Three key leave strategies employers need to focus on to create successful leave programs
July 25, 2024
Research on the modern workforce has revealed that almost everyone — whether they're caring for young children, aging parents, a friend or their own mental health — has major responsibilities outside of their jobs.
Leave is no longer just about expectant mothers or those recovering from an injury or illness. Modern leave has evolved to cover various situations and challenges employees may face throughout their lives. With more employees taking leave to take care of themselves or their families, employers are feeling the strain to provide better leave options for their employees while also keeping up with everything involved with managing absences.
To attract and keep their best employees, companies should evaluate their leave offerings to ensure they are inclusive and supportive.
Treat leave as a key component of your benefits strategy
Your leave program should be treated as a key component of your benefits strategy. According to the latest Unum Insights Report on Leave and Absence Management, more than one-third of employers saw a 36% rise in leaves during 2023.1 Among them, larger companies with 500 or more employees have reported an even greater increase of 42%.1
With more employees expecting support from their employers, companies are responding by expanding their leave offerings. 44% of employers said they are planning to expand their leave offerings in the next 1-2 years,1 indicating that the shift toward a more leave-friendly workplace culture is already here.
Strong leave programs can help employers achieve their goals1
- Keeping employees happy and engaged: 59%
- Increasing retention: 51%
- Keeping workers healthy: 49
- Ensuring compliance: 31%
- Minimizing productivity disruptions: 30%
- Reducing all absences: 23%
Your leave program should be designed around employee needs
Employers are keeping in mind the importance of aligning their policies with the diverse needs of their workforce as they design their leave programs.
Many employers see themselves as having at least some role in supporting employees in areas that they may not have considered in the past but look to as a way to better support their employees.
- 85% of employers say they should have at least a minor role in supporting employees' mental health1
- 84% cite they should have a role in providing maternity support1
- 79% believe they should have a role in caring for children1
- 78% acknowledge their responsibility in supporting those who are caring for elderly family members/parents1
- 65% believe they should have a role in providing neurodiversity care support1
Part of this shift is to cater to a modern workforce that spans five generations of U.S. adults. As Gen Z and Millennial workers continue to age, they'll make up 60% of the workforce by 2031,2 putting the pressure on employers to design their leave programs around younger generations that prioritize different benefits than previous generations.
Importance of benefits by generation2
| Gen Z and millennial workers | Gen X and baby boomer workers |
|---|---|
|
Medical benefits |
Medical benefits |
|
Paid time off |
Paid time off |
|
Flexible schedules |
Dental and vision insurance |
| Life insurance |
Vacation time |
|
Mental health coverage |
Retirement savings and pension plans |
|
Supplemental health products |
|
|
Wellness programs |
|
|
Tuition and student loan |
|
|
A variety of other non-insurance offerings, like pet insurance |
Leverage technology to simplify administration burdens
The more complex leave becomes and the higher volume of employees taking leave, employers are looking to new solutions to stay ahead. One in five employees currently have partial tech solutions1 in place, like digital intake and platforms that automate and streamline every part of their leave and absence programs. Here are the results of how those tech solutions have transformed and positively impacted those employer’s organizations.
Employers rating leave tech features as excellent/very good:1
- Ensuring compliance: 81%
- Keeping workers happy: 73%
- Minimizing productivity disruptions: 59%
- Reducing task time for managers: 71%
- Making it easier for employees to plan, request and take leaves: 81%
Satisfaction with integrated leave management process (% extremely/very satisfied):1
- HR professionals: 93%
- Employees who’ve taken leave: 90%
- Frontline managers: 89%
For contrast, employers that offered no integration at all had drastically lower satisfaction numbers.
Satisfaction with integrated leave management process (% extremely/very satisfied):1
- HR professionals: 56%
- Employees who have taken leave: 33%
- Frontline managers: 26%
Leave tech solutions create such a strong impact on outcomes that 88% of employers without leave technology are likely to seek them out within the next few years.1 Even smaller employers are finding tech solutions that fit their needs, with 50% of small business employers saying they will rely more on carrier-provided technology in five years.2
Conclusion
Leave has taken on a much bigger role in attraction and retention and is a crucial tool for supporting employees through transformative, and often stressful, life changes and unexpected challenges. So, when it comes to your leave strategy, implementing modern technology and making it as intuitive and simple as possible will allow you to achieve goals and empower employees to prioritize their wellbeing to achieve a healthier work-life balance.
1 Q1 Unum Insights Report, Leave and Absence Management, 2024.
2 LIMRA and EY, Harnessing Growth and Seizing Opportunity: 2023 Workforce Benefits Study, 2023.