November edition
Paid parental leave benefits seem to be on the minds of many HR professionals across the country. In fact, the percentage of companies offering both paternal and maternity leave has grown by 15 percent over the past few years.1
This may seem like a significant increase. But when it comes to offering paid parental leave benefits, a UNICEF study reports the United States ranks last among 41 developed countries around the world.2 Only 13 percent of U.S. workers in the private sector have access to parental leave options.3 And the percentage is even less for those working in the service and maintenance industries – only 7 and 8 percent, respectively.3
Paid leave is a competitive advantage
With the unemployment rate at a low 3.5 percent,4 competitive benefits are essential to keeping workers. A 2018 LinkedIn survey revealed that parental leave was more important to employees – over perks like free food, game rooms and gyms – for retention.1
Important for both families and kids
More Americans than ever believe parental leave is essential to the well-being of their children. A study by the Pew Research Center found that 69 percent of Americans think fathers should receive paid parental leave; and 83 percent believe mothers should.5
The strong push for better paid parental leave options is partially driven by research that shows how infants develop. In the first 12 months, babies’ brains go through rapid growth, regardless of whether a mother gave birth, used a surrogate or adopted.5 A healthy bond with their caregivers during this period has enduring effects on babies' development. Paid leave policies allow parents to develop this bond without having to choose between career and family.6
While the Family and Medical Leave Act allows for 12 weeks of unpaid time for some workers, more companies are offering more leave to both moms and dads – at least four weeks, with pay.6
Essential for talent in 2020
If the economy continues to remain healthy in 2020, expect more companies to enrich their paid parental leave benefits to remain competitive. With an increasing number of firms offering better parental benefits every year, benefits professionals should regularly compare how their company's benefits compare with other businesses.
We’re always staying abreast of what is happening in the industry and sharing it with you. Need other ideas on benefits that attract and retain talent? Let’s talk.