Better arguments, not better slogans

Deloitte has been roundly castigated for drastically scaling back parental leave, PTO, and other benefits for thousands of their US employees.

It would be straightforward for me to join in here. My heart certainly wants to. I'd show some righteous fury, earn Internet kudos, and do precisely nothing to actually change the situation.

But instead, let's take a step back. It's easy for thought leaders to assert the importance of benefits and care, especially in writing for public consumption. My old employer McKinsey and its green-hued rival BCG have both recently published studies arguing for the economic value of care and parental leave.

And yet Deloitte leaders, who have access to the same studies and who are probably decent at making spreadsheets, disagreed. They decided that the costs of employee benefits and perks exceeded the return, or, to be a bit more sympathetic, they decided that employees would, in aggregate, prefer Deloitte allocate relatively more dollars to wages and relatively fewer to benefits.

Now, I think they were wrong here. But the way to counteract workforce trends like these is with better arguments and better data, not better slogans.

For childcare benefits in particular, the basic economic logic, particularly after recent changes, is compelling in a way that few people understand today. As I discussed last week, a well-structured child care program can have an impact, as measured by the direct value to the employee divided by the net cost to the employer, that equals or exceeds that of almost any other employee benefit, even ones that almost all large employers provide like health care. This isn't just a matter of smiles and warm feelings, although those are incredibly important. It's a measurable economic reality.

I'm building out ways to help employers recognize that value, and benefit their employees in the process. For many employers, I believe we can devise solutions that will clearly appeal to even the most ruthlessly profit-maximizing leader. If you find this potential exciting, or if you have an interest in this space and would like to learn more, please reach out.