Roe v. Wade’s Demise Is a Turning Point for Corporate America
Source: Harvard Business Review
By: Andrea Hagelgans and Soni Basi
Date: June 30, 2022
Summary: The Supreme Court’s decision to overturn Roe v. Wade comes at a time when there are 2 million fewer women in the workforce than there were two years ago. And because American companies operate in an employer-sponsored health care system, access to reproductive health care is a workplace issue that companies need to address — not an unrelated political conversation that can be ignored. The authors offer five near and long-term actions companies must take to support those who may become pregnant, as well as their partners and allies.
Since the Supreme Court voted to overturn Roe v. Wade via the Dobbs v. Jackson decision, many of the corporate leaders we’ve spoken with have found themselves surprised at the magnitude of response from those on their teams. They shouldn’t be – and they should consider this a moment to step up for their current and future employees.
The overturning of Roe comes on the heels of two and a half painful years for American women. As of 2020, on average, white women still made 73 cents on the dollar compared to their male counterparts. Black and Hispanic women made 58 cents and 49 cents, respectively. That was before women left the workforce in droves due to remote schooling, daycare closures, and a variety of caregiving challenges wrought by the pandemic that primarily fell on women’s shoulders. According to the Institute for Women’s Policy Research (IWPR), there are still 2 million fewer women in the workforce than there were two years ago.
Amid a competitive talent marketplace, employers have a responsibility to solve for the issues facing their workforce – and will suffer recruitment and retention consequences if they don’t. Before Dobbs, corporate leaders were already being advised by experts to create new work environments to retain the women in their workforces and, in many cases, attract them back. The fallout from Dobbs is likely to mean even more challenges in attracting, developing, and rewarding women. And because American companies operate in an employer-sponsored health care system, access to reproductive health care is a workplace issue that companies need to address – not an unrelated political conversation that can be ignored.
Corporate leaders enter this conversation amid historic highs – and growing expectations – of business action on societal issues, such as racial equity and climate change. Edelman’s 2022 Trust Barometer found that employers are the only institution that Americans trust to do the right thing when it comes to social issues.
Some leaders have navigated abortion rights proactively, scenario planning for the potential overturning of Roe v. Wade as early as fall 2021, when the Supreme Court did not block a novel Texas law that effectively banned most abortions after six weeks into a pregnancy. (It sparked Edelman to create a client task force on this issue.) But for all companies, there are both near and long-term actions to be considered, all of which begin with support for their employees.
First, companies can consider immediate action associated with the Dobbs v. Jackson decision. Many companies, including our own, are already covering travel for out-of-state abortion or gender-affirming health care. Google is offering its employees the opportunity to relocate to states where abortion is legal. Patagonia and Live Nation are covering bail costs for employees arrested in demonstrations against the Supreme Court decision. In communications to employees, companies should acknowledge that employees have a variety of opinions on this issue, but that fact should not prevent companies from taking action.
Second, leaders should think of Dobbs as a rallying cry to support employees across all aspects of bearing and raising children. The economic realities of what this decision may do for women and others in the workforce who may become pregnant are profound. According to the Institute for Women’s Policy Research (IWPR), state-level abortion restrictions cost state economies $105 billion per year by reducing labor force participation and earnings levels, in addition to increasing turnover and time off from work among women between the ages of 15 to 44 years old. Consider offering pre-tax dependent care benefits, as Citi has done, or on-site childcare, as Clif Bar has done. To minimize caregiver-related attrition, consider covering additional pregnancy-related health care costs and extending paid family leave.
Third, companies should consider the role of women in their workforce – and how they can create pathways into leadership. The Dobbs decision has the potential to turn back the DEI progress we’ve made as employers on issues like pay equity, women in senior leadership positions, and women on boards. The wage gap notoriously widens during childbearing and child-rearing years. Rethink how you can ...Click HERE to continue reading.