Companies that offer paternity leave experience a 60% increase in employee retention, which could minimise the risk of losing top talent.

In today’s competitive job market, keeping your top talent can be crucial for the success of your business. While many companies focus on traditional perks and benefits to keep employees satisfied, there’s one often-overlooked factor that can make a significant difference: paternity leave. There’s a continuous debate surrounding the adequacy of parental pay, with many families finding it insufficient to cover the expenses of taking two-week paternity leave. As a result, they miss out on crucial bonding time with their new addition due to the financial strain of lost earnings not meeting their bills. From 6 April 2024, the below changes will apply to parental leave for partners in England, Scotland and Wales:

• The weekly maximum rising to £185.03
• Fathers are eligible to take two weeks leave in separate one-week chunks
• Leave can be taken at any point within the baby’s first year
• Only 4 weeks notice to employers is required, instead of 15

With this being said, it’s important to consider the paternity leave policies you have in place as it could be a deal breaker that means you lose out on retaining top talent which can in turn negatively impact your business.  Related Article: ‘4 Reasons Why People Are Your Greatest Asset…’

Here are 4 ways paternity leave can improve employee retention: 

• Promoting work-life balance – Paternity leave offers partners the chance to bond with their newborns leading to happier and more fulfilled employees in the workplace. 
• Build loyalty – Offering employees a paternity package will show new parents that you care which in turn improves the relationship with increased loyalty reducing turnover. 
• Positive company culture – Promoting paternity leave creates a company culture where family matters, this will help to align values with your employees. 
• Attract top talent – Offering paternity leave can give your company a competitive edge when it comes to recruiting top talent and attract employees who value a work-life balance. 

Paternity leave is a highly valuable tool for boosting employee retention as it promotes a work-life balance, builds loyalty, enhances company culture and attracts top talent. In turn, companies can reap the benefits of retaining their valuable employees.  If you need professional and experienced HR support contact Paul at Coppice HR (paul@coppicehr.com or 07814 008478).