Research shows the many benefits of offering parental leave include improved recruitment, retention, and employee engagement. But these benefits may feel few and far between for the team members left to maintain the workload while a fellow employee is out on parental leave. Particularly at small organizations, each role is a critical one and any employee’s departure (even temporary) can be a big transition for the rest of the team.
Concerns most often raised by small business owners about offering paid parental leave are the cost to the business, questions of equity for other employees, and the ability to manage workload while the employee is out on leave.
In May, we hosted a workshop for certified employers led by Paradox Consulting Partners about how employers, especially small businesses, can create a paid parental leave policy and implement it successfully. This information and some helpful tips about the process are among the key takeaways from the program.
Cost to Your Business
It’s costly to pay a salary and benefits to someone while they’re not producing work, and additional costs may be incurred to cover loss from their absence. There is also a risk that the employee will choose to not return to work at the end of their paid leave, and the business will not experience the cost benefits of improved retention and engagement.
Potential Solutions
- Be creative with paid parental leave duration if you can’t yet offer the recommended 12 weeks paid leave (e.g., 15 weeks at 70% full-time pay or 8 weeks full-time pay and then 4 weeks part-time)
- Share work among current employees (this may require prioritizing the work to share)
- If you need coverage, consider part time position, structuring work for contract position, or paid internship
- Set the employee up for successful return
- Do the math: look at the cost to offer paid leave vs. the cost to replace the employee—consider the extra boost to organization culture and morale by offering the benefit
Equity
Putting a paid parental leave policy in place raises questions about equitable policies for other caregivers and possible inconsistencies across departments, managers and jobs.
Potential Solutions
- Be consistent across departments, managers, and jobs by setting a clear policy
- Use an inclusive definition of family
- Offer flexible working arrangements for all employees (not just parents)
- Create an inclusive paid leave policy using an equitable process lens, which includes listening to employee perspectives during policy formation
Managing Workload
No one wants to overburden team members while a staff member is on paid parental leave. Extra work can add longer hours and stress, lower productivity, and contribute to burnout.
Potential Solutions
- Pause: What projects can you put on hold?
- Outsource: How can you utilize temp hires, contractors, or interns?
- Delegate:
- What could be a growth opportunity for another employee?
- What rewards could you offer for taking on extra responsibility?
- How can you effectively train, prioritize, and recognize other team members?
The workshop also highlighted steps to set up a parental leave policy and a workplace wide checklist with actions to complete before an employee goes on leave, as well as during their leave, and upon their return.
Workshops like these and other benefits are offered to the FFNC Certified Employer community. Find out what it takes to get certified and how certification can benefit your organization and the families it supports.