What is the financial cost of maternity leave?
The cost of losing an employee can be calculated using factors such as:
The length of time it takes to fill the vacancy (which can result in a vacancy gap)
Liaison with recruitment agencies/direct advertising and the associated time/admin
Time that other people in the team need to take up the slack in the event the post is vacant and when someone is new and learning the ropes
The number of days/hours it takes for a new employee to get up to speed
The induction and administration associated with a new starter
The time spent on the process of hiring; screening CVs and interviewing etc
And more difficult to measure is the loss of knowledge.
You may have a recruitment fee for the person coming in to cover for the employee going on maternity leave and a period of handover, resulting in a double salary bill for that period. All in all it’s a costly business.
What is even more costly is if your employee, who has gone to have the baby decides not to return.
The maternity cover may be working on an interim basis and decides to leave
You may need to recruit again at further cost
All the history and knowledge of the person on maternity leave has been lost
You are right back to square one