On Charles Wheelan's "maternity leave" musings
Tue Oct 02, 2007 at 08:31:38 AM PDT
Interesting column by Charles Wheelan, The Naked Economist, on Yahoo Finance.
Wheelan writes about his wife's grumblings about the women at her office who take "advantage of generous maternity benefits" and then quit right after they come back to work:
"It's unfair to the companies, and it's bad for other working women," she says. I think she's right on both points. A simple tweak to maternity leave policy could make companies and working women (and their families) better off. Maternity benefits should be more generous -- but also more finely targeted toward those women who ultimately return to work.
Wheelan explains why current policy regarding maternity leave, or as his wife calls it, "a maternity bonus," is bad for working moms:
- Maternity benefits are expensive. And the more generous the firm in this regard, the more expensive the policy.
- Even an expensive maternity policy makes perfect sense if it helps to retain valuable employees. But the more often a firm gets "burned" by an employee who accepts generous benefits (beyond what's required by law) and then quits, the less sense the policy makes.
- The more generous the policy, the more it hurts to get burned.
- If enough women accept generous maternity benefits but don't ultimately return to work, some rational firms will decide that expansive maternity benefits just don't make financial sense.
Wheelan suggests that companies should pay the maternity leave payments over the course of two years. If you don't come back, then you don't get it.
Ok, I think this theory is flawed bigtime.
First of all, let's get toss out this ridiculous notion that companies give any paid disability leave to new moms out of the goodness of their hearts. They do it to try to keep their employees, to get the new mom to come back to work. The cost of replacing a good employee is high.
Second, most companies don't pay a maternity leave policy, it's a medical disability. Has Wheelan ever given birth? It takes a heck of a long time to recover in a medical sense. Adoptive parents go through their own physical and emotional recovery and re-centering as well.
Third, maybe we should just get this all out of the hands of private companies and come up with a fair maternity leave policy for all new moms. Maybe our government could even help us with that.
What do you think Mothertalkers?
Do you think that it is wrong for a new mom, who knows that she will not be returning to work after her maternity leave is up, to accept the medical disability payments and medical coverage during her leave? Do you think it hurts the working moms who do come back and future working moms?
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