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Economics

Pros and cons of Parental Leave

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Pros and cons of Parental Leave

 

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Advantages of parental leave

Paid leave may have some impacts on one’s business, some of which may be positive and others negative. Paid leave is a critical factor in satisfying your employees as it is a comprehensive benefits package for them.  Many businesses view paid leave as a costly option, but mostly the benefits of it outweigh the expenses.  Some of the benefits of paid leave to companies is that it improves employees’ morale.  When employers give their employees paid leave, they feel appreciated and valued, and it turns employees’ increases the confidence and loyalty towards the business. Another benefit of paid leave is that it increases productivity in the business. Employees who are offered paid leave tend to be more active and aggressive in the business. They know when they go on leave their financial status won’t change as they will still be paid. These employees tend to dedicate their time working with little distraction. Increased employees retention is another benefit an employer has on maintaining paid leave. Rehiring or replacing employees is a costly exercise from advertising to training them (Ruhm).

There are certain benefits to paid parental leave to employees.  Some of these benefits include, it makes it easier for a parent to balance between work and their family. It further increases the time a mother breastfeeds her child and bond with her hence improving their overall health. It also reduces infant mortality and boosts the morale of employees.

Disadvantages of parental leave

Parental paid leave can, however, have some adverse effects on employers. Some of these effects include tax burden on an employer as it is costly for and employer to finance. It also creates a disturbance in the workplace which then burden employees. Concerning employees, paid leave may create an issue in the business, especially those without children as they may feel others are treated better (Liu).

 

REFERENCES

Ruhm, C. J. (2010). Parental leave and child health. Journal of health economics, 19(6), 931-960.

Liu, Q., & Skans, O. N. (2010). The duration of paid parental leave and children’s scholastic performance. The BE Journal of Economic Analysis & Policy, 10(1).

 

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