A new report from The Guardian Life Insurance Company of America® (Guardian) reveals that how employees are supported during a period of leave has a direct impact on morale and retention. The study found that employees who report a positive leave experience are two times more likely to believe their employer cares about their well-being.

The report, titled The Employee Leave Experience, explores both employer and employee attitudes surrounding various types of leave, including sick leave, mental health days, paid time off (PTO), maternity and paternity leave, bereavement leave, short- and long-term disability insurance (STD/LTD), and Family and Medical Leave Act (FMLA) programs.

When identifying their top priorities for absence management, 40% of employers cited helping employees stay at work as the most important goal. Meanwhile, 36% emphasized compliance, 33% prioritized fostering a culture of care and empathy, and 29% focused on helping employees return to meaningful work after leave.

Looking forward, more than 80% of employers are considering adopting a unified paid leave policy covering multiple types of absences, rather than maintaining separate programs for each category.

“Evolving worker expectations are driving organizations to reexamine their leave management practices in order to offer the best experience,” said Jessica Vanscavish, Head of Disability, Absence, Life, and Supplemental Health at Guardian. “When processes are streamlined, communications are clear, and there is a single point of contact for questions, employees are more likely to feel supported before, during, and after a leave — directly improving morale and loyalty.”

Key Takeaways from the Report

  • Mental Health Impact: 81% of employers say mental health issues contribute to absences, with 50% noting an increase in mental health claims and 30% reporting more postpartum depression cases.
  • Benefits Utilization: During leave, 39% of workers used mental health counseling benefits, 35% used physical therapy benefits, and 15% claimed benefits from supplemental health insurance.
  • Manager Support: 50% of employers believe having a supportive manager is the most critical factor in a positive leave experience. More than half (56%) of employees agree that managerial support significantly improved their experience.
  • Ease of Access: 30% of employers identified the ability to make a single leave request for multiple types of absences as the most impactful improvement.
  • AI Integration: 65% of employers are exploring the use of artificial intelligence (AI) in their absence management programs, with 19% already incorporating AI for disability and FMLA administration.
  • Program Excellence: Nearly 80% of employers rated their organization’s leave experience as “excellent” or “good,” citing improvements in communication, claims processing, and employee education.
  • Benefits Integration: 52% of employers said their primary goal for benefits integration is to increase employee access, followed by reducing HR workload (41%) and improving overall program outcomes (36%).

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