The number of companies offering paternity leave benefits - already small - is shrinking. Of the 15% of companies that offer paid paternity leave, 4% plan on reducing or eliminating the benefit in the next 12 months, according to the 2009 Employee Benefits Survey by the Society for Human Resource Management.

The trend presents an opportunity for employers to add or enhance a reasonably cost-effective benefit that will help them stand out to potential employees.

After all, employees view paid paternity leave as "a different type of compensation," says Mike Magrans, a father who partook in Ernest & Young's six-week paid paternity leave program.

"I've been drawn to Ernst & Young for the well-roundedness of the work-life environment," says the senior manger in E&Y's transaction real estate group. Clearly, the company is doing something right; in 2007, E&Y was honored with an Alfred P. Sloan Award for Business Excellence in Workplace Flexibility from the Families and Work Institute.

Paid paternity-leave benefits, which in general last two weeks, can be a financial and mental life-saver for parents.

"We find in our National Study of the Changing Workforce that fathers are experiencing more work-life conflict than mothers these days," says Ellen Galinsky, president of the Families and Work Institute.

Progressive employers, recognizing this fact, are offering benefits beyond paid leave to fathers, such as dependent-care assistance to help pay for child care with pretax dollars (46%), child care referral services(35%), child care vouchers(5%) and onsite or near-site child care (9%), according to the 2008 National Study of Employers by the Families and Work Institute.

For many companies, retention and recruitment strategies hinge on these types of work-life benefits, which serve as the driving force behind helping workers feel refreshed and able to exert themselves fully in their work and personal lives.

"Workers who get protected time out are much more likely to come back into the workplace - especially if that's paid time out," says Karen Minatelli, director of work and family programs at the National Partnership for Women and Families. "That helps to reduce turnover and training costs, and it increases the morale and the motivation of the employee to return and be a productive worker. Right now, when people are feeling a lot of insecurity of what's going on, the more employers can do to provide them with the level of stability and with the feeling that they are valued, the better the workplace will be. There will be lowered stress on the employee and therefore, will be a more highly functioning part of the workforce."

Thus, offering paid paternity leave doesn't cost employers much, but can save them key talent and stimulate employee morale and productivity. Think of it as an early Father's Day gift - except skip the tie. A few weeks of appreciation for working dads will go a long way in spreading joy (and baby pictures) around the office.