4 principles for creating smarter leave policies

At a time when workplace well-being is a business imperative, employee leave policies — especially those surrounding return-to-work transitions — deserve far more attention than they currently receive.

It has been estimated that each year roughly 10 million workers don't take leave — seven million of whom don't do so because they can't afford to take unpaid leave. And that number is likely to grow. Mental health concerns, caregiving responsibilities, long COVID and shifts in parental leave expectations are reshaping the landscape of how and when people take time away from work. Yet many companies still approach leave planning like it's an administrative burden — one-off, reactive and disconnected from broader business goals.

Now is the time to rethink what it means to support employees through life's hardest (and most meaningful) seasons. Done right, leave policies and return-to-work plans don't just improve morale — they can increase retention, reduce burnout and even boost productivity. As it turns out, achieving ambitious business goals and demonstrating empathy for employees aren't mutually exclusive.

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Investing in paid leave systems isn't solely about prioritizing the best interests of employees, it's just better business. Providing paid leave boosts productivity, morale and employee retention. As an increasingly larger percentage of the workforce, 37% of women said they'd consider turning down an offer if the company lacked adequate flexibility for working parents and another 30% said they might walk for lack of adequate parental leave or childcare benefits.

Even companies that offer generous paid leave policies often falter in how they welcome employees back. Nearly 60% of workers who returned to the office after mental health-related leave reported feeling unsupported or isolated. That isolation can translate to attrition: The same report noted that employees struggling with return-to-work transitions were 2.5 times more likely to consider quitting in the following six months.

Parental leave returners face similar issues. One in three new parents considers leaving their job after returning from leave — and nearly half feel they have to "prove" their commitment all over again. Without thoughtful systems in place, employees come back disoriented, demotivated, or worse — completely disengaged.

Companies spend billions on hiring, onboarding and professional development. Why wouldn't we approach leave management with the same strategic intent? Investing in how we plan for, support during and reintegrate after leave isn't a nice-to-have benefit – it's a business-critical priority.

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Here are four principles recommended to any organization looking to create leave policies in consultation with their adviser that are both humane and high-performing:

1. Make leave planning a collaborative process 
Too often, HR is left scrambling to backfill a role or restructure a team only after an employee announces a need for leave. Instead, proactive planning should be built into the employee experience from day one.

That means giving employees clear visibility into their options and timelines and empowering managers to co-create realistic, personalized leave plans. Automation and templated workflows can guide this process, but the human element — transparent conversations, empathy-led planning — remains essential.

2. Normalize extended, staggered and phased leaves
Not all leave looks the same. Employees recovering from surgery may need part-time arrangements before returning full-time. Parents may want to phase back into work over several weeks. Caregivers might need intermittent leaves over several months.

By normalizing flexible structures — and clearly communicating that these are valid, supported options — companies can prevent burnout, reduce re-injury or relapse and help employees feel valued rather than penalized for their needs.

According to a recent report, 79% of HR leaders say offering flexible return-to-work plans improves retention, especially among mid-career talent. It's not about offering a one-size-fits-all solution; it's about creating a system that recognizes diverse needs.

3. Train managers to lead with empathy — not just policy
While HR sets the guardrails, managers are the ones responsible for creating the day-to-day experience of returning employees. And yet, most managers receive little to no training on how to support direct reports after a major life event.

A return-to-work checklist or benefits packet isn't enough. Managers should be trained to hold compassionate check-ins, set appropriate workload expectations and communicate with teams about temporary changes in roles or availability.

Creating this kind of culture doesn't just help returning employees — it signals to everyone else on the team that they'll be supported when it's their turn.

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4. Track the metrics that matter
Leave policy isn't just a compliance checkbox — it's a measurable contributor to your client's bottom line. Companies that invest in thoughtful leave strategies report 6% higher retention rates and a 12% boost in employee engagement.

That's why it's critical to track and analyze more than just usage rates or leave duration. Metrics like return-to-work satisfaction, time to full productivity, manager engagement scores and attrition post-leave can paint a fuller picture of what's working and where to improve.

It's time we stop treating productivity and empathy as opposites. In reality, they are mutually reinforcing. When employees feel supported through the most vulnerable moments of their lives, they return more loyal, more focused and more committed to the team's success. The future of work will belong to the companies that understand this and invest accordingly.