Mentor business

• Her book - Mentoring New Parents at Work and a realisation that dads weren’t part of the conversation.

“I mean, it sounds obvious talking to you too now, but you know, it was quite revelation at the time.”

13:45 A pivotal moment using a mountain top image as part of icebreaker cards

“He held the card up and he says this was me. And I used to go mountain climbing, cycling, you know, the world was my oyster and I don't know where he is anymore.”

And he literally broke down in the session, and I said to my client afterwards, I said, if you are in any doubt about the power of what you're doing, it's in the room right now. We have to talk to dads too.

14:30 The danger of grouping parents as a single homogeneous group

15:30 The Dad Connect programme

16:15 Mentoring v Coaching

18:50 We talk about reverse mentoring

21:45 “Good enough is good enough”

23:30 Work Life Balance

“It took me to have children to respect my work-life balance and to want work flexibly. Why do we give away all that discretionary time? And why does that have to be a parenting thing to want to work flexibly?

So I think in a way the pandemic has given everyone the gift of being able to say, I have a right to a life away from work”

24:00 Hybrid working and the role of line managers

25:50 Incoming culture clash - “working from home is an aberration” ?

26:30 Will there be a generational split about office working?

28:30 The mechanics of hybrid working models

Tips

James’ choose to challenge on parenting norms

Nicki talks about checking in on a new dad back from paternity leave

Ian has been reading Why we sleep? by Matthew Walker

——————————————————————————-

Connect with Nicki

www.theparentmentor.co.uk

https://www.linkedin.com/in/nicki-seignot-647b981/

Photo Credit @kellysikkema via Unsplash