NEW YORK, October 29, 2024 – NFP, an Aon company and leading property and casualty broker, benefits consultant, wealth manager and retirement plan advisor, today released the 2025 NFP US Leave Management and HR Trend Report. While the report found that employers broadly view their leave management policies as strategic assets for their total rewards strategy, nearly one-third (32%) said they don’t think their employees have a good grasp of these policies, and almost half (43%) conveyed their policies aren’t helping them retain talent.
“Effective leave management is no longer a 'nice-to-have' — it is essential for fostering engagement, retention and trust between employees and employers,” said Maria Trapenasso, head of Human Capital Solutions practice, NFP. “By consistently assessing employee needs and engaging in meaningful conversations about leave practices, organizations can develop thoughtful, data-driven strategies that not only comply with regulations and align with business goals but also enhance the employee experience and cultivate a culture of care and inclusion.”
Innovative Leave Policies to Support Employees Through Major Life Events
Among a variety of insights and data, the report spotlighted awareness of women in the workplace facing menopause-related challenges and the subsequent impact this has on the workforce. But despite the attention and louder call for menopause-specific workplace benefits, the research showed a substantial gap between employee expectations and employer offerings, with only 5% of employers offering menopause accommodations, up negligibly from 4% in 2024.
“The economic impact of menopause-related symptoms in the workplace is staggering,” said Trapenasso. “This minimal growth in menopause benefits year over year stands in stark contrast to the rising demand. However, forward-thinking organizations are beginning to recognize the potential return on investment in terms of employee retention and productivity by creating an inclusive, supportive environment that meets the diverse needs of their workforce.”
HR Technology Implementation and the Strategic Value of Employee Relief Funds
The report’s data painted a nuanced picture of employers’ HR technology adoption. About three-quarters (73%) said they employ HR technology, including HRIS, payroll, leave administration and benefits administration systems, but their experiences have been far from uniform, with nearly one-third (32%) saying they’ve encountered more difficulties than anticipated.
“Implementation of core HR systems remains a primary focus for employers but is often more complex than organizations initially assume,” said Trapenasso. “When the implementation of new technology falls short, HR teams often find themselves burnt out and overworked, stressed by the need to find workarounds for a system that isn't functioning as intended.”
Recognizing the hardships some employees face due to the increasing frequency and severity of natural disasters, the report identified employee relief funds as an emerging HR trend. “By offering swift assistance when employees need it most, these funds not only address urgent needs but also demonstrate an organization's dedication to its workforce's welfare,” said Trapenasso.
Ample Opportunities for Employers to Enhance Leave Benefits
Employers are recognizing the importance of robust family leave policies, and family caregiver leave has become more common, with nearly three-in-ten (28%) providing this benefit. “In offering family caregiver leave, companies support their employees through various life stages and caregiving challenges,” said Trapenasso. “This cements a more inclusive work environment and reflects an understanding of the complex needs for today's multigenerational workforce.”
Over one-third (35%) of employers now offer six to eight weeks of full pay maternity leave, up from 30% last year. The number of employers offering less than three weeks of paid maternity leave has decreased from 37% in 2024 to 28% this year. Parental leave is also seeing broader adoption, with 58% of employers offering the benefit.
Bereavement policies are evolving beyond their traditional structure, with employers offering leave for the loss of a close relationship (31%), miscarriage or unsuccessful IVF (29%) and death of a pet (7%). Some employers are offering variable time off for these losses based on individual circumstances. For example, nearly half (49%) provide bereavement time for the loss of a pet based on personal needs. “Case-by-case bereavement leave, while well-intentioned, could lead to inconsistent application of benefits and claims of favoritism,” said Trapenasso.
In other findings, employees’ satisfaction with PTO and vacation time off shifted positively year over year, with three-in-five (59%) saying their time off could be more generous, a noticeable decrease from last year (73%). Juneteenth recognition continues to grow, with 44% of employers now offering it as a paid holiday, reflecting an increasing awareness of its cultural and historical significance in the workplace.
“Leave management will continue to play an important role in shaping employee experiences and organizational success,” said Trapenasso. “Employers who view their leave policies as strategic assets – rather than mere compliance requirements – will be better positioned to create workplaces that truly support and engage their employees.”