Lululemon has announced it will now offer its employees three to six months of paid parental leave. The Gates Foundation, which had been offering a 52-week paid leave, has decided the concept isn't doable after all, but will give new parents $20,000.
Lululemon’s gender-neutral policy applies to all full-time employees who become parents, including those who adopt.
Employees qualify for three months of fully paid leave after working for Lululemon for two years, and six months of fully paid leave after working for the company for five years. Employees need to work 24 hours a week to be considered full-time at Lululemon, according to Bloomberg.
The company has described the policy as an incentive to retail talent at all levels, from in-store staff to senior leadership. In addition to the financial benefits, the new policy entails a framework to keep new parents connected to colleagues, mentors and work resources during their leave, ensuring an easy transition back into the workplace with a clear trajectory for advancement.
Lululemon plans to measure the impact of the new policy each year to capture leave rates across employees and measure their career growth rates as a result.
The Bill & Melinda Gates Foundation has decided its generous 52-week paid parental leave policy, enacted in 2015, is not working. Instead, the organization will offer half as much paid leave and a $20,000 stipend to new parents.
Male and female employees who have a child through birth, surrogacy or adoption will now get six months of paid leave and $20,000 when they return to work to help with child care costs and other family needs.