Dive Brief:
- Nearly three-quarters of U.S. companies plan to expand their leave programs in the next two years, according to research released Monday by WTW, a global advisory, broking and solutions company.
- These investments are driven by a focus on improving employee experience (67%) and upping attraction and retention (60%), WTW found.
- The investments are in multiple forms of leave, including parental, bereavement and caregiver leave, the report found.
Dive Insight:
“Leave programs have become a strategic differentiator for employers competing for talent,” Alex Henry, group benefits leader at WTW, said in a statement. “Enhancing leave programs can be a cost-effective way to improve well-being, strengthen culture and meet the evolving expectations of a modern workforce.”
Of the 585 employers surveyed, more than 4 in 5 provide parental leave, and 16% plan to enhance those programs, WTW said, while 18% of employers expect to either increase the duration or broaden the eligibility requirements of their bereavement leave. Caregiver leave is predicted to nearly double over the next two years, growing from 22% to 39%, the report found.
Investment in unlimited paid time off also is climbing; 15% of companies provide the benefit to exempt employees now, an increase from 12% two years ago, and 18% plan to in the next two years, WTW said.
Paid time off policies reduce turnover for all workers, regardless of how much job satisfaction they have or whether they have flexible schedules, according to a joint Florida Atlantic University and Cleveland State University study published in March 2025.
Employers identify program administration as their greatest challenge (49%) in implementing these changes, however, followed by integration of leave systems (39%) and coordinating workforce availability as leave use rises (38%).
