REPORT FROM THE U.S.—Corporate parental leave policies have come into the spotlight in the past year, as companies expand their allowances to include more time off and less-strict definitions of who can take leave.
It’s happening in the hotel industry as well. Hilton Worldwide Holdings changed its parental leave policy this year. The new benefits give birth mothers an additional eight weeks of paid maternity leave, increasing the amount of fully paid maternity leave from two weeks to ten weeks. The new policy also states that fathers and adoptive parents, who previously received no paid leave, now receive two weeks of paid leave.
Hilton’s announcement about its more generous parental leave policies came on the heels of similar proclamations from big-name companies like Netflix, Microsoft, Adobe, and Goldman Sachs, but Hilton’s changes are particularly newsworthy as the policy extends not just to its salaried workers, but also its hourly workers, who make up 75% of the 40,000 employees at Hilton’s corporate offices and owned and managed properties across the U.S. who are affected by the policy.
“We recognized an opportunity to make significant enhancements to our parental leave benefits that would reach all levels of the company, including our hourly team members,” said Matt Schuyler, Hilton’s EVP and chief human resources officer.
Schuyler said staff feedback provided the biggest impetus for the change, which was a way to provide even more support and flexibility to employees and their families.
“We frequently ask our team members for feedback and suggestions on the programs and benefits that we offer,” he said. “And through our survey results, we recognized that the one area that matters most to them is flexibility.”
Michele Sarkisian, president and CEO of P3 Advisors, an Atlanta-based consultancy that deals with human resources issues, said more and more businesses are taking their employees’ needs to heart.
“Companies are paying attention to what their employees want and need to be productive and fulfilled,” she said, “particularly as the ‘war for talent’ continues to grow as our employment rate has improved.”
Schuyler said the ability to hire and keep top-rate workers is a welcome bonus.
“By providing industry-leading benefits in the areas that matter most to our team members, it helps us attract and retain great talent,” he said.
Robert Rauch, CEO of RAR Hospitality, which oversees two Hilton properties in San Diego County, California, said the policy was a landmark decision for hotel employees.
“The importance of this policy is paramount as our company’s culture promotes an environment that balances the family-work predicament so many of us face on a daily basis,” he said.
The bottom line, though, Sarkisian said, is the policy change significantly improves employee satisfaction.
“It comes down to the service-profit chain,” she said. “You treat employees well, and they treat the guests well.”
Of course, the publicity gained from an announcement like Hilton’s doesn’t hurt either, although Sarkisian said she suspects that had very little to do with the company’s decision.
“Hilton is an admired company,” she said. “And improving employee policies is smart business. They simply want to be an employer of choice and have listened to their employees.”
Cost benefits?
Others question whether the costs of offering such an extensive parental leave policy outweigh the benefits, or even the need for such a policy.
At the Shaner Hotel Group in State College, Pennsylvania, for instance, there is no specific parental leave policy. Instead, the company has an all-encompassing paid-time-off policy that gives its workers a set amount of paid leave to use for whatever reason they choose, whether it’s vacation, sick time, maternity leave, etc.
VP of human resources Brian McMahon said the company’s policies mirror its employees’ interests.
“We’ve received few if any requests for parental leave beyond the benefits already provided as part of the Family and Medical Leave Act and our paid-time-off Policy,” McMahon said. “The feedback we receive from our associates is focused on maintaining competitive rates of pay and enhanced health care coverage. Those are clearly the top two items of interest.”
Schuyler said the change at Hilton came down to what worked best for the company and its employees.
“We believe it was the right thing to do for our team members,” he said. “While we don’t have any specific insights into what other companies are planning, we would love to set a trend and see others within our industry and beyond follow suit.”