After Netflix announced that it will allow employees to take as much parental leave — fully paid — as needed in the first year of a baby’s life, the company’s stock price jumped five points.
At first blush, that may seem surprising: Why would stock prices increase just because Netflix NFLX, -6.35% now offers more generous benefits to employees? Shouldn’t that hurt rather than help the company’s bottom line?
The reality — as Netflix executives well know — is the exact opposite.
Being responsive to the work-life needs of employees has proven benefits for both workers and businesses, which is why more and more companies are choosing to implement generous paid-leave policies.
The above excerpt was originally published in MarketWatch.
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