Microsoft Corporation increases paid leave for new parents

“What Netflix did today was offer the opportunity for employees to focus on work and not have to worry about what that childcare in the first year looks like”, Doyle said.

Netflix also noted that its success depends on “competing for and keeping the most talented individuals in their field”, and its push for unlimited leave could reverberate in America’s increasingly competitive tech workforce.

One day after Netflix made headlines by announcing major changes to its parental leave policy, Microsoft unveiled its policy as well.

This is why Netflix has just begun offering unlimited paid leave for new parents within the first year their child is born or adopted.

In an industry where the demand for top talent is way larger than the supply, technology companies have to offer the best benefits they can to retain the best people in their ranks.

As a result, parents sometimes are forced to take unpaid sick or vacation days or turn to short-term disability insurance or a state family-leave policy, which can recoup some of the income a parent loses while at home with the new child.

And while it’s true that the US does provide 12 weeks of unpaid leave through the Family and Medical Leave Act, the exemptions to the law are so broad as to leave it ineffective in many cases. Less clear is whether Netflix will actually be able to encourage its employees to take more time off when they become parents.

For policies such as these to be successful, employees have to have the right balance of freedom and responsibility, and it ensures that Netflix is peopled by employees who are internally motivated to perform well in their jobs. “A key component of this is supporting our employees with benefits that matter most to them”.

One issue with parental leave programs is creating an environment in which employees feel comfortable taking the time offered, said Rich Fuerstenberg, a senior partner at Mercer.

Small business owners like Prenger admit the luxury of an extended leave is simply not affordable.