Comprehensive and competitive benefit packages that resonate with employee needs are critical for attracting and retaining top talent in today’s competitive labor market. During the Parental Leave Summit, Senior Manager of Research on JUST Capital's Corporate Impact team, Aleksandra Radeva, shared essential insights on the value and current landscape of paid parental leave and broader caregiving policies. She highlighted not only the opportunities for businesses but also the strategic importance of aligning benefit offerings with evolving workforce needs.
Investing in paid parental leave isn’t just a compassionate choice—it’s a strategic move. Since the United States is the only developed nation without a federal paid parental leave policy, crafting a competitive business case for paid parental leave involves demonstrating how these policies impact the bottom line. Here’s what Aleksandra shared to help you build a business case for paid parental leave:
There’s a discrepancy between the public’s perceived importance of an issue and their opinions on the level of corporate action on that issue. The importance of childcare benefits like paid parental leave goes beyond just meeting public needs—it’s a key factor in building a strong, sustainable business model. The gap between what employees want and what is provided signals an opportunity for businesses to set themselves apart in the marketplace. When companies make decisions based on data and employee feedback, like updating policies and prioritizing initiatives, they’re able to build better programs while offering benefits that also enhance business performance.
The actual length of the offering of paid parental leave often falls short of 12 weeks. JUST Capital analysis found the average offering among Russell 1000 companies is 11 weeks for primary caregivers and only 8 weeks for secondary caregivers. There’s an outdated perception that caregiving responsibilities primarily rest with mothers, and this gap can deter potential talent who value inclusive and supportive workplace policies.
Only 26% of Russell 1000 companies disclose providing at least 12 weeks of paid leave for primary caregivers while just 13% disclose providing the same to secondary caregivers. This is critical because 73% of private sector employees don’t have access to Paid Family Leave (PFL) programs and 57% of private sector employees lack access to Short-Term Disability (STD) coverage. While state programs make paid leave more accessible to employees, not all states have programs and employer-provided paid time off can help balance the difference in pay. Employees with adequate paid time off are 68% more engaged.
A significant portion of the business world lags behind in offering transparent and equitable leave policies. This is a call to action to advocate for and design benefits that showcase transparency and equity. Flexibility in leave options that address different life events beyond just parental leave helps employees balance work and personal life, which improves engagement and reduces burnout.
There is a very compelling business case that there are long-term benefits to investing in care and leave policies and employee benefits more broadly. The statistics speak volumes—offering paid leave can improve a company’s ability to attract and retain talent by more than 50%, boost employee health and wellness by over 60%, and increase engagement by 60%. These factors collectively contribute to higher productivity and reduced turnover, which are vital for sustaining growth and profitability.
“Turnover reduction is probably one of the more obvious benefits of making sure that you're building an inclusive and supportive workplace.” - Aleksanda Radeva
Companies offering childcare benefits see a return on investment (ROI) ranging from 90% to 425%. Financial support and stability is important for parents, and the cost of childcare can be a big source of stress with the costs rising 32% over the past five years. 65% of working parents would stay at their job if their employer offered subsidized child care, with more than 70% now contemplating adapting their careers to be able to care for their children. Companies that bridge the gap between employee needs and benefit offerings are better positioned to thrive in an increasingly competitive environment. The data shows that aligning with employee priorities—such as caregiving support—pays off in engagement, productivity, and long-term retention.
Implementing paid leave has been found to increase revenue by 4.6% and profit by 6.8% per full-time employee. Paid parental leave has been shown to improve maternal and child health, increase employee retention, and promote gender equality in the workplace. 80% of companies that offer paid family leave reported an increase in employee morale, and more than 70% reported an increase in employee productivity. It’s a high ROI program that’s also good for the economy.
A recent JUST Capital survey shows a clear and unmet demand for paid leave and parental support—86% of Americans agree that it is important for companies to invest in expanded childcare benefits, while just 44% agreed that companies are doing well on this issue. The organization has issued comprehensive resources for corporate leaders to help close this gap. In their Guide for Corporate Leaders on Paid Leave Policies and Corporate Blueprint on Expansive and Equitable Paid Leave, JUST Capital showcases the business case for paid leave, while highlighting evidence-based leading practices, and elevating real world examples from companies like Intel, Etsy, Citibank and more. Each resource features actionable next steps for leaders to bring these best practices to life at their company.
If you missed The Parental Leave Summit, the session “Building The Right Benefits Package for Parents” was designed for brokers looking to craft comprehensive and competitive benefit packages that meet the evolving needs of their clients. In addition to Aleksandra’s expertise and research from JUST Capital, the conversation also featured John Lemire, Parento’s VP of Sales, and Joy Sanders, Employee Benefits Absence & Leave Management Leader and Consultant. Attendees learned how to strategically assess client needs, industry trends, and employee demographics to build tailored benefit offerings that attract and retain top talent. The discussion covered best practices and actionable strategies for balancing cost-effectiveness with high-value benefits.
Here are a few ideas from this session:
Employers can leverage these strategies and insights from JUST Capital to create tailored benefit packages that not only attract top talent but also demonstrate a commitment to employee wellbeing. For businesses, this means more than just staying competitive; it means building a sustainable, future-focused workforce. If you’re looking for an affordable way to offer paid parental leave in this changing economy, our team is happy to chat!
