Benefits Think

Why it's time to treat leaves as a strategic business benefit

A folder sits on a table with envelopes that read "Family leave", "Medical leave", and "Paid Time Off."
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Every other second, an American employee takes a leave of absence. According to the Department of Labor, more than 15 million American workers took a leave in 2024 alone, making it a question of "when," not "if," in every employee's journey. 

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As HR and benefits leaders, we recognize that empathy, preparation and long-term thinking are essential when guiding employees through leaves. Done right, leave programs can build trust and strengthen a team's bond.

Too often, the leaves process is disconnected from the broader benefits ecosystem. Employers must start to think of leaves as a strategic benefit that plays a critical role in employee wellbeing, engagement and retention, and integrate leave management into a unified benefits platform. To understand why this shift matters, it's worth looking at the evolution of leave programs. 

Current state of leaves

Traditionally, leave programs have been managed in silos, with complex and often confusing state and federal laws. Employees are left to navigate disconnected systems and multiple vendors, while leaders are left without visibility into timelines and guidance on how to best support their employees. This leaves both parties uncertain during life's most significant moments.

In addition to improving the employee experience, there are multiple advantages for businesses that embed leaves within their benefits strategies. They include increased engagement and productivity, higher reports of employee wellbeing and overall retention. When employees feel supported, they are more likely to return to work with a positive outlook. 

As more employees take leaves, employers are expanding their programs to better support them. While the adoption of these programs is encouraging, there's more work to be done to ensure leaves become a core pillar of a holistic benefits strategy. 

Read more: A new addition to PTO: Heartbreak leave

For leaders who are ready to start incorporating leaves into their benefits offerings, there are three key strategies to keep in mind: use proactive communication to keep employees informed and supported, develop flexible policies that reflect evolving caregiving and health needs, and connect employees to mental health, financial well-being and career support resources. Let's explore each area:

1. Help employees understand their options: Like most workplaces, my team includes people at different stages of their careers and lives. As a leader, it's my responsibility to ensure my employees understand the range of benefits available to them, including leaves. Clear, proactive communication is the first step in helping employees access the information and support they need.

While all employees benefit from simple explanations of their options and where to find them, we know that communication preferences vary across generations. Boomers and Gen Xers report a desire for more frequent communications, while younger employees seek less frequent, but concise and digital-first information. Creating a communication system that reflects the unique needs of each employee segment can increase usage and confidence in leaves. 

2. Infuse flexibility into the leaves process: I've had people on my teams take nearly every type of leave — from parental and caregiver leaves to short-term mental health breaks and extended leaves for a new diagnosis. Employees depend on these programs during their most vulnerable or life-defining moments, and leaders have the responsibility to deliver support that matches the gravity of those experiences. 

Leaves programs must be flexible and adaptable. Employers need to start by listening to each employee's needs and tailor the experience so it feels relevant, personal and supportive to their unique circumstances. 

Right now, there's a lot of attention on the sandwich generation — those who are simultaneously caring for an aging parent and their own children. These employees are more likely to both take time off to care for family and require support to reflect those needs. This is just one example of a program that must be adjusted based on the unique needs of each workforce. 

3. Connect employees to wellbeing resources: Medical and personal leaves often have implications for financial stability and mental health. Ensuring leaves work in concert with existing tools and resources will create a cohesive experience for employees while encouraging utilization of other benefit programs.

Leaders also should consider how to make the return from leave as seamless as possible. Our research found that 59% of employees need accommodations to return to work when their leave concludes. This is an often overlooked, but important step in creating a holistic, user-friendly program.  

While leaves are among the most widely used workplace benefits, they're often viewed as a check-the-box compliance exercise. Employers now face an inflection point: recognize leaves as an opportunity to strengthen workplace culture or continue to treat them as a disruption. 

This is a culture-defining moment for leaders. By accepting leaves as part of the employee lifecycle, and setting the tone for empathy and inclusivity, we can turn policy into practice. Reimagining leaves as a core benefit builds wellbeing, trust and a truly great place to work.


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