When a team member welcomes a new child, it should be one of the most joyful times of their life. For many working parents, it’s also one of the most stressful. The transition into parenthood, and then back to work, is often when even the most talented, committed employees consider stepping away.
For employers, this is a moment of risk and opportunity. If handled poorly, parental leave can lead to increased employee turnover. But with the right structures in place, parental leave can be a powerful driver of staff retention.
Why parental leave is a retention breaking point
Most business leaders understand the value of retaining high performers. Yet many overlook just how vulnerable those employees are during the parental leave process. Research consistently shows a spike in attrition in the year following parental leave, especially when return-to-work support is lacking.
At minimum, employers must comply with federal laws like the Family and Medical Leave Act (FMLA) and the PUMP Act, as well as navigate a patchwork of state Paid Family and Medical Leave (PFML) programs. However, even employers who meet compliance requirements need to go much further to retain talent. That means building a culture where working parents feel seen, supported, and able to thrive.
What makes the difference? Structured policies, trained managers, and predictable flexibility. When implemented together, these strategies dramatically improve return rates, reduce burnout, and strengthen long-term engagement.
How to retain working parents
1. Publish a parent-neutral paid parental leave policy
Parental leave can be a confusing tangle of policies and entitlements. It gets even more complicated when it comes to situations such as adoption or surrogacy. There’s an opportunity to provide a clear, comprehensive policy that outlines exactly how parents will be supported. Not only will employees be happier if the policy covers all parental relationships, but this also helps reduce the risk of discrimination if all parents are offered the same amount of leave.
How to implement:
- Offer at least 12 weeks total, with a minimum of 6–8 weeks at full pay.
- Create a single, parent-neutral policy that applies to all caregiving situations: birth, adoption, surrogacy, and foster care placement.
- Coordinate with state PFML and short-term disability when applicable and top up where feasible to avoid income cliffs.
- Ensure role protection, continued benefits, and seniority accrual.
- Write a plain-language summary for employees, plus an FAQ for managers.
Metrics to watch: - Leave usage by gender and level - Return rates at 30/90/365 days - Number of replacement hires avoided - Engagement scores from new parents
2. Design a structured return-to-work plan
Returning to work can be a major logistical challenge for new parents. This point is often where employees start to think about their options or even consider leaving the workforce entirely. Employers can help by offering a supportive, responsive structure that allows new parents to ease back into work.
How to implement:
- Offer a phased return (e.g., 60–80% hours for 2–4 weeks).
- Require a re-entry meeting between manager and employee to recalibrate priorities.
- Adjust project load and defer non-essential tasks.
- Adjust travel requirements.
- Provide information about support resources for parents, such as lactation accommodations and employee assistance programs.
Metrics to watch: - Time to full productivity - Manager and employee satisfaction at 30/60 days - Missed deadlines or reassignments
3. Make flexibility predictable and career-safe
Flexibility around working hours can be extremely useful for new parents, but it can also feel like a trap. Employees might wonder if irregular hours mean they will be excluded from certain opportunities and possibly suffer long-term career damage. It’s important to make people know they are respected and valued, regardless of their working patterns.
How to implement:
- Define core hours and meeting-light windows as team norms.
- Evaluate performance based on outcomes, not visibility.
- Train managers to avoid flexibility stigma.
- For shift-based roles, offer shift-swap tools and publish schedules at least two weeks out.
Metrics to watch: - Uptake of flexible work options by gender and level - Promotion parity among parents - Absenteeism rates
4. Train and coach managers on leave and RTW conversations
Managing new parents can be a challenge, and some leaders might not have the appropriate skills. It’s a good idea to invest some time in upskilling managers on the best way to engage and retain working parents. This is especially important for managing the return-to-work process.
How to implement:
- Offer manager training on planning for leave, re-entry conversations, and flexibility norms.
- Provide checklists and scripts to guide consistent communication.
- Include parental support metrics in manager scorecards.
Metrics to watch: - Training completion rates - Parent engagement vs. org-wide averages - Retention in teams with recent parental leaves
5. Go beyond legal requirements
Parental leave laws are a messy framework of federal, state, and local statutes. It’s challenging for businesses to navigate this regulatory landscape, and it’s harder still for parents. You can help by clarifying exactly what legal entitlements are available and giving clear information to employees. This also allows you to highlight the additional benefits the organization offers.
How to implement:
- Map out how FMLA, ADA, state PFML, short-term disability, and company leave interact.
- Build a decision tree for HR and managers.
- Conduct annual audits of lactation spaces, accommodations, and documentation.
Metrics to watch: - Audit outcomes - Time to process leave requests - Employee-reported clarity of leave process
Support parents, strengthen your workforce
Parents don’t leave because they’ve had a child; they leave because work stops working for their new life. But with thoughtful systems, managers who are prepared, and a culture that treats caregiving as a normal part of life, companies can retain these valued employees and help them thrive.
Here’s what to focus on:
- Standardize and communicate a paid, inclusive parental leave policy;
- Design structured, low-friction return-to-work experiences;
- Normalize flexibility and ensure it is career-safe;
- Train managers as allies and advocates; and
- Make legal compliance the starting point, not the finish line.
Need help putting this into action? Helios HR partners with organizations to build real-world solutions that support working parents and pay off in long-term retention.
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Let’s build a workplace where parenting and career can grow side by side. Book a consultation with a Helios HR expert.
