The harsh reality for working mums: decade-long career recovery time after having children

Women account for just 30% of managerial roles, and a shocking 4% of CEO positions in the UK. Evidently, many women are dropping off the progression ladder before they’re able to reach senior postings. Statistics contradict the old adage that women want to stay home after having children,  with 98% of mums wanting to work in some capacity, and 86% for at least 3 days per week.

That said, what mums want often doesn’t coincide with their reality; the majority (85%) of women leave full-time employment within 3 years of having children and almost one-fifth (19%) exit work entirely. The 2023 Careers After Babies: The Uncomfortable Truth report unveils some of the glaring issues faced by working mums, estimating that their careers typically take over 10 years to recover and get back to the same level of seniority as they were pre-children.
 

At a glance: the impact on working mums

• The average salary doesn’t even cover the typical cost of rent plus full-time nursery care, says the ONS
• 5% of women are made redundant while on maternity leave, compared to 0.3% of the rest of the population annually
• Around 40% of fathers aren’t eligible for Shared Parental Leave (SPL)
• More flexible working policies could save women from leaving the workforce

Rent or nursery? The average salary won’t cover both

The UK has the third highest childcare costs in the world – it’s unsustainable and is forcing women out of work because they simply cannot afford it.

In the UK, the average cost of full-time nursery for a child under the age of two is £285.31 per week. Recent ONS data shows that the average weekly regular pay is currently £596 before deductions, so by the time tax and National Insurance are subtracted, an averagely paid worker would have just less than £200 left per week after paying for nursery. This wouldn’t even cover the typical cost of rent in the UK – £1,213 per month or around £280 per week – let alone bills, food, clothes, travel to work, or any other essentials.

To mitigate this financial burden, organisations could be offering benefits such as childcare vouchers, flexible working and, if possible, an on-site nursery.
 

Jobs are threatened during maternity leave

In the UK, employees are legally allowed to take up to 52 weeks maternity leave, and they have the right to go back to their same job if they return within 26 weeks, or a similar role if it’s between 26-52 weeks. In reality, their rights aren’t being protected in all cases; the rate of redundancies for women on maternity leave is noticeably higher than the UK average – around 5% of women are made redundant while on maternity leave, compared to 0.3% of the rest of the population annually. This anomaly alludes to instances of discriminatory redundancy, possibly under the guise of various fabricated justifications, such as restructuring.

Shared Parental Leave (SPL) was introduced in the UK in 2015 and means parents can now share up to 50 weeks of leave. However, it’s estimated that this is only being utilised by between 2%-8% of couples. This comes as no surprise as the system appears flawed for many. Around 40% of fathers don’t even have the option of SPL due to being ineligible, often because they’re agency workers, on zero-hours contracts, or self-employed. For the 60% that are eligible, it seems many are opting not to go ahead with SPL as it wouldn’t be financially viable, meaning maternity leave is the only feasible option, even if it’s putting women’s jobs at risk.

To counteract the current threats of maternity leave and SPL, organisations should be better protecting women on maternity leave against discrimination by making sure they’re not subject to unlawful redundancy, as well as increasing their paternity offering to more than the statutory requirement, both in terms of duration and compensation.
 

Increasing flexibility could help to retain working mums

Data shows that some working mums are leaving employment because they aren’t getting the flexibility they need. To prevent this from happening, employers need to be offering varied and attractive options for more flexible working. Childcare costs could be reduced if an employer provides the option of a four-day working week, which has been shown to improve productivity.

Our Salary and Recruiting Trends Guide found that 62% of employees would be tempted to change jobs if it meant they could choose how often they were in the workplace, as opposed to a more rigid hybrid working model. Greater workplace autonomy would undoubtedly be of interest to working mums, and is something that organisations should be considering in order to attract and retain them, along with wider employee groups. Other flexible working options that better cater for working mums include flexitime, job sharing, part-time work, and compressed hours.
 

Summary of key takeaway actions for employers
 

• Offer subsidised childcare to help mitigate the high costs for employees
• Truly protect jobs while workers are on maternity leave, ensuring they aren’t subject to unlawful redundancy
• Improve paternity leave by offering to exceed the statutory requirements, both in terms of duration and compensation
• Introduce and encourage a wider variety of flexible working options, such as less rigid hybrid working polices, a four-day working week, flexitime, job sharing, part-time work, and compressed hours

To find out more about how you can help your organisation become a positive, inclusive, and equitable environment for working mums, enquire about our DE&I advisory service.