Reference no: EM133402331

Evolving Benefits: Paid Leave

Organizations have implemented and expanded paid family leave practices in an effort to help employees better balance work and family and also to help them be more successful in attracting and retaining employees who place a priority on such balance. A number of organizations report that improvements in paid leave have helped improve employee retention (and recruiting success).

Earlier, we saw examples of companies that believed they documented tangible benefits, including Google and Best Buy. As another example, In Austin, Texas, a study of the implementation of a citywide paid sick days ordinance reported that city businesses saved $4.5 million annually due primarily to lower turnover and the community was estimated to save $3.8 million annually due to fewer emergency room visits, less flu contagion, and other public health improvements. (In the time of Covid-19, one presumes these health benefits would have been still larger.) Anecdotal evidence is less systematic and large scale but can provide further insight. For example, one recruiter reports that having paid leave policy "often sealed the deal, especially for women and younger candidates" and that such groups often raised the paid leave question "right off the bat" in talking about the position.

Questions

1. Earlier, we saw in (EXHIBIT 13.2) that paid family leave is offered by few organizations. Why do you think that is? What does paid family leave cost? Would a paid family leave benefit be important to all employees? What about you? Why or why not?

2. What role might paid family leave play in helping employees stay in the work force? What is the business case broadly for (or against) offering family leave?