Right now, businesses aren’t just struggling to fill job openings; they’re also fighting to retain the workers they do have. This desperation has led to discussions about salaries, benefits, work conditions, and company culture. All of these things are important, but there’s something else that could be impacting your current hiring issues.
People would be more willing to return to work and stay there if offered paid family leave. This benefit, which is fairly rare in the United States, could likely be the incentive that hesitant workers need. Unfortunately, no policies mandate this on the federal level, and employers appear reluctant to step up to the plate.
An Overview of Paid Family Leave Policies in America
While paid family leave is a national policy in much of the world, it isn’t the norm for most workers in the United States. Most employers don’t offer access to paid medical leave, and even fewer provide access to paid family leave. A few states require leave or will begin to do so in the future, but no national policy exists.
Paid Family Leave as a Factor in the Worker Shortage
The fact that paid family leave isn’t available to most workers has always been a concern and source of frustration. However, the pandemic has caused this to become a very pressing issue. People want to return to work and be assured that they will be able to care for their families if something should happen.
It’s easy to see why those concerns exist. Despite things reopening, or perhaps because of it, COVID surges have caused some schools to return to remote learning intermittently.
A parent returning to work today could easily find themselves out of work and homeschooling a month from now. Additionally, a sizable portion of the workforce is also caring for parents and grandparents.
Does Paid Family Leave Help?
Paid family leave helps by increasing the labor force participation rate. This rate describes the percentage of the population that is working or looking for work.
Paid leave specifically increases the labor force participation rate among mothers. Currently, up to 25% of mothers find themselves returning to work as soon as two weeks after giving birth.
Lack of paid family leave also impacts other workers. Many leave the workforce early or are forced out of jobs when required to provide care for a family member. There is currently a national proposal that would guarantee 12 weeks of paid leave and three days of bereavement leave.
As for the people who no longer participate in the labor force, more than 10% state that they have left the workforce due to caregiving responsibilities.
Federal Paid Leave Program Details
If it is passed, the federal paid leave program would be taxpayer-funded. It would cover up to 12 weeks of paid leave with workers making up to $4000 monthly. The minimum paid leave available under this plan would be $580 per month. It would be limited to workers who are in the following situations:
- Dealing with the impacts of a close family member’s military deployment
- Recovering from domestic violence or sexual assault
- In bereavement
- Suffering from a serious ailment
- Providing care for a newborn or seriously ill family member
Funding for this program would come from a 0.4% payroll tax split between employers and employees. Similar funding is already being used to cover existing state leave programs and Social Security.
There is also a competing bill that works similarly. However, there is no guaranteed minimum with this bill. Critics believe that the legislation doesn’t truly provide protections that workers are seeking without the minimum monthly payment.
What Action Should Employers Take Right Now?
Any employer struggling to fill positions should consider whether a lack of family leave or caregiving relief is a problem for their target candidates. Anyone who is losing workers to the great resignation should consider this as well.
If so, it may be time to reconsider what you offer in terms of benefits and compensation. If your workers and candidates don’t feel as though they will be protected if something goes wrong, you can’t blame them for their hesitance to return to work.
Think of it as a way of getting ahead of the competition when making a case for your employer as the best option. While other companies are holding out for family leave to become a mandate or simply hoping that doesn’t happen, you could stand out by offering caregiving options to families now.
Keep in mind that you don’t necessarily have to go as far as offering a full 12 weeks of paid leave. You could simply improve your current compensation package by providing a childcare supplement or a shorter-term paid leave benefit.
Finally, you may be able to avoid losing workers by offering as much flexibility as possible. As we’ve learned over the past 18 months, it’s clear that workers in many positions can manage both their jobs and caregiving duties. They simply have to have employers that allow them to make it work.
If you decide to implement family-friendly policies like these, you must communicate these benefits to prospective workers. Consider including them in your recruitment marketing efforts so that you can attract more interested candidates.
Ultimately, it’s up to you whether you think your company can benefit from the increased employer brand appeal that comes with market-beating leave policies. If you’re trying to brand your business as a caring and compassionate employer, it might be just the solution you’ve been seeking.
