Kiwibank CEO wants other corporates to match its parental policies

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Photo: RNZ / Marika Khabazi

The head of Kiwibank is challenging other corporate to improve their parental leave and support packages to reduce the financial impact of taking time out of work for parenting.

It’s just released a new survey showing 70 percent believe the financial costs of having children is getting harder, that the burden falls disproportionately more heavily on women, and that more than a third have opted out of jobs because of parenting costs.

Kiwibank chief executive Steve Jurkovich says the issues are not new, but the country seems to have made little progress in tackling them.

“The really uncomfortable truth is that we don’t value caregiving in the same way that we do paid employment, and so that sort of comfort level around ‘that’s just the way it is’ has prevailed for too long.

“Sometimes it will be an unconscious biases and the only way to tackle them is to make people more aware of them … I’m hopeful other corporate will look at our parental policies and packages and think we should match that.”

Better benefits

Jurkovich said on top of the existing 26 weeks leave, Kiwibank was adding new benefits including six weeks baby bonus leave for both parents, reduced hours at full pay for four weeks when returning to work and enhanced KiwiSaver contributions.

He said large corporate could adopt such measures, but accepted that small companies may struggle with added cost, although the judgement to be made was whether such policies were “a benefit or a cost”.

“There’s a key couple of areas such as KiwiSaver contributions where the government has got a part to play but ultimately the employers across New Zealand have got the best and biggest moves.”

Kiwibank has launched a discussion on the research and issues involving individuals and campaigners for such measures.

Microsoft NZ managing director Vanessa Sorenson said the link between work and parenthood needed to be recognised, as did the benefits of the skills learned in parenting which should not penalised.

And Stephanie Pow from Crayon, the creator of The New Zealand Parental Leave Register, said employers had a responsibility to do more.

“Employers being transparent and open about how they support parents in the workplace is a critical step in addressing the parental penalty and reducing the financial stress many expecting employees face.”