PwC's head of people: Improved parental leave policy is a 'win-win' for Australians

Employers like PwC are taking a lead in offering expanded parental leave

PwC's head of people: Improved parental leave policy is a 'win-win' for Australians

The Albanese Labor government has confirmed major changes to Australia’s Paid Parental Leave scheme following feedback from the Jobs and Skills summit in September. Parental leave is to be extended by six weeks to 26 weeks in total by 2026, with the government also reviewing the scheme to align with greater flexibility in the workforce.

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“We know that investing in parental leave benefits our economy. It is good for productivity and participation, it’s good for families and it’s good for our country as a whole,” said Prime Minister Anthony Albanese. “More generous and more flexible paid parental leave rewards aspiration and provides every parent of a new baby with greater choice and better support.”

More details of the scheme are expected to be revealed in the upcoming federal budget on 25 October. In the light of these changes, HRD spoke to Catherine Walsh, head of people and culture at PwC Australia, about the recent changes in the company’s parental leave policy and the introduction of a new miscarriage leave policy.

Was PwC spurred by government reform of parental leave or was this in response to employee demand?

“We have been talking about reforming our parental leave policy over the past year and while we had what we felt was a comprehensive parental leave policy, there was still a definition in place of primary carer. What we were hearing from our people, and aligned with growing awareness in society, was that PwC needed to recognise both parents as carers,” Walsh says.

Primary and secondary carer labels have now been abolished at PwC so that both parents can undertake caring responsibilities. In line with government policy, parental leave has increased from 18 to 26 weeks and leave can be taken up until the child is two years of age.

The Workplace Gender Equality Agency reports that parental leave schemes are becoming more gender-neutral. Increasingly, men and women are equally eligible to be designated primary caregiver. Nevertheless, only 12% of those taking parental leave in 2020-21 were men.

Leave enticement

Paid parental leave is an increasingly important selling point for Australian employers, Walsh says. In 2020-21, around 60% of Australian organisations surveyed by the Workplace Gender Equality Agency offered paid parental leave to the primary caregiver. It’s likely that that figure has increased as employers seek to attract top talent.

“It’s an employee-driven market we are in, so we must listen to what employees are looking for. For us, the question is how can you build a thriving career at PwC at all stages of your life? We know that people look at parental leave policies even before they are thinking of having a family, as it tells them that here is a place where they can build a long-term career,” Walsh says.

Job posting site Indeed reports that references to parental leave policies have become much more common in job descriptions. In the first half of 2022, 7.4% of jobs postings on Indeed’s Australia site used phrases such as “parental leave” or “maternity leave” in job descriptions, a sharp rise from 4.8% over the same period a year previously.

Attractive paid parental leave combines well with many companies’ ambitions to reach self-set gender equity targets. PwC is no exception, aiming for gender equity across the company by 2025.

“We know having a parental leave policy that promotes the idea that both men and women are supported to return to the workplace because their partner can take sufficient leave. That’s critical in driving an environment where people can move through the organisation, achieve promotion and ensure gender equity at every level,” Walsh says.

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Like many businesses, PwC achieves gender equity in the more junior ranks but then it drops off as you move up the pay scales. Walsh says it is partly because people say they can’t manage both a career and childcare. PwC’s enhanced parental leave policy is important in sending the message that employees will be supported by the company in achieving that work-carer balance.

Hidden distress

PwC also chose to introduce a stand-alone leave for people who have experienced a miscarriage.

“About one in four pregnancies result in miscarriage and women may experience multiple miscarriages,” Walsh says. “Despite that, it’s a topic that isn’t often acknowledged or spoken about and people have those experiences silently. We wanted to call out that miscarriage is a significant loss and people should be given the time [to recover]. We have heard so many stories from people saying they have had to hide it and not talk about it at a time when they are really struggling – as are their partners.”

Employees who suffer a miscarriage, or are partners of someone who has had a miscarriage, qualify for 10 days of leave per year prior to 20 weeks gestation, with stillbirth eligible for full 26 weeks paid parental leave.

“Our new miscarriage leave policy supports our people, beyond the minimum legislative requirement, during a deeply personal and challenging time,” Walsh says.

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