FED:Business ahead of parental leave debate

AAP General News (Australia)
08-18-2010
FED:Business ahead of parental leave debate

BRISBANE, Aug 18 AAP - While the major political parties dicker over paid parental
leave, thousands of employees of Australian corporations are already at home feeding,
changing and bathing the baby.

A survey by HR consulting firm Hewitt Associates has found 71 per cent of Australian
corporate organisations are already offering some form of paid parental leave.

Labor has legislated a scheme to begin on January 1, offering new parents earning up
to $150,000 18 weeks' leave on the minimum wage, currently $570 a week.

The coalition has promised primary carers 26 weeks paid parental leave, at full replacement
pay to a maximum of $150,000 or the federal minimum wage, whichever is greater. It would
be funded through a 1.5 per cent levy on big business, but would not be introduced until
July 2012.

According to the Hewitt Paid Parental Leave Pulse Survey conducted in July and August,
most companies recognise the long-term value of offering paid parental leave to support
and retain loyal employees, as well as attract them back to work after leave.

However, some are not yet sure how to address the issue and are waiting for the election
outcome before they commit to paid parental leave.

"Our research has found that on the whole, corporate Australia leads the way in recognising
the role paid parental leave plays in maintaining an experienced and loyal workforce,"

said Tim Powell, Hewitt Associates managing director for Australia and New Zealand.

"However, with different timeframes being thrown around by the coalition, Labor and
the Greens, some organisations are unsure of what is best practice and how to implement
it."

The survey found that 36 per cent of companies with paid parental leave are fairly
generous with their commitment, offering the primary carer 12 or more weeks of paid leave
at full pay.

"The argument around paid parental leave is often that the cost is too high for business
to bear, but the reality is it is an investment that saves organisations money in the
long-term," Mr Powell said.

"The cost to replace an experienced staff member can be up to 75 per cent of their
annual salary, when you take into account the cost of recruiting a new employee and the
time it takes for them to become a productive contributor to the business."

It's not just primary carers who receive benefits from employers.

According to Hewitt's survey, more than half of Australian corporates also offer paid
parental leave to secondary carers - with one in three providing at least one week's pay.

"Irrespective of federal policies and politics, the majority of Australian corporates
are already offering paid parental leave, seeing it as a competitive advantage to attract
and retain talent in an increasingly tight labour market," Mr Powell said.

AAP stg/pjo/bwl

KEYWORD: POLL10 PARENTAL (WITH FACTBOX)

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