Paid leave improves worker’s retention. Women who take paid leave are more likely to return back to work nine to twelve months after child birth. Also, they’re more likely to return to the same employer. This can save employers money through the reduction of turnover cost (Albelda and Mandell, 2015, p.1). Despite concerns of parental leave hurting productivity, a 2011 study showed the California Paid Leave program had positive effects on employee productivity and performance. This study also showed an increase in employee’s morale and loyalty (Rowe- Finkbeiner, 2016, p. S10). Paid leave can also benefit small businesses. Smaller businesses have a hard time matching up to big corporation benefits. When all employers must abide by the same rule, this in turn helps smaller businesses with employment rates. Small businesses in California, ones with fewer than 50 employees, had reported more positive outcomes compared to larger businesses (Albelda and Mandell, 2015, p. 2). In comparison, the FMLA does not support small businesses. The employer must have 50 employees or more for an employee to qualify for FMLA. California has shown the most significant amount of positive feedback from paid parental leave, but New Jersey and Rhode Island have also seen similar feedback from their employers and employees. In New Jersey, the program cost is much lower than expected which lead to payroll tax cuts for workers. While in Rhode Island 4,000 workers have filed for paid leave with nearly three-quarters of which have been for the arrival of a newborn (Albelda and Mandell, 2015, p.3). The evidence from these states should help ease the concerns employers from other states should
Paid leave improves worker’s retention. Women who take paid leave are more likely to return back to work nine to twelve months after child birth. Also, they’re more likely to return to the same employer. This can save employers money through the reduction of turnover cost (Albelda and Mandell, 2015, p.1). Despite concerns of parental leave hurting productivity, a 2011 study showed the California Paid Leave program had positive effects on employee productivity and performance. This study also showed an increase in employee’s morale and loyalty (Rowe- Finkbeiner, 2016, p. S10). Paid leave can also benefit small businesses. Smaller businesses have a hard time matching up to big corporation benefits. When all employers must abide by the same rule, this in turn helps smaller businesses with employment rates. Small businesses in California, ones with fewer than 50 employees, had reported more positive outcomes compared to larger businesses (Albelda and Mandell, 2015, p. 2). In comparison, the FMLA does not support small businesses. The employer must have 50 employees or more for an employee to qualify for FMLA. California has shown the most significant amount of positive feedback from paid parental leave, but New Jersey and Rhode Island have also seen similar feedback from their employers and employees. In New Jersey, the program cost is much lower than expected which lead to payroll tax cuts for workers. While in Rhode Island 4,000 workers have filed for paid leave with nearly three-quarters of which have been for the arrival of a newborn (Albelda and Mandell, 2015, p.3). The evidence from these states should help ease the concerns employers from other states should