From Finance to Product-Market Fit: How Parento Reframed Parental Leave from an HR Problem to a Finance Solution

From Finance to Product-Market Fit: How Parento Reframed Parental Leave from an HR Problem to a Finance Solution

Most founders begin their startup journey by identifying their target buyer. But what happens when you discover you’re selling to the wrong decision-maker entirely? In a recent episode of Category Visionaries, Parento founder Dirk Doebler revealed how his finance background helped him uncover a critical misalignment in the parental leave market.

Uncovering the Real Blocker

While researching paid parental leave implementation, Dirk made a surprising discovery. As he explains, “I would do a lot of work, research, talking to a lot of finance leaders to understand how would they budget for paid plentifully. And the answer is really that they weren’t, because most companies, as I think we’re all probably aware, don’t offer any paid premium paternity leave.”

The conventional wisdom suggested this was an HR problem. But Dirk’s finance background helped him see something different: “It was really a problem for finance more than HR because HR generally understands why they should offer paid parental leave, but they can’t convince finance.”

The Finance Team’s Real Concerns

Through his research, Dirk identified two core issues blocking adoption: uncertainty and ROI. “Finance is oftentimes reluctant based on the fact that one to they don’t know how many people will take leave in any given year. So what is it actually going to cost? But then two, if you’re paying, plan to work for three months, what’s the RoI?”

This insight fundamentally shifted Parento’s approach. Instead of selling parental leave as an HR benefit, they began positioning it as a financial solution to a costly business problem. The numbers were compelling: “About a third of women will quit their jobs year they have a kid if they don’t have access to paid parental leave, and many of them will stay out of work for five years or more.”

Evolving the Message

This reframing required a dual messaging strategy. “Were generally trying to speak to both of them,” Dirk explains. “For finance, we need to convince you that paid parentally is a worthwhile investment… And then for HR, because it’s insurance, we need to convince them that insurance is the best mechanism.”

The approach worked. By addressing both stakeholders’ needs – financial certainty for finance teams and comprehensive support for HR – Parento achieved remarkable adoption rates. “We see over two thirds of parents who are having a kid using our support program,” Dirk notes.

Building Trust Through Results

The company’s focus on financial outcomes has yielded impressive results, including a 95 NPS score in an industry notorious for poor customer satisfaction. This success stems from their ability to bridge the gap between HR’s mission and finance’s requirements.

“For us, we look more about sort of the characterization of the employer then we do specifically, are you the right size? Are you the right industry?” Dirk explains. This approach has allowed them to expand beyond traditional market segments while maintaining strong customer satisfaction.

The Broader Lesson

Parento’s journey offers a valuable lesson for B2B founders: sometimes the key to product-market fit isn’t changing the product – it’s understanding who really needs to be convinced. By reframing parental leave as a finance solution rather than an HR initiative, they’ve created a new category at the intersection of insurance and employee experience.

This insight continues to shape their growth strategy. As Dirk shares, “We are looking to be the go to provider for companies to support not just working parents, but working families.” By maintaining their focus on both the human and financial aspects of their solution, they’re building a platform that satisfies both HR’s mission and finance’s requirements.