Rent the Runway CEO in addition to co-founder Jennifer Hyman is usually currently on maternity leave. She plans to take three to four months off through day-to-day leadership of her billion-dollar start-up.
Rent the Runway
The 2019 CNBC Disruptor 50 list includes a first: One of the CEOs, Rent the Runway’s Jennifer Hyman, is usually currently out on parental leave with her second child. A second, 23andMe’s Anne Wojcicki, is usually nearing her due date in addition to about to take parental leave as well.
Just 16% of civilian workers inside U.S. have access to paid family leave, according to the December 2017 National Compensation Survey by the Bureau of Labor Statistics. although with persistent gender gaps across leadership in a range of industries, corporate giants in addition to start-ups alike are increasingly looking to improve benefits, in part to keep women inside workplace after they have children.
“Men in addition to women both deserve to take This specific truly special time when they have a newborn at home in addition to bond with the newborn in addition to be with their family,” said Hyman in a phone interview while pumping breast milk for her two-week-old baby. “If the woman is usually truly the only one at home at the beginning, of which sets up a dynamic where she’s the one in charge of her kids in addition to the one in charge of childcare. Given how much work of which is usually, of which will set her back in her career if of which’s not equally distributed with her husband.”
Hyman says she plans to take three to four months off through running the company, which rents clothing accessories in addition to home décor in addition to is usually ranked No. 5 on the 2019 Disruptor 50 list. Her leadership team will run the company day to day, while through home she checks in in addition to reads emails, with plans to attend a board meeting.
Yahoo’s former CEO Marissa Mayer famously returned to work two weeks after giving birth to her first child, building a nursery inside office. Hyman says while she won’t check out entirely, in contrast, she wants to demonstrate to her employees of which they can truly take the three months of paid leave in addition to two months of flexible leave of which the company allows. “of which’s truly important as the CEO to show all my employees of which they can be rock stars at work in addition to also take time away through work to be with their families during amazing moments like parental leave in addition to during difficult moments like bereavement leave.”
Expanding benefits in tight labor market
About a year ago Rent the Runway expanded its benefits of which corporate employees received to all 1,800 of its workers, including its hourly employees working at its warehouse, customer service in addition to stores. today all of those employees have equal access to leave for bereavement, a brand-new baby, family sick leave or a sabbatical. Hyman says the expense is usually worth of which, because of the cost of acquiring in addition to training brand-new employees in addition to, on the flip side, the value of having tenured employees, who are far more productive.
“Our distribution center is usually in brand-new Jersey, one of the most competitive places for warehouse talent inside U.S.,” says Hyman. “of which’s much more expensive for me to try to recruit brand-new talent in addition to train them in dry-cleaning, quality control … than of which is usually to actually provide an equal life benefit to those employees.”
Hyman says of which inside past year, the company has seen higher loyalty in addition to lower employee churn.
“As CEO, my compensation is usually much higher than the average warehouse employee; however, we shouldn’t be distinguishing whose newborn child is usually more important, or whose sick parent is usually more important, or whose bereavement leave is usually more important,” Hyman said. She says of which the only time she would certainly not be able to take parental leave in addition to turn day-to-day operations over to her team is usually when she is usually fundraising. Rent the Runway has raised over $540 million through investors, closing its most recent round This specific spring.
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Across the country at 23andMe’s Mountain View, California, headquarters, CEO Anne Wojcicki is usually in her third trimester, with her third child, although the company was not yet ready to discuss her plans for maternity leave beyond indicating the CEO will take some time off. although similar to Rent the Runway, comprehensive parental leave is usually central to the personal genomics company’s benefits.
Head of recruiting Jennifer Mease, who is usually pregnant herself, explained 23andMe’s policy to give both brand-new moms in addition to brand-new dads 16 weeks of 100% pay. “of which gives employees the confidence of which they’re cared for. This specific feeling creates a more productive, invested employee,” says Mease.
23andMe, which ranked No. 46 on This specific year’s CNBC Disruptor 50 list, also offers family planning benefits: up to $20,000 for fertility-related expenses in addition to surrogate fees. in addition to to help parents once kids are born, the company offers up to 10 days paid of subsidized child-care or elder-care backup.
“The free food in addition to the open work space environment are table stakes in Silicon Valley. These types of family planning benefits truly do retain employees in addition to differentiate ourselves,” Mease said. Taking care of its 625-plus employees’ health ties in to the company’s mission of helping 23andMe consumers understand their own health.
Companies are increasingly investing more in benefits, particularly parental leave, to attract in addition to retain top talent. A 2018 survey of the Society for Human Resource Management found of which over one-third of companies increased their overall benefits offerings inside past year, with about a quarter of companies increasing leave, family-friendly, in addition to flexible working benefits.
While more companies are offering a broader assortment of types of leave, including paid paternity leave, as well as leave for adoption in addition to foster care, larger organizations are more likely to offer these benefits than smaller ones. Paid maternity leave was offered by 60% of organizations with 10,000 or more employees, in addition to only by 31% of organizations with fewer than 500 employees. The organization says the financial advantage of offering these benefits is usually clear, including increased commitment to the organization, lower incidence of maternal depression, in addition to reduction in health-care costs due to higher rates of breastfeeding.
The vast majority (92%) of employees surveyed by SHRM reported of which paid leave is usually important to their overall job satisfaction. However, just 73% reported being satisfied with paid leave offered at their organization.