paid parental leave: lessons for silicon valley and beyond · 2018-02-17 · 19 0 50 100 150 200...

Paid Parental Leave:

Lessons for Silicon

Valley and Beyond

Brian Gifford, Ph.D.

Research Director, IBI

Betty Zong

Research Associate, IBI

2

Today’s Agenda

• About IBI

• What’s driving interest in paid parental

leave?

• Summary of interview findings

• Panel of Silicon Valley employers

• Break-out discussions

• Group reports

3

About IBI

• 501(c)(6) non-profit business association

• Established 1995

• 1,200+ organizational members—90% employers

• Help business leaders to:

• Understand the toll that illness takes on workers’

productivity

• Recognize the competitive advantages of helping

employees get and stay healthy

• Educational activities

2017 IBI Annual Forum

4

• 500+ employers, suppliers, and thought leaders

• Companies present their own health and

productivity success stories

• Networking opportunities

5

Forum Opportunities

• Many employers can attend for free

• Enterprise Health Management &

Performance Award

• 2016 Winner: American Express

• Submit your company’s success story by

February 1st

Jacy Bryla jbryla@ibiweb.org

Gia Harris gharris@ibiweb.org

6

About IBI

• 501(c)(6) non-profit business association

• Established 1995

• 1,200+ organizational members – mostly employers

• Help business leaders to:

• Understand the toll that illness takes on workers’ productivity

• Recognize the competitive advantages of helping employees get and stay healthy

• Educational activities

• Research, data, tools

7

IBI’s Content Addresses the Health and

Productivity Spectrum

Simpler Intermediate More complex

What are the

costs of

illness?

What is

driving

costs?

What does

all this mean

for

businesses?

8

Absences and Underperformance on the

Job Cost US Employers $443B Annually

$965

$185

$258

$0

$200

$400

$600

$800

$1,000

$1,200

Healthcare Productivity losses

Bil

lio

ns

OpportunityCosts

Wagereplacements

Source: IBI Full Cost Estimator

9

IBI’s Content Addresses the Health and

Productivity Spectrum

Simpler Intermediate More complex

What are the

costs of

illness?

What is

driving

costs?

What Does

All This

Mean for

Businesses?

10

$38

$9

$28$16

$9

$15

$22

$23

$27

$10

$35

$31

$5$8

$0

$20

$40

$60

$80

$100

Metabolicsyndrome

Depression Heartconditions

Low backpain

Cancer

Th

ou

san

ds

Costs in a 100 person workforce

Presenteeism

Illness absence

Medical treatment

Understand What Impacts Your Business

Source: IBI Chronic Disease Profiles

11

IBI’s Content Addresses the Health and

Productivity Spectrum

Simpler Intermediate More complex

What are the

costs of

illness?

What is

driving

costs?

What does

all this mean

for

businesses?

12

Understanding the Impact of Policy

Decisions

Driving the Conversation from

Costs to Value

13

Feeling well,

ready to

work

Healthy, high-performing

workforce

Business

Output

Business

Performance

On the job,

performing

well

Company

delivers its

products and

services

Company meets

its business

objectives

14

For Every 10 CFOs Who Say Controlling

Costs is the Most Important Benefits Goal

4 say “helping enrollees become healthier, better consumers of care”

4 say “attracting, retaining talent or improving productivity”

1 says “improving customer service or business performance”

9 Other CFOs Report Another Goal as the Most Important

Source: Finding the Value in Health, IBI February 2016

The Past, Present and Future of

Paid Parental Leave

16

U.S. Is Only Developed Nation That Does

Not Guarantee Paid Parental Leave

17Source: National Partnership for Women & Families, National Conference of State Legislatures

Only 12% of U.S. private sector

workers have access to paid family

leave through their employer

Paid Leave Laws in Place Laws Expanding FMLA Pending Paid Leave Proposals

18

19

0

50

100

150

200

250

J M M J S N J M M J S N J M M J S N J M M J S N J M M J S N J M M J S N J M M J S N J M M J S

2009 2010 2011 2012 2013 2014 2015 2016

Mo

nth

ly m

ed

ia m

en

tio

ns

Netflix Adobe, Microsoft. Amazon, Spotify,

Facebook, PayPal

White House Summit on Working Families; EEOC

parity rule

Mark Zuckerberg

BofA, Twitter, Wells Fargo

NY, SF

Yahoo! hires Marissa

Meyer CEO

Lean In; Yahoo!

Federal, State, and

Municipal Events

Private Sector

Events

New Jersey Family

Leave Program

2014-15: Paid Parental Leave Becomes Big News

20

Paid Parental Leave is Now Top

of Mind for HR and Benefits

Teams

Why Now?

21

Why Now?

Social and Economic

Factors Explain Only So

Much

22

0

1

2

3

4

5

6

0

50

100

150

200

250

J A J O J A J O J A J O J A J O J A J O J A J O J A J O J A J O J A J O J A J O J A J O J A J O

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Nas

da

q c

los

ing

pri

ce

(E

OM

)

Th

ou

sa

nd

s

Mo

nth

ly m

ed

ia m

en

tio

ns

Monthly media mentions Nasdaq closing price (EOM)

Booming NASDAQ …

23

2%

3%

4%5%

J MM J S N J MM J S N J MM J S N J MM J S N J MM J S N J MM J S N J MM J S N J MM J S N J MM J S N J MM J S N J MM J S N J MM J S

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Monthly media mentions Male Female

Low rates of tech

unemployment …

But not as low as during

the recession

0.0

0.5

1.0

1.5

2.0

2.5

3.0

0

50

100

150

200

250

J A J O J A J O J A J O J A J O J A J O J A J O J A J O J A J O J A J O J A J O J A J O J A J O

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

ST

EM

wo

rkers

in

tech

in

du

str

y

Millio

ns

Mo

nth

ly m

ed

ia m

en

tio

ns

Female Male Monthly media mentions

24

Stable gender imbalance

in STEM/tech …

25

0.0

0.5

1.0

1.5

2.0

2.5

3.0

0

50

100

150

200

250

J A J O J A J O J A J O J A J O J A J O J A J O J A J O J A J O J A J O J A J O J A J O J A J O

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

ST

EM

wo

rkers

in

tech

in

du

str

y

Millio

ns

Mo

nth

ly m

ed

ia m

en

tio

ns

Females without babies Females with babies Males without babies Males with babies Monthly media mentions

Stable gender imbalance

in STEM/tech …

And relatively few

workers with babies

26

Why Now?

Companies Explain

Their Actions in

Their Own Words

27

First Steps

• In-Depth Interviews

• H.R./Benefits Professionals from

15 High-Tech Firms

• What are their policies?

• What are they trying to accomplish?

• What are the challenges?

• What are the productivity

implications?

28

Typical Leave Policy—Birth Mother

0%

20%

40%

60%

80%

100%

0 4 8 12 16 20 24 28 32 36 40 44 48 52

Am

ou

nt

of

wag

es p

aid

to

em

plo

yee

Weeks with fully paid time off

Disability

plan

63%

Employer

37%

Bondin

g leave

100%

FMLA eligibility runs for

12 weeks

Total leave costs

employer 17% of the

employee's annual

wages

29

0%

20%

40%

60%

80%

100%

0 4 8 12 16 20 24 28 32 36 40 44 48 52

Am

ou

nt

of

wag

es p

aid

to

em

plo

yee

Weeks with fully paid time off

FMLA eligibility runs

for 12 weeks

Total leave costs

employer 12% of the

employee's annual

wages

Typical Leave Policy—All Other Parents

Bond

ing leave

100%

30

How Does Silicon Valley Stack Up?

10

3

6

10

3

6

8

2

5

8

2 2

7

1

33

2 2

13

7 7

Birth mothers New Dads Adoptions

Avg. fully paid weeks off

Finance(25 companies)

Tech—Working Mother 2016 list(6 companies)

Tech—IBI interviews(15 companies)

Source: Working Mother Research Institute; Integrated Benefits Institute

31

Motivations Driving PPL

1. Competing for Talent

• With some skepticism

2. Corporate Social Values

3. Formalizing

Leave Policies

32

Other Important Themes

1. Resolving Tensions between Leave

Policies and Business Needs

2. Challenges with Paid Parental Leave

• Ensuring fairness

• Easing return-to-work

33

Key Lessons for Employers

1. Design the policy for what your business

is trying to accomplish

2. Leverage FMLA and disability

experiences to help maintain

business performance

3. Focus on improving

return-to-work

experiences

34

What’s Next for Paid Parental

Leave?

• How can companies keep up with the local

laws?

• Can family leave really solve the problem of

fairness?

• What are the implications for other

industries?

35

What Are We Missing?

Not a Rhetorical Question …

36

Panel of Experts

• Robin Wilson, Senior Global Leaves &

Workers Compensation Program Manager,

Intuit

• Rosemary Arriada-Keiper, Senior Director of

Global Benefits, Adobe

• Renee Albert, Manager of Benefits,

Facebook

37

Questions?

Brian Gifford, Ph.D.

Director of Research, IBI

bgifford@ibiweb.org

415-222-7217