Attracting and retaining staff: could better parental leave benefits strengthen your EVP?

Attracting and retaining good people can be challenging, particularly for smaller organisations competing with larger employers on salary, benefits and career opportunities.

One way employers can stand out is by looking beyond salary and considering what their workplace offers employees at different stages of their lives.

For example, could offering paid parental leave or other family-friendly benefits strengthen your Employee Value Proposition (EVP)?

What is an Employee Value Proposition?

An Employee Value Proposition is the combination of benefits, opportunities and workplace experiences an employer offers in return for an employee’s skills, contribution and commitment.

Salary is obviously part of the equation, but it is not the only consideration. Employees may also value flexible working arrangements, professional development, supportive managers, wellbeing initiatives and benefits that help them balance work with their personal and family commitments.

For employers, a strong EVP can help differentiate the organisation when competing for talent and contribute to employee retention.

Paid parental leave can be part of your EVP

Employers are not generally required to provide employer-funded paid parental leave. Eligible employees may instead receive government-funded Parental Leave Pay, subject to the applicable eligibility requirements.

However, employers can choose to offer paid parental leave as an additional workplace benefit.

This could be particularly valuable for employees who are planning or growing their families. Providing an employer-funded benefit can also demonstrate that an organisation is prepared to support employees through significant life changes, rather than viewing parental leave simply as an absence from work.

Government-funded Parental Leave Pay has also changed in recent years, so employers should make sure their policies clearly distinguish between government-funded payments and any additional benefits the organisation provides.

Read Parental Leave Changes: What Employers Need to Know >

It doesn't have to be paid parental leave

Paid parental leave is only one option.

Employers that are looking at ways to strengthen their EVP could also consider:

• flexible working arrangements for employees with family or caring responsibilities

• keeping employees connected with the workplace while they are on parental leave

• supporting a gradual or flexible return to work

• continuing benefits such as superannuation during employer-funded parental leave

• providing access to an Employee Assistance Program (EAP)

• professional development and career opportunities

• practical support for employees managing work and family commitments.

Not every benefit will suit every organisation. The important thing is to understand what your employees value and consider which initiatives are realistic, sustainable and aligned with your organisation’s broader workplace strategy.

Make sure your policy matches your promise

If you offer enhanced parental leave or other family-friendly benefits, employees need to understand what is available and how it works.

Your parental leave policy should clearly explain the relevant employee entitlements, including:

• unpaid parental leave

• government-funded Parental Leave Pay

• any employer-funded paid parental leave

• notice and evidence requirements

• arrangements for staying connected during leave

• flexible working options

• returning to work after parental leave.

Clear policies also help managers apply benefits consistently and avoid confusion about what an employee is entitled to.

It is worth reviewing your arrangements regularly as workplace laws and government schemes change.

A stronger EVP can help you compete for talent

For some employers, competing on salary alone is difficult. Looking at the overall employee experience can provide another way to attract and retain good people.

Paid parental leave may be one part of that strategy, but the bigger question is: what does your workplace offer that makes good people want to join, stay and build their careers with you?

For tailored advice on your employment obligations, workplace benefits and strategies to boost your EVP, book a confidential discovery call with Workplace Plus.