What Deloitte and Zoom’s Recent Benefits Cuts Tell Women About Their Worth

Episode 550 | Author: Emilie Aries

Recent benefits rollbacks show the sneaky new ways some companies are sidelining women in their workforces.

An alarming pair of announcements dropped recently from two influential companies: Deloitte and Zoom shared significant changes to their employee benefits packages which amount to telling certain employees that they matter less than others. 

Deloitte will be cutting benefits for employees in its “Center” model, which includes internal support staff such as IT, finance, admin, HR, and marketing. Benefits for client-serving roles will not change, but these “support” roles face the following rollbacks:

  • a reduction in paid family and medical leave from 16 to 8 weeks;

  • a 1 to 2-week reduction in annual paid time off;

  • elimination of the up to $50,000 family support stipend that currently covers initiatives like in vitro fertilization (IVF), surrogacy, and adoption.

Zoom is reducing paid leave for both birthing and non-birthing parents by as much as 38%. Let’s break down what all of this means for the future of women at work.

A dangerous precedent

Google’s former head of HR, Laszlo Bock, recently said in an interview that when big companies do things like this, it “legitimizes that action for everyone else.” We certainly saw this for initiatives like DEI cuts and return-to-office mandates: a few big companies got the ball rolling, and everyone else jumped on the bandwagon. If precedent holds, we’re poised to see massive cross-industry benefits rollbacks across in the coming months and years.

Gender scrubbing: these roles are mostly held by women

While benefits cuts are a big issue for any worker, especially in the only developed country without federally mandated paid parental leave, there’s a gendered slant to Deloitte’s cuts that highlights what leadership expert Susan Colantuono dubbed “gender scrubbing: using neutral language to hide a gender-averse impact.”

When you look at the stats, it’s crystal clear who holds the majority of the “support jobs” at Deloitte: women. The Bureau of Labor Statistics reports that 73% of HR managers and 86% of HR generalists in the U.S., as well as 70% of office and administrative workers, are women.

When the benefits cut are the ones that determine whether someone can start a family or care for a sick child without losing their job, and when those benefits are cut only in the sectors dominated by women, the language in the company announcement starts to look deliberately evasive. As one commenter wrote in response to Susan’s viral post, by using neutral language and erasing the word “women,” they also erase their accountability.

Two-tier benefit structures

In general, this tiered benefit design, where some workers in a company receive different benefits than others, isn’t new. Distinctions between full-time and part-time benefits are understandable: they are based on an objective measure of hours worked. And differences between exempt and non-exempt workers exist because of federal labor laws. 

While there are problems with these versions of the two-tier structure as well, Deloitte’s recent change is undeniably more subjective, and it also feels sneakier. The cut is based not on your total hours, your tenure, or your performance; it’s strictly based on perceived value and a worker’s proximity to the generation of client revenue (ignoring the essential nature of behind-the-scenes work to the signing and retention of every client).

As Helen Sanderson, an expert in psychological safety, puts it, benefits aren't just compensation. They're one of the most visible ways an organization tells employees whether it sees them as whole people or as line items to be optimized. It’s a clear statement about whose humanity an organization considers worth investing in, and no amount of future PR claiming these firms value all their employees is going to undo this statement.

What we can do

This situation is fast becoming a pink collar benefits tax: the women disproportionately impacted by such changes will wind up paying more in lost benefits and security. Ultimately, in addition to the numerous other ways our country’s caregiving infrastructure is failing this demographic, these cuts make women all the more likely to be squeezed out of the workforce altogether.

Here are four impactful steps you can take to begin loudly naming these biased policy changes and do your part to address this glaring inequality.

  1. Keep an eye on changes your company makes to benefits coverage. If they announce adjustments, go deeper than just reviewing the summary. If the fine print indicates changes that fall disproportionately on women, call it out.

  2. Always know your market value and what your options are. This matters even if you’re not currently looking for a new job. When companies make blanket changes that impact a specific group, they often presume it’s safe to do because that group has nowhere else to go. Do what you can to make sure that’s not you.

  3. Advocate for the benefits that matter. This year, KinderCare found that 85% of employees see childcare benefits as on par with healthcare and retirement benefits in terms of importance. In other words, this isn’t a luxury or a fortuitous add-on. It’s essential. Make sure your leadership understands this. 

    You can even frame it as a business case. Reviews of case studies show that when companies like Google and Accenture extended paid leave, resignation rates of young mothers decreased by up to 50%.

  4. Last but never least, keep the bigger picture in mind. In whatever ways you can (and there are lots of ideas on the Bossed Up Take Action page), push for changes like paid leave policies at the local, state, and federal levels. Workers shouldn’t have to depend on the individual generosity of their company for these kinds of protections.

Notably, Deloitte has an in-house initiative called EmPowerful Women. According to the website, the initiative is dedicated to “supporting equal access to professional opportunities for women.” This is the same company that publishes the annual Women at Work report. They also partner with Catalyst, an organization that “accelerate[s] performance and progress through workplace inclusion—for women and everyone.”

Clearly the gap between what companies say about their support of women in the workforce and what they actually practice is widening. We must name it, and loudly, or it will keep getting worse.

What’s happening in your organization? If your company has been doing great things for workplace inequality, I want to hear about it! And if they seem to be following in Deloitte’s footsteps, we need to talk about that, too. The Courage Community on Facebook and our group on LinkedIn are excellent places to raise your voice and commune with like-minded women pushing back against inequity.

Related Links From Today’s Episode:

It’s past time to TAKE ACTION.
Find out how you can advocate for change.

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