In a recent webinar Courtney Leimkuhler, Founding Partner of Springbank Collective and former CFO of Marsh, joined forces with Dirk Doebler, Founder and CEO of Parento, to illuminate the transformative landscape of paid parental leave (PPL) and family orientated policies.
Springbank Collective is a female owned and operated VC firm that invests in infrastructure that supports the care economy, the future of work, and women. Marsh is one of the largest insurance broker firms with over 35,000 employees spanning over a hundred countries.
While you can watch the candid conversation any time, we’ll share some key highlights from the discussion to provide impactful insights for benefit brokers and distribution partners seeking to understand and strategies to offer Parento's pioneering solution to their clients.
Watch Broker Buzz: Making Room for Paid Parental Leave + Family Benefits
Family friendly benefits have been on the rise for companies nationwide, but unfortunately, only 30% of employees describe their work culture and policies as “family-friendly and 60% of employees leave due to inadequate family benefits. PPL tops the list for benefits and perks that employees want, so it’s time to redefine PPL and break it down for the future of work. And that’s exactly what Dirk did with Parento.
If you haven’t yet heard Parento's founding story, the genesis is quite unique. While not yet a father, Dirk recognized a significant gap in financing PPL during his tenure as a CFO. As a finance and operations leader, he sat in many clients’ seats before founding Parento and saw the need for a PPL solution to support a relatively young workforce interested in having families and how to fund that solution. He found that traditional options fell short, inspiring him to find an affordable solution that would also seamlessly integrate PPL within corporate structures.
Parento is a PPL insurance solution that companies pay for that covers salary expenses when an employee takes parental leave. The Parento program is gender neutral by default so all parents are eligible to take PPL, and companies can also customize the pay increments based on their budget and policies. Bridging the gap left by disability insurance and states without PFL, PPL can work around those existing policies and provide companies with budgetability and risk mitigation.
Parento challenges negative connotations in the insurance industry, solving both family and societal problems. There are significant shortcomings of traditional options, like conventional Disability Insurance (DI), in adequately supporting all employees. Typically DI has been used for maternity leave as a proxy, but 60% of salary for 6-8 weeks off postpartum for a birthing parent is not enough time and non-birthing parents aren’t eligible for any time under a disability policy.
Plus, existing state mandated disability or Paid Family Leave (PFL) programs aren’t available in all states, which means many non-birthing parents are not able to take parental leave. And even in states that do provide PFL, many claims are denied or too difficult of an experience, especially when the pay is nowhere near sufficient for many families. This unfortunate gap leaves many company leaders to find room in their budget to address the unmet needs for working parents.
“One thing we consistently hear from parents is [disability insurance] barely covers the cost of diapers… and that’s usually only available for maternity leave. Disability insurance is not available for paternity leave… or the LGBTQ+ community that are 6-7x more likely to adopt.” - Dirk Doebler, Founder and CEO of Parento
This is especially impactful for companies with highly skilled workers looking to build or grow their families. On average, most women returning from a pregnancy leave transition back with 20% fewer hours and 30% lower productivity. New mothers who take paid maternity leave are 54% more likely than those who take no paid leave to stay in the workforce, and every month of parental leave taken by a father increases a mother’s earning potential by 7%.
Additionally, there are overall medical expenses to consider. If a pregnant woman takes 2-4 weeks off before delivery, they have lower preterm risk and c-sections. Access to PPL reduces these medical costs and increases rates of return, which is why the Parento program is rated top across the board by both employers and employees.
For businesses today, family-friendly policies are make or break policies now but they are not always affordable. Traditionally, PPL was seen as a luxury only for the high-tech industries competing for the high-value talent.
“We will absolutely look back at this moment in 5 years' time, PPL and paid leave in general is becoming a complete table stakes just like 401k emerged as a benefit. You need to get in front of this.” - Courtney Leimkuhler, Founding Partner of Springbank Collective and former CFO of Marsh
Here are three things that brokers may hear from clients to recommend Parento:
Courtney and Dirk’s discussion on Broker Buzz offered invaluable insights into the evolving landscape of paid parental leave and family benefits, specifically tailored for benefit brokers and distribution partners. The webinar provided a comprehensive understanding of Parento's unique offerings and the strategic positioning brokers can undertake to present this pioneering solution to their clients. As the workplace undergoes transformation, embracing family-friendly policies and famtech becomes a strategic imperative for companies striving to remain competitive in attracting and nurturing top talent.
When considering if Parento is a good fit for a client, consider the characteristics of the organization. Companies need to care about the outcomes and invest in their employee experience. PPL is a clear benefit to employees, while core standard health benefits can be confusing and opaque. While family-friendly policies were once exclusive to larger firms, they now provide an untapped opportunity for small and medium-sized businesses (SMBs).
Unfortunately, many SMBs benchmark against larger firms and rely on cutting benefits or reducing diversity in hiring to reduce costs. PPL enables smaller companies to outcompete much larger firms for talent by leveraging a highly utilized family-friendly offering that impacts the most common life event for employees.
“If companies are prioritizing retaining or attracting young talent, this is the #1 thing you need to be doing. This is such a good signaling device to tell individuals that you care about your employees. It’s an easy way to compete against larger firms.” - Dirk Doebler, Founder and CEO of Parento
The Parento program is industry and company size agnostic, with the ability to bind policies for companies with 10+ or more full-time employees. In a competitive landscape where remote work allure diminishes, PPL policies have emerged as a crucial differentiator, enabling smaller companies to attract and retain top-tier talent.
Brokers and distribution partners play a pivotal role in effectively positioning PPL and Parento to their clients. Emphasizing PPL as a cornerstone benefit, brokers can help their clients become a top competitor while attracting and retaining a diverse workforce. The Parento solution is cost-effective, often presenting a lower cost than conventional employee benefits, making it an enticing option for companies looking to elevate their offerings without increasing the budget. A number of Parento clients leverage the program as a way to stand out in the market and improve recruitment.
“We see a lot of companies PPL and parental support and coaching on their career pages, and leveraging that in their job offers.” - Dirk Doebler, Founder and CEO of Parento
To wrap up the conversation, Courtney highlighted the pivotal role of famtech as the future of employee benefits for companies to gain a competitive edge. As large employers like Walmart and Amazon introduce family-focused benefits, the adoption of famtech becomes a strategic imperative for all companies, transcending traditional industry boundaries. When offering solutions to clients, it’s critical to take into consideration the evolving family dynamics in contemporary society. Companies must invest in solutions like PPL not only to attract and retain talent but also to cater to the evolving needs of their workforce, transcending demographics and age groups.
