Designing Parental Leave Policies That Work for Parents and Your Business
As HR leaders review current policies, consider how expanding parental leave policies can help your organization meet and exceed workforce expectations.
As the workplace continues to evolve, so do employee expectations for work-life balance. This is especially true for employees searching for supportive parental leave policies. While traditional policies allow employees to take time off from work to bond with a newborn or adopted child, this one-size-fits-all benefit might not meet today's employees' needs.
Employees now want a more expansive, inclusive approach to leave benefits. To meet these needs, HR executives should design parental leave policies that recognize and address modern challenges.
Not only can updated leave policies benefit employees, but they may also help companies attract and retain top talent and elevate performance. By understanding how to design family leave policies that create a win-win, HR executives can support employees and help develop family-friendly, forward-thinking organizations.
Parental leave: a competitor differentiator
At first glance, parental leave feels like a standard benefit. In fact, 67% of employees say it's important for companies to offer paid family and medical leave beyond their state's minimum requirements, according to ADP's Employee Pulse Study (April 2024).
But a closer look shows that specific aspects of leave policies may vary. "Although the federal Family Medical Leave Act (FMLA) offers job-protected leave, it is unpaid and is limited in its scope of eligibility," said Tim Morris, legal compliance director at ADP. He added that FMLA offers 12 weeks of leave.
Although the FMLA provides a baseline, states and employers may offer additional paid or unpaid leave for different circumstances and for varying lengths of time.
When candidates and employees compare opportunities, businesses that offer stronger benefits, such as paid parental leave, are better positioned to attract and retain top talent, Morris said. "By providing paid parental leave, a company alleviates the need for the employee to choose between family obligations and economic obligations, thus freeing the employee to be focused on work while at work."
Changing family situations, changing benefit needs
When employees consider parental leave, they often consider factors beyond the length or financial benefits. Morris said the need for parental leave is broad and might extend beyond the period following the birth, adoption or fostering of a child. "Sometimes a situation calls for a long-term absence to tend to a seriously ill child," he said. "But other situations require only a few hours to attend a conference at a child's school or take a parent to a medical appointment."
Look at the "sandwich" generation, Morris added. "They may be simultaneously involved in taking care of the needs of both their children and their aging parents."
As the definition and look of families change, the benefits employees seek will also shift. What won't change is the need for support and flexibility that matches their family dynamics.
What flexible parental leave actually looks like
Unlike traditional maternity leave, flexible parental leave policies may address evolving needs with provisions for fertility treatments, adoption and fostering.
"The policies are also gender-neutral, providing an opportunity for both parents to be more fully involved before and after the child arrives," said Morris. To support that effort, flexible parental leave policies should have inclusive language that avoids assumptions about gender and recognizes all roles of those involved in parenting.
An effective policy should extend beyond the employee's leave and outline clear expectations for returning to work. It should also include operational guidance for managers. This helps ensure clear communication while the employee is on leave, minimizing confusion and compliance risk.
Organizational shifts are necessary for evolution
The change in the approach to parental leave must come from the top, said Morris. "Decision makers must demonstrate an understanding of the needs of today's workforce and acknowledge that the traditional family role is more an exception to the rule."
Morris added that in today's economy, where many partners work and share economic responsibilities, they must also have the opportunity to share in the family care responsibilities.
Designing flexible parental leave policies that work
The first step in developing a flexible parental leave policy is establishing a clear legal and organizational baseline. This includes reviewing applicable federal, state and local leave laws, many of which already require employers to provide time off for family-related needs, including bonding, adoption, school conferences, caring for sick children or school closures. These statutory requirements will often inform employer policies and should be considered before introducing additional flexibility.
Next, rather than evaluating individual employee characteristics or family situations, consider reviewing aggregate leave data, where available, to understand existing usage patterns. If possible, look at HCM metrics on usage rates to identify strengths and gaps without collecting information that could be tied to an employee's family status.
Next, create a voluntary employee questionnaire that asks new or prospective parents which aspects of bonding, caregiving or transitioning back to work most often conflict with work responsibilities, and what flexibility would be helpful. Keep in mind that parental leave programs are typically designed to support new families, and flexibility should reflect those specific needs.
Evaluate ways to implement flexibility in policies without disrupting workforce productivity or negatively affecting company profits. Involve both employees and managers in the process to ensure the policies meet real employee and organizational needs and are more than one-size-fits-all.
Based on the input, create a pilot policy that can be tweaked as needed. Be sure the policy is communicated and easily accessible through an integrated HCM or leave management tool. Train managers to support flexible transitions and demonstrate inclusive behavior.
During the pilot, evaluate the impact on production, employee absenteeism and company profit. Look for signs of policy success, such as if productivity and company profits stay the same or increase, turnover decreases or employee engagement scores increase. Reconfigure the policy as needed and expand it as you see positive outcomes.
Launch a family-friendly parental leave policy today
Flexible parental leave is a sign of progressive workplaces. It signals empathy, equity and operational maturity, which can benefit both organizations and employees. As HR leaders review current policies, consider how expanding parental leave policies can help your organization meet and exceed workforce expectations.
Want guidance on building a flexible, compliant and scalable leave strategy? Explore how ADP's HCM solutions can help.
