I was interested to read about a new program launched by Wachovia Bank that allows employees to take an unpaid leave of absence for up to three years to care for loved ones.  It does not grant job protection and once on extended leave, individuals are considered inactive employees and their benefits are put on hold. 

However, the program does provide a formal way for employees to maintain a presence with the bank.  They retain access to some of Wachovia’s web-based tools, stay in contact with managers and receive employee communication materials.  They are also given regular listings of job openings within the company. When they return, benefits kick in immediately—such as 401(k) plans and vacation days—as though they had never been away.

This initiative is noteworthy for several reasons.  Obviously it highlights Wachovia’s willingness to be a flexible employer which will enable it to differentiate itself in recruiting.  Aside from being a recruiting tool, I think Wachovia will also see it as a key tool for retaining good talent as employees comparison shop, it is difficult to assign a dollar value to flexibility.  Flex programs are relatively inexpensive to create and generate employee appreciation.

Wachovia’s program is generous not only with the time employees can spend away from the workplace, but also with the definition of who is eligible for the extended leave - spouses, children, parents, domestic partners, grandparents, siblings, grandchildren, and in-laws.

It will be interesting to watch if other large employers follow Wachovia’s lead.