Forcing working mothers out of jobs is costing British businesses £280m a year
British businesses are losing hundreds of millions of pounds every year as a result of women being forced out of jobs after having a baby.
According to a study by the National Institute of Economic and Social Research (NIESR) for the Equality and Human Rights Commission (EHRC), businesses are losing nearly £280m a year, largely due to recruitment and training costs, as well as lost productivity.
Costs could be even higher when reputational risks, loss of valuable staff, employment tribunals and longer-term productivity impacts are also included.
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Women were more likely to leave their employer due to negative or even discriminatory experiences on return to work, rather than during their pregnancy, or when on maternity leave.
NIESR found that the cost to British women could be as high as £113m a year when they are forced to leave their job due to pregnancy and maternity discrimination. Some women felt so badly treated they had to leave while others were dismissed, or the only member of staff to be made compulsorily redundant.
The research found that women were most likely to be financially affected when they felt forced to leave their job at an early stage of their pregnancy, because of a loss of earnings.
Even those who kept their jobs were reporting a financial loss due to pregnancy discrimination of up to £34m over the next year, according to the research. Some had their salary reduced, others were demoted or received a lower pay rise or bonus than they otherwise would have secured.
It follows recent research by the EHRC and the government, showing that 77 per cent of pregnant women and new mothers (the equivalent of 390,000 women) experience negative and potentially discriminatory treatment at work each year.
Dr Monique Ebell, who co-authored the report, said it presents "stark evidence that what many of us intuitively believe to be unfair or wrong is also financially detrimental, not just to the women, but to the employers themselves".
David Isaac, chair of the EHRC, added:
The best businesses know already that ending discrimination and unlocking the talent of women in the workplace makes them stronger and more successful. We encourage all businesses to follow their lead by supporting working mothers and showing zero tolerance of discrimination.