Grandparental leave is rising in prominence with the potential for benefits for both families and employers alike.
What is grandparental leave?
The concept of grandparental leave is gaining prominence, signifying a shift in family dynamics. It involves granting leave to grandparents, enabling them to actively participate in the care, support, and upbringing of grandchildren. This evolution in traditional parental leave policies reflects the changing socioeconomic, where grandparents are increasingly assuming a pivotal role in childcare.
The UK government once entertained the idea of expanding shared parental leave to encompass grandparents. The then-Chancellor, George Osborne, acknowledged the pivotal role grandparents play in caring for their grandchildren, emphasizing their contribution to reducing childcare costs. Osborne recognised the evolving landscape where more grandparents desire to remain active in the workforce.
However, these plans were set aside in 2018. As it stands, there is no legal provision for grandparental leave in the UK. Consequently, all childcare responsibilities must be accommodated within the frameworks of maternity/paternity or shared parental leave, placing significant hurdles in the way of parents who seek to balance work and childcare.
Higher retirement ages linked to working grandparents
With people living longer and retiring later, ages, coupled with the ongoing challenge of the cost-of-living crisis, a growing number of individuals find themselves becoming grandparents while still actively engaged in the workforce.
In the UK, the average age at which someone becomes a grandparent is 63, while the average retirement age hovers around 65. However, in London, many anticipate working well into their 70s. The trajectory of retirement ages is anticipated to rise further, given the post-pandemic trend towards flexible working and remote employment. This shift could empower older individuals to extend their careers.
The eligibility age for state pension stands at 66, or 68 for those born after April 1978. This implies that there is a significant period of overlap for many individuals between their professional life and their role as grandparents.
Benefits for employees and employers
Rising childcare costs and the cost-of-living crisis has led many parents to seek support from grandparents. This can range from practical childcare or financial support with costs. However, as retirement nears, this might have concerning financial implications for grandparents themselves.
An employer that offers grandparental leave as a benefit may therefore be able to attract and retain older talent. This means the employer can reap the benefits of an age-diverse workforce, allowing them to gain the experience and knowledge of older workers. In turn, older workers can continue making pension contributions and working whilst spending quality time with family.
Cisco: a grandparental leave case study
Cisco, a major player in telecommunications, implemented grandparental leave in 2017.
Under this policy, employees are entitled to three paid days within a year following the birth of a new grandchild. Over 30% of Cisco's U.S. workforce, which consists of approximately 40,000 employees, is aged 50 or above. Since the beginning of 2021, more than 800 U.S. employees have taken advantage of this leave, with nearly 200 utilising it in the current year