Good family benefits — paid time off, flexibility,
Paid parental leave insurance platform Parento is looking to change that by working with employers to create customized, affordable paid leave policies that are 100% covered by the companies. This offers employees the time they need with their
"Employees have this new emotionally and physically challenging event that is going to have long-term effects on your career, and they are looking for companies to support them," says Dirk Doebler, founder and CEO of Parento.
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Taking unpaid leave can have a catastrophic impact on an employee's financial well-being given the medical expenses and other costs associated with becoming a parent. Research from the University of Michigan showed that parents with insurance come out of pregnancy and childbirth with an average of over $3,000 in medical bills — thousands more if a baby needs to stay in the neonatal ICU — and varying amounts if they went through an adoption process, surrogacy or fertility treatments.
These bills are compounded by the cost of supplies and other necessities. For instance, the annual cost for diapers alone is $400 to $900, according to Parents.com. The Harvard Review of Psychiatry reports that nearly a quarter of working mothers potentially return to work within 10 days of giving birth because they cannot otherwise afford living expenses, but separate data shows many end up leaving their jobs due to lack of support.
In contrast, providing PTO is one way to garner loyalty from staff members. Research has shown that a 12-week paid parental leave policy can reduce turnover by as much as 69%.
"A financial benefit like parental leave is a very good [selling] device [because] the company is genuinely taking care of people," says Doebler. "And from the company standpoint, this reduces that turnover dramatically."
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Harvard's research touches on the emotional and physical benefits of paid parental leave as well, with studies showing it can lead to reduced likelihood of postpartum depression and increased breastfeeding in mothers. Separate research shows that when a father has access to paternity leave, a mother's stress level is reduced — one of the many reasons employers should ensure their leave policies include partners as well. Parento's platform helps employers navigate coverage for all family dynamics, ensuring their benefits are inclusive.
"You have broader involvement from fathers and you need to provide resources they can take advantage of, or a partner can take advantage of, because it's no longer just moms who are taking care of the child," says Doebler. "[If you] have [a] birth mom bias, you're ignoring the needs of [other types of] families."
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Rounding out paid parental leave with other support, such as child care assistance and adjusted work schedules, can also help retain valuable talent. According to a report from maternal wellness platform Motherly, 18% of working moms changed jobs or left the workforce between 2022 and 2023, with many citing the expense of child care and lack of flexibility for their departure. Data from the Center for American Progress shows more than 40% of working moms are now the sole or primary breadwinners in their families, highlighting the importance of work-life balance.
In addition to paid parental leave insurance, Parento's platform also provides parent resources for employees and their partners — both self-guided and with a trained coach — for the lead-up to leave, return to work and parenting at any stage, making it a valuable benefit for parents of older children as well. A liaison is also available to help HR teams and employees navigate any leave questions or administrative tasks they may have. Having a dedicated point solution that covers all of this is a good way to show parents they are holistically supported, says Tiarra Hamlett, Parento's director of marketing.
"Employers who are really committed to building a supportive workplace culture are those more likely to really expand their parental leave policies," she says. "There's a need for programs that provide more than just financial support, because even when mothers come back to work, there's still this risk of employers just not getting it right."
