Dive Brief:
- About 40% of employers offer paid parental leave for both birth and non-birth parents, up from 25% reported in 2015, according to Mercer's 2018 Survey on Absence and Disability Management. The statistic evidences that employers are trying to align their time-off programs and policies with employee needs, Mercer said. While more employers are offering parental leave, however, the median number of weeks allowed has not changed.
- The study also showed an increase in the number of employers that outsource leave administration; 40% of employers outsourced or co-sourced leave administration for the Family Medial Leave Act leave in 2015, while 44% did so in 2018. Similar growth occurred for employers that hired administrative help for parental leave, the survey found.
- Unlimited paid time off — a policy that typically allows employees to take an unlimited amount of time off work — has been extended to all employees by only 3% of survey respondents, the survey said. Only 4% report they are considering it, although 9% said they are considering offering unlimited PTO to only executives or exempt employees.
Dive Insight:
Paid leave has proven itself as a benefit that attracts candidates and retains talent, giving employers that offer it an edge in recruiting and hiring in an employee-driven labor market.
Paid family leave tops all other workplace perks, according to a poll by Unum; 58% of all workers want paid family leave from their employers, more than flexible and remote work options, sabbaticals, student loan repayment assistance, pet-friendly workplaces and pet insurance.
Perhaps in response to its powerful recruiting and retention potential, large employers have shown an increased willingness to up their paid parental and paid family leave benefits in recent years. In trying to reduce turnover rates, even major retailers are now offering paid leave to hourly workers. Others have expanded their leave into full programs; HR Dive recognized PwC as its 2018 Benefits Program of the Year, for example, for extending its paid family leave policy by offering a phased return-to-work program designed to help new parents readjust to their work schedules.
