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http://abc7news.com/business/netflix-to-give-new-parents-one-year-of-paid-leave-/904051/
AN FRANCISCO (KGO) -- Netflix is giving new parents on its payroll up to a year of paid leave in a move that could pressure other technology employers to improve their baby benefits as they vie for talent.
The employee benefit announced Tuesday on Netflix's blog is generous even by the high standards of Silicon Valley, where free meals and other perquisites supplement lavish salaries in the fiercely competitive battle for computer programmers and other technology workers. "Netflix's continued success hinges on us competing for and keeping the most talented individuals in their field," Tawni Cranz, the company's chief talent officer, wrote in the blog post. "Experience shows people perform better at work when they're not worrying about home."
The Los Gatos-based company announced to its 2,000 employees they can take as much time off as they want during the first year after a child's birth or adoption with pay. "The first year of a baby's life is critical for bonding and brain development. We know that babies who have strong attachments to their parents are healthier and have higher IQ's, so having as much time as you need to bond with your baby is really important," Yahoo parenting writer Elise Sole said.
This is how other tech giants compare to Netflix. Google, which consistently ranks among the best places to work, offers 18 weeks of paid maternity leave. Parents can also take seven to 12 weeks of paid "baby bonding" time during their child's first year.
Facebook offers parents four months paid leave. At Yahoo, moms get four months paid leave and dads get half that time. This is on top of employees who are also eligible for free baby cash at some of these places.
Childcare remains one of the top reasons an employee will leave a company.
In the United States, companies with 50 or more workers are legally required to allow parents to take up to 12 weeks unpaid leave with job protection.
There is no policy, however, mandating paid leave.
Netflix's latest decision is in line with their unlimited vacation policy. The company says all this is in effort to help them compete and retain the most talented individuals in their field. "Netflix is setting the tone for tech companies and that motivates other companies to try to keep up with Netflix," Mashable Business Editor Heidi Moore said.
Some critics warn the word unlimited in the work world is not all that it seems to be, adding that the work culture may not make it possible to be away for too long. Some say mandated time off may be a better alternative.
The U.S. and Papua New Guinea are the only countries among 185 nations and territories that hadn't imposed government-mandated laws requiring employers to pay mothers while on leave with their babies, according to a study released last year by the United Nations' International Labor Organization.
Salaries at Netflix vary widely, according to Glassdoor.com, a website where workers from a variety of industries share information about their compensation. Pay at Netflix ranges from about $15 per hour for customer service representatives fielding inquiries from the company's more than 65 million subscribers around the world to more than $200,000 annually for software engineers.
Most Netflix employees also receive stock options, which have been producing huge windfalls in the past few years as the company's shares have soared. Netflix's stock closed Tuesday at $121.15, nearly 16 times more than its price three years ago.
Netflix traditionally has long given its workers more leeway than most employers. For instance, the company already allows employees to take an unlimited amount of vacation each year, as long as they get their assignments done and fulfill other requirements of their jobs.
AN FRANCISCO (KGO) -- Netflix is giving new parents on its payroll up to a year of paid leave in a move that could pressure other technology employers to improve their baby benefits as they vie for talent.
The employee benefit announced Tuesday on Netflix's blog is generous even by the high standards of Silicon Valley, where free meals and other perquisites supplement lavish salaries in the fiercely competitive battle for computer programmers and other technology workers. "Netflix's continued success hinges on us competing for and keeping the most talented individuals in their field," Tawni Cranz, the company's chief talent officer, wrote in the blog post. "Experience shows people perform better at work when they're not worrying about home."
The Los Gatos-based company announced to its 2,000 employees they can take as much time off as they want during the first year after a child's birth or adoption with pay. "The first year of a baby's life is critical for bonding and brain development. We know that babies who have strong attachments to their parents are healthier and have higher IQ's, so having as much time as you need to bond with your baby is really important," Yahoo parenting writer Elise Sole said.
This is how other tech giants compare to Netflix. Google, which consistently ranks among the best places to work, offers 18 weeks of paid maternity leave. Parents can also take seven to 12 weeks of paid "baby bonding" time during their child's first year.
Facebook offers parents four months paid leave. At Yahoo, moms get four months paid leave and dads get half that time. This is on top of employees who are also eligible for free baby cash at some of these places.
Childcare remains one of the top reasons an employee will leave a company.
In the United States, companies with 50 or more workers are legally required to allow parents to take up to 12 weeks unpaid leave with job protection.
There is no policy, however, mandating paid leave.
Netflix's latest decision is in line with their unlimited vacation policy. The company says all this is in effort to help them compete and retain the most talented individuals in their field. "Netflix is setting the tone for tech companies and that motivates other companies to try to keep up with Netflix," Mashable Business Editor Heidi Moore said.
Some critics warn the word unlimited in the work world is not all that it seems to be, adding that the work culture may not make it possible to be away for too long. Some say mandated time off may be a better alternative.
The U.S. and Papua New Guinea are the only countries among 185 nations and territories that hadn't imposed government-mandated laws requiring employers to pay mothers while on leave with their babies, according to a study released last year by the United Nations' International Labor Organization.
Salaries at Netflix vary widely, according to Glassdoor.com, a website where workers from a variety of industries share information about their compensation. Pay at Netflix ranges from about $15 per hour for customer service representatives fielding inquiries from the company's more than 65 million subscribers around the world to more than $200,000 annually for software engineers.
Most Netflix employees also receive stock options, which have been producing huge windfalls in the past few years as the company's shares have soared. Netflix's stock closed Tuesday at $121.15, nearly 16 times more than its price three years ago.
Netflix traditionally has long given its workers more leeway than most employers. For instance, the company already allows employees to take an unlimited amount of vacation each year, as long as they get their assignments done and fulfill other requirements of their jobs.
