Despite cost constraints, employers continue to invest in leave programs, WTW survey finds

Core Insights - Nearly 73% of U.S. employers plan to enhance their leave programs in the next two years, driven by the need to improve employee experience and strengthen attraction and retention [1][3] Leave Program Enhancements - Over 80% of employers currently offer parental leave, with 16% planning to enrich these programs [2] - 18% of employers intend to expand bereavement leave by increasing duration or broadening eligibility [2] - Caregiver leave is expected to see the most significant growth, nearly doubling from 22% to 39% over the next two years [2] Strategic Importance of Leave Programs - Leave programs are becoming a strategic differentiator for employers in the talent competition, with enhancements seen as a cost-effective way to improve well-being and strengthen company culture [3] Challenges in Leave Administration - Nearly 49% of employers cite program administration as their biggest challenge, followed by integration of leave systems (39%) and managing workforce availability amid rising leave incidence (38%) [3] Trends in Paid Time Off - Interest in unlimited paid time off (PTO) is increasing, with 15% of employers currently offering it, up from 12% two years ago, and 18% expecting to offer it within the next two years [4] Outsourcing Leave Administration - 72% of employers currently outsource State and Federal Family and Medical Leave administration, an increase from 64% in 2023, with 82% expecting to outsource within two years [5] - Outsourcing of Americans with Disabilities Act (ADA) functions is projected to rise from 27% to 46% within two years [5] Role of Artificial Intelligence - Two-thirds of employers are uncertain about current AI applications in leave management, but nearly 70% are open to using AI for routine case-management tasks, indicating potential for future innovation [6] Compliance and Modernization - Compliance requirements are becoming increasingly complex, especially for multi-state employers, and organizations that modernize their leave programs are better positioned to meet employee expectations and manage risks [7] Survey Overview - The survey included 585 employers, representing a combined workforce of 8 million employees, conducted from late October to mid-November 2025 [7]