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Firms boosting maternity leave to attract top talent

NASHVILLE, Tenn. — When considering a management position at Nashville software company Edgenet, Flower Sumida took into account its culture, leadership and vision and accepted the job.

NASHVILLE, Tenn. — When considering a management position at Nashville software company Edgenet, Flower Sumida took into account its culture, leadership and vision and accepted the job.

What she didn’t have to factor into her decision was losing out on maternity leave because she switched jobs mid-pregnancy. Nearly eight months pregnant when hired, Sumida was told to take whatever time she needed and was assured she would be paid during the time off, even as a recent hire.

Unfortunately, most women are not afforded such flexibility. Under federal law, a new mother is guaranteed time off only if she has worked for a company for a year and that company has more than 50 workers. If a woman is expecting a child amid a work transition, she may not have the option of taking time off to recover and care for a newborn, putting families in tough positions during a critical time in a parent's and child's life.

“It can be really hard to get a new job while pregnant,” said Elizabeth Gedmark, a staff attorney and director of the Southern Office at legal advocacy organization A Better Balance, pointing to employers' reticence to hire pregnant women. “The other problem that we see is people who do go ahead and start a new job, only to find out that they don’t have maternity leave benefits.”

Many women will save up any accrued vacation days and sick days ahead of a child’s birth, but the strategy can be derailed if they become sick or injured during pregnancy.

“I honestly don’t know what you would do if you didn’t have a workplace that was supportive,” Sumida said.

In the U.S., 12 percent of private-sector employers offered paid leave for the birth of a child, according to the U.S. Department of Labor. Fewer than 40 percent of private-sector workers participate in short-term disability insurance, which provides some income for six to eight weeks during maternity leave.

The U.S. is one of two countries — along with Papua New Guinea — that does not require some paid maternity leave. While New York and California have implemented paid leave programs, the majority of states have not. 

The benefits of paid leave extend beyond the direct impact on families, Gedmark said.

“It’s not only good for the bottom line, in terms of recruiting the best people and keeping them, increased productivity and morale,” she said. “It’s also really good for public health.”

Great employees 'worth the wait'

Before joining Edgenet, Sumida led a contract negotiations team at Healthways. After the birth of her first child, Healthways allowed her to take 16 weeks of paid maternity leave, a novelty in American workplaces. She had already established relationships with colleagues and managers and had built up five weeks in annual vacation — a lot of benefits to leave behind.

But by allowing Sumida to set her own maternity leave terms, Edgenet was able to ease any concerns she had about caring for her family. She took eight weeks, plus two additional weeks of working part time and worked remotely as she transitioned back to allow her to more easily nurse.

“That also tells me something about your company and your culture and your values and how they would support you as a parent of two small children,” she said. “One of the highlights of our culture is people do leave at 2 o’clock to go to a soccer game and leave with a sick child. That’s from the top down.”

Michelle Martin, Sumida’s supervisor at Edgenet, said the additional delay of Sumida's maternity leave meant more preparation for both of them ahead of her leave and slower progress initially. But, it meant not settling for a less qualified candidate and having a stronger team in the long term.

“It was well worth the wait to have the right person in that position,” Martin said. “Finding that one person that had a lot of experience, that could come in and fill all those roles, was a unique find. We are in a much better place because of it.”

That kind of culture enhances productivity, Sumida said, reflecting on her experiences as an employee and manager. Workers are grateful for the trust an employer has in them, so they often go above and beyond. They are willing to put in more hours after children’s bedtime, even if it means more cumulative hours, because they got to leave earlier in the day for a child’s doctor’s appointment.

“I think it buys you something in return,” Sumida said.

Gedmark said she is seeing companies, especially in the tech sector, improve their policies. While some smaller companies may not have a policy in place at all, other startups tout a progressive policy to better compete for talent.

LeanKit, a Franklin, Tenn., tech company, is another example. The company offers 8 to 12 weeks of fully paid maternity or adoption leave. Fathers also are eligible for two weeks of paid paternity leave.

Nationally, tech companies including Facebook and Netflix have been at the forefront of improving paid leave policies. Netflix announced last year the company would offer salaried workers 12 months of paid maternity and paternity leave to new parents and at least 12 weeks to hourly workers. Facebook gives four months of paid leave to new parents.

Some cities and states also are taking the lead on paid leave. California implemented a paid leave policy in 2002 that provides partial pay for workers caring for newborns or family members for six weeks. California workers contribute to the program through employee payroll deductions.

This year, New York passed a family leave policy that allows 12 weeks of paid leave as a percentage of salary that begins at 50 percent. Also funded through payroll deductions, the measure is available only to workers who have been with a company for six months, so those switching jobs mid-pregnancy may not be covered.

Alternatively, Tennessee’s legislature has denied support for research on paid leave. In 2015, Rep. Susan Lynn, R-Mt. Juliet, wrote an op-ed in The Tennessean arguing that paid leave mandates result in delayed hiring, wage stagnation, layoffs and reduced benefits.

Paid leave is especially rare among low-wage workers, Gedmark said. Vacation days and paid sick days also are scarce in those positions, which further limits maternity leave. Taking time off can mean the end of a job and income.

Women in positions where heavy lifting is required are often pushed out of the workplace before they give birth, either by being put on unpaid leave or being terminated, she said.

Advocates for paid leave also make an economic appeal, pointing to lower costs to taxpayers, given the health and financial benefits. Healthier workers and children reduce medical costs for employers and the government. Supporting women as they recover from labor also means more women can stay in the workplace and more families can stay off public assistance, Gedmark said.

“There are real societal benefits of supporting the next generation and supporting parents during this time of their lives,” Gedmark said. “If you want to have gender equality and close the pay gap, you have to look at something like making sure that a woman can have a baby without being punished financially.”

Follow Jamie McGee on Twitter: @JamieMcGee_

Federal Family Medical Leave Act

Under FMLA, employees can take 12 weeks of unpaid leave. To be eligible, an employee must have worked for the employer for 12 months and worked at least 1,250 hours during that year. They must work for a company with at least 50 employees at that location or that has 50 employees within 75 miles of the work location.  

Source: U.S. Department of Labor

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