Corporate Blueprint on Expansive & Equitable Paid Leave
A step-by-step guide to invest in worker well-being through research-based and proven strategies
Blueprint Background
JUST Capital, in collaboration with the W.K. Kellogg Foundation,
presents the Blueprint for Expansive and Equitable Paid Leave, offering clear and actionable steps, relevant tools and assessments, and other resources for companies that want to take a first step towards expanding or launching leave policies.
This resource may be helpful for corporate leaders across functions impacting workers, including,
but not limited to:
- Human Resources
- People and Operations
- Diversity, Equity, and Inclusion (DEI)
- Total Rewards / Compensation
- Benefits
- Employee Resource Groups (ERGs)
The Blueprint leverages learnings from research conducted by JUST Capital about paid leave offerings, including interviews with leading practitioners at some of America’s largest companies. Through this Blueprint, you can expect:
A foundation
of information and research on the need and desire for paid leave
Rationale
for enhancing paid leave benefits to help gain internal buy-in for improvements
Practical examples
of paid leave adoption and corporate perspectives on their experience
Easy steps
to navigate updating or enhancing your leave policies
The JUST Capital Blueprint on Expansive & Equitable Paid Leave underscores the pivotal role of comprehensive leave policies in fostering both employee well-being and equity, in addition to corporate success. Contrary to common misconceptions, research consistently demonstrates that paid leave initiatives not only benefit workers, but also yield positive economic outcomes for companies and society at large.
Executive Summary
Year over year, JUST Capital polling reveals that the American public agrees that companies should put workers squarely at the heart of their business practices. In fact, in another JUST Capital survey, 86% of Americans say that it is important for large companies to invest in expanded child care benefits (paid leave, child care subsidies, dependent care, flexible work) while just 37% agree companies are doing it well.
Amidst a competitive labor market, companies offering paid leave gain a distinct advantage in attracting and retaining top talent. Research shows that such policies contribute to increased labor force participation, particularly among women, leading to enhanced productivity, lower turnover rates, and improved employee morale. Moreover, companies with robust paid leave programs enjoy a bolstered brand reputation, translating into tangible market value.
To navigate the complexities of implementing or expanding paid leave policies, companies can follow a six-step framework outlined in the blueprint. These steps include assessing workforce needs, understanding costs and benefits, securing internal buy-in, designing comprehensive policies, implementing and iterating on initiatives, and communicating externally.
By adopting these recommendations and prioritizing the well-being of their workforce, companies can not only enhance their competitive advantage, but also contribute to a more equitable and inclusive society. As the demand for equitable leave policies continues to grow among both employees and the broader public, companies have a unique opportunity to lead by example and shape a future where paid leave is accessible to all workers.
About JUST Capital
JUST Capital is an independent 501(c)3 nonprofit organization on a mission to demonstrate that just business is better business. We envision a world where business and markets are a force for the greater good. We believe by shifting the resources of the $21 trillion private sector, we can address systemic issues at scale. Guided by the public’s priorities, our research, rankings, indexes, and data-driven tools measure and improve corporate performance in the stakeholder economy. We are committed to the integrity of our corporate performance research; it is not affiliated with or influenced by any entity, corporation, corporate interest, or political group.
About W.K. Kellogg Foundation
The W.K. Kellogg Foundation supports children, families and communities as they strengthen and create conditions that propel vulnerable children to achieve success as individuals and as contributors to the larger community and society. Learn more at wkkf.org.
The Business Case for Paid Leave
Expanding leave policies presents companies a ripe opportunity to not only generate outsized impact for workers, but also for their bottom line, and the economy at large.
Though there are concerns that paid leave may be costly for companies and the economy, research has provided evidence that it is actually a net benefit. Multiple research studies have found that paid leave is associated with an increase in labor force participation, especially of women and it helps boost economic growth. Moreover, each year, businesses that do not offer supportive care infrastructure – with comprehensive benefits and policies – fail to attract, support, and retain crucial workers, resulting in a loss of about $35 billion.
Within the context of a tight labor market and competition for talent, companies offering paid leave may gain a competitive edge over their peers not offering paid leave.
Benefits of Paid Leave
Recruit and retain talent
Research indicates that offering paid leave as a worker benefit can help companies attract and retain top talent.
Employee morale
82% of companies with paid leave policies say their policy had a positive impact on morale.
Christy Pambianchi
Executive Vice President and Chief People Officer
Intel Corporation
At Intel, we value innovation and recognize that innovation comes from sharing different points of view. As such, our greatest resource is our people. Supporting them through the moments that matter is core to our values. Our primary goal is to create a safe, respectful work environment for all employees, enhanced through company culture and organizational policies, including benefits. We believe that these programs help our employees achieve their personal best, driving business values and increasing retention.
Citi Bank
Our investments come back to us in the form of attracting and retaining the best talent. By prioritizing our paid leave offerings we enhance our value proposition, and it keeps us at pace with industry trends and legislation.
Lower Turnover
When women don’t have access to leave, 30% of them will exit the workforce within a year of giving birth.
Workplace health and safety
Cities and states that implement paid sick leave have lower influenza-like-illnesses transmission rates than jurisdictions without the policy.
Greater productivity
The CDC estimates that absenteeism alone costs businesses $225.8 billion per year due to productivity losses.
Employees, particularly those in the Gen Z workforce who are expected to comprise over a third of our future workforce from 2030, are also seeking greater flexibility through the availability of benefits that are attuned to their personal circumstances [...] Family formation is one of life’s key moments, and supporting colleagues through this personal milestone is critical to attract, motivate and retain talent.
British multinational bank Standard Chartered announced in the summer of 2023 it is providing 20 weeks of paid parental leave to all new parents. It raised its global paternity leave policy from 2 weeks to 20 weeks, equal to its existing policy for maternity leave. Explaining the change, its spokesperson stated:
Brand Reputation
Providing paid leave can also increase a company’s brand reputation, which positively influences market value.
Companies Leading on Paid Leave
Hewlett Packard Enterprise (HPE)
Parental Leave
In addition to providing up to 26 weeks of paid leave for both primary and secondary caregivers, HPE also offers parental transition support programs, where new parents can work part time for up to 36 months to transition and ease back into work. HPE approaches benefits comprehensively to support workers holistically, through “physical health, mental, emotional and financial well-being, and social connections to community.” JUST Capital named them one of the best companies for parents in 2023.
Samantha Dubridge
VP of Benefits, Culture, and People
HPE
When we benchmarked and talked to other organizations, part of the feedback we were hearing is, there were a couple of companies that were offering two or three months parental leave, and their employees appreciated it. But then they would come back to work, and they would go from zero to 150 in terms of the amount of work that they had.
…Strong caregiver offerings are not only good for families, they are good for business. Five years into Etsy’s program, we find that:
Josh Silverman
Chief Executive Officer
Etsy
- Our overall employee retention is significantly higher than the industry average, and is higher among parents than non-parents.
- Women get promoted at the same rate (or slightly higher) than men. Half of our executive team are women, along with 43.7% of senior leaders and nearly a third of our engineers (about double industry benchmarks).
- Parents and non-parents receive comparable performance ratings.
- Women and men take parental leave at the same rate.
- On Etsy’s annual Engagement Survey, which helps us to understand the current employee experience, caregivers reported higher levels of engagement than non-caregivers.
As we prepare to shift to our new way of working, we believe our flexible policies and support systems will be particularly important for creating an equitable experience, retaining our existing employees, and continuing to attract world-class talent.
Etsy
Family Leave
A long-time leader in paid leave, Etsy has been recognized for its progressive approach to employee benefits, including paid family and medical leave policies. Etsy's commitment to work-life balance is reflected in its inclusive policies designed to support employees during significant life events, including 12 weeks of paid family leave “to care for a close relative with a serious health condition, or to assist loved ones when a family member is deployed abroad for military service.“
Intel Corporation
Medical Leave
Intel typically offers a range of benefits to support its diverse workforce, recognizing the importance of accommodating employees during significant life events. This often includes paid leave for new parents, allowing for essential bonding time and support for family needs. Intel's extensive medical leave policy, 52 weeks fully paid, is designed to provide employees with the necessary flexibility and financial support during health-related challenges. A short-term disability program makes the policy possible. JUST Capital named them one of the best companies for women in 2023.
At Intel, we care about our employees’ wellbeing. This includes supporting them when big things happen in their lives.
In 2018-2019, Intel made several changes to its paid leave programs. We did this to ensure our leave programs provide the right level of protection and flexibility for our employees and their families in the moments that mattered. For instance, we noticed that an increasing number of Intel employees were opting out of our voluntary disability programs in non-mandated states, leaving them at risk. As such, we made three notable changes to our program:
- We began to provide short-term disability at no cost to employees.
- We automatically enrolled all employees in short-term disability.
- We extended the benefit duration to 52 weeks, from 26 weeks, to make sure that employees have the time needed to rest and recuperate before returning to work.
We invest in people and families so our employees can be their best and drive results for our business. Our efforts to enhance our comprehensive benefits offering demonstrate how we care for employees and their families through every stage of life. To attract and retain top talent, we need to ensure there are pathways to support all employees so they can fully participate in the workplace through the many different stages of life.
Christy Pambianchi
Executive Vice President and Chief People Officer
Intel Corporation
Jill St. John Butler
Corporate Vice President, Compensation and Benefits
AMD
Countless employees have made use of our Sick and Family Time Off policy - whether to take a few days off to recover from illness, to stay home and take care of a sick child, or to support a family member undergoing treatment for a serious illness. The ability to step away from work and focus on the things that are important, while also maintaining full pay, has been incredibly important to our employees. As a result, Sick and Family Time Off ranks very high on the list of benefits most valued by our employees.
Advanced Micro Devices
Sick Leave
AMD provides 20 days of Sick and Family Time Off per year to full-time US employees to support the well-being of its employees. This policy allows employees to take time off when they are unwell without financial consequences. The sick leave policy reflects AMD’s commitment to prioritizing employee health and ensuring a supportive work environment. JUST Capital named them one of three companies leading on sick leave in 2023.
A JUST Capital analysis of the Russell 1000 companies in 2023 revealed that only 9% of companies offer 12 weeks of parental leave for both caregivers – a slight increase from 2021 to 2022. A survey from SHRM also revealed that paid family and medical leave is on the rise in 2023.
Still, only around 16% of private sector workers have access to paid family leave. Some companies are distinguishing themselves through comprehensive and employee-centric paid leave policies. As we delve into the specifics of these companies, we will uncover the diverse and innovative approaches they employ. By exploring the details of their initiatives, we aim to shed light on the ways these companies prioritize the well-being of their workforce, setting a benchmark for others in creating workplaces that resonate with the evolving needs and expectations of employees.
The Need for Paid Leave
The Current State of Federal and State Policies on Paid Leave
Despite strong support from the public, there is no universal, guaranteed paid leave for the American workforce of any kind, meaning workers primarily rely on their employers to access these policies. In the U.S. today, only the Family and Medical Leave Act (FMLA) provides eligible employees up to 12 weeks of leave per year, but that leave is unpaid. Only 56% of American workers are eligible for FMLA, and low-wage earners are even less likely to be eligible – only 38% of workers earning less than $15 per hour meet the eligibility requirements, compared to 63% of workers earnings more than $15. Because people of color disproportionately work low-wage jobs, they are less likely to be eligible for FMLA. As of August 2023, 13 states and Washington D.C. have enacted mandatory paid family leave laws, and 8 other states have enacted voluntary laws through private paid family leave insurance policies.
Employees' physical, emotional and financial health directly impacts their engagement and productivity. Numerous cities and states have introduced or expanded upon sick leave legislation, understanding the importance to employees of taking time off when needed. By rolling out a generous, consistent Sick and Family Time Off policy across the U.S. we've not only minimized the administrative burden of tracking against the various legislative requirements, but we've provided a cohesive, supportive program for all employees.
Jill St. John Butler
Corporate Vice President, Compensation and Benefits
AMD
Why Workers Need Comprehensive Paid Leave
Paid family and medical leave is a crucial and humane component of a modern workplace that recognizes the multifaceted needs of its employees. In a post-pandemic era and in the midst of an ongoing caregiving crisis, where the demands of work and family often intersect, the necessity for paid leave becomes increasingly evident. Workers face diverse life events, from the joys of welcoming a new family member to the challenges of dealing with personal or family health crises. Paid family and medical leave offers a vital safety net, allowing employees to navigate these critical moments without sacrificing their financial stability or job security. Beyond job protection, it fosters a supportive work culture through improved employee well-being and health outcomes and reduced financial insecurity. In addition, it provides an opportunity to address the continued racial and gender inequities that exist in the workplace.
Improved Employee Well-Being and Family Health Outcomes
- Study after study have shown that paid parental leave results in better health outcomes for both mothers and children.
- One study found that California’s 6-week paid family leave law reduced infant mortality rates and prevented the deaths of 339 infants.
- Paid medical leave allows workers to pursue necessary medical treatment earlier and to manage ongoing treatment.
Without dedicated paid leave for family/personal reasons, people repurpose vacation time (if they have it), which over time contributes to burnout and other negative mental health outcomes, like depression.
Workers and their families lose $22.5 billion in wages each year due to a lack of paid family and medical leave.
Reduce Financial Insecurity for Individuals & Families
- Furthermore, having access to paid medical leave has led workers to experience less stress from financial insecurity during a health shock.
- Working adults aged 21 to 64 lose an estimated $9,578 in wages after taking 12 weeks of unpaid leave. This equates to families losing 58 percent of their quarterly income. For Black, Asian, and Hispanic families, the percent of household income lost due to unpaid leave is even greater.
- For women who are primary or co-breadwinners in their families—64.2 percent of mothers in 2017—and who also perform the majority of caregiving, the lack of paid leave risks their family’s economic security.
- With access to paid leave, women, especially women of color, would not be forced to choose between keeping their job and taking care of their children, maintaining women’s employment and lifetime earning potential.
- Paid parental leave can also lead to a more equitable division of labor for parents of all genders.
- Access to paid leave is estimated to increase mothers’ labor force participation by approximately 20 percent during the first year following their child’s birth.
Black and Hispanic workers are less likely than white, non-Hispanic workers to have access to paid family and medical leave.
Address Racial & Gender Inequities in the Workplace & at Home
Jennifer Spina talks about how the flexibility she has at Intel has allowed her to balance being a full-time employee, as well as thrive in her role as a caregiver to her daughter, Nora, who has a rare genetic disorder.
Workers Want Paid Leave
Feedback from our Talent Acquisition team as well as our internal field HR partners suggests our paid leaves continue to positively impact our employees. Our leadership at the highest levels often receive emails with stories about how our leaves, and specifically Paid Family Leave, has made a lasting impact on their family.
Lindsay Jones
Director, Global Total Rewards & Employee Relations
General Motors
As workplaces continue to evolve post-pandemic, paid family and medical leave empowers individuals to manage personal and family responsibilities without facing the financial strain or fear of job loss. As workers increasingly prioritize employers who demonstrate understanding and support in times of personal need, paid family and medical leave emerges as a critical factor in attracting, retaining, and nurturing a satisfied and motivated workforce.
As more people in the workforce enter the “sandwich generation,” caring for their own children and older parents or relatives, access to equitable leave policies is becoming more and more desirable for employees.
of Americans believe that to promote gender equity in the workplace, it is necessary for companies to provide at least 12 weeks of paid parental leave to all workers
of Americans say that it is important for large companies to invest in expanded child care benefits (paid leave, child care subsidies, dependent care, flexible work)
of people would be happier at work if they had access to more parental leave, and 77% stated parental leave offerings would impact their decision when choosing between potential employers
Americans say both mothers and fathers should get paid parental leave
Steps to Success
While the path to offer or expand paid leave will be unique for each company,
there are six steps that can help corporate leaders
advance equitable leave for their workers.
Assess Your Workforce Needs
Assessing workers' desires for paid leave involves understanding their needs, preferences, and priorities when it comes to taking time off to care for themselves or loved ones. Below are some approaches that companies can use to gauge their employees' interest in paid parental leave.
In 2022, we assessed and benchmarked our benefits program and as a result introduced surrogacy reimbursement and a paid parental leave program... All parents are entitled to 6 weeks of paid parental leave at 100% of pay which may be taken to bond with a new child during the first year after a birth, adoption or foster placement (in addition to STD for birth parent)
Focus Groups
Organize small group discussions with employees to delve deeper into their feelings about paid leave. These sessions can provide qualitative insights that surveys might miss, allowing employees to share their experiences and thoughts openly.
World-class talent is at the heart of everything we do. Intel is innovating how we work by fostering a disciplined and efficient, yet flexible, workplace where people are motivated to execute flawlessly to create world-changing technology. People in a CHRO or VP-level role need to be quite knowledgeable on the ways in which people are living their lives, what this means for the way work gets done, and how comprehensive benefits support employees, retention, and driving the business forward.
I always recommend listening to your employees through focus groups, pulse surveys, and other engagement endeavors. And be sure to educate your colleagues on the importance of these benefits. An empowered and supported colleague is an engaged employee.
Benchmarking
Compare your company's leave policies with industry standards and practices. This can help you identify if your current policies are competitive and whether adjustments are needed to ensure that existing employees are incentivized to stay and potential new employees see it as a recruitment perk. We invite you to use the JUST Capital Annual Rankings and JUST Jobs Scorecard to assess your performance to peers and thresholds, respectively.
Christy Pambianchi
Executive Vice President and Chief People Officer
Intel Corporation
Employee Surveys
Conduct anonymous surveys to gather insights directly from employees. Ask questions about their satisfaction with current leave policies, their preferences for types of leave (e.g., parental, family, sick), and whether they feel their current leave allowances meet their needs. You could also ask about other policies to support parents, like flexible return to work after parental leave.
Citi Bank
We are always looking for new ways to support employees. We understand the goal of paid leave policies is to support colleagues, in any phase of their lives … this a continuum, not a start/stop approach. We listen to our employees through surveys and other forums to address the evolving needs of our colleagues. We are also constantly benchmarking against our peers to understand where there are opportunities not only to improve but also look where we are ahead of the curve.
Review Usage Patterns
Analyze the utilization patterns of existing leave policies across demographics and work status, considering not only the frequency of use but also potential variations across teams or managers in terms of the perceived acceptability of taking leave. This analysis can provide insights into which types of leave are most important to different demographic groups, levels of employment, and organizational units. Additionally, consider recommending interviews or conversations with the management team to understand their perspectives on leave policies and their level of support for their direct reports taking leave. Such discussions can help identify any cultural barriers or managerial attitudes that may hinder employees from utilizing available leave benefits effectively.
Collaborate with Employee Resource Groups
Where relevant, engage in collaboration with employee representatives or unions to solicit insights on behalf of the workforce. This proactive step ensures that a broad spectrum of perspectives is taken into account during the decision-making process. By embracing this personalized approach, organizations can uncover nuanced situations that may necessitate the development of tailored leave policies to address unique employee needs effectively. This collaborative effort fosters a culture of inclusivity and demonstrates a commitment to meeting the diverse requirements of the workforce.
We partner closely with our Families Matter Network, which plays a significant role in helping our employees understand and be more aware of paid leave and current benefit offerings. The network collaborates closely with our Citi Benefits team to ensure our programming is holistic, and relevant to the different locations where our employees live and work. We also offer many educational sessions, manager trainings and communications that provide helpful resources on all our leave programs.
Citi Bank
Lindsay Jones
Director, Global Total Rewards & Employee Relations General Motors
We gather feedback from employees via internal social channels, employee surveys, ERGs and more as we look to remain competitive in paid leave areas.
In-Depth Interviews
Conduct follow up in-depth interviews with employees representing different employee profiles to dive deeper into their feelings about paid leave. These sessions can provide qualitative insights that surveys are unable to fully capture, allowing employees to share their experiences and thoughts openly and employers to gain deeper insights to help inform company policies.
Jill St. John Butler
Corporate Vice President, Compensation and Benefits
Advanced Micro Devices
We know that having a healthy workforce means having more engaged, productive employees. We believe our Sick and Family Time Off policy is just one program that helps to drive a high performing workforce and deliver better results to the business. Our annual AMDer survey shows that our workforce is highly engaged, and we know that this is critical to delivering on our business objectives.
Dr. David Stark
Chief Medical Officer and Global Head of Benefits, Analytics, and Technology Strategy
Morgan Stanley
In 2021, we did a global employee benefits survey, which was a really detailed and eye-opening survey. Overall, the vast majority of our employees were very happy with their benefits, but paid parental leave and family support were areas that were highlighted as opportunities for improvement. In fact, paid parental leave was the top driver that could promote increased satisfaction relative to other potential design changes we were considering.
Understand Costs & Benefits
Companies weighing the decision to implement paid leave policies can assess and understand the associated direct and indirect costs and benefits of providing or enhancing a policy. On the direct cost side, considerations encompass wages during leave, potential temporary staffing expenses, administrative overhead, and continued benefit contributions. According to BLS, paid leave benefits cost employers on average $2.94 dollars per hour in September 2022, representing 7.4 percent of total compensation costs.
Conversely, the direct benefits, as described earlier, include heightened employee retention, improved recruitment outcomes, increased job satisfaction, and a positive corporate culture. While companies may be concerned about the potential costs, there are research examples demonstrating that leave may actually return a net profit when considering direct and indirect benefits. One study found no evidence turnover or wage costs increase when leave claim rates rise, and in another, productivity gains from workers utilizing sick leave to avoid spreading illness and not working while unwell led to cost savings.
The cost of turnover can be nearly 24% of annual wages, which is exacerbated by the average time to fill a role, 44 days, the average cost of which is $4,700.
Tracking Leading Companies Relative to Their Peers
JUST Capital’s Indices demonstrate the power of investing in companies at the forefront of stakeholder value creation. The Workers Leaders index concept takes the top 20% of Russell 1000 companies in JUST's annual Rankings and highlights the performance and impact of investing in companies that prioritize their workforces. Our data set covers five key Worker Issues reflecting various aspects of the workforce, including whether companies provide paid parental leave. Updated daily, you can assess returns against the Russell 1000 Equal Weighted Index.
By leveraging this resource, companies can align their practices with emerging standards of corporate responsibility, fostering a workplace that not only attracts top talent but also contributes positively to employee satisfaction and overall societal well-being.
Estimating Costs
To assist companies in navigating this complex landscape and making informed decisions, JUST Capital has developed a comprehensive tool to empower companies to evaluate their unique circumstances and determine the costs and benefits of offering paid leave. Originally formulated by Paid Leave for the US, JUST Capital made slight revisions and helped make the tool be more user-friendly.
Direct Costs
Wages and Salaries: The most straightforward direct cost is paying employees during their leave period, but one that can be offset by city, state or nationwide programs
Overtime or Temporary Staffing: If additional staff is required to cover the workload of the absent employee, overtime pay or temporary staffing costs may arise.
Administrative Costs: Managing and administering paid leave programs involve administrative tasks, including paperwork, tracking, and compliance
Training and Onboarding: If temporary staff is hired, or if existing employees need training to cover the absent employee's responsibilities
Benefit Contributions: Continuing to provide benefits, such as health insurance or retirement contributions
Dr. David Stark
Chief Medical Officer and Global Head of Benefits, Analytics, and Technology Strategy
Morgan Stanley
Dr. David Stark
Chief Medical Officer and Global Head of Benefits, Analytics, and Technology Strategy
Morgan Stanley
GM believes offering employees paid leave options ultimately helps to increase employee engagement by providing a better work/life balance while ensuring our team feels valued. In the long term, the benefits outweigh the costs. Competitive leaves help us attract and retain top talent.
Lindsay Jones
Director, Global Total Rewards & Employee Relations
General Motors
Enhancing parental leave has low direct costs. It has a significant impact in terms of improving productivity, retention, and employee morale. Anecdotally … [access to paid time] buys loyalty. And that’s almost immeasurable relative to the cost. It’s part of long-term thinking.
Gain Internal Buy-In
Implementing enhanced paid leave policies requires adept navigation through organizational structures within your company. To bring about meaningful change, practitioners must secure internal buy-in from leadership, presenting a compelling case that aligns the company's values with the tangible benefits of progressive leave policies.
Present the external research
on positive impact on employee satisfaction, retention, and overall workplace well-being, alongside any internal research conducted as part of Step 1
Illustrate the potential
competitive edge in attracting top talent and organizational reputation
Leverage stories and anecdotes
from current employees on how they have used or would use paid leave and what it means to them.
Engage leadership
in open dialogues and address potential concerns to ensure that decision-makers understand the strategic importance of investing in enhanced leave policies.
What advice would you give a CHRO or VP-level employee who wants to lead on this issue in their own company? What should they do first? What’s something to avoid doing?
Consider the needs of your population and how Sick and Family Time Off will interact with other policies you may already have in place, like short-term disability or caregiving leave. Look at your competitors and understand how they are similarly supporting their employees. Determine what is practical to implement at your company, both in terms of the business needs and your internal systems. Seek to provide a consistent, supportive policy for all employees and emphasize what the policy is there to be used for.
Jill St. John Butler
Corporate Vice President, Compensation and Benefits
AMD
Design your Policy
Based on research and leading company practices, outlined below are key themes and ideas to keep in mind when building or enhancing your policy to ensure that it meets the needs of workers, as well as any potential broader equity goals within your organization. These recommendations ensure that your company is creating an inclusive environment that supports working caregivers.
EQUALITY & ACCESSIBILITY
ADEQUATE TIME
FULL COMPENSATION
PROVIDE JOB PROTECTION
USE GENDER NEUTRAL LANGUAGE & INCLUSIVE FAMILY DEFINITION
ALLOW LEAVE TO BE TAKEN INTERMITTENTLY
RETURN TO WORK SUPPORT & FLEXIBILITY
Gold Star Policy Recommendations
JUST Capital recognizes that each company and sector is unique and the needs of businesses and workforce vary. As companies are on their own journeys towards the paid leave policies that align with their workforce and business needs, here are the research evidence-based and/or common practices to help inform paid leave policies.
6-12 months
Parental Leave
6-12 weeks
Medical Leave
5-10 days
Sick Leave
6-12 weeks
Family Leave
Unfortunately, the most robust research on leave duration has focused primarily on parental leave. Based on best practices from state policies, 12 weeks is recommended via A Better Balance
Unfortunately, the most robust research on leave duration has focused primarily on parental leave. Based on best practices from state policies, 12 weeks is recommended via A Better Balance
Example Policy
Deel has created a customizable document with placeholder text and prompts to guide your policy to reflect your team’s approach to parental leave. Use this template as a starting point to fit the needs of your company and workers.
Implement & Iterate
Intentional implementation and rollout of paid parental leave policies are pivotal to the success of the benefit, ensuring that employees are aware of and can effectively utilize it. This proactive approach not only enhances employee satisfaction and retention but also safeguards the company's reputation as an employer of choice, attracting top talent. From an equity perspective, intentional implementation helps bridge disparities by ensuring that all employees, regardless of their background or position, can access and benefit from paid leave policies, fostering a more inclusive and fair workplace.
Highlight Importance & Encourage Uptake
After implementing your paid parental leave policy, clearly communicate it to your employees. Encourage employees to use the new policy. Encourage eligible managers and leadership to use the new policy, which will signal to all employees that they will not be sanctioned for using it.
Transparent Communication
Regularly communicate with employees about leave policies, updates, and potential changes. Encourage them to provide feedback and suggestions openly.Remember that employees' desires for paid leave can evolve over time, so it's important to maintain an ongoing dialogue and be flexible in adapting policies to meet their changing needs.
We know that the benefits we offer, including our leave policies, are a significant driver to recruitment and retention. We hear this feedback during the recruitment process, from our employee resource groups and during our annual employee engagement survey. We continue to hear our employees out on what is working for them and what is not by providing safe spaces to share their thoughts on all aspects of working at Citi.
Exit Interviews
When employees leave the company, conduct exit interviews to learn about their reasons for leaving, including any concerns about leave policies. This feedback can help identify areas for improvement.
Regularly Measure Impact
Regularly – annually, biannually – carry out strategic research studies to measure and evaluate the impact of paid parental leave policies on employees and the business. Use the findings from these studies to make data-driven decisions about adjusting the policies to improve outcomes.
The most challenging part of administering this policy is ensuring employees understand what Sick and Family Time Off should be used for and how it interacts with other leaves available. We’ve addressed these challenges by adding clarifying language throughout our policies, increasing communication to both employees and managers, and improving the support for employees who need to take longer-term leaves.
Citi Bank
Lindsay Jones
Director, Global Total Rewards & Employee Relations
General Motors
We are constantly benchmarking to ensure we are staying competitive in the market and in our industry. Engaging with external companies allows us to gain perspective on what other companies are doing, what is working and what might not be working. We also seek feedback from our employees, both formally and informally, which help inform where we may want to consider making changes or implementing new policies and benefits.
Jill St. John Butler
Corporate Vice President, Compensation and Benefits
Advanced Micro Devices
External Communication
Upon enhancing paid leave policies, we encourage companies to be transparent externally, ultimately contributing to the public’s understanding of a just employer. Announcing these improvements can showcase a commitment to workplace practices and stakeholder leadership, resonating positively with both current and potential employees, customers, and other stakeholders. A couple of examples for how to showcase your commitment to workers include:
Enhancing parental leave has low direct costs. It has a significant impact in terms of improving productivity, retention, and employee morale. Anecdotally … [access to paid time] buys loyalty. And that’s almost immeasurable relative to the cost. It’s part of long-term thinking.
A couple of examples for how to showcase your commitment to workers include:
- Updating disclosures on your company website and/or in annual CSR report
- Executive team member penning a letter on your website about the impetus of the update to the policy and how it aligns with your brand promise
- Sharing the news during investor updates and in board meetings
- Incorporating these advancements into recruitment materials
Partnering with organizations like JUST Capital can further amplify your efforts by aligning the company with external benchmarks of corporate responsibility. JUST Capital, alongside strategic Impact Partners, can highlight your success through a range of engagement opportunities, including:
- Feature on our website & weekly newsletter reaching thousands of corporate representatives
- Co-authoring an op-ed in a major publication on the importance of leave
- Invitation to speak at a leadership event, such as JUST Capital’s Annual Leadership Summit
- Activating your customer base or employees on leave advocacy
- Collaboration on future research, polling, and tools
The Corporate Impact Lab is a membership-based peer network focused on helping companies navigate how to direct investment in the people who power their business success, and positively impact the communities where they live and work.Impact Lab members have the opportunity to tap into JUST Capital’s data and benchmarking tools, as well as collaborate with our deep cross-sector network of executives, technical advisors, investors, and researchers to maximize their business, workforce, and social impact.