Employee leave management continues to be a struggle for many employers

Many employers still have their work cut out for them when it comes to implementing effective worker leave management policies. Although they see these policies as assets for their total rewards strategies, nearly one-third don’t believe their employees have a good grasp of them and almost half say their policies aren’t helping them retain talent.

“Effective leave management is no longer a ‘nice-to-have’ — it is essential for fostering engagement, retention and trust between employees and employers,” said Maria Trapenasso, head of human capital solutions practice for NFP. “By consistently assessing employee needs and engaging in meaningful conversations about leave practices, organizations can develop thoughtful, data-driven strategies that not only comply with regulations and align with business goals but also enhance the employee experience and cultivate a culture of care and inclusion.”

NFP, a property and casualty broker, benefits consultant, wealth manager and retirement plan advisor, released findings from its 2025 NFP U.S. Leave Management and HR Trend Report.

Despite the attention and louder calls for menopause-specific workplace benefits, the research showed a substantial gap between employee expectations and employer offerings. Only 5% of employers offer menopause accommodations, up negligibly from 4% in 2024. “The economic impact of menopause-related symptoms in the workplace is staggering,” Trapenasso said. “This minimal growth in menopause benefits year over year stands in stark contrast to the rising demand.”

About three-quarters say they employ HR technology, including HRIS, payroll, leave administration and benefits administration systems, but their experiences have been far from uniform. Nearly one-third say they have encountered more difficulties than anticipated. “Implementation of core HR systems remains a primary focus for employers but is often more complex than organizations initially assume,” she said.

The report identifies employee relief funds as an emerging HR trend. “By offering swift assistance when employees need it most, these funds not only address urgent needs but also demonstrate an organization’s dedication to its workforce’s welfare,” Trapenasso said.

Employers are recognizing the importance of robust family leave policies, and family caregiver leave has become more common, with nearly 3 in 10 providing this benefit. “In offering family caregiver leave, companies support their employees through various life stages and caregiving challenges,” Trapenasso said.

Of the 28% of employers that offer family care leave, nearly two- thirds offer less than three weeks of full pay. However, one in five employers that provide this benefit offer between seven and 12 weeks, providing employees with a leave period more in line with federal and state offerings to fulfill family responsibilities without jeopardizing their career. “This cements a more inclusive work environment and reflects an understanding of the complex needs for today’s multigenerational workforce,” Trapenasso continues.

Related: Report suggests it’s time to re-evaluate employee paid-leave programs

The duration of paid maternity leave shows a subtle but positive shift from 2024 to 2025. There is a notable decrease in employers offering less than three weeks of full pay (from 37% to 28%) and an increase in those providing 6 to 8 weeks (from 30% to 35%). This trend indicates a growing recognition among employers of the importance of supporting employees with more substantial paid leave as they recover physically from a birth.

Bereavement policies are evolving beyond their traditional structure, with employers offering leave for the loss of a close relationship (31%); miscarriage or unsuccessful IVF (29%); and death of a pet (7%). Some employers are offering variable time off for these losses based on individual circumstances.

“Leave management will continue to play an important role in shaping employee experiences and organizational success,” Trapenasso said. “Employers who view their leave policies as strategic assets – rather than mere compliance requirements – will be better positioned to create workplaces that truly support and engage their employees.”