Is paid parental leave a good option for your company?
One of HR's biggest challenges is not just getting top talent on board, but getting them to stay for the long-haul. High employee turnover can be damaging to a business, resulting in costly spending when one worker leaves and HR must find and train the replacement. Typically, the longer an employee can stay with the company, the better.
There are numerous factors that contribute to turnover. For some individuals, it comes down to choosing a career or position that wasn't the right fit. For others, relocation or dissatisfaction with their job or the company culture plays a major factor. However, there is one major, under-addressed issue affecting turnover rates in Americas workplaces today — a lack of family leave.
This issue was discussed in a recent article for CIO in which author Sharon Florentine points to research from the Center for American Progress, which highlights just how expensive it can be to replace a lost employee — roughly 20 percent of his or her salary. It not only costs money, but also results in a loss of productivity and a slow down of business. The key point is that many companies do not offer parental leave, which can leave them the costly task of finding and training a replacement.
HR knows that work-life is balance is a critical concern for many workers. Providing appropriate benefits may help companies to not only attract great employee, but also keep them.
Ultimately it is up to each company to weigh the benefits and costs of providing employees with paid parental leave. An experienced consultant can help your company select and implement a comprehensive HR software system that will help track critical information about company policies and expenses.