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Doing the Math On Paid Parental Leave

Posted by Patrick Ball on 17 Dec 2014

In the not too distant past HR execs asked themselves: “Can we afford to offer paid parental leave?” But today they’re faced with: “Can we afford NOT to?” 

Investing in paid parental leave can save big bucks in turnover costs

In our modern, multigenerational workforce, about two-thirds of salaried employees are caring for children, including mothers spending more time at work and fathers spending more time with their kids. 

Not only are today’s working parents challenging traditional gender roles, but the employer-employee relationship has evolved as both sides realize that when it’s working at home, it’s working at work – and vice versa. 

The changing workplace dynamics and their impact on the business benefits of paid parental leave are the subject of “Family Matters: The Business Case for Investing in the Transition to Parenthood,” a new white paper from the Families and Work Institute, sponsored by Care.com.  

“Mothers are increasingly breadwinners, and fathers are increasingly caregivers. These changes are no longer trends; they are facts of life,” reads the new report, which crunches the numbers to build out a business case for paid leave for new parents.

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When it comes to paid parental leave for new moms and dads, leading companies have been offering paid maternity leave and paternity leave packages that go beyond the FMLA-mandated job protections. They’re supporting their employees not because they’re looking for recognition, but because it’s the right thing to do for their employees and their business in terms of performance, recruitment and retention.

In the white paper, FWI asserts: “Paid parental leave is a key factor in ensuring that new parents return to work ready to perform at their best.” It also provides a guide for crunching the numbers to find the business benefits of employer-provided parental leave for your company.

For skeptics of paid parental leave for new parents, a go-to argument is that you’ll be paying for three months of maternity leave and then your employee will decide not to come back. But FWI and Ryan, LLC, a tax advisory firm with more than 1,300 U.S. employees, crunched the numbers to show paid leave can pay off for employers.

Click the button below to find out how paid leave helped Ryan cut its turnover rate in half.   

  

 

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