Parental perks for Netflix spark a talent war in Silicon Valley

Parent power: dads and mums both qualify for enhanced leave at many of the leading tech companies
Hinterhaus Productions/Getty Images
Joshi Herrmann12 August 2015

Working in tech often comes with shiny bonuses — think free food, vibesy offices, even holidays. But this week the perk-off has extended in a new direction — to parenting. Netflix has announced that any new mother or father can have unlimited leave during the first year of the child’s life or adoption, with full pay. The policy will apply in all their offices, including the London HQ on Goodge Street.

Tawni Cranz, Netflix’s chief talent officer, explains the rationale: “Netflix’s continued success hinges on us competing for and keeping the most talented individuals in their field. Experience shows people perform better at work when they’re not worrying about home. This new policy allows employees to be supported and return to work more focused.”

Netflix’s news has been followed by announcements from two more major tech firms, the photo software maker Adobe and the old patriarch of Silicon Valley, Microsoft — both offering more favourable deals for parents.

The new policies have been seen as moves in Silicon Valley’s talent wars, with leading tech firms having to fight tooth and nail for the best workers.

Ideally, employees would come and go from work not leave altogether. “Each employee gets to figure out what’s best for them and their family, and then works with their managers for coverage during their absences,” it says, while pointing out that freedom comes with “accompanying responsibility”. Mirroring the debate about unlimited holiday packages offered by some firms, some wonder whether the open-ended nature of Netflix’s deal might see staff taking shorter periods off, or feeling anxious if they take more. Some research claims women who choose to take just one month of leave are perceived by employers to be more masculine, and deserving higher pay, than those who take longer periods.


Dads lifestyle website Fatherly ranked companies for their paternity provisions earlier this year, with tech firms in first and second place. Google came top, offering paid paternity leave of 12 weeks, or 18 weeks if the father is the primary caregiver, as well as five days of childcare paid for by the firm, and a £320 baby bonding allowance. Facebook was next, offering 17 weeks paid paternity as well as a £2,570 spending money to cover the costs of parenthood. LinkedIn, which offers six weeks paid paternity, was also near the top of the list, as — surprisingly, maybe — were banks such as Bank of America.

A day after Netflix’s announcement, Microsoft said new mothers and fathers among staff will be able to take up to 12 weeks of paid parental leave, topped up by another eight weeks of maternity disability leave for mums. Adobe offered new mothers up to 26 weeks of paid time off, in the form of medical and parental leave, as well as 16 weeks paid for primary caregivers.

The arguments for offering more generous parental leave, in terms of talent-retention at least, are strong. In Google’s case, it was reported that when maternity leave was lengthened to five months from three and moved to full pay, its attrition rate (how many women leave after having kids) fell by 50 per cent. As one Google employee says, “everyone talks about free food and the gym but when it comes to family, Google is unbelievable”. It seems the tech companies have learned how to keep mum — and dad.

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