Microsoft Pushes Paid Family Leave Down the Supply Chain

September 13, 2018
Microsoft Pushes Paid Family Leave Down the Supply Chain

Offering better employee benefits is now a requirement for Microsoft’s suppliers and business partners.

The benefits include a minimum of 12 weeks paid leave for new parents in addition to providing 15 days of paid sick or vacation time.  The policy demonstrates Microsoft’s commitment to investing in the people who work for the company and its supply chain partners.

This post is based on the CNBC article, Microsoft will start requiring partners and suppliers to offer paid family leave, and it will help cover the costs, by Sara Salinas, August 30, 2018. Image source: © travellinglight / Alamy.

Discussion Questions:

1. What are the reasons for Microsoft requiring its suppliers and business partners to implement a better employee benefits policy?

Guidance: These reasons include: recognizing people as the key to Microsoft’s success; ensuring companies that are doing business with Microsoft also place the same value on its human capital; increasing Microsoft’s competitiveness with a healthy workforce.

2. What are the costs and benefits of the new paid parental leave benefit requirement for Microsoft’s suppliers and business partners?

Guidance: Paid parental leave increases labor costs but increases productivity, increases morale and lowers turnover rates.  It also enriches family lives and promotes equity at home and office.  More importantly, by assisting suppliers and business partners to implement the same employee benefits policy, Microsoft is committing to human capital investment throughout its supply chain.

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