Wall Street Perk: Parental Leave
November 30 2015 - 7:11PM
Dow Jones News
By Rachel Emma Silverman
Lately Wall Street firms have been competing to offer the best
benefits for new parents, adding weeks of paid maternity and
paternity leave and providing perks such as nannies for business
trips. The latest entrant in the race: Credit Suisse Group AG.
On Monday, the Zurich-headquartered bank announced one of the
richest parental-leave packages in financial services, giving U.S.
employees 20 paid weeks off after the arrival of a child, up from
12 weeks.
A host of firms from Amazon.com Inc. to Accenture are enhancing
benefits for new parents, in part to attract and retain young
women. Facebook Inc. announced last week that it will extend its
parental-leave policy to four months of paid time off for all
employees globally, a move that will mean more paid parental leave
mostly for fathers and same-sex couples outside the U.S.
Wall Street firms, which have long offered big paychecks in lieu
of work-life balance, now boast some of the longest paid parental
leaves in any industry.
Blackstone Group LP in April expanded its paid maternity leave
to 16 weeks, while Goldman Sachs Group Inc. offers 16 weeks for
primary caregivers and recently expanded its leave for secondary
caregivers to four weeks. Deutsche Bank AG and Morgan Stanley both
offer 16 weeks.
Meanwhile, private-equity firm KKR & Co. recently said it
would pay for employees to bring infants and nannies along on
business travel during a baby's first year. The firm also is
piloting a parental leave "transition support" program to help
guide women preparing for and returning from maternal leave, a
spokeswoman said.
Yet it is unclear whether these policies make it easier to
balance family life with the demands of a banking career.
Conditions for working parents on Wall Street have "definitely"
improved in recent years, said Patricia Milligan, who heads a
women's leadership initiative at consultancy Mercer. But senior
leaders need to take parental leave seriously--for one, by taking
leave themselves--so that employees feel those policies are more
than "window dressing," she said.
Credit Suisse is now competing more with Silicon Valley for
young workers, and is keeping close tabs on what other employers
are offering, said Elizabeth Donnelly, Credit Suisse's head of
benefits for the Americas.
"Our competition and the landscape has changed. We look at what
Google and other tech firms are doing and we see that they are able
to attract the kind of talent that Credit Suisse also wants," she
said. "We realized we needed to make changes."
New employees at the bank place parental leave and flexible work
arrangements among their top concerns, according to Ms. Donnelly.
And the firm's own research on employee retention found a "notable
spike in attrition following maternity leave," she said.
The company said it would be studying whether the new policies
reduce the rate of new mothers who leave among its 8,500 U.S.
staff, and whether it is able to attract more women hires.
Some companies have had success cutting the number of mothers
leaving a firm by expanding maternity leaves. When Google Inc.
increased its paid maternity leave to 18 weeks from 12 in 2007, the
attrition rate of new mothers fell by 50%, the company said.
About 150 U.S. women annually have taken maternity leave at
Credit Suisse over the past few years, taking about 18 weeks off on
average, even though the firm only paid them for 12 weeks.
The policy applies to a parent providing primary care during
their leave, regardless of sex. So far this year, 25% of employees
taking primary parental leave have been men. The bank also will
provide coaching for workers entering and ending leave, and will
begin paying for nannies to accompany parents and infants on
business trips.
Allison Lagstrom, an assistant vice president at Credit Suisse
in Raleigh, N.C., is expecting twins late this year. Unsure how
long to take off, she said she planned to meet with her boss Monday
to discuss her options.
Monday's announcement, a surprise to her, came as a relief. "I
was a bit unsure, but now it makes it easy to do the 20 weeks," she
said. "There has been lots of positive chitchat on the
elevators."
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(END) Dow Jones Newswires
November 30, 2015 18:56 ET (23:56 GMT)
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