By Lydia Dishman - 6 minute Read
Unsurprisingly, Americans aren’t the beneficiaries of generous paid leave, vacation, or unemployment policies.
The U.S. isn’t very competitive with other countries when it comes to taking care of its workers, according to a new report from Glassdoor.
Conducted in cooperation with London-based Llewellyn Consulting, the report, “Which Countries in Europe Offer Fairest Paid Leave and Unemployment Benefits?” shows a sharp divide between American workplace benefits and those offered in 14 European countries.
“In the U.S., workplace benefits like unemployment, maternity/paternity leave, and paid time off are part of the total compensation pie negotiated between employer and employee,” said Glassdoor’s chief economist Andrew Chamberlain in a statement. “In most cases, the responsibility to provide these necessary social benefits to workers falls to U.S. employers rather than the government.” This is in contrast to social policy across Europe, Chamberlain observed, which generally results in far more generous benefits than what is typical in the U.S.
With unemployment at historic lows, the general sentiment among workers is that they can find another, better job elsewhere, particularly among millennials, 44% of whom Deloitte found would leave their employers in the next two years. Benefits could make the difference between a talented employee staying or leaving to find a better package elsewhere.
A separate Glassdoor survey found that 79% of U.S. employees report they would prefer new or additional benefits instead of a pay raise, and more than half (57%) of people said benefits such as health insurance, paid vacation, paid sick days, and a retirement plan–some of which are mandated in European countries–are among their top considerations before accepting a job.
Using the United States as a benchmark, this study compared of benefits in six key areas:
It’s important to note that Glassdoor analyzed the U.S.’s parental leave policy as stipulated under the Family and Medical Leave Act (FMLA), which also allows unpaid leave for reasons other than childbirth, such as caring for sick children, spouses, or elderly parents. This was reclassified as “general parental leave” rather than “maternity leave” or “paternity leave.”
There are differences from country to country based on government regulatory mandates, but those that ranked as the most generous are Denmark, France, and Spain, while the U.K., Switzerland, and Ireland are among the least generous. The U.S. brings up the rear in nine of the 12 areas ranked as well as an overall aggregate score of .03 for its benefits (or lack thereof). For comparison, Denmark scored a 7.8 and France came in second with a 7.2.
Paid parental leave is now a hot-button issue as businesses of all sizes are scrambling to offer what the U.S. government doesn’t. Under the FMLA, new parents (birth mothers, birth fathers, and new adoptive parents) are entitled to 12 weeks of unpaid parental leave. Working mothers in the U.S. may take short-term disability benefits offered at the state level, such as in California and New Jersey.
Highlights from Glassdoor’s report:
Paid Holiday: Annual Leave And Public Holidays
Sick Pay And Leave