Developing Effective Parental Leave Policies

Adding a child to a family is a major shift in people’s lives. While the occasion is joyous, new parents need time to adjust to their new addition, both in terms of physical recovery and having time to bond.

As an employer, providing a quality work environment that encourages your employees means recognizing that employees are more than just workers, and you want to support their lives outside the office. Including quality maternity and paternity leave policies, which provide fathers and mothers time off after a new birth or adoption, are an essential part of any benefits package in today’s work environment.

The Benefits of Strong Maternity and Paternity Leave Policies

A strong parental leave policy will benefit your organization in many ways:

• You will enhance employee morale and loyalty. Policies that benefit your employees let them know that you care about their quality of life, which will encourage them to keep working with you.
• Higher retention rates and reduced turnover. Recognizing the needs of parents will encourage people to work with your company in the long term. They will be less likely to quit to bond with their children and feel more confident balancing parenthood and their jobs.
• Improved company reputation and attractiveness to top talent. A reputation for genuine consideration for your employees will encourage people to apply to your positions, bringing you the best possible workers for your openings.
• Ensure compliance with federal and state parental leave laws. Finally, you will confidently know that your maternity and paternity leave benefits meet or exceed the standards set by federal and state parental leave laws.

Key Components of Effective Parental Leave Policies

Building these effective parental leave policies calls for a few critical components. Let’s look more closely at each.

Leave Duration

First, consider the duration of leave you will offer. Determine an appropriate leave based on the industry standards, reported best practices, and the needs of your employees.

Eligibility and Requirements

Next, consider who will be eligible and what requirements must be fulfilled before people can take parental leave. For example, you might require people to work at a business for a certain amount of time before they become eligible.

Pay Structure

As you consider how to set up your leave, you will also need to consider the pay structure. Some businesses offer the leave entirely paid; others offer partially paid or unpaid leave. You will need to consider how you will establish your options and the industry standards and regulations. Some people, for example, might offer a certain number of weeks of paid parental and then a few optional weeks unpaid.

Return-to-Work Support

Finally, recognize that when employees return to work after their leave, they will likely need some support during the transition. Offering flexibility during this time period or a phased return-to-work can help your employee successfully shift back to their work and adjust to any new scheduling considerations - such as juggling daycare with their employment.

Best Practices for Creating and Implementing Maternity and Paternity Leave Policies

Now that you have walked through the value parental leave policies offer your business and the components you will want to consider, let’s consider some best practices that can help you draft the best possible leave offerings.

• Use inclusive language that covers all parents, regardless of gender.
• Benchmark your policy against the industry standards to stay competitive. Looking at existing paternity and maternity leave guidelines can help you set your own policy.
• Clearly communicate the policy details to all your employees. Holding meetings to go over any changes and providing easy-to-read documentation can go a long way toward this goal.
• Regularly review and update your policies to stay compliant and responsive to employee needs.

Keeping these ideas in mind can help you write a policy that will keep your employees happy, as you will create it with the benefit of your employees in mind. Creating your parental leave policy should not be about checking a box; it should revolve around the well-being of your employees, which in turn will help your business thrive.

Overcoming Common Challenges

As you start creating your parental leave policy, you may encounter a few common challenges. Planning for these potential obstacles ahead of time can help you move past these issues and build a more successful policy.

• Know how you will manage workload distribution during employee leave. You do not want the rest of your staff to suffer when someone is out on parental leave, which can lead to resentment and frustration. Instead, have an internal management plan, such as how the team and the employee in question will plan ahead for the leave and how employees can fill in the gaps. Using contractors, temp employees, or other measures can help to fill in some holes and keep the team moving forward efficiently.
  
  
• Concerns about the impact on small businesses. Small businesses do not operate with the same level of financial resources as larger businesses, which can make it harder to pay employees on leave or manage workloads when people are out. You might try strategies such as shortening the length of full-time leave and increasing the weeks available for part-time transition or unpaid leave, for example.
  
  
• Ensure your policies align with company cultures and values. Know the values and reputation your business wants to project. Make sure your policies align with what you want to present about your business.
  
  

Conclusion

Offering an outstanding parental leave policy for your employees is a benefit that will keep your staff happy and their morale high. Respecting the needs of your employees through well-planned benefits can help boost employee satisfaction and encourage people to remain loyal to your organization. With state and federal laws on the books mandating parental leave as well, planning your policies can ensure compliance.

Are you looking to implement effective parental leave policies in your organization? Contact Affiliated Payroll to learn how our time and labor management services can help.