Rest and return: How parental leave nurtures a thriving company culture

When my twins were born, one of them needed an extended stay in the neonatal intensive care unit. Just as she was discharged, and we were grappling with the challenges of adjusting to having two babies at home, my husband had already exhausted his limited leave. For me, there was no paid leave available. The experience got me thinking about the difficulties new parents face and the vital role organizations should play in supporting their employees through one of the most transformative experiences in their lives. It is disheartening to note that the U.S. remains one of the few developed nations that does not provide a national policy on paid maternity or bonding leave for parents. 

Although the Build Back Better Act, which proposes four weeks of paid family leave for all U.S. employees, was passed by the House of Representatives in November 2021, its progress has been stalled. In the absence of this Act, workers are only guaranteed unpaid leave of up to 12 weeks under the Family and Medical Leave Act (FMLA), enacted in 1993. Consequently, the responsibility for supporting employees through their parental journey squarely rests with employers. 

A 2019 report by the Boston College Center for Work & Family on Expanded Paid Parental Leave cited the Society for Human Resource Management (SHRM), revealing that paid maternity leave is available in only 35% of companies, which is an increase from 26% in 2016. Frankly, this isn’t enough. More employers across industries should embrace this responsibility, as it is beneficial for both employers and employees.

Productivity: Imagine you are a new parent with an average of only 5 to 6 hours of sleep per night—a figure that does not improve until babies are over three months old. Now, envision having to report to work with less-than-optimal rest and staying productive on Zoom calls for an entire 8-hour workday.

The effects of sleep deprivation are no joke and can significantly impact memory, aptitude, concentration, and physical health. Granting new parents the time they need to recover and regulate their sleep patterns can enhance their productivity and work performance, ensuring they are more engaged and less prone to making mistakes.

Retention: Allowing adequate leave time is a win–win situation for employee retention and company culture. The strong link between a paid leave policy and retention has been established in several studies. According to a survey conducted by the Boston College Center for Work & Family, 75% of respondents agreed that they are more likely to remain with their current employer because of expanded leave options. The cost of not paying attention to retention is also well-known. It is estimated that it costs twice an employee’s annual salary to find a replacement for them, not to mention the invisible costs associated with the loss of company knowledge.

Attracting top talent: Offering paid leave is a powerful branding opportunity. Given that only 35% of employees have access to paid parental leave, even fewer in the construction industry, providing this benefit signals an organization’s commitment to supporting its employees and enhances its reputation in the market. Emphasizing these leave benefits can act as a magnet for top talent, often becoming the deciding factor for candidates who closely examine the organization’s values. Parental leave serves as a means of building a competitive edge in a shrinking talent market.

Healthier families: Studies have shown that leave benefits can lead to better physical and mental health for mothers and children. For instance, the Maternal and Child Health Journal found that women in the U.S. who took paid maternity leave experienced a 47% decrease in the odds of re-hospitalizing their infants. Encouraging breastfeeding, too, has long-term health benefits for mothers (reduced risk of postpartum depression) and babies. While policies have been enacted to protect the mother’s right to pump in the workplace, not all states and workplaces are required to provide wellness rooms for them. Offering spaces for parents to focus on connecting with their newborns as they see fit can help improve infant health and reduce the number of sick days employees need to take.

Diverse workforce: A study conducted by the Center for Women and Work at Rutgers showed that women who take paid leave are 93% more likely to be in the workforce after a child’s birth than women who don’t. Additionally, paid leave contributes to higher retention rates, increasing the likelihood that women will return to the same employer. This is crucial for preserving diversity in the workforce, a factor proven to promote new ideas and innovation that provide companies with a strategic edge.

While offering parental leave benefits comes at a short-term cost, not providing them is far more expensive. Employers who build a stake in their workforce’s physical, mental, and financial well-being—through one of the most meaningful experiences in the lives of their employees—thrive.

This year, Aurigo made the choice. I am immensely proud that Aurigo announced substantial improvements toward its parental leave benefits.

As a Certified Great Place to Work for three years in a row, Aurigo has always valued employee feedback. We listen to our employees’ needs and act on them. As a result, we have doubled our paid leave for both mothers and fathers, providing them with the rest, support, and financial assistance they deserve during this crucial period in their lives. We remain committed to fostering a workplace that truly supports our employees.

We must all keep pushing for change to create work environments where employees can thrive personally and professionally while strengthening our organizations in the process.