Many employers plan to implement big changes to leave programs, study finds
73% of employers have already made or plan to make changes to their leave programs.
Employers are raising their investments in leave programs for their employees. In a heightened effort to remain competitive and improve employee attraction and retention, a majority (84%) of U.S. employers plan to add to their leave programs within the next two years. These findings come from WTW’s 2023 Leave, Disability and Time-off Trends Survey.
The study revealed attraction and retention strategies are the number one driver for making changes to paid leave, time off or disability programs. Nearly three-quarters (73%) of employers have already made or plan to make changes to their leave programs. A similar level of employers (72%) cited enhancing the employee experience as their primary motivation for doing so.
Employers plan to enhance parental leave, bereavement leave and caregiver leave as well. Though most employers already offer these programs to employees, one-fifth of companies with paid parental leave plan to increase the value of their programs.
Similarly, one-quarter of those currently offering bereavement leave intend to increase its value.
Paid caregiver leave has the most room to grow in terms of adoption. While one-quarter of employers report already having a paid caregiver leave policy in place at the moment, more than 1 in 5 employers are planning or considering it. This means that potentially half of employers would be offering caregiving support to their employees.
Notably, more companies are planning to adopt unlimited paid time-off (PTO) programs in the next two years:
- 12% are in place today
- 16% of employers anticipate offering unlimited PTO to exempt employees in the next two years
Unlimited PTO is even more prevalent among directors and executives:
- 31% of companies reporting this type of program in place today
- 9% planning or considering it over the next two years
For employers that aren’t offering unlimited PTO, changes to these programs are also underway:
- 23% have already taken action to extend the number of days provided
- 22% are planning or considering implementing these changes
Related: Managing various leave benefits remains a challenge for employers, survey finds
“By modernizing time-off programs, employers can create a supportive work environment that fosters engagement and improves the overall employee experience,” said Alex Henry, Group Benefits leader, WTW.
“The leave landscape is evolving at a rapid pace due to social, political and regulatory changes, and employers are adapting to remain competitive. Offering a generous leave program can be a real differentiator for attraction and retention,” said Henry.