Paid Family Leave is Good Business for Tennessee

Paid family leave allows working families to care for a new child without risking their financial security. Because Tennessee
state employees do not have dedicated paid family leave, those who are expecting a child must choose between using paid
vacation time, sick days, or taking unpaid leave.
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Parental leave of eight to 12 weeks allows mothers more time to meet their basic needs — physical effects of childbirth
can persist well after six weeks.(iii) Mothers’ mental health has also been shown to significantly improve.(iv) Paid family
leave also sets children up for success, reducing high school dropout rates and leading to higher wages in adulthood.(v)
Paid family leave is a smart business investment for Tennessee.
Source: Center for Economic and Policy Research
A majority of surveyed employers report positive or neutral
effects of paid family leave policies.
89% of employers reported stable or increased
91% of employers reported stable or increased
99% of employers reported stable or increased
employee morale
Paid family leave policies benefit employers through improved retention and reduced turnover rates.
The cost of replacing an employee can range from one-half to two-times the employee’s annual salary.(i) Paid family
leave policies increase employee retention and decrease turnover, lowering costs for employers.(ii)
Impossible Choices: The Impact of Working Without Paid Leave
Paid family leave helps boost productivity and
improve morale among employees.
A survey of employers found an overwhelming
majority report that paid family leave had
positive or neutral effects on profitability,
productivity, and employee morale.(vi)
Given today’s labor shortage, policies that
ensure parents, especially mothers, can stay in
the workforce are needed.
Paid family leave policies help retain workers.
Women who take paid leave after having a baby
are more likely to be working nine to 12 months
after birth than women who take no leave.(vii)
Providing paid family leave will give the state a competitive edge in recruiting Tennessee’s best and brightest
employees, since many leading private sector employers already provide this benefit.
At least 20 major employers — including FedEx, Dollar General, First Horizon, BlueCross BlueShield of Tennessee, and
Pilot Flying J — provide paid family leave for their employees to care for a new child.(viii)
Implementing paid family leave for state employees will not only help Tennessee’s working families — most of whom
cannot afford to take extended leave without pay — but will also help state agencies recruit and retain workers. In today’s
highly competitive labor market, this is more important than ever.