Despite Cost Constraints, Employers Continue to Invest in Leave Programs, WTW Survey Finds

By GlobeNewswire On Jan 27, 2026

Enhancements to parental, bereavement and caregiver leave continue to rise

Nearly three-quarters (73%) of U.S. employers plan to enhance their leave programs over the next two years, according to new research from WTW, a leading global advisory, broking and solutions company. Employers cite improving the employee experience (67%) and strengthening attraction and retention (60%) as the top drivers behind these planned enhancements.

WTW’s 2025 Absence, Disability and Medical Leave Survey finds organizations are expanding multiple forms of time-away benefits to better meet workforce needs. Today, more than four in five employers offer parental leave, and 16% expect to enrich those programs. Similarly, 18% of employers plan to expand bereavement leave by increasing duration or broadening eligibility. The most significant growth is anticipated in caregiver leave, which is expected to nearly double—from 22% to 39%—over the next two years.

“Leave programs have become a strategic differentiator for employers competing for talent,” said Alex Henry, Group Benefits Leader, WTW. “Enhancing leave programs can be a cost-effective way to improve well-being, strengthen culture and meet the evolving expectations of a modern workforce.”

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While investment in leave benefits is increasing, employers continue to face meaningful challenges. Nearly half (49%) report program administration as their biggest obstacle, followed by integration of leave systems (39%) and managing workforce availability amid rising leave incidence (38%).

Interest in unlimited paid time off (PTO) is also on the rise. Currently, 15% of employers offer unlimited PTO to exempt employees, up from 12% two years ago, and 18% expect to offer it within the next two years. Adoption is higher among directors and executives: 27% of employers offer unlimited PTO today, with nearly one-third (32%) planning to do so by 2028.

To address operational and compliance pressures, more employers are outsourcing leave administration. Today, 72% outsource State and Federal Family and Medical Leave administration, up from 64% in 2023, and 82% expect to outsource within two years. Outsourcing of Americans with Disabilities Act (ADA) functions is also increasing, rising from 27% two years ago to a projected 46% within two years.

Employers are simultaneously exploring the role of artificial intelligence in the leave experience. Although two-thirds (66%) remain uncertain about how AI is used today, nearly 70% express openness to using AI for routine case-management tasks—signaling opportunity for future innovation.

“Compliance requirements are growing more complex each year, particularly for employers managing multi-state workforces,” said Henry. “Organizations that modernize their programs and administration models are better positioned to meet employee expectations, manage risk and remain competitive.”

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