Employee leave requests are expected to increase from 41% to 60%

Employee leave requests are on the rise. They jumped between 21% and 40% in 2022, and they are expected to increase by 41% to 60% this year, according to a new survey of 600 corporate and human resource leaders in organizations with more than 500 employees.

The 2023 Employee Leave of Absence Forecast Survey, recently released by AbsenceSoft (a leading SaaS platform for leave and accommodation management), highlights this urgent workforce challenge and reveals how company leaders plan to address the issue.

The top three drivers of leave-request increases were sick-related requests, burnout and other mental wellness reasons, and to care for a loved one (via the Family Leave and Medical Act).

“What started as a pandemic perk is now becoming a necessary benefit for employees, just like health insurance and 401Ks,” Mark Schiff, AbsenceSoft’s chief executive officer, says in a statement. “Paid employee leave is being encouraged more than ever to allow employees to better care for themselves and their loved ones. This has a direct impact on employee retention and engagement.”

That goes a long way toward explaining why so many employers have added — or are considering adding — additional paid time off as a benefit in 2023. Respondents to the survey say they will offer this through more vacation time or mental health days, company-sanctioned sabbaticals, and other paid leave options. About 70% of employers have added or are considering adding parental leave in 2023, according to the survey.

The majority of corporate and HR leaders cited employee health and wellbeing, along with mental health, as one of their biggest workforce challenges over the past 12 months. Retaining employees, followed closely by recruiting talent and managing employees in flexible working environments, also ranked high.

However, managing this uptick in new leave options and employee requests remains a challenge. About 44% of corporate and HR leaders say their organization is only somewhat effective or not at all effective at managing employee absences. Some even responded that they still use sticky notes, spreadsheets, and calendar reminders to manage employee leave.

Nearly half of respondents say their biggest struggles with leave management are calculating employee eligibility, as well as ensuring compliance with federal laws, state laws, and company policies.

Read more: Why paid parental leave insurance is an untapped opportunity

“Many HR teams are overwhelmed by compliance,” Seth Turner, AbsenceSoft’s co-founder and chief strategy officer, says in a statement. “In fact, many organizations remain unprepared to handle the consequences of mismanaging leaves, which can include legal action against employers. Having a software solution that can automate the ‘administrivia’ of leave and accommodation management can alleviate these pain points, increase accuracy in the entire leave process, ensure compliance, and ultimately, let HR focus on what matters most: the employee.”

In the next five years, corporate and HR leaders say they plan to prioritize leave and accommodation software as part of their tech stack.