Panorama recently completed a study on "Why Paid Family Leave is Good Business.” This study was co-authored with Boston Consulting Group. This deck provides a concise overview of the report and is a resource for those wanting to learn more about this important issue facing US companies.

1. “Why Paid Family Leave is Good Business”
Co-Authored by Boston Consulting Group and Panorama

2. • Defining Paid Family and Medical Leave
• Current and Changing Dynamics of Paid Family and Medical Leave
• “Why Paid Leave is Good Business” Report Findings
• Trends
• Benefits Outweigh Costs
• Lessons from the Leaders
2 |
Table of Contents

3. What is Paid Family and Medical Leave
3 |
Paid family and medical leave (PFML)
enables an employee to care for a new
child or a family member, including
themselves.
Demand is increasing due to shifts in
modern families
• Fewer households with a full-time caregiver.
• Both parents increasingly involved in child care.
• Burden of care is growing with an increasing
proportion of the workforce helping to care for
aging parents.

4. 4
Current and Changing
Dynamics of
Paid Family and Medical Leave
4 |

5. Paid Leave Improves Gender Equity, Women’s Economic
Opportunities, and Health
5 |
Workers',
especially
women's, retention
Increased
female
participation
and higher
wages
Care giving
more valued
and equitable
Promotes gender
equality in workforce
Improved health
for mother and child
Long term
health benefits and
wellbeing for
children
Women's
Economic
Opportunity
Access to PFML
increases weekly
hours and pay
for employed
mothers by
nearly 10%
Health
Access to leave
increases birth
weight and
decreases
premature births
and infant
mortality
Gender
Equity
Access to PFML
recognizes the
value of care
giving and
encourages
women and men
to get involved
Courtesy of

6. Luxembourg
France
Netherlands
Spain
Turkey
Latvia
Slovenia
Belgium
Japan
Sweden
United Kingdom
Norway
Slovak Republic
Czech Republic
Poland
Ireland
Hungary
Italy
Estonia
Finland
Denmark
Australia
Chile
Portugal
Canada
Greece
Austria
Germany
New Zealand
Switzerland
Israel
South Korea
Iceland
Mexico
United States
0 50
68
40
35
34
28
26
26
24
22
0 50
20
18
18
18
18
17
17
17
16
0 50
16
16
16
16
16
16
15
15
14
0 50
14
14
14
14
13
13
12
0
All Organization for Economic Cooperation and Development (OECD) countries mandate at least 12 weeks paid maternity leave,
and in some cases, parental leave, except the United States
6 | Courtesy of
There is growing consensus about the benefits for workers and a growing need and demand for paid family
leave.
• Yet, the United States is one of just eight countries that doesn't mandate paid maternity leave.
• Only four states have policies that support paid leave, ranging from 4 to 12 weeks at partial pay.
Federal law only provides for unpaid family and medical leave.
The U.S. Is the Only OECD Country That Doesn’t Mandate PFML

7. 7 | Courtesy of
Absent a Federal PFML Policy, Employers Primarily
Determine Whether Employees Have Access to Paid
Leave
• Only 14% of the U.S. workforce
has access to employer-
sponsored paid family leave
• Paid leave coverage has
increased just 3% since 2010
• Workers in the highest income
quartile are three and a half
times more likely to have
access to paid family leave
than those in the lowest income
quartile.

8. Inequality in Access to Paid Leave Has Grown Between High
Wage, Full Time and Low Wage, Part Time Employees
8 | Courtesy of
4% growth seen among high wage workers,
while it remains flat among low-wage
Coverage of full time relatively consistent,
while part time worker coverage declining
0
10
20
30
2010 2011 2012 2013 2014 2015
0
10
20
30
2010 2011 2012 2013 2014 2015
0
10
20
30
2010 2011 2012 2013 2014 2015
0
10
20
30
2010 2011 2012 2013 2014 2015
%oflowwage
workers
%ofhighwage
workers
%ofparttime
workers
%offulltime
workers
0%
+4% CAGR
-4% CAGR
+3% CAGR

9. 9
“Why Paid Family Leave is Good Business”
Report Findings
9 |

10. Opportunity to Move the Needle on Paid Family Leave
Through Private Sector Action
10 |
Research aimed to better understand which companies are
changing their PFML policies and why
• Built database of >250 company polices to understand what
policies exist
• Interviewed >30 primarily large companies with and without
paid family leave to identify motivators and drivers
What
We Did
What We
Expecte
d
What We
Didn't
Expect
Expected to find momentum among companies with high
profits and in intense competition for talent – which we did
Also found companies in diverse sectors that were deciding to
offer paid family leave, suggesting opportunity to generate
broader momentum through private sector action
Courtesy of

11. 50%
40%
$0
30%
20%
10%
0%
$100,000$80,000$60,000$40,000$20,000
Coverage
"Other services"
Wholesale
Professional
Services
Manufacturing
Information
Education
Construction
Admin & Waste
Accomodation & Food
Healthcare
Finance
Transportation
Retail Real estate
Utilities
# of employees
Coverage up 10+% pts from 2010
Coverage up ≤1% pts from 2010
Coverage up 2-9% pts from 2010
Data source: US Bureau of Labor Statistics 2015 wage and occupation data and their National Compensation Survey family leave coverage data 2010-2016. 1. Sector coverage data from
private sector, but national average inclusive of employees in the non-farm economy and workers in public sector except those in federal government
Average: 14%1
Sectors with coverage significantly
above national average employ only
15% of total workers
Average wage
Highest Wage Sectors Have Expanded Coverage the
Fastest, Improving Policies for Only 15% of the Population
Courtesy of11 |

12. Three Unlikely Stories Explain Why there is Optimism Around the
Opportunity for More Employer Action
12 |
Hilton began providing equal benefits to employees of all types based
on its values and a business rationale linked to customer satisfaction – and
has encouraged others to meet them where they are
A leader in the DOD, interested in talent attraction/retention, built a
convincing case based on private sector's moves and experiences,
and found a path to expanding maternity leave through the DOD's
disability insurance policy
Union Square Hospitality Group was determined to prove that even a
restaurant group can offer paid family leave. By designing a 4-week,
fully-paid + 4-week, partially-paid policy, it can now offer paid,
gender-neutral family leave to all employees, hourly and salaried
Courtesy of

13. Companies Are Also Expanding the Length of Leave and Are Increasingly
Focused on Gender Neutrality
13 | Courtesy of
7
5
11 11
8
15
0
5
10
15
Birth mother1 Adoptive leaveSecondary
caregiver / paternity
Averageweeksofleave
Companies that have changed their policies in the last two
years offer ~3-4 more weeks than average Interviews stressed an increasing focus on gender neutrality
"By giving people four months of paid parental leave
and six weeks of paid family leave, we're indicating
to them that we recognize how important family is for
both men and women." – Facebook
"We believe family comes first and are pleased to
offer family benefits which show our strong support
for the modern-day family, no matter what shape that
family takes." – Johnson & Johnson
1. Often includes disability leave as well
Source: Why Paid Family Leave is Good Business, BCG Perspectives

14. 14 | Courtesy of
Across Large Companies, 7 Drivers Created Impetus for Move
In competition for talent, especially tech
Influential millennials
Desire to retain more women
Internal champions
European HQ/presence
Desire to create positive halo
Strong values focus
Source: BCG interviews

15. 15 | Courtesy of
Large Companies with These Drivers Seem to Be Willing to
Take a Leap of Faith with Imperfect Data
'We needed to do this to
attract and keep our
talent..but we are not
gathering any data on
whether it worked'
'We didn't have any
numbers proving to us this
would work (for talent
attraction)...but we are
confident it has been
positive'
'Sure we did some
analysis – but that is not
how these decisions are
made. This is about our
values, and its a smart
move'
'We are thinking about the
overall benefits package,
not cost of each benefit.
Paid leave is great ROI'
Benefits are not generally quantified... ... and costs less of a factor
Source: BCG interviews

16. 16 | Courtesy of
Companies With Paid Leave Policies Report Benefits
that Outweigh the Cost

17. “Why Paid Family Leave is Good for Business” Launch

18. 18
Lessons from the Leaders
18 |

19. Company Leaders Offered Important Lessons
19 |
Policy should reflect company’s values
• Inclusive and comprehensive policies that promote equal access to the benefit to all employees
Flexibility is important
• Employees appreciate options, such as non-consecutive weeks off or option to take longer
leave at less pay
Company leaders should set the standard
• Helps foster sense of normalcy and shows employees will be supported
Support systems are critical
• This is true for employees on leave and employees covering
Metrics are few but important
• Statistics on usage, replacement costs, employee retention and perceptions