The recent headlines about expanded parental leave provided by tech giants such as Netflix has sparked discussions about competition for highly-skilled workers. But observers of workforce policies say there is a general trend toward offering more paid time away from work after the birth of a child, as employers realize they have more to gain than lose.

In recent months, Netflix, Microsoft, and Adobe have expanded their parental leave policies. Twitter offers new moms 20 weeks off, with pay. Google, Facebook, and Reddit also have generous paid-time-off policies for new parents.

And tech companies aren't the only large employers to embrace this trend; financial firms such as Goldman Sachs have extended paid leave policies, and manufacturer Johnson & Johnson's recently-expanded parental leave policy includes up to 17 weeks paid leave for moms and nine weeks for dads. In addition, a number of state and local governments have started offering some type of paid parental leave for employees.

Behind the curve

Business insiders and labor activists alike say one of the main reasons companies are moving on this issue is that the United States is nearly unique in not having a national parental-leave policy.

“The U.S. is the only developed country in the world without a paid maternity benefit,” explains Bruce Elliott, manager of compensation and benefits for the Society for Human Resource Management. “There's a want and a need for this benefit, and employers are starting fill in the space that the government-mandated benefits set has left out.”

Kristin Rowe-Finkbeiner, executive director/CEO and co-founder of MomsRising.org, a grassroots organization that covers a range of family/work issues, says that not only private businesses but states and local governments are increasingly offering paid parental leave in some form. She adds that these early adopters have provided solid evidence that offering paid leave to new parents is beneficial to employers.

“This policy is tested,” she says, noting that California has had a law requiring paid family leave since 2004. “We've had time to watch what happens and see the economic impact. In California, we know that people with access to paid family leave are more productive in the labor force, are more likely to be back in the labor force a year after the baby arrives, and are significantly less likely to need government support. We also know that businesses are happy because they have to pay less in recruitment and retraining costs.”

The California law, while less generous than some of the corporate policies, gives workers up to six weeks partial pay when they take time off for the birth or adoption of a child, or to care for a sick relative. The program is run through the state's disability insurance program, which workers contribute to through payroll taxes.

The Netflix move—unlimited time off

parental leave policy netflix One of the most talked about recent developments in this area was the August 4 announcement by Netflix that it would allow workers to take unlimited paid time off after the birth or adoption of a child.

“We want employees to have the flexibility and confidence to balance the needs of their growing families without worrying about work or finances,” the company announced on a blog post. “Parents can return part-time, full-time, or return and then go back out as needed. We'll just keep paying them normally, eliminating the headache of switching to state or disability pay. Each employee gets to figure out what's best for them and their family, and then works with their managers for coverage during their absences.”

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Why Paid Parental Leave Is Picking Up Steam

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