Here’s why Hewlett Packard Enterprises expanded their paid parental leave policy and never looked back

It’s hard enough to be a new parent, but U.S. leave policies don’t make it any easier for employees.

As one of the only developed countries in the world without paid time off enshrined into national law, employees are often left on their own to figure out how to start a family. Only 27% of workers in the U.S. private sector had access to paid family leave through their employer in 2023, according to the Department of Labor. Among low-wage earners, that figure drops to 6%.

While the majority of Fortune 500 HR leaders say it’s difficult to convince top executives that extended leave is a worthy investment, there has been a dawning awareness that beefing up these policies can play an essential role in employee recruitment and retention. IT giant Hewlett Packard Enterprise (No. 84) expanded its parental leave policy in 2019 as part of a larger push to improve employee benefits, and says it has paid off in terms of worker engagement and satisfaction.

“Our parental leave policy demonstrates to team members that when we talk about the importance of well-being, we mean what we say,” Samanntha DuBridge, VP of benefits, culture, and people care at HPE, tells Fortune. “When a team member believes, and is not just told, that HPE cares about them as a whole person, they’re more engaged, more productive, and better able to contribute their talents to our business.”

Employees who work at HPE for more than a year are eligible for 26 weeks of fully paid parental leave within the first 12 months after a child’s birth or adoption and have the option of taking additional unpaid time. That’s more than double the amount required by the Family and Medical Leave Act, which ensures most employees can take up to 12 weeks of leave—though companies aren’t required to pay workers for this time.

By the numbers

27%

of workers in the U.S. private sector have access to paid family leave through their employer

33

The average number of weeks of parental leave women take at HPE

88%

of HPE’s staff say the company offers policies that take their well-being into account

95%

of HPE staff say they get the flexibility they need from their managers

Sources: U.S. Department of Labor; HPE

DuBridge says that implementing leave is just as important as the offer itself. “I think sometimes companies roll these policies out, but they don’t really back it up with the language and the support,” she says. “We plan and expect employees to take their full leave, and ensure that they’re not being contacted constantly during this time, so they can focus on their families.”

Employees certainly take advantage of the perk. Women at HPE take an average of 33 weeks of parental leave, more than at any other company on this year’s best companies list. Men and adoptive parents take an average of 30 weeks. The company also provides parents and caregivers 10 days of free backup childcare per year. And the policy extends to other family members as well. For example, when an employee had to travel for a couple of days and their spouse was recovering from a broken ankle, HPE paid for a caregiver to step in and help take care of him.

Workers also have a lot of flexibility when it comes to scheduling their time off. For instance, some workers choose to take three months off, come back for a bit, then take another three months. They also have the option to come back to work on a part-time schedule as they transition back into their full-time role.

“We plan and expect employees to take their full leave, and ensure they’re not being contacted constantly.”

Samanntha Dubridge, VP of Benefits, Culture, and People Care, HPE

“We were talking to our own team members and realized that going from nothing to full-time is very hard, so we wanted to give people another option,” says DuBridge. She notes that most people take advantage of this soft landing for around a month before returning to their regular work schedules. “Providing just that little bit of a transition period has been very valuable for people to have.”

Those changes in benefits seem to be paying off. Over 80% of employees say they’re engaged at work; around 88% say the company offers programs that show it cares about the health and well-being of its staff and their families; and nearly 95% say they get the flexibility they need from their manager to handle their work and personal needs.

Allowing employees to leave for six months or more at a time does come with some operational challenges, including a lot of preplanning and moving people between teams to ensure that these employment gaps don’t diminish productivity. But after six years of this policy, DuBridge says that employees now expect their coworkers to take all of their available time off, and are able to manage it in advance so that it doesn’t dramatically affect a given team.

“From senior leadership all the way down,” she notes, “everybody gets the same message that if they’re becoming a parent and they want to take the time, that they absolutely can.”

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