Perspective: Why Cutting Employee Benefits Is A Corporate Reputation Risk

(MENAFN- PRovoke) Last weekend was Mother's Day. In the run-up to the holiday, brands bombarded inboxes and social feeds with messages about the value of the women in our lives, reminders to celebrate and thank them, and, naturally, the sales and discount codes that traditionally accompany the caring surface sentiment. This is a marketing and comms-led world after all.

Obviously we should absolutely be celebrating women's contributions - maternal and otherwise. Women make up almost half of the workforce here in the US and contribute enormously to our economic success. Beyond paid employment, we're also the largest group of unpaid contributors - often stretched between caring for children and aging parents, and unofficial home CFOs - responsible for up to 80% of consumer spending decisions. Along with many American workplaces, we spent last week honoring the working moms who keep their homes, families and our teams running smoothly.

And yet, when you press beyond the superficial holiday sentiments, it's increasingly clear that corporate America is not really on women's side. The day after Mother's Day, I read an article in the New York Times confirming that another two corporate giants were making cuts to the employee benefits, paid family leave, and workplace flexibility policies that are vital to keeping women in the workplace.

Beyond the infuriating irony that the comms teams (internal and external) scrambling to contain the damage at each company were statistically more likely to be impacted by precisely these cuts. Beyond the ridiculously terrible timing - the Mother's Day flowers were still fresh!

The fact of the matter is, excluding women and primary caregivers from the workplace is just bad for business and the data supports this. When companies provide benefits such as financial support for I.V.F., paid family leave, paid vacation, hybrid work policies - women remain in the workplace. That keeps families together. That makes teams more efficient (have you SEEN how much a working mom can get done in the ten-minute window between doctor's appointments!?!?!), and importantly, they contribute positively to the workforce and national economy. According to the Institute for Women's Policy Research, access to paid family leave increases women's labor market participation rate in both the short and long-term. A study by McKinsey just last year concluded that achieving gender equality in the workplace could add up to $4.35 trillion to America's GDP. We could wipe out all the economic impact of tariffs, recent conflicts and supply chain blockages if we just made the workplace more human and inclusive... and yet, here we are, eliminating the very employee benefits that would enable this.

And look, it's not just women who benefit. The flexible, remote and work from home policies that were hard-won during and after the pandemic have had an incredibly positive impact on men too. Men working remotely report reduced stress and increased productivity and fathers reportedly increased time spent helping at home and with their kids by four hours per week between 2019 and 2024. Everyone feels and performs better when they feel valued.

More than this, though, for us public relations leaders, this is an audience and community engagement opportunity that so many are simply allowing to pass them by. The C-suite wants to cut costs and the benefits that seemed like a good idea in a tight labor market are being tossed out like last week's bouquets. But they're not looking at the big picture or human impact costs - and that's where we can help. Sure, cutting benefits might help in the short term, but long-term, do you really want to alienate half of your prospective talent pool? Can you bear the financial penalty when the individual deciding 80% of a household's expenses switches to a brand that might one day employ her, or her daughter? And here in 2026, can you really afford to turn your back on adding trillions to an economy that is already facing myriad other obstacles? It's up to us to educate leaders that the best decisions for their businesses and their people are the same.

The shortsightedness of these decisions and the throwaway attitudes to a team member's quality of life won't be easily forgotten or forgiven. Ask Target how well that strategy is working out. We're working with audiences that have learned to look beyond the corporate promises, people who have learned to organize, and consumers who have learned that they deserve better. We need to start acting like it.

Rebecca Honeyman is co-founder and managing partner of SourceCode Communications.

Note: This article reflects the views of the author and is published as part of PRovoke Media's opinion section. It does not necessarily represent the views of PRovoke Media or its editorial team. We welcome a range of perspectives and invite readers to submit thoughtful responses or counterpoints for consideration to [email protected].

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