For many employees, taking a paid leave of absence is not a choice but a necessity. However, most company leave policies focus solely on short-term parental leave, overlooking the broad range of caregiving responsibilities that impact employees throughout their careers. Without inclusive leave policies, it can be more cost-effective for employees to leave the workforce altogether than actually hire care.

This presents HR and benefit professionals, as well as business leaders, with an opportunity and an incentive to rethink paid leave in a way that reflects the realities of today's workforce.

Many company policies were designed for an era when maternity leave was the primary concern, but today's employees face a much broader set of caregiving responsibilities. Eldercare, for example, is an increasingly common strain on employees, particularly millennials as the largest segment of today's workforce. Deemed the "sandwich generation," they are now primary caregivers for aging parents and also raising children of their own, while juggling careers. It's worth noting that women tend to bear the brunt of caregiving, stepping in not just for their own families but in-laws as well.

At the same time, men who take on caregiving responsibilities also suffer when leave policies fall short, facing workplace stigma and challenges balancing work and family. Women's medical needs are also frequently overlooked – from pregnancy loss and fertility treatments to postpartum recovery and menopause-related health issues. Without comprehensive leave policies, employees face impossible choices and businesses risk losing valuable talent.

There's a common misconception that expanding paid leave is too expensive, often reducing it to a social issue rather than a business necessity. In reality, failing to support employees through major life events can have a direct and measurable impact on an organization's retention, engagement and productivity.

Replacing a skilled employee costs anywhere from 40% to 200% of their salary, and employees who feel unsupported are far more likely to leave, either temporarily or permanently. Beyond turnover costs, companies that don't invest in leave policies risk low morale and a workforce that is stretched thin balancing work and personal obligations.

A modern-day policy

Forward-thinking organizations recognize that paid leave extends beyond new mothers. A strong policy should include parental leave beyond the standard 12 weeks. Many infants are not daycare-ready by then. Research suggests six months is ideal, and countries like Canada have extended parental leave to 18 months. Caregiving leave and support for life events or medical issues also should be included.

SAFE leave, which allows employees to use sick days in the event of domestic violence, costs companies virtually nothing to offer, and most employees will never need it. The same is true for neonatal intensive care unit leave, which allows parents to stay with their newborns during extended hospital stays. Offering these types of leave sends a powerful message of support to employees and prospective hires, strengthening retention rates and reinforcing company values.

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