Op/Ed: Paid family leave offers economic advantages and could be a 'win' for Hoosiers

Jason Bearce and Rob Panos

A recent Pew Research study found that 45% of workers who quit their job in 2021 cited a lack of flexibility as a reason for their departure. Among other motivations were low pay (63%), no opportunities for advancement (63%), disrespect at work (57%), and child care challenges (48%).

Despite all the news about the “post-COVID workplace,” not much has changed for traditional workers. Pay has increased across many industries, but so has inflation. Many of the root causes of workplace dissatisfaction that have contributed to The Great Resignation persist.

The pandemic forced us to evaluate what’s most important in life; for many, that means greater emphasis on family. The cry for greater workplace flexibility and help with child care shouldn’t be a surprise. One way to work together to address this appeal from all types of workers ― and the employers behind them ― is encourage action on paid family leave.

A sign advertises that His Place Eatery is hiring for kitchen staff positions that pay $13 to $16 per hour on Saturday, Aug. 28, 2021, on the east side of Indianapolis. James and Shawn Jones, owners of the dine-in and carry-out soul food restaurant, are encouraging online and walk-in applications as they experience the effects of a nationwide labor shortage.

More:The Great Resignation: City government faces worker shortage exacerbated by pandemic

In the past, policy proposals have all too often come with employer mandates and reckless spending. More government mandates clearly aren’t the answer, but there are fiscally responsible, incentive-based approaches to paid family leave that avoid these pitfalls, including the Supporting Working Families Act introduced in Congress in 2019 by Indiana Sen. Todd Young.

Paid family leave, if done right, can be a win for workers, employers and society at large.

For workers, paid family leave increases financial security. Pew Research reported that in households with under $30,000 in income who didn’t receive full pay during parental leave, 57% took on debt. Rutgers University’s Center for Women and Work found that working mothers are 54% more likely to report increases in wages in the year following their child’s birth if they took 30 or more days of leave, compared to those who didn’t ― or couldn’t ― take family leave.

For employers, paid family leave increases workforce engagement. Data analyzed from the National Longitudinal Survey of Youth revealed women with access to paid leave are 69% more likely to return to work after 12 weeks of paid leave than mothers without access to paid leave. First-time mothers who took advantage of paid leave were 26% less likely to quit their jobs and 18% more likely to work for the same employer after childbirth, compared to their counterparts without paid leave. Ninety percent of employers from California, the state with the longest standing paid family leave program, reported a positive or no impact to their business because of paid family leave.

Jeronimo Valdes cooks food Wednesday, Aug. 18, 2021, at Johnny Carino's in Greenwood. An already existing nationwide worker shortage was worsened by the COVID-19 pandemic. Fifteen dollars per hour has become a common starting rate for businesses like Johnny Carino's to be able to operate.

More:How Indianapolis businesses are adapting to COVID labor woes

For society, paid family leave means more productive citizens and lower dependency on costly forms of government assistance. A Rutgers study found women who take paid leave are 39% less likely to receive public assistance and 40% less likely to receive food stamps in the year following a child’s birth.

To help educate Hoosiers on the pro-business benefits of paid family leave, Sagamore Institute and the Indiana Chamber’s Institute for Workforce Excellence have collaborated on “Paid Leave in Indiana,” a web page that describes the economic advantages of responsible paid family leave legislation with supporting research and perspectives from Indiana business leaders and policymakers.

The social argument for paid leave is obvious: Families, particularly in the critical early stages of a child’s life, will be stronger and raise healthier children. And, in a job market that prioritizes family-friendly flexibility, employers stand to benefit from increased workplace satisfaction and reduced employee turnover. It’s time for lawmakers at the state and national levels to embrace smart paid leave solutions that make good on this promise.

Jason Bearce is vice president of Education and Workforce Development for Indiana Chamber of Commerce and Rob Panos is chief of staff for Sagamore Institute.