Do Parental Leave Policies Affect Employee Engagement at Firms in the US?

Abstract

The concept of employee engagement is relatively new and has become an important theme in business management as research has shown that employee engagement drives productivity and bottom-line results. Much of the employee engagement concept remains unexplored due to its recent appearance and rapid growth in current research. Additionally, many employee engagement surveys used by consulting firms are proprietary and are therefore difficult to compare. As employee engagement is increasingly measured and used in firms, it is critical to understand its drivers and its application across countries. Existing research has linked work-hour flexibility to increased retention and work-life balance, and thus decreased work-family conflict. However, there is a lack of evidence to link parental leave, an aspect of work-family balance, to employee engagement. This study investigates the relationship between the length or pay of parental leave and employee engagement for employees at firms in the United States using a combination of secondary research and survey data. The implications of a connection between parental leave and employee engagement could provide motivation for firms in the United States to extend their parental leave offerings.