To determine the financial/business impact of female employees who do not return from maternity leave in the US. This information will help in supporting a new business to frame the problem their product is designed to solve.
A recent article in Time, research conducted by the University of California Berkeley was cited which" found that, across industries, the average cost of replacing an employee was $4,000. The average cost of replacing a white-collar professional exceeded $7,000."
The article further states that "full-time female employees earned a median salary of $788 per week, in 2018" and that if "the overtime or temp-worker costs a business might incur in a new mom’s absence" were not taken in account, "providing her five weeks of 100% paid maternity leave or eight weeks of 60% paid maternity leave could end up being cheaper than losing her altogether."
According to Gallup, a conservative estimate of "the cost of replacing an individual employee can range from one-half to two times the employee's annual salary."
According to SHRM, each departure costs a business a third of that employee's annual income of which 33% are hard costs (recruiting, background checks, drug screens, temporary workers) and 67% are soft costs (reduced productivity, interview time, lost knowledge).
According to a CAP study, the turnover appears to vary according to the wage the employee earned. For high-turnover, low-paying jobs (less than $30,000 annually), the turnover is estimated to be 16% of the annual salary. For mid-range jobs ($30,000 - $50,000), the cost is 20% of the annual salary and for executive positions, up to 213% of annual salary.
Summary of Findings
During the initial hour of research, we focused on finding the turnover cost of maternity leave in the US.
We were able to find information on how much the government is saving by implementing maternity leave programs. With a saving of $50 million, this would imply that in 2021 the impact of maternity leave would have been $824 million ($50 million + $774 million).
Furthermore, we were able to find information on the cost of employees leaving a business.
Only the project owner can select the next research path.