Majority of employers will change their leave programs in the next two years, WTW survey finds
22 Janeiro 2024 - 11:05AM
Most (84%) U.S. employers are planning to make changes to their
leave programs in the next two years, according to a new survey by
leading global advisory, broking and solutions company WTW (NASDAQ:
WTW). In an effort to remain competitive and improve attraction and
retention, employers are investing in their leave programs.
WTW’s 2023 Leave, Disability and Time-off Trends Survey found
supporting attraction and retention strategies to be the number one
driver for making changes to paid leave, time off or disability
programs, cited by almost three-quarters (73%) of employers that
have made or plan to make changes to their leave programs. Nearly
as many (72%) cited enhancing the employee experience as a top
reason. These reasons for making changes are consistent, with just
small variations, across all employer sizes, from 100 employees to
more than 25,000 or more employees. They also hold across a wide
span of industries. Rounding out the top reasons for making changes
to programs are diversity, equity and inclusion initiatives,
reported by one-third (32%) of these respondents.
"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, Group Benefits leader, WTW. "By modernizing time-off
programs, employers can create a supportive work environment that
fosters engagement and improves the overall employee
experience."
Among the changes, employers plan to enhance parental leave,
bereavement leave and caregiver leave. For parental leave, although
most employers currently offer paid leave (86% provide maternity
leave, 82% provide paternity leave and 82% provide adoption leave),
nearly one-fifth of those companies plan to increase the value of
their current programs. Similarly, while the overwhelming majority
of employers (95%) report having a bereavement leave policy (other
than what is required by various state laws), 25% of those that
offer bereavement leave intend to increase the value of their
current offering, with half of those employers planning to expand
covered persons/reasons and enhance the benefit/duration.
Paid caregiver leave stands to experience some of the most
substantial increases in adoption. While 25% of employers report
having a paid caregiver leave policy in place today, another 22% of
employers are planning or considering it over the next two years.
Should this come to pass, nearly half of employers would be
offering formal caregiving support to their employees.
Notably, more companies are planning to adopt unlimited paid
time-off (PTO) programs in the next two years. With 12% in place
today, up from 9% two years ago, 16% of employers anticipate
offering unlimited PTO to exempt employees in the next two years.
Unlimited PTO is even more prevalent among directors and
executives, with 31% of companies reporting this type of program in
place today and an additional 9% planning or considering it over
the next two years. For respondents that aren’t offering unlimited
PTO, changes to time-off programs are also underway, as one-quarter
(23%) have already taken action to change the number of days
provided, and nearly as many (22%) are planning or considering
doing so.
As legislation changes, more employers are finding it difficult
to maintain compliance with leave laws, particularly large
employers operating in multiple states. As a result, in the next
two years, the prevalence of outsourcing leave programs is expected
to increase by 22%. Among the nearly two-thirds (64%) of employers
that currently outsource state family medical leave administration,
many are dissatisfied; more than half (54%) are considering a move
to a new administrator in the next two years despite the effort
involved in such a move.
"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,” concluded Henry.
About the survey
A total of 517 employers participated in the 2023 Leave,
Disability and Time-off Trends Survey, which was conducted in from
late October to mid-November of 2023. Respondents employ 7.9
million employees.
About WTW
At WTW (NASDAQ: WTW), we provide data-driven, insight-led
solutions in the areas of people, risk and capital. Leveraging the
global view and local expertise of our colleagues serving 140
countries and markets, we help organizations sharpen their
strategy, enhance organizational resilience, motivate their
workforce and maximize performance.
Working shoulder to shoulder with our clients, we uncover
opportunities for sustainable success—and provide perspective that
moves you.
Media contacts
Ileana Feoli: +1 212 309 5504ileana.feoli@wtwco.com
Stacy Bronsteinstacy.bronstein@wtwco.com
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