Netflix has introduced an unlimited leave policy for new moms and dads. Thanks to the new initiative, parents can now take off as much time as they need during the first year after their child’s birth or adoption.
Flexibility during a Tumultuous Time
The idea is geared at ensuring employees are better equipped for juggling their growing responsibilities as they seek to balance work and family life with the new addition of a child.
Employees will also still receive normal pay from Netflix, so they likely won’t have to worry about disability pay issues while they adjust at home.
Employees who use the policy can apply the benefits however they want. They can take as much or as little time as they deem necessary without facing any discrepancies with their pay. They can even choose to come back to work on a part-time basis, while still getting paid at a full-time employee rate.
According to the Law
The Federal Leave Act stipulates companies of a certain size provide their employees with up to 12 weeks of unpaid leave for the birth of a child, or other major medical reasons. Netflix’s new policy obviously leaves that in the rearview mirror as they now give more financial stability and personal time back to their employees.
Some employers choose to offer disability or maternity pay, but the law does not require them to do so. The companies that do give maternity leave pay often have limited amounts of time employees can take, usually during the first few months of a child’s life, rather than an entire year. Often times, fathers and adopted children aren’t taken into consideration either.
Problems on the Horizon
Netflix has gone above the status quo for employees bringing children into their homes. Will it end up doing more harm than good? Interestingly enough, unlimited time off for employees might translate into them taking less vacation time, which is costly for companies. According to Executive Coach and Management Consultant Marc Dorio, “Unlimited vacation can backfire.”
[pullquote align=”right” cite=”Executive Coach and Management Consultant Marc Dorio” link=”http://www.marketwatch.com/story/why-netflixs-maternity-leave-policy-wont-work-2015-08-05″ color=”” class=”” size=””]“Unlimited vacation can backfire.”[/pullquote]
For instance, when Evernote started offering unlimited vacation options in 2011, they noticed that some employees actually took fewer days off, in efforts of appearing more committed to their careers than their peers. In the end, the company had to start paying people $1,000 to take their own vacations!
The reason for this might point to a phenomenon called “work martyr syndrome.” In competitive work environments, employees are constantly looking for a leg up over their competition to move up through the corporate ranks. It all goes back to the perceived value employees have of themselves and how that compares to how they see their co-workers. Work martyr syndrome leaves vacation days on the table, and in the end, that’s typically bad for business.
In 2014, an analysis by Oxford Economics revealed that U.S. workers left an average of three vacation days unused. In 2013, findings from Project: Time Off, (a U.S. Travel Association study) showed workers were taking 16 vacation days a year, compared to nearly 21 vacation days in 2000.
Netflix has taken a bold step forward in offering this package to its employees. It will be interesting to see if any complications arise as new mothers and fathers now have the ability to pause and resume their work lives at their leisure, while they adjust to life with a newborn.
