A new survey of more than 250 human resources decision-makers reveals that 88% of companies offer standalone employer-sponsored paid family leave (PFL) and/or paid parental leave (PPL) — including 46% that offer both. Almost 21% offer one or both to all part-timers, and 62% provide immediate coverage eligibility upon hire.

Plus, here's the kicker: 74% of employers that implement PFL/PPL report improvement in attraction and retention.

The results of the survey — conducted by leave and accommodation management system AbsenceSoft and the Integrated Benefits Institute — reveal how rapidly employer practices are evolving.

"The business case for paid family and parental leave rests on multiple strategic foundations," according to the Introduction of the recently released "Employer-Sponsored Paid Family and Parental Leave Benefits" report. "From a talent management perspective, these programs can enhance employer brand appeal, improve recruitment outcomes, and reduce costly turnover, particularly as younger workers increasingly value family-supportive policies. From an equity perspective, paid leave helps address workforce disparities by enabling caregiving without loss of income and supporting workforce participation among those with family responsibilities. From an organizational effectiveness standpoint, structured leave policies provide predictability for workforce planning while supporting employee productivity and engagement upon return."

Here are some other nuggets from the survey:

  • Adoption of both PFL and PPL is highest among large employers (50%), compared with 48% among mid-sized firms and 31% among small companies.
  • Leave adoption peaks among mid-market employers, with 63% of firms with revenue of $41 million to $100 million offering both benefits, compared to 43% of those under $10 million and 57.1% of those with revenue of $1 billion or more.
  • The education sector leads in paid leave adoption at a full 100%, followed by the technology sector at 65% for family and parental leave. Conversely, the business/consulting sector has the highest rate of no paid leave at 23%.

AbsenceSoft also offers recommendations for employers to enhance caregiving benefits. They include increasing leave durations and wage replacement to reduce turnover, expanding eligibility to part-time staff and covering pregnancy loss and fertility treatment, and regularly comparing leave offerings with peer organizations to remain competitive in talent retention.

"Benefits professionals should treat family leave as a standard component that requires strategic focus, as the competitive landscape shifts toward the generosity and inclusivity of these programs," the report concludes. "Organizations with minimal offerings may face disadvantages as benefits expectations rise."

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