Company Adds Additional Paid Maternity, Bonding Leave
Reuters reported that on Thursday, PayPal became the latest large employer to adjust its paid leave policies. The company announced an 80 percent increase in employee paid maternity leave and eight weeks paid bonding leave to new mothers, fathers, same-sex partners, and domestic partners, effective Jan. 1. PayPal will also offer eight weeks of paid family care leave for employees with seriously ill family members, 40 hours of sick time, and five paid volunteer days. PayPal’s Chief People Officer, Marcia Morales-Jaffe, said of the changes, “These programs include taking time to celebrate a birth or adoption, to care for a seriously ill family member or simply to take a couple of days rest when needed.” The move comes after similar announcements in recent months from Microsoft, Facebook, Netflix, and Adobe Systems, Reuters pointed out. According to the Society for Human Resource Management, currently 21% of US employers provide paid maternity while 17% have some type of paternity leave program. USA Today reported that Society for Human Resource Management manager of compensation and benefits Bruce Elliott stated that despite the increase, PayPal’s benefits are lower “in relation to the rest of Silicon Valley.” For instance, Facebook currently provides 16 weeks, Google provides 18 weeks, Twitter and Amazon provide 20 weeks, and earlier this year Netflix announced it would offer “up to a year of paid maternity or paternity leave.”
What This Means For Small Businesses
Small businesses want to help their employees through important times, such as the birth or adoption of a child. However, many small businesses can’t afford to have vital staff members away from work for weeks or months. When large companies like PayPal, which has 10,000 US employees and a dedicated human resources team, publicly announce paid leave policies that are above the norm, this creates additional pressure on small businesses to follow suit in order to attract and retain the best employees.
CNN Money also covered PayPal’s new paid leave policies.
Note: this article is intended to keep small business owners up on the latest news. It does not necessarily represent the policy stances of NFIB.