An employee handbook update doesn’t usually merit a press release and glossy promotional video — except when there’s a benefits arms race on. The paid-parental-leave arms race is red-hot because employers see a unique opportunity to nab talent and headlines by one-upping their competitors. Although 86% of American employees have no access to paid parental leave, at elite firms access is growing. Six weeks! 20 weeks! A full year! From 2015 to 2017, more than 75 large companies issued press releases touting new or expanded parental leave policies. Forward-thinking companies recognize that generous paid parental leave and other family-friendly policies provide reputational benefits, confer a competitive edge in recruitment, and increase employee productivity and retention.
A Winning Parental Leave Policy Can Be Surprisingly Simple
Although 86% of American employees have no access to paid parental leave, at elite firms access is growing. The paid-parental-leave arms race is red hot because employers see a unique opportunity to nab talent and headlines by one-upping their competitors. But employers often shoot themselves in the foot by designing old-fashioned leave policies that undercut their recruitment and retention goals and may expose them to public relations backlash and legal liability. The most common misstep is making paid leave contingent on employees identifying as “primary caregivers.” When it comes to leave for new parents, you need just two simple categories: disability leave for women who are physically unable to work due to pregnancy, childbirth, or related conditions, and parental leave available equally to all employees regardless of gender or caregiver status.
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