Netflix offers parental benefit

“There’s a stat out there that says it costs 150 percent to replace an employee, so you don’t want your working parent who are now experts in multitasking to walk out the door”, explained Owens. The executive order – which is expected to go into effect within a couple of months – would not only affect hundreds of thousands of employees, but may have an effect that extends beyond federal contractors: “You can build an expectation that paid sick leave comes with a job”, Elise Gould, a senior economist at the Economic Policy Institute, told the New York Times.

Netflix announced Monday that it would offer “unlimited” paid parental leave within someone’s first year of being a parent.

Netflix already offers unlimited paid vacation time, and now they are implementing a progressive strategy for new parents.

Netflix is known for many of its hit programs. A gracious parental leave can allow Netflix to stand out in a highly competitive field for tech talent, retain valuable employees, and maintain productivity by preventing burnout. Parents can also take seven to 12 weeks of paid “baby bonding” time during their child’s first year. “Experience shows people perform better at work when they’re not worrying about home”.

“We want employees to have the flexibility and confidence to balance the needs of their growing families without worrying about work or finances”, Cranz wrote. (NASDAQ:NFLX) announced ‘unlimited’ time off for up to a year for new moms and dads. We’ll just keep paying them normally, eliminating the headache of switching to state or disability pay.

That’s particularly the case in Silicon Valley, where technology companies attracts younger workers who aren’t afraid to leave an employer for better benefits elsewhere, noted Bruce Elliott, manager of compensation and benefits for the Society for Human Resources Management. The policy may also lead to a more balanced workplace.

The moves by Netflix and Microsoft could be a sign of similar changes to come at other companies. Google, which consistently ranks among the best places to work, offers 18 weeks of paid parental leave.

While he expects Netflix will deal with challenges around employees that take either too much or too little of the benefit to the detriment of the company, he’s optimistic about the direction the company is taking and what it means for all American companies.