Unlock the Value of Paid Paternity Leave

Discover the employer and employee benefits of paid paternity leave, and learn strategies to increase its uptake.

Some state and local jurisdictions require paid family leave but no federal law requires it. (Note that the federal Family and Medical Leave Act guarantees unpaid leave for many new parents.)

Paid paternity leave grants new fathers financial support and time away from work after the birth or adoption of a child. Research shows this benefit can create value for employers and employees.

As we’ll see later, offering paid paternity leave alone is not enough. Organizations seeking a higher return from this benefit actively encourage new fathers to use it.

Let’s examine the employer and employee benefits of paid parental leave, and some strategies to increase employee use.

Employer Benefits

Research shows organizations in a financial position to offer paid paternity leave are finding a solid return on investment. Paid paternity leave can improve foundational business metrics, including:

  • Employee attraction. Less than one-third of employers offer paid paternity leave, according to the human resources association SHRM. Employers offering this benefit can stand out in a crowded labor market.
  • Employee retention. The jobs site Indeed cites retention as a critical factor for offering paid paternity leave. Fathers with this benefit won’t be forced to quit when caregiving responsibilities interfere with their ability to work full time. Paid paternity leave also incentivizes employees to stick around when planning for a family.
  • Employee engagement and loyalty. According to the Pew Research Center, more than 50% of fathers are unhappy with how much time they spend with their families. This figure is double the rate of mothers who feel the same way. Responding to the needs of new fathers can increase job satisfaction. The reproductive care organization ARC Fertility reports a 99% increase in morale at organizations offering paid paternity leave.
  • Productivity. It may sound counterintuitive, but time away from work can enhance overall productivity. Allowing employees to focus on family responsibilities enables them to be more rested and focused when they return. According to Indeed, 90% of employers in California said they maintained or increased productivity following new state leave programs.
Employee Benefits

Employees also value the advantages of paid paternity leave. It promotes equity and inclusion among genders and LGBTQ+ families. It also provides greater flexibility and work-life balance for new fathers juggling work and caregiving responsibilities.

The advantages extend beyond the father to the whole family. Paid paternity leave allows fathers to bond with children, participate more in child care, and help their co-parent heal physically and emotionally.

According to ARC Fertility, family well-being and stress levels improve when fathers participate in early childhood responsibilities. The benefits platform Benepass reports that children with more involved fathers have improved cognitive, language and social-emotional skills. And women whose parenting partners took parental leave were 34% more likely to be physically ready to return to work after their leave.

Tips to increase the use of paternity leave

Though paid paternity leave is on the rise, challenges remain. According to SHRM, paid paternity leave still lags behind maternity leave as a benefits offering. Forty percent of employers offer paid maternity leave compared with 32% for paid paternity leave.

Cultural and financial barriers also cause fathers to take less time away from work. The jobs site Indeed reports that nearly 50% of men support a policy of 12 weeks of paternity leave, but just 5% take two or more weeks of leave.

The following three strategies can highlight and encourage employees to use your paid paternity offering.

Talk about it in favorable terms. It’s often not enough to offer paid paternity leave. Workplace cultures and social stigmas may prevent new fathers from taking full or even partial paternity leave, notes SHRM. Ensure your culture supports and encourages paternity leave through positive communication. As cultural acceptance of paid paternity leave grows, more fathers (and families) will benefit from this offering.

Guarantee job security. Another barrier to employees using paid parental leave is financial consequences. The “paid” portion of paid paternity leave is critical to increase use. Some fathers won’t be able to afford to take paternity leave if it isn’t a paid benefit. Others fear for their job security or negative impacts on their career trajectory.

This aspect isn’t just about ensuring fathers have the same jobs and benefits when they return. They need to know that taking leave won’t hinder their chances for professional development, work assignments, promotions, salary increases or bonuses. According to Indeed, financial support and career growth opportunities will encourage more new fathers to take advantage of paid paternity leave.

Communicate your leave policy through various channels. Births and adoptions are often a busy, stressful time of life. Broadly communicating your paid paternity leave benefit will increase your reach. The following communication channels can help you get your policy in front of employees at various points in their journey:

  • Companywide and individual emails
  • Company newsletters
  • Staff meetings
  • Manager on-on-ones
  • Messaging Platforms
  • Social media accounts
  • Company website
  • Employee handbook
  • Home mailings
  • Explore your options

For more information on paid paternity leave, talk to your benefits adviser. They can help you examine financial details, best practices, industry benchmarks and program vendors. They can also enhance employee communications to encourage use and maximize value from your offering.

Contact us

For support on this topic contact our OneGroup HR Consulting team.

This content is for informational purposes only and not for the purpose of providing professional, financial, medical or legal advice. You should contact your licensed professional to obtain advice with respect to any particular issue or problem. Please refer to your policy contract for any specific information or questions on applicability of coverage.

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