Vodafone, the UK based multinational cellphone company, has announced a new maternity leave and pay policy which will be introduced worldwide by the end of the year. Women will be entitled to at least 16 weeks maternity leave on full pay and will be able to work 30 hours a week on full pay for the first 6 months after their return.
The 16 weeks is an improvement in 10 of the 30 countries (including the USA) where it operates and the 6 months/30 hrs per week on full pay is an improvement in 27. In countries, like the UK, where the statutory entitlement for leave is greater; this is unaffected and the reduced hours scheme will be in addition to it. The reduced hours model is based on their existing practice in Italy.
Around 35% of the company's worldwide workforce of around 100,000 are women but only 21% of management and the policy is partly an attempt to increase this proportion. The main driving factor though is not altruism but hard economics:
In developing the policy Vodafone commissioned accountants KPMG to explore the costs and benefits of a more generous maternity conditions.
KPMG concluded that the costs of a more generous maternity provision were outweighed by the costs of replacing women leaving the workforce.
The accountancy firm said the cost of recruiting and training new employees to replace women leaving the workforce after giving birth cost amounted to $47bn every year.
By comparison the cost of offering women 16 weeks of fully paid maternity leave would cost an additional $28bn.
The BBC's report also has this sobering set of statistics from the IFC/World Bank:
Mandatory number of days paid maternity leave:
Bulgaria 410
UK 273
South Africa 120
India 84
United States 0
(Note: the UK's statutory provision can now be shared between the mother and father to enable both to bond.)
The Guardian reports this statement from the Chief Executive Vittorio Colao:
“Too many talented women leave working life because they face a difficult choice between either caring for a newborn baby or maintaining their careers.
“Women account for 35% of our employees worldwide, but only 21% of our international senior leadership team. We believe our new maternity policy will play an important role in helping to bridge that gap.
“Supporting working mothers at all levels of our organisation will ultimately result in better decisions, a better culture and a deeper understanding of our customers’ needs.”
Vodafone has, in the past, been justifiably criticized for its accounting policies and service levels in various countries. Although it has pulled out of the US consumer market with the sale of its shares in Verizon last year, it will increase its presence during this year thanks to
a deal with T-Mobile to service its multinational customers.
Women's rights advocates now have a strong argument to pressure US corporations in re-examining their maternity pay policies. It is not only right, it is profitable - the bottom line for many.