Paid parental leave has become an increasingly popular topic of discussion in recent years, reflecting the changing dynamics of the modern workplace and the evolving needs of today's employees. Parento is the first and only paid parental leave insurance program, helping employers support their working parents with a scalable and affordable solution. We’ve got all the best facts and statistics on paid parental leave in 2023 in this infographic, shedding light on its importance, impact on talent retention, and influence on employee loyalty.
Paid parental leave is more than just a perk: it's now the third most requested workplace benefit, perk, or incentive for those 41 and younger. It came in even higher than employees’ interest in 401k, yet only 27% of private sector employees have access to paid parental leave. If employees do have access to state funded or private wage replacement like paid family leave (PFL) or short term disability (STD) plans, they’re not enough. Not only do they only provide a portion of pay, they also exclude many non-birthing parents which makes company policies that rely on these plans inequitable and discriminatory.
With the limitations from PFL and STD plans, paid parental leave remains a key focus for employers as a strategic advantage to attract and retain top talent. A staggering 33% of employees request additional maternity leave, while 47% are looking for expanded family leave options. These numbers reflect the changing priorities in today's society.
It's not just employees who are driving the demand for paid parental leave. Employers are increasingly recognizing the importance of family-friendly policies as well. A remarkable 70% of employers express their desire to add or expand paid parental leave options, many in uncommon industries. This shift in perspective is driven by several factors, such as limited coverage and the reliance on state funded plans or short term disability. As the tide shifts towards more inclusive and family-friendly workplaces, employers are now starkly aware of the limitations of state benefit programs. PFL is only available in eight states and the District of Columbia, leaving more than two-thirds of working Americans without coverage.
One of the key statistics highlighting the importance of paid parental leave is the fact that 59% of employers believe that family-friendly policies are essential for recruitment and retention. This speaks volumes about the role of such policies in building a loyal and committed workforce.
The impact of paid parental leave on talent retention is clear. There is a 70% reduction in turnover among working moms who have access to 12 weeks of paid leave. But all employees, not just working mothers, tend to be more loyal to employers who provide this benefit. Paid parental leave not only benefits the employees but also the employers, as they save on recruitment and training costs while maintaining a skilled and experienced workforce.
Employee loyalty is a crucial factor in any organization's success, and paid parental leave can play a significant role in enhancing it. Studies have shown that there's a 10-15% average increase in employee tenure after implementing a paid parental leave policy. When employees feel supported in their personal lives, they are more likely to commit to their jobs for the long term. An astounding 86% of employees express that they would be more loyal to their employer if they had access to paid parental leave and more flexibility. This loyalty translates into reduced turnover, increased productivity, and a positive work environment.
The state of paid parental leave in 2023 is a reflection of the changing priorities in the workplace. The demand for paid parental leave is on the rise, with employees seeking a better balance between their professional and personal lives. Just in California, a leader in paid family leave, fathers are driving PFL program growth. This illustrates how significant having paid parental leave can be for retaining top talent. Employers, too, are recognizing the need for family-friendly policies, not only to attract top talent but also to retain it.
The statistics are clear: paid parental leave is not just a benefit; it's an investment in a more engaged, loyal, and productive workforce. As the numbers show, providing paid parental leave can lead to reduced turnover, increased employee loyalty, and a happier, more dedicated workforce. In this evolving landscape of work and family, paid parental leave is a win-win solution for both employees and employers, and it's a trend that is here to stay.
