From Maternity Benefits to Paternity Benefits

In 1976, Sweden became the first country in the world to introduce paid paternity leave. Over the years, attitudes towards paternity leave have seen a considerable change and fathers taking leave to take care of their children is increasingly becoming accepted into the corporate mainstream. In fact, the expansion in terms of paternal leave has been unprecedented.

Among the 70 countries that offer paid paternity leave, a few such as Iceland, Canada, Belgium, Finland and Sweden have seen a rise in the number of men that avail it. This growth can be seen globally among countries as well. According to a recent study conducted by Mercer, 42 percent of employees worldwide encourage their employees to take paternity leave while 44 percent of companies indicated that most of their eligible employees use their statutory paternity leave. Among the top ten countries providing paternity leave, despite the law not requiring them to do so, India ranks at number 5.

Despite what global trends might suggest, paternity leave comes at a cost, which is the case with any paid leave policies. These may include – the costs of hiring a temporary employee and the costs of the benefits that are availed by the employee while he is on leave. Additionally, the entire team might have to cover for the employee on leave leading to decreased productivity and increased workload on the rest of the team, but at no extra costs.

In addition to the negative impact that paternity leave has in the short term, the long terms effects of incorporating the leave into company policy must also be considered. Jennifer Dulski, the president and COO of change.org, in a 2014 interview with Fortune, stated that “Our goal was to create a real parental leave program that supports all evolving families without creating financial hardship for them. We did a robust financial analysis and having a strong family policy is also good for business.” The reasons that paternity leave may in fact be good for business include:

Retention

Retaining top talent employees is vital for the growth of the organisation. However, when employees don’t have access to paid leave, they are more like to leave their job. Losing an employee adds to the turnover costs –  it includes the time it takes to find a replacement, which could be several months, as well the manpower required to recruit and interview new employees. The company also loses the money that was spent to train the previous employee. Paid paternity leave is an attractive incentive to ensure that the top talent of the company remains loyal while reducing the employer’s turnover costs.

Attracts Employees

 Paid leaves off are not only an appealing incentive to retain employees but also wins the trust and loyalty of the industry’s best talent. By sending out the message that the company cares about the wellbeing of the employee and encourages a work-life balance, the company makes itself attractive to the top talent of the industry.

Increases Productivity

 By ensuring the retainment of employees as well recruiting industry’s top talent, paternity leave indirectly contributes to the increase in employee productivity.

Apart from being good for business paternity leave also has a strong social impact. A report titled ‘The State of the World’s Fathers’ also argues that paid paternity leave is essential to achieving gender equality. Giving men the time to take care of their children ensures that child care related duties are distributed equitably. The mother has more time to take care of her health and recover from childbirth and allows her to continue working and contribute to the family’s income. By making it equally possible for both men and women to take paid leave, discrimination of women of childbearing age during recruitment becomes less likely. Such a move becomes more significant in the Indian context especially with the latest amendments in the Maternity Bill. After all, why should gender equality focus on initiatives that focus on one gender “women”?

In conclusion, it is essential for companies to weigh the pros and cons of parental leave before they implement it in their own companies. The duration of the leave, payment, flexibility (such as whether the employee should be allowed to work from home) are all factors that must be taken into account.

Author: This post has been submitted by Moksha Sharma, as part of her assignment with Ungender Insights. Moksha Sharma is currently a student of Jindal Global Law School, Sonipat.