Rolls-Royce announced a new employee benefits package funded by tax credits in the 2017 Tax Cuts and Jobs Act passed by Congress.
The new package, two years in the making, introduced six-week paid parental leave, ones two weeks are supplemented by credits from the tax cut. It also introduced two weeks of paid family care leave as well as an adjusted bereavement leave entitlement to allow for nontraditional family structures. Other enhanced benefits include: fertility treatment, gender reassignment, equal benefits for same sex couples and weight loss surgery.
The enhanced benefit package is “less regarding the 1980s work-life balance and much more about work-life integration,” said Summer Smith, Rolls-Royce’s head of hours in North America.
After consulting with employee focus groups and recognizing employee needs had evolved, the leadership group determined the corporation, that is located in Britain, should “not be so restrictive,” Smith added.
Still on Smith’s wish list: more flexibility in time off, potentially allowing for employees to adopt longer paid or unpaid sabbaticals.
Initially, Rolls-Royce is seeing “folks responsibility for their own children, who perhaps they’re having in the future, but also responsibility for their parents,” who may need more attention and care as they age, based on Michelle Pool, Rolls-Royce’s HR and culture program manager
The company believes these changes will permit it to compete and retain top talent and enable employees to execute at their very best in the office along with their personal lives.
Since the tax cuts were announced, other major players within the aerospace and defense sector have been having an influx of cash to compliment employees and consumers.
Lockheed Martin, for instance, is exploring employee training and educational offerings, increasing charitable contributions in science, technology, engineering and Mathematics, and increasing the organization’s ventures investment fund for early-stage companies developing disruptive technology.
Days following your tax cuts were passed, Boeing focused on $300 million to charitable giving, workforce development, and infrastructure and facility upgrades.
Companies have also used the newfound capital to pre-fund required pension contributions. Lockheed put $5 billion into its pension trust in 2018, fulfilling its obligations through 2021. Raytheon, Northrop Grumman and Harris Corp. put $1 billion, $500 million and $300 million, respectively, within their pension trusts.
While defense companies have enjoyed this cash influx inside short term, the advantages might not last. The Pentagon is reportedly trying to earn back a few of the tax make use of defense companies either by renegotiating existing contracts or repricing items on future ones.