For a working parent in the U.S. to leverage time away from work to welcome a child, the key has typically been whether they are fortunate enough to have a short-term disability plan or paid leave policy through their employer, or a state disability benefit.
Fortunately, times are changing. Paid family leave policies have been enacted across several states (nearly two dozen), with more following suit. Employers are also stepping up, with 75% now offering paid parental leave, according to a recent survey by Mercer. Bonding time for adoptive and foster parents is also gaining momentum as employers strive to offer more comprehensive benefits.
However, for working parents, understanding what leave benefits they qualify for, and how various benefits work together, can be very confusing. Supporting employees is also a complicated task for employers and leave administrators. HR teams and managers are spending more time than ever learning about the evolving state leave benefits to support employees.
Meanwhile, the modern employee has come to expect a self-service approach to their benefits. As in other areas of our lives, being able to access parental leave benefits information on-demand from anywhere is not just the future, but what’s possible today. Embracing technology as a means to deliver a streamlined parental leave planning experience is vital to reducing complexity and easing the burden for all stakeholders.
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Paid Family Leave “Baby Boom”
The growth in available state paid family leave benefits has been significant in the past two years. As of August 2024, there are now 22 states plus the District of Columbia that offer either mandatory or voluntary paid family leave benefits. States implementing paid leave policies have increased working mothers’ likelihood to return to and stay at work. According to research from American University’s Department of Economics, in the first year of access to state paid family leave benefits there was a 20% decrease in working mothers leaving their jobs post-birth, and a 50% decrease after five years.
In addition to state paid leave laws, more employers are adding paid leave benefits to respond to working parents’ needs and to attract and retain valuable employees. According to WTW’s 2023 Leave, Disability and Time-Off Trends Survey, 73% of employers were changing or planned to change their leave benefits, with most doing so to improve the employee experience. Many employers report adding different types of paid leave benefits to support their employees, and access continues to expand as additional states implement new leave laws or voluntary programs.
With this growth in state and municipal paid family leave offerings comes added complexity around managing parental leave benefits. More than one in five Americans will be working remotely by next year, which means HR teams need to quickly learn about state and municipal benefits that may not have been a factor in the past. Managing and leveraging parental leave benefits is a greater challenge than ever before, and one that can be addressed with technology-driven solutions in the market today.
Streamlining the Parental Leave Journey
Employers and leave administrators are turning to systems that facilitate education and better support the planning journey.
For working parents to feel confident planning their leave, they need to understand how the latest federal, state, and municipal leave benefits apply to them. Employees attempting to find the information themselves spend countless hours searching for answers. In fact, only 26% of U.S. workers are very confident that they know how various leave types work together, according to The Hartford’s 2024 Future of Benefits report.
For employers, technologies that can leverage advanced algorithms to model benefits information are a game changer. Being able to access up-to-date information on the evolving landscape of parental leave benefits not only reduces the administrative burden on HR teams and leave administrators, it better supports working parents. It also helps educate parents on available benefits and how they interact with each other.
In addition, the opportunity to provide a self-service leave tool is critical to employee retention and satisfaction. Empowering employees with the latest planning tools can be a strong differentiator in today’s modern workforce. Those who are investing in technology that supports employees’ wellbeing are the employers that will stand apart.
See also: New Workers' Comp Laws for 2024
Demystifying the Parental Leave Journey
Today’s workplace is evolving, and so are the systems required to facilitate efficient processes for employees and employers alike. With additional paid leave laws being enacted and benefit choices for parental leave expanding, technology can help all stakeholders keep pace.
Enhancing the parental leave planning experience through innovative technology solutions can ease the burden around education and access. Doing so is an investment in the future of the workforce, ultimately making it a more equitable experience for all working parents.
