Recently, a number of statutory increases across various regions in Asia, as well as global companies raising benefits in all regions have been announced. Many of these countries have not seen changes to the leave entitlements of expectant parents for many years. For example, Hong Kong’s announced increase from 10 weeks to 14 weeks is the first rise in such an entitlement for 48 years.
Culturally, parental leave in Asia has been different from that in the West for various reasons. However, things are starting to change, although the take-up of leave does not always match what workers are entitled to. Japan, for example, in 2015, saw only 2.7% of eligible male workers take childcare leave. Clearly, tradition and the status quo will not change simply because the law has. There needs to be a cultural shift alongside relevant legislation, which will take time.
Global companies tend to do a better job of giving benefits than local ones. A Global Parental Leave report by Mercer shows that more than one-third of organisations worldwide now have one centralised global policy that covers the various types of leaves available, including maternity, paternity, adoption, and parental. 38% of these organisations provide paid paternity leave above the statutory minimum, and several regions mandate a parental leave program that may be used by either parent.
According to recruitment specialists Michael Page, enhanced leave programs are a valuable tool for attracting and retaining top talent. Companies in Asia are beginning to see the benefits of enhancing the entitlements for parents. When faced with similar offers from companies during the hiring process, the final decision for candidates often comes down to company culture and the work-life balance benefits offered. Parental leave policies can have a positive effect on both employees and employers as they help talent maintain a better work-life balance. These leave policies also promote the company as a more attractive place to work, improving retention during a time of continued demand for highly-skilled talent.
Statutory entitlements are still relatively low across the APAC region, so organisations have been taking it upon themselves to offer a global policy to add more leave if the region’s legal minimum does not meet the same standards. Some of these recent and upcoming company examples include:
- Novartis—26-week equal paid parental leave to all parents welcoming a new child through birth, surrogacy or adoption.
- Burberry—18 weeks of parental leave at full pay and the opportunity to work a 30-hour week at full pay for a further four weeks on their return.
- Ashurst—18 weeks of parental leave at full pay.
- Zomato—26 weeks equal paid parental leave, including fathers.
- Nestlé—18 weeks fully paid leave for the primary carer and four weeks for secondary caregivers.
Although many countries already have statutory provisions in place above these levels, many still do not, so it is nice to see that forward-thinking organisations are taking the leave to provide additional benefits. It is also a positive move that most benefits are not gender-specific and apply equally to mothers, fathers and same-sex couples. Hopefully, more companies will see the benefits in staff recruitment and retention gained by offering such a policy globally.
Paul Arkwright
Publisher
