“Why Paid Family Leave is Good Business”Co-Authored by Boston Consulting Group and
Panorama
• Defining Paid Family and Medical Leave• Current and Changing Dynamics of Paid Family and Medical
Leave• “Why Paid Leave is Good Business” Report Findings
• Trends• Benefits Outweigh Costs• Lessons from the Leaders
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Table of Contents
What is Paid Family and Medical Leave
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Paid family and medical leave (PFML) enables an employee to care for a new child or a family member, including themselves. Demand is increasing due to shifts in modern families
• Fewer households with a full-time caregiver.• Both parents increasingly involved in child
care.• Burden of care is growing with an increasing
proportion of the workforce helping to care for aging parents.
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Current and Changing Dynamics of
Paid Family and Medical Leave
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Paid Leave Improves Gender Equity, Women’s Economic Opportunities, and Health
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Workers', especially
women's, retention
Increased female
participation and higher
wages
Care giving more valued and equitable
Promotes gender equality in workforce
Improved health for mother and child
Long term health benefits and
wellbeing for children
Women's Economic Opportuni
ty
Access to PFML increases
weekly hours and pay
for employed mothers by nearly 10%
Health
Access to leave
increases birth weight and decreases premature births and
infant mortality
Gender Equity
Access to PFML recognizes the value of care giving and encourages women and men to get involved
Courtesy of
Luxembourg
FranceNetherland
sSpain
TurkeyLatvia
SloveniaBelgium
Japan
SwedenUnited Kingdom
NorwaySlovak RepublicCzech Republic
PolandIreland
HungaryItaly
EstoniaFinland
DenmarkAustralia
ChilePortugalCanadaGreeceAustria
GermanyNew Zealand
SwitzerlandIsrael
South KoreaIcelandMexico
United States
0 10 20 30 40 50 60 70
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28
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All Organizational for Economic Cooperation and Development (OECD) countries mandate at least 12 weeks paid maternity leave,
and in some cases, parental leave, except the United States
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There is growing consensus about the benefits for workers and a growing need and demand for paid family leave.
• Yet, the United States is one of just eight countries that doesn't mandate paid maternity leave.• Only four states have policies that support paid leave, ranging from 4 to 12 weeks at partial pay.
Federal law only provides for unpaid family and medical leave.
The U.S. Is the Only OECD Country That Doesn’t Mandate PFML
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Absent a Federal PFML Policy, Employers Primarily Determine Whether Employees Have Access to Paid Leave
• Only 14% of the U.S. workforce has access to employer-sponsored paid family leave
• Paid leave coverage has increased just 3% since 2010
• Workers in the highest income quartile are three and a half times more likely to have access to paid family leave than those in the lowest income quartile.
Inequality in Access to Paid Leave Has Grown Between High Wage, Full Time and Low Wage, Part Time Employees
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4% growth seen among high wage workers, while it remains flat among low-wage
Coverage of full time relatively consistent, while part time worker coverage declining
2010 2011 2012 2013 2014 201505
1015202530
2010 2011 2012 2013 2014 201505
1015202530
2010 2011 2012 2013 2014 201505
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2010 2011 2012 2013 2014 201505
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% o
f low
wag
e w
orke
rs%
of h
igh
wag
e w
orke
rs
% o
f par
t ti
me
wor
kers
% o
f ful
l tim
e w
orke
rs
0%
+4% CAGR
-4% CAGR
+3% CAGR
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“Why Paid Family Leave is Good Business” Report Findings
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Opportunity to Move the Needle on Paid Family Leave Through Private Sector Action
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Research aimed to better understand which companies are changing their PFML policies and why
• Built database of >250 company polices to understand what policies exist
• Interviewed >30 primarily large companies with and without paid family leave to identify motivators and drivers
What We Did
What We
Expected
What We
Didn't Expect
Expected to find momentum among companies with high profits and in intense competition for talent – which we did
Also found companies in diverse sectors that were deciding to offer paid family leave, suggesting opportunity to generate broader momentum through private sector action
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50%
40%
$0
30%
20%
10%
0%
$100,000$80,000$60,000$40,000$20,000
Cove
rage
"Other services"Wholesale
ProfessionalServices
Manufacturing
Information
Education
ConstructionAdmin & Waste
Accomodation & Food
Healthcare
Finance
Transportation
Retail Real estate
Utilities
# of employees
Coverage up 10+% pts from 2010
Coverage up ≤1% pts from 2010Coverage up 2-9% pts from 2010
Data source: US Bureau of Labor Statistics 2015 wage and occupation data and their National Compensation Survey family leave coverage data 2010-2016. 1. Sector coverage data from private sector, but national average inclusive of employees in the non-farm economy and workers in public sector except those in federal government
Average: 14%1
Sectors with coverage significantly above national average employ only
15% of total workers
Average wage
Highest Wage Sectors Have Expanded Coverage the Fastest, Improving Policies for Only 15% of the Population
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Three Unlikely Stories Explain Why there is Optimism Around the Opportunity for More Employer Action
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Hilton began providing equal benefits to employees of all types based on its values and a business rationale linked to customer satisfaction – and has encouraged others to meet them where they are
A leader in the DOD, interested in talent attraction/retention, built a convincing case based on private sector's moves and experiences, and found a path to expanding maternity leave through the DOD's disability insurance policy
Union Square Hospitality Group was determined to prove that even a restaurant group can offer paid family leave. By designing a 4-week, fully-paid + 4-week, partially-paid policy, it can now offer paid, gender-neutral family leave to all employees, hourly and salaried
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Companies Are Also Expanding the Length of Leave and Are Increasingly Focused on Gender Neutrality
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7
5
11 11
8
15
0
5
10
15
Birth mother1
Adoptive leave
Secondary caregiver / paternity
Aver
age
week
s of l
eave
Companies that have changed their policies in the last two
years offer ~3-4 more weeks than averageInterviews stressed an increasing focus on gender
neutrality
"By giving people four months of paid parental leave and six weeks of paid family
leave, we're indicating to them that we recognize how important family is for both
men and women." – Facebook
"We believe family comes first and are pleased to offer family benefits which show
our strong support for the modern-day family, no matter what shape that family takes." –
Johnson & Johnson
1. Often includes disability leave as wellSource: Why Paid Family Leave is Good Business, BCG Perspectives
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Across Large Companies, 7 Drivers Created Impetus for Move
In competition for talent, especially tech
Influential millennials
Desire to retain more women
Internal champions
European HQ/presence
Desire to create positive halo
Strong values focus
Source: BCG interviews
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Large Companies with These Drivers Seem to Be Willing to Take a Leap of Faith with Imperfect Data
'We needed to do this to attract and keep our talent..but we are not gathering any data on
whether it worked'
'We didn't have any numbers proving to us
this would work (for talent attraction)...but we are confident it has
been positive'
'Sure we did some analysis – but that is
not how these decisions are made.
This is about our values, and its a smart
move'
'We are thinking about the overall benefits package, not cost of each benefit. Paid leave is great ROI'
Benefits are not generally quantified...
... and costs less of a factor
Source: BCG interviews
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Companies With Paid Leave Policies Report Benefits that Outweigh the Cost
“Why Paid Family Leave is Good for Business” Launch
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Lessons from the Leaders
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Company Leaders Offered Important Lessons
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Policy should reflect company’s values• Inclusive and comprehensive policies that promote equal access to the benefit to all
employees
Flexibility is important • Employees appreciate options, such as non-consecutive weeks off or option to take longer
leave at less pay
Company leaders should set the standard• Helps foster sense of normalcy and shows employees will be supported
Support systems are critical• This is true for employees on leave and employees covering
Metrics are few but important• Statistics on usage, replacement costs, employee retention and perceptions
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Thank YouFor further information, please contact:Mark Lamb, Communications Officer:
www.panoramaglobal.org
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