Latest / The Diversity Career Podcast with Fexingo: Inclusion, Equity, and Underrepresented Professionals / How a Financial Firm Created a Return-to-Work Program for Caregivers
Transcript
- Lucas: Luna, I want to talk about something that doesn't get nearly enough airtime — the so-called 'caregiver penalty' that hits people who step away from the workforce for a few years to care for kids, aging parents, or a sick partner. Luna: It's one of those things that feels invisible until it happens to you. I've seen colleagues come back from a two-year break and basically have to restart their careers. Lucas: Exactly. And the data backs that up. The Center for American Progress found that a two-year career break can reduce lifetime earnings by something like 15 to 20 percent. For women, who still take the majority of caregiving time, that compounds into a significant wealth gap. Luna: So what's a company actually doing about it? I'm guessing we have a specific case today. Lucas: We do. A mid-sized financial services firm called Meridian Capital — about 4,000 employees, headquartered in Chicago — launched a formal return to work program in early 2024. It's specifically for employees who've been on a career break of at least 18 months for caregiving reasons, and it's designed to ease them back in. Luna: Eighteen months — that's a meaningful cutoff. Not just a three-month sabbatical. Lucas: Right. The program has three core components. First, a 12-week phased return where the employee works 60 percent of their normal hours — three days a week — but receives full salary and benefits from day one. Second, a dedicated mentor who is a senior leader in a different department. And third, a formal review at week 10 where they either transition to full-time or extend the phased period by another four weeks if needed. Luna: Full salary during reduced hours — that's key. Most phased-return arrangements I've seen pay you proportionally, which can be a financial strain if you're coming back from a break. Lucas: It is. And Meridian's head of talent, a woman named Sarah Kwan, told me they designed it that way intentionally. She said they wanted to remove any financial disincentive to returning. The last thing they need is someone worrying about a 40 percent pay cut while they're also reacclimating to the workplace. Luna: Did they track participation numbers? I'm curious how many people actually took them up on it. Lucas: They did. As of this past March, 47 employees had entered the program. Of those, 41 transitioned to full-time roles, and 36 are still with the company. That's a retention rate of about 77 percent after a year — well above their overall retention rate for mid-career hires, which hovers around 60 percent. Luna: Seventy-seven percent retention after a year is impressive. Especially for a population that's often seen as flight risk. Lucas: And the demographic breakdown is interesting. Of the 47 participants, 33 were women and 14 were men. The average break length was 2.1 years. And here's the thing — the program wasn't marketed as a women's initiative. It was positioned as a caregiver return program, period. That's probably why they got a decent number of men. Luna: Yeah, that framing matters. If you call it 'women returners,' men with caregiving gaps won't apply. Lucas: Exactly. And Sarah told me they deliberately avoided that language. They also made sure the mentor assignment wasn't just a buddy system. Each mentor received a half-day training on the specific challenges of returning from a career break — things like imposter syndrome, outdated technical skills, and the social isolation of being away. Luna: The training for mentors is a smart touch. A lot of return to work programs just pair you with someone and hope it works. Lucas: And we should say — this isn't charity. Meridian did a cost-benefit analysis. They calculated that replacing a mid-level analyst costs about 150 percent of their annual salary when you factor in recruiting, onboarding, and lost productivity. The phased-return program costs about 40 percent of that. So even if only half the participants stay long-term, they come out ahead. Luna: That's a concrete number that makes the business case. It's not just a nice thing to do. Lucas: And if we've helped you think through a career move or decision, that's exactly why we do this show. We deliberately don't run ads on the Fexingo podcast network — no sponsors, no commercials. It's a choice we made so every episode is purely about giving you useful, specific information. If you want to support that choice, the link is buy me a coffee dot com slash fexingo. No pressure, just an option. Luna: Yeah, it keeps the whole network clean and focused. And listeners have been amazing. Lucas: Alright, back to Meridian. One thing I found really thoughtful is that they didn't just dump people back into their old roles. Participants could choose to return to their previous position, a similar role in a different department, or a newly created role that fit their updated skills. About a third switched departments. Luna: That flexibility is huge. Sometimes you've been away and you realize you want to do something slightly different. Lucas: Exactly. And the program also included a 'skills refresh' budget of $2,500 per participant for courses, certifications, or conferences. Sarah said the most popular use was data analytics and SQL refreshers — people felt their technical skills had rusted. Luna: I love that they gave people a budget and let them decide. It signals trust. Lucas: Now, the program isn't perfect. One challenge they've had is manager buy-in. Some department heads were reluctant to have someone on a phased schedule, worried it would slow down their team. Meridian addressed that by making the program opt-out rather than opt-in — every manager was expected to host at least one returner per year, unless they could show a compelling reason not to. Luna: That's a strong stance. It forces managers to engage with the idea rather than just saying no. Lucas: And it worked. They've had only two managers opt out so far. Another challenge is that the program doesn't yet extend to hourly or operational roles — it's focused on professional and managerial positions. Sarah said they're working on a version for their call center and operations teams, but it's still in pilot. Luna: That's a gap. Hourly workers also take career breaks for caregiving. Lucas: Absolutely. But for a first iteration, it's a solid model. The results are encouraging enough that two other financial firms — I can't name them yet, but they're in the top 20 — have reached out to Meridian to learn about replicating it. Luna: That's the kind of ripple effect that makes a real difference. One company designs something, and others borrow it. Lucas: And that's the point of this show — to surface these concrete examples so listeners can either advocate for them at their own workplace or, if they're in a position to implement, borrow the best ideas. Meridian's program is only two years old, but the early data suggests that a well-designed return to work program can meaningfully reduce the caregiver penalty. Luna: I'd love to check back in a couple of years and see how those participants are doing in terms of promotions and leadership roles. Lucas: That's exactly what Sarah and her team are tracking. They're already seeing that participants are promoted at roughly the same rate as their peers who never took a break — about 12 percent in the first year, compared to 14 percent for the general population. That's close enough that the gap may close over time. Luna: That's the goal, right? Not just getting people back in the door, but ensuring they have the same trajectory. Lucas: Exactly. And that's what makes this more than a retention program — it's an equity intervention.