The United States notoriously lags behind the rest of the world with regard to its paid parental leave policies. Currently the U.S. is the only industrialized country in the world without any kind of national paid maternity leave policy, and one of six of the 38 member countries of the Organization for Economic Co-operation and Development (OECD) that don’t offer paid parental leave.
The responsibility in the United States falls on private businesses, then, to determine whether they will provide paid leave to their employees, and in what amounts. According to the Bureau of Labor Statistics in March 2021, 23 percent of civilian workers had access to paid family leave and 89 percent had access to unpaid family leave. Amongst state and local government workers, 26 percent had access to paid family leave and 94 had access to unpaid family leave.
This means companies that are able to provide paid leave to their employees have a big advantage in attracting quality employees. The COVID-19 pandemic put some significant strain on young families, and people are now looking for jobs that offer benefits like remote work, flexibility, paid leave and other such benefits that make life easier for these families.
Indeed, one study by Deloitte found 77 percent of employees said whether a firm offered paid financial leave and the length of that leave would influence their decisions of where to apply and work.
Large corporations like Google have made headlines for their implementation of paid leave policies. But small businesses, often without the same cashflow and reserves as these large companies, may have concerns about their ability to pay their employees while on leave.
There is no denying that small businesses are at a disadvantage when it comes to paid leave, which in turn puts them at a disadvantage in attracting quality talent. Here are a few strategies owners of small businesses can implement to work through this issue.
For assistance in developing a paid family leave policy that will be appreciated by your employees, contact Holden Law Firm, PLLC