In the light of a new study by Remchannel that indicates rising inequality against women over maternity leave, South African companies need to undertake a critical review of current workplace practices.

The study, conducted during 2021, found that while 60% of the Employee Benefits survey participants provided fully paid maternity leave for the minimum required 4-month period, 24% indicated that an employee wouldn’t receive a salary during her maternity leave.

Remchannel Managing Director René Richter says the 24% amounted to a regression of 7 basis points since 2019. This could in part be due to difficult trading conditions from persistent low economic growth over several years and the sudden emergence of Covid-19.

Unintended consequences of following the BCEA only

The Basic Conditions of Employment Act (BCEA) makes provision for both paid and unpaid maternity leave, and the choice is defined by each company’s maternity leave policy. The Act also makes provision for employees to claim UIF during the period, however, it’s only a portion of their remuneration.

‘It’s important to understand that many organisations in following the letter of the law aren’t fully aware of unintended consequences. Unpaid maternity leave places a major financial burden on the family unit at a time when it’s crucial to have access to these funds,’ says Richter.

‘The consequence of this is that the family would probably need to obtain loans, and this has a longer-term impact on financial recovery. As the major caregiver, it also by implication means that more than one pregnancy in a woman’s career will impact financial wellbeing as well as career progression over a period of time,’ she adds.

Global research indicates that about 50% of women feel their careers were negatively impacted due to pregnancy. According to the 2021 PwC Women in Work Index, progress for women in the workplace regressed to 2017 levels due to Covid-19, which saw a large number of women leave formal employment. It also found that only 5% of chief executives are women and the gender pay gap is most pronounced in the top JSE-listed companies.

Richter says with such stark workplace inequalities, companies are missing an opportunity to create a compelling employee value proposition that would attract and retain highly skilled and sought-after women.

‘The advantage of changing to a paid maternity leave policy will mean that women no longer have to choose between a career and having a family. They’ll be able to enjoy the time with their newborn baby without financial concerns,’ says Richter.

How to make your maternity leave policy more balanced and fair

‘Expanding maternity leave policies and inclusive medical benefits to better serve the needs of women will not only make them feel valued by their organisation, but it will also increase the retention of highly skilled employees and be a competitive advantage when it comes to attracting the best talent.’

Richter advises that to halt the regression, corporate SA needs to conduct a critical review of existing practices to identify their potential long-term impact on the women on their team. This review should identify the biases that are most likely to affect the organisation; their impact; and how the culture of the organisation can be adjusted to address them.

In addition, Richter says companies need to adopt a contemporary approach to hiring, promote open dialogue, and most importantly, make leaders responsible for recognising bias and hold them accountable to ensure equity, diversity and inclusion. While these measures may by implication carry an additional cost, they could be phased in.

‘Although compliance with the BCEA is seen as the minimum requirement, consideration must be given to the consequences and whether the practice addresses inequality. It’s important that companies are aware of the often unintended biases in order to build organisations in which every employee feels equally valued regardless of gender,’ concludes Richter.

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