Most employers plan to change their leave policies soon, with paid caregiving benefits becoming more popular: survey

Eighty-four percent of employers participating in a new survey said they are planning to make changes to their leave policies within the next two years, and paid leave for caregiving may see some of the most substantial increases in adoption.

A total of 517 employers participated in Willis Towers Watson’s 2023 Leave, Disability and Time-off Trends Survey, which was conducted in October and November. Results were released Monday.

Almost one-fourth of survey respondents said that they already offer paid leave for caregiving, and an additional 22% said that they are planning or considering adding it over the next two years.

Making changes to leave policies is aimed at boosting employee recruitment and retention, according to WTW.

“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,” said Alex Henry, WTW group benefits leader, in a press release issued in conjunction with the report. 

Caregiver leave, parental leave and bereavement leave are among changes being considered.

Eighty-six percent of the respondents already provide maternity leave, 82% provide paternity leave and 82% provide adoption leave. Employers surveyed believe that they can do better; almost one-fifth of those companies plan to increase the value of their leave policies.

Bereavement leave is another hot topic. Ninety-five percent of the respondents said they have policies that go beyond those required by law. Twenty-five percent of the participants said they plan to expand covered persons/reasons and add to the time off allowed.

Unlimited paid time off, or PTO, also is being considered by a minority of employers, although some companies and employees who have tried it say it’s not all that it’s cracked up to be. Many companies that don’t offer unlimited PTO are considering adding additional days of PTO to their employee benefit packages.

“The leave landscape is evolving at a rapid pace due to social, political and regulatory changes. Employers need to adapt to remain competitive, and offering a generous leave program can be a real differentiator for attraction and retention,” Henry said.