Michigan small businesses support paid family and medical leave

Small business owners across Michigan know it makes good business sense to take care of the people who work for them. However, it can be challenging to provide key benefits, including paid family and medical leave, which they believe would help them recruit and retain their workers. With small businesses struggling to compete with large companies that can offer attractive benefits packages, it should come as no surprise that small business owners support establishing a comprehensive paid family and medical leave program that would make it easier for them to facilitate their employees’ access to the paid time off they need to support their families while keeping their jobs.

A new scientific opinion poll conducted for Small Business Majority and the National Partnership for Women & Families by Lake Research Partners found that 79% of Michigan small business owners support the creation of a national paid family and medical leave program that would guarantee employees wage replacement for up to 12 weeks, funded by 0.5% employer and employee contributions each. The leave could be for welcoming a new child (born or adopted), or a serious health condition or injury for an employee or a family member. In the absence of a federal program, 10 states (including the District of Columbia) have programs fully in effect, with four more in the process of implementation. The Michigan legislature is considering a proposal that would establish a state-run paid family and medical leave program which would  be paid for through joint employer and employee payroll contributions.

Michigan small business owners support paid family and medical leave for several reasons:

• 92% agree that employee morale is better when they know they can take care of themselves and their families if needed without losing their job.
• 92% agree that employees are more invested in the business when they know they can stay despite changes in life circumstances (92%).
• 89% agree that businesses have more cohesive teams when turnover is lower.
• 81% agree that businesses have more reason to invest in employees, resulting in a more skilled workforce.
• 80% agree that businesses are better able to retain highly skilled and experienced employees.

Most small business owners (86%) say they support access to paid family and medical leave as an employer and also as someone who cares about the people who work for them, and many are taking steps to offer at least some paid leave to their employees. However, it’s important to note that there is a clear gap between the amount of paid leave that small businesses do offer and the amount they would like to provide. More than 8 in 10 (84%) small business owners agree that they would like to offer more paid leave than their business can currently afford, and only some are able to offer it:

• Among the 56% of small businesses offering paid medical leave for an employee’s serious health needs, 67% offer one month or less.
• Among the 35% of small businesses offering paid family leave to care for relatives, 70% offer one month or less.
• Among the 47% of small businesses paid leave for pregnancy and/or childbirth, 42% offer one month or less.
• Among the 51% of small businesses offering paid parental leave for a newborn child, 44% offer one month or less.
• Among the 26% of small businesses offering paid parental leave for adoptive and/or foster parents, 87% offer one month or less.

Michigan small businesses overwhelmingly support establishing a paid family and medical leave program, and they think it would improve employee morale and help with recruitment and retention. This support is underscored by how many small businesses have been impacted by extended leave, with both small business owners and their employees having taken extended leave to care for themselves or family members. As Michigan legislators consider proposals that would establish a state-run paid family and medical leave program, it’s important that they keep the views of small businesses in mind.