As companies continue to research ways to keep their workers engaged over the course of their careers, businesses come up with a number of strategies. While workplace flexibility and comprehensive healthcare options are important, there's one retention tactic gaining popularity: paid parental leave.
Although the U.S. is the only high-income country that does not offer paid maternity leave, according to the World Policy Analysis Center at UCLA, many large organizations are implementing the programs as a voluntary benefit for their workers. And while many businesses have introduced policies for new mothers, those for new fathers are also being instituted across the country.
To keep up with competition in their industry, companies need to understand the importance of paid parental leave and the state of this kind of program overall. Triton Benefits and HR Solutions has a closer look:
Paid parental leave is becoming more common, but the U.S. is one of the only countries not legally requiring the benefit. Unpaid leave is required
Time off after the birth or adoption of a child with compensation is not something employees are entitled to receive, but unpaid leave is. Under the Fair Medical Leave Act, eligible workers are able to take up to 12 workweeks off in a 12-month period. To qualify for this benefit, employees must have worked for their employer for at least 12 months and at least 1,250 hours of service during that period, among other requirements.
FMLA leave – which is federally mandated – can be used for the following, according to the U.S. Department of Labor:
- Birth of a son or daughter or placement of child with the employee for adoption or foster care.
- Care for a spouse, son, daughter or parent who has a serious medical condition.
- For any serious health problem that causes the worker to be unable to perform the functions of his or her position.
States are doing their own thing
Although paid parental leave is not required by the federal government, many local and statewide rulings have been passed down over the course of the past few years.
In California, both parents are able to take six weeks time off with pay – at the rate of 55 percent of their total salary. New Jersey has offered the same time period, but with two-third of employees' pay.
Other locations that offer paid family leave include the District of Columbia, Rhode Island and Washington state, according to Nolo.
"Men who stay home could experience fewer promotions – a reality women have faced for years."
The stigma of paternity leave
As more companies decide to add paid leave to their benefits offerings, many have to choose whether it's most advantageous to provide the program for mothers or fathers. Usually, the former party is privy to longer periods of time off to care for a new child.
The family dynamic in the U.S. has changed over the years. Today, the mother is the sole or primary breadwinner in 40 percent of all families with children, according to the Pew Research Center. That leaves fathers to tackle more child care responsibilities – more than ever before. As a result, more organizations are considering adding paid paternal leave to their benefits programs. Yet, this benefit comes with a stigma that many women are familiar with, according to The New York Times.
While fathers taking time off to spend with their newborns offers many benefits to families – including healthier children and reduced risk for postpartum depression for mothers – the paternity leave can have negative consequences for male members of the family. Things like lower salaries or being passed over for promotions due to men putting family obligations in the front seat. Of course, these possibilities are too much of a reality for women, who have faced the same – if not higher – levels of scrutiny over the years for similar actions, the NYT reported.
"What we do in terms of the laws and the rights we provide gradually changes cultural norms," Christopher Ruhm, a professor of public policy and economics at the University of Virginia, told the NYT.
Next steps for employers
Employers across the country have weighed various benefits options to incorporate into their programs. To remain competitive within their industry and retain valuable workers, however, companies should consider implementing paid paternal leave – in some form or another. The practice offers businesses many benefits, including higher engagement rates and improved recruitment efforts.
There are many ways companies can add this option to their benefits package. Employees aren't expecting the Netflix treatment – up to a year off after the birth of a child – but a policy similar to that enacted in California or New Jersey can work wonders in improving morale, workplace satisfaction and overall health and well-being. Organizations and their human resources and benefits teams should look at the budget required for this addition to better understand if their enterprise is able to introduce paid leave in a successful manner.