Employers are enhancing their leave benefits to boost recruiting and retention

HR pros looking to improve their recruitment and retention efforts might consider enhancing their paid leave policies.

That’s what 84% of US employers plan to do over the course of the next two years, according to a new WTW survey. Employers are prioritizing changing and expanding their paid parental, bereavement, and caregiver leave policies as they battle it out to remain competitive and attract the best talent.

Organizations with robust leave policies are more likely to see employee retention and productivity rates rise, according to Appalachian State University researchers. Some 73% of respondents to WTW’s 2023 Leave, Disability, and Time Off Trends survey said the number one reason for making changes to their leave policies is improving their attraction and retention efforts.

“Following a great deal of change over the past few years, including how and where people work, employers are recognizing the importance of flexible leave programs that accommodate the diverse needs of their employees and evolving work styles,” Alex Henry, group benefits leader for WTW, said in the report. “By modernizing time-off programs, employers can create a supportive work environment that fosters engagement and improves the overall employee experience.”

Survey says. Of the employers surveyed by WTW, 86% provide maternity leave, 82% provide paternity leave, and 82% provide adoption leave. Almost 20% of respondents said they plan to increase the value of their programs.

Of the 95% of employers that offer bereavement leave, 25% said they plan to expand it to cover more employees (or not just those grieving the loss of an immediate family member) and for a longer period of time.

While 73% of employees have caregiving responsibilities, according to SHRM, only 25% of WTW respondents reported having a paid caregiver leave policy in place. However, another 22% are planning or considering adding such a benefit in the next two years.

Zoom out. Leave policies can have a profound impact on employees’ personal lives and, in turn, can affect how they view their employers.

Indeed, working parents are 65% more likely to stay with an employer who doesn’t rush them back to work after having a baby, a 2022 Great Places to Work survey found.

And bereavement policies not only stand to benefit grieving employees, for whom more flexible policies can help with the transition back to work, as HR Brew reported last year. In total, “hidden grief” can cost employers about $75 billion annually, according to the Grief Recovery Institute.

As the employer–employee relationship has evolved and with it, more emphasis placed on worker well-being, a more holistic approach to time off can help organizations draw in and hold on to staff.

“Employers need to adapt to remain competitive,” Henry said, “and offering a generous leave program can be a real differentiator for attraction and retention.”