Don’t you wish you worked for Microsoft? On the heels of Netflix ridiculously generous parental leave policy—the company will allow new moms and dads to take as much fully paid time off as they want in the year after a child’s birth or adoption—the software giant has announced changes to its parental leave, holiday and 401(k) policies.
Kathleen Hogan, executive vice-president of human resources, made everyone’s day by announcing the changes in employee benefits in a letter posted to the company’s website.
“When I look at how rapidly the traditional workplace is changing, not just at Microsoft, but throughout business in general, I see a tremendous opportunity for companies to put a stake in the ground around what they believe in and what kind of culture they want to build together with employees,” Hogan writes. “This is certainly the case with Microsoft, as we evolve our culture to one that embodies a growth mindset and that embraces diversity and inclusion.”
Among the changes:
Increased 401(k) match: Retirement readiness is an important part of overall financial wellness, so beginning Jan. 1, 2016, we’ll increase the company’s 401(k) match from 50 percent of the first 6 percent that employees defer, to 50 percent of all regular deferrals. With the current IRS regular deferral limit of $18,000, this means employees will have the opportunity for Microsoft to match their contributions up to $9,000 per year. This will allow employees to save more through this tax-advantaged savings vehicle and grow their retirement savings faster.
Enhanced parental leave for mothers and fathers: “We’re enhancing our paid Parental Leave to 12 weeks, paid at 100 percent, for all mothers and fathers of new children,” she explains. “For birth mothers, this is in addition to the eight weeks of maternity disability leave they currently receive, paid at 100 percent, enabling them to now take a total of 20 weeks of fully paid leave if they choose.”
Additionally, the company will offer “birth mothers an expanded opportunity to use Short-Term Disability Leave during the two weeks prior to their scheduled due date to manage the physical impact that often comes with late pregnancy and to prepare for the upcoming birth.”
We will also offer flexibility for when eligible parents can take leave. Eligible parents will now have the option to take their Parental Leave either in one continuous 12-week period or split into two periods. These parents will also have the option to phase back into work on a half-time basis.
Additional paid holidays: Beginning in 2016, the company will add Martin Luther King Day and Presidents Day to its list of Microsoft holidays in the U.S.
“This creates two new company-wide breaks that align to the federal calendar and create time for us to pause in the lengthy period between New Year’s Day and Memorial Day. We now offer 12 paid holidays (which includes two floating holidays), in addition to paid vacation time that employees accrue. We believe this will provide employees with more opportunity to take time to recharge and invest that time in ways that are meaningful to them, while honoring Dr. King and U.S. presidents.”
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With more than 20 years serving financial markets, John Sullivan is the former editor-in-chief of Investment Advisor magazine and retirement editor of ThinkAdvisor.com. Sullivan is also the former editor of Boomer Market Advisor and Bank Advisor magazines, and has a background in the insurance and investment industries in addition to his journalism roots.
