Is Family Leave Good for Business?

Fact Sheet | January 1, 2004

Executive Summary

“When I could help [my co-workers] deal with the challenges that they faced in their lives, not only did I feel good, the business prospered. Productivity was up, turnover was lower, and our customers had a more positive experience,” -Paul Orfalea, Kinko’s founder and Chairperson Emeritus

The research says family-friendly policies help businesses prosper:
Studies have found that when workers have paid family leave, businesses profit from lower turnover and training costs, reduced absenteeism, and higher productivity, loyalty, and morale.

• Economists from the University of California and University of Chicago estimate that employers in California will save $89 million a year in turnover costs when family leave insurance is implemented.

• Business consultant Leigh Branham estimates that hiring and training a new employee costs several thousand dollars for a low skilled employee and tens of thousands for higher level workers.

• Last-minute no-shows are hard on businesses. Policies that allow workers to schedule time off in advance enable the employer to plan for those absences.

• Studies confirm that customers are happier and more likely to continue patronizing a business when served by knowledgeable, satisfied employees.

• Profits go up when workers have paid time off to care for sick family members.


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Posted in Paid Family and Medical Leave