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The advent of technology has been rapidly changing the way we work. It has also influenced how we work, along with the need and demand for greater workplace flexibility. Parental leave is one such component that has seen the shift from being an add-on to a must-have. In fact, it has become an integral part of a modern-day workplace.
If you’re a business owner, here’s everything you need to know about parental leaves. From what is parental leave to how it works to its benefits, we’ve covered it all in this article. To make it even better, we’ve also highlighted simple ways you can make a solid parental leave policy for your organization.
If you’re someone who is planning to or just entered the workforce, planning to start a family, or already have children, you can get all the information you need about parental leaves here. It will increase your awareness and help you choose the right workplace.
So, let’s dive straight in!
» What is Parental Leave?
Parental leave is a time off work parents can take to care for their children. Such leaves are meant for mothers, fathers, and caregivers. Employees can apply for parental leave after the birth of their children, as well as in the cases of adoption. Such leaves are also useful when the child is sick or requires constant parental presence to ensure overall well-being and welfare.
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The best part? Parental leaves are accessible to all parents, whether they have a newborn baby, an adolescent child, or a teenage kid at home.
However, it’s vital to note that parental leave policies, standards, and terms vary with nations and organizations. Typically, the child has to be under 18 years of age for one to qualify for this type of leave.
Thus, it is crucial to go through your country’s regulations to ensure complete compliance and extend maximum benefits to your workforce.
» How Does Parental Leave Work?
Parental leave, like other leaves, is bound to follow the same organizational protocols and regulatory compliance. An employee keen to take this leave is expected to notify their employer at least two months in advance. That helps the organization prepare a solid plan for managing the employee’s work responsibilities when they’re away.
When it’s time to return to office, organizations are better off if they have a powerful re-onboarding process in place. Re-onboarding helps employees make a seamless return to their jobs after a long break. That's very much like how a regular onboarding process facilitates new joiners to adjust to the workplace. It reduces work anxiety after an extended break while boosting in them the feelings of inclusion & being valued. Doing so also increases the scope of return-to-work success significantly.
The best part? A majority of leading absence management software systems allow you to manage parental leaves. That not only simplifies leave planning and management but also streamlines your business operations.
» Should You Pay Employees When They Take Parental Leaves?
Parental leaves can be both paid and unpaid depending on your company’s distinct policies and the laws of the country it is based. A powerful country like the US, for example, doesn’t have a nationwide paid family or parental leave. States, such as Massachusetts and New York, provide paid family leave of up to 12 weeks.
Of late, private companies are providing the benefit of paid parental leave as well. While some companies offer full pay during the time off, some provide employees with a fixed percentage of their salary.
But what if organizations don’t offer paid parental leave?
In this case, employees can take parental leave of up to 12 weeks through FMLA (The Family and Medical Leave Act) which will be an unpaid time off.
Since most of these unpaid parental time off is covered under the FMLA, employees get the job security they need. Such leaves though are available within one year of the child’s birth or adoption. Apart from that, parental leave through FMLA can also be availed when the child is battling serious health concerns and needs parental care for a prolonged period.
It’s vital to note that parental leave through FMLA is subject to eligibility criteria. Employees who fail to qualify, don’t get this benefit. In such a case, employees can then take advantage of their paid vacation or sick time off to be there for their kids.
» Parental Leave vs Maternity Leave: Know the Difference
As you may already be aware, maternity leaves are meant for mothers or female adoptive parents. Pregnant female professionals usually go on maternity leave in the weeks before and after childbirth. The leave continues after the baby arrives (four to six weeks, typically, or as per the company’s policies) to care for the baby.
The female adoptive parents opt for maternity leave in the weeks following the adoption.
Parental leave, on the other hand, isn’t restricted to just mothers; fathers are eligible for it too. Besides, parental leave is available within the first year of adopting a kid or the birth of the child. As discussed above, some organizations offer parental leave as a benefit package until the child is of a certain age.
Some organizations offer maternity & paternity leave as well as parental leave. This allows their female staff to take advantage of the added time off by combining both types of leaves, making their journey of navigating the critical, early stage of parenting a bit of a breeze.
» Benefits of Offering Parental Leave
If you’ve been wondering why you should provide your employees with parental leave, here are the prominent reasons:
› 1) Offers better work-life balance
A recent study revealed that out of those entering the workforce, 67% of Gen-Z graduates want to have the flexibility to manage personal responsibilities. A finely drafted parental leave policy can act as a green flag, offering this very work-life balance.
When employees at your firm opt for parental leave, they have peace of mind to enjoy the new phase of their lives. They know they have a job to return to, along with financial security, increasing their feelings of loyalty and belonging.
› 2) Creates a stronger employer brand
A job seeker of today’s era, be it Gen Z or younger Millennial, is more concerned about whether their employer actually cares about their well-being over the pay package.
When you offer paid parental leave, you can prove to these young professionals that you care. Doing so helps you stand out as an employer in the highly cluttered, competitive job market. The one who values their employees and supports their growth - both personal and professional.
› 3) Helps attract top talent
As you offer parental leave to your workforce, your brand positioning and goodwill improve significantly. It not only keeps your current employees happy and satisfied but also attracts bright talent across fields and geographical limits.
About 40% of organizations believe their staff would leave them for employment with better benefits. Moreover, one out of ten employees would be willing to compromise on their pay package for access to more benefits.
These stats reveal the sentiments of candidates in the world post the pandemic. Offering strategic parental time off can be the perfect incentive to get the right talent onboard and meet your business goals.
› 4) Improves employee retention
With the right parental leave policy in place, your current employees won’t look out for a better opportunity outside. It would help them strike a balance between their personal and professional lives without having to sacrifice either of the two. As a result, you will be able to retain the most crucial asset of any organization - its people - with ease.
› 5) Builds a diverse, inclusive workplace
A parental leave is available to parents irrespective of their gender. It also encourages people from the underrepresented groups, as well as women workers, to avail the same benefits. That not only fosters the feeling of equality but also makes them stay in the workforce in the years following a new addition to their family.
Having such a policy helps you build a diverse workforce while placing you as an employer who walks the path of DEI initiatives right.
› 6) Boosts employee wellbeing
Employers suffer loss when their employees fall sick, experience burnout, are struggling to cope, or are not productive. A well-defined parental leave can eliminate all these scenarios.
Access to parental leave while raising a child can enable employees to reduce their stress and avoid cases of rehospitalization. It gives financial security to employees and also enhances their mental health as a whole. At the same time, it protects businesses from unnecessary costs/financial losses/burdens. All in all, a win-win situation for all.
› 7) Builds a positive, happy workplace
The ability to take time off from work to care for a child means the world to working parents. When they get such an opportunity from their employer, they feel at ease and less guilty about being at work. The quality time with their children when they need it the most makes them feel good, valued, and happy. This positive bunch of feelings transforms into an overall joyous, contented work culture.
› 8) Increases productivity
When employees are less stressed and content in their personal lives, it reflects into their professional lives. Something that a parental leave policy can easily offer. It allows employees to be home for their children without having to stress about their job or financial security. So, when they return to work after fulfilling their personal responsibilities, they are more focused, engaged, and proactive. This ultimately results in higher productivity levels and better performance at work.
Now that you know the pros of a powerful parental leave policy at your organization, let’s explore how you can form one.
» How to Come Up with a Good Parental Leave Policy?
Coming up with a solid parental leave policy is no rocket science. It requires a thorough understanding of your requirements, the needs of your employees, and adherence to the state laws. Here’s a checklist of simple steps to get started:
› Form a strategy
Take some time out to understand what you, as a company, want to get out of such a leave offering. Will it help engage & retain employees? Would it be cost-effective? Determine how your employees perceive such benefits. Based on that, create a strategy that not only charts out a budget but also carves a mutually beneficial path for all the stakeholders.
› Create a draft
Include every crucial detail in your parental leave policy. From the length of the time off to the pay percentage offered to the eligibility criteria, there shouldn’t be any room for confusion, so make it as transparent as possible.
While drafting the policy, make sure it adheres to the parental leave laws of your country. Doing so eliminates any chances of disputes in the future.
› Create concrete channels of communication
Educate employees about the policy through clear conversations. Communicate with employees who are on such leave from time to time. Enquiring about their health or asking if they need support makes them feel valued.
Besides, keep them in the loop about vital happenings/changes at the workplace during their absence. However, strike a balance. There is a fine line between informing and disturbing. You can email them about updates once a month, for instance.
Such practices invoke the feeling of inclusion while making things smoother for them when they come back to work.
› Implement effectively
Without structured implementation, even a robust policy would fail. Encourage employees to plan parental leave in advance. Create a roadmap for the balanced transfer of responsibility and workload of the employee going on leave among your staff. That helps sustain productivity and a smooth flow of operations.
» Conclusion
Maintaining a healthy work-life balance is a top priority of today’s workforce, especially for working parents. And parental leave policy is a perfect instrument to cater to this need. It not only enables new parents to take care of their children but also empowers them to do so without losing their jobs or financial security. As an organization, offering this leave boosts your brand as an employer while making it easier to retain your top talent.
