When I was a young capitalist who co-founded a business in the late 1980s, thinking about employee benefits was a pain. I had to sort through obligations and nuance, attempting to anticipate what employees valued and what they didn't. It was hard trying to balance the needs of employees, what was suitable for an employer to provide and what wasn't, and to deal with the expense of it all. Benefits were often an uncomfortable afterthought. I figured that cash was what folks valued most and the rest was rounding error.
As we grew, I came to appreciate the importance of noncash compensation to the health of a corporate workforce. First, the term "employee benefits" is poorly named in that it implies some sort of gift over and above cash compensation. No part of a compensation plan is a gift. Employees earn their compensation — all of it.
And, whether they appreciate it or not, every dime employers spend on their employees is an investment in the human development of that workforce and reflects the values and priorities of the firm. Salary, bonus, cash, equity, 401(k), health care, dependent care, paid leave, even the choice of which holidays to take reflect the values of the firm.
It is in that vein that the thinking around maternity leave needs change, and I am happy to have come to that realization.
Adding a child to a family is a joyful occasion. It is a time for a family to come together, welcome the addition, adjust to a new normal, and bond with the child. However, maternity leave policies seem anchored to the notion that leave is akin to short-term disability. Give a new mom the time to recover. Of course, complicated or difficult pregnancies do require such consideration, but most pregnancies don't fall exclusively into that category. Yes, time is needed for recovery, but that time is worth a whole lot more.
A new arrival is not a maternal "injury." It is an important moment in a family's life. It is a time to celebrate, adjust, bond and recover — all at the same time. Traditional employee benefits packages typically reserve this recovery time for mothers only. That's an anachronism as the traditional notions of "family roles" are being thrown out the window.
Besides, why should dad be excluded? Why should an employer make an arbitrary determination that only the mother needs time off? The family unit is a unit, and dads are a key part of that equation. I appreciate a father's value to a family as it welcomes a new addition. Maybe it took me 30 years as an employer to appreciate it. Maybe it took my regret of taking only a few days off when each of my kids were born. Or, maybe it took me seeing my own adult children in a new light and what I wish for them and their future families.
So, as an employer today, I focus our total compensation philosophy on investing in the human development of a workforce, not in merely ticking boxes on a benefits form.
I am proud that at the George W. Bush Presidential Center, we now provide full parental leave benefits upon a new arrival. We don't differentiate between male or female. Our various benefits packages combine to enable three months' paid leave plus an additional month of flextime for both mom and dad. We don't differentiate between birth, adoption or surrogacy. We also allow dads to take their leave in nonconsecutive intervals if it is more advantageous for a father to be at home when the newborn is a little older. And this month, we have our first proud father taking his parental leave.
It is my hope that this policy helps the breadwinners (mom or dad) get back to work smoothly, helps the family unit adjust to and welcome the new arrival together, and communicates to the entire firm that both parents are important parts of the equation. Traditional notions of "breadwinner" and "primary care provider" are no longer sufficient determinants for the design of an employee policy.
On this Father's Day, I hope to inspire leadership in thinking about benefits in a new light. Employers have an important role in developing human potential. Physical and emotional health are critical components. Healthy employees are clearly important. But so are healthy employee families, and fathers are an important factor in healthy families.
While the definition of a family may change over time, one fact is clear. When children are born, the presence of both parents is important. Companies can help young families establish themselves through parental leave policies that allow both parents to spend quality time with their newborn.
Kenneth Hersh, co-founder and advisory partner of NGP Energy Capital Management, is president and chief executive of the George W. Bush Presidential Center. He wrote this column for The Dallas Morning News.