Parental Leave in the U.S.
While the FMLA is mandated by the U.S. Department of Labor for various companies, the employee search for businesses offering parental leave continues. Companies want high retention rates, and this is just one contributing factor to onboarding and keeping good employees. Many soon-to-be or new parents want to know that their employers will be flexible as they learn how to balance two full-time jobs: parenthood and employee. Offering this flexibility in leave will ultimately help your employee come back ready to jump in instead of dreading the adjustment.
Companies like Microsoft, Netflix, Spotify, and Reddit offer exceptional family leave as they allow for extensive, paid time off with benefits continued throughout the leave. Some companies even have flexible scheduling programs to help parents ease their way back into the office. These companies have learned an important lesson: happy employees make for a more successful workplace.
What about small businesses?
We recognize that companies with a multi-billion-dollar net worth have more resources and room to allow for months or even a year of parental leave, so what about small businesses? According to Inc., small companies should not just take into consideration what is immediately affordable but should also consider what it would cost to replace that employee if they decided to leave the company due to a lack of family leave. They also find that flexibility is key as new parents are often thankful for the accommodation. Read the full article here.
Every company has different priorities and capabilities, but we urge you to look past the surface and see what your company can gain long-term in these situations. See what works for you and your employees and adapt accordingly. Be ready to confront questions about parental leave as we keep an eye out for the next baby boom.
These policy-related decisions should be discussed with your HR representative. If you're looking into implementing parental leave policies, or if you need guidance on this matter, please contact us.