Netflix’s new rule is designed to cut through these bureaucratic entanglements and make it easier for new parents by simply continuing to pay employees their normal salary throughout the year after their child’s birth or adoption.
“Parents can return part-time, full-time, or return and then go back out as needed”, the statement continued.
This was announced on Tuesday and has been touted as one of the most generous parental leave packages offered by a tech company thus far. “Netflix’s continue success hinges on us competing for and keeping the most talented individuals in their field”, the post reads.
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.
Having said that, we’ve got to remember that Netflix is introducing this policy in a country where there is no legal requirement whatsoever for companies to offer paid maternity or paternity leave, of any kind.
Outside of the well-funded tech world, parental leave in the United States still trails other developed countries. The Family and Medical Leave Act of 1993 only mandates employers provide job-protected leave for 12 weeks to take care of a child.
Netflix officials said they want to support employees during changes in their lives and return to work more focused and dedicated.
San Francisco and Silicone Valley have been in the vanguard of offering generous family leave, but Netflix’s policy sets a new high.
President Barack Obama in January directed federal agencies to offer six weeks of paid leave to their employees when they become new parents as part of a broader push to extend parental leave for U.S. workers.
“Every company has to balance their budget what they can afford, losing an employee costs money, so I don’t think every company can afford to do it”, Leitner said.
While it could push some companies to follow in its footsteps, for others it will not be possible.
The policy will apply to the first year that a child is born or adopted. “For those that want to implement what people call unlimited or untracked leave, the issue would really be looking at what your employee population is like”, Pamela Salgado, a shareholder at Littler Mendelson, told CorpCounsel.com. This removes any confusion and employees can be happy that the company is supportive.
Nestle SA, Johnson & Johnson, Blackstone Group LP and Vodafone Group Plc expanded their benefits for new mothers and fathers this year, though none made them unlimited.