“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

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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

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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

Courtesy of

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:

mark.lamb@panoramaglobal.org

www.panoramaglobal.org

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