– the U.S. and Papua New Guinea are the only nations without any federal policies dictating paid leave for new moms after the birth of a child –
it is not something that people are sitting back quietly about anymore. With extensive news coverage and articles on the topic, it is undoubtedly something that as a business owner you want to pay attention to.
Furthermore, it is something that that you should enlist the help of a PEO with in order to ensure you are providing fair, competitive, and enticing benefits that will attract great employees.
So why is it important?
Well, there are many reasons to consider this as a vital part of your benefits package to ensure you are attracting and retaining great employees who allow your business to thrive.
Care.com reports that while more than 90% of dads and 70% of moms work outside of the home and that 89% of dads report it is important to them that their company offers paternity leave.
As of right now, only 12% of workers (in the private industry) have benefits that include paid parental leave
– which is an astonishing statistic. However, offering it may not only increase the happiness of your employees and the overall appeal of your company to candidates, but could be financially advantageous for your company as a whole.
The New York Times 2015 article, “The Economic Benefits of Paid Parental Leave”, denotes that mothers who are permitted paid time off after childbirth are more likely to return to the workforce after having a child.
Additionally, the article notes that mothers who took leave after childbirth and then returned to their original role then “worked 15 to 20% more hours during the second year of their child’s life than those who did not take leave”.
So, who are the leaders in parental leave and what do their programs look like?
Well, Etsy recently changed their policies to include 26 weeks of flexible parental leave (whether it be taken by a mother or father). Additionally, Netflix offers unlimited parental leave for parents, and Twitter now offers employees up to 20 weeks of paid parental leave.
Spotify offers employees up to six months of paid parental leave, which can be taken in increments up until their child’s third birthday.
In addition to that, the popular music streaming company offers a program for the first month’s return after the birth of a child called, “Welcome Back!” with the flexibility to work either from home or part-time hours.
All in all, it is becoming increasingly more important to offer paid family leave to your employees. Doing so makes your company’s benefit program more appealing to both current employees and prospective candidates and can greatly assist in employee retention.
Your PEO can help provide insight on the best ways to amend or create these policies and will work to structure your policies around what works best for your company and employees.