More generous benefits, including KiwiSaver contributions, seen as a growing way to attract and retain talent
Parental leave benefits are getting a boost from employers across New Zealand as HR teams explore every pathway to attract and retain talent in a tight labour market.
This week, energy giant Contact Energy announced its new parental leave policy, describing it as one of the most comprehensive and far-reaching parental leave policies in the country.
The comprehensive package includes both primary carer and partner benefits that include cash, flexibility, extra time off, free electricity, and a food package once the baby has arrived. It also maintains the KiwiSaver employer contribution of 3% for the duration of parental leave
Jan Bibby, CPO at Contact Energy said: “As a mother of two and a grandmother of one, I am beyond proud of our ‘Growing your Whānau’ policy. We can’t help with those sleepless nights or comforting a baby during teething, but we can help by providing financial security and significant flexibility for our expectant parents who are part of our Contact whanau.”
The New Zealand Institute of Economic Research (NZIER) recently released data that showed only 8.9% of kiwi organisations with more than 20 employees top up the salary of staff who are on parental leave. Even fewer continue to contribute to KiwiSaver accounts during the leave.
But it’s clear that a growing number of employers see a long-term benefit to investing in supporting parents.
Earlier this month Vodafone announced updates to its parental leave offering, giving primary carers and partners 26 extra days of parental leave. Primary caregivers will also continue to receive their superannuation contribution.
Jodi King, chief people officer at Vodafone, said: “Our ‘freedom promise’ for employees means we’ll continue to offer choice to our people. We’ll have more to announce in the coming months as we build a world-class offer for our people.”
One of Vodafone’s biggest competitors, 2degrees, announced last year that it would boost the amount of pay staff receive while on parental leave. 2degrees CPO Jodie Shelley attributed the move directly to attracting and retaining talent.
“The new parental leave policy was part of a wider strategy to attract and retain the brightest talent in an increasingly competitive market as well as doing the right thing by new parents,” said Shelley.
In its report on improving equity in the KiwiSaver, the NZIER recommended specifically that employers should “offer employees the benefit of continuing their KiwiSaver contribution while on parental leave.”
Contact Energy’s new policy drew comment from Jason Shoebridge, chief executive at NZIER.
“At NZIER we see the Contact Energy scheme as being particularly generous towards their staff. We have seen best practice in parental leave policies throughout the country and are taking note of Contact’s.”
Global Women chief executive, Agnes Naera also praised the move, “If we see more businesses continue to imbed systems like this that support employees to show up as their best selves both at work and at home and the myriad of pressures that come with this, it will have a positive impact on the economic future of Aotearoa New Zealand.”
Primary carer benefits:
Partner Benefits:
