NEW YORK, October 14, 2025 – NFP, an Aon company and leading property and casualty broker, benefits consultant, wealth manager and retirement plan advisor, today released its 2026 NFP U.S. Leave Management Report. The report reveals that while employers are making strategic strides in their leave policy, many still fall short of integrating leave into a broader, more impactful total rewards strategy.
“As the pace of work and life accelerates, the need for personal time off has grown in unexpected ways — especially for employees balancing caregiving duties, health needs and evolving family structures,” said Maria Trapenasso, head of Human Capital Solutions, NFP.
“Leave management has shifted to a strategic lever for talent retention and engagement, and organizations that treat it as a cultural investment – not just an administrative necessity – are emerging as employers of choice in today’s competitive market.”
The Sandwich Generation Crisis
The research drew attention to an escalating strain in which employees are increasingly forced to use their paid time off for caregiving demands, underscored by the expanding “sandwich generation” who simultaneously care for young children and aging parents. Currently, fewer than one-third (30 percent) of employers offer family caregiver leave. Among those that do, over half (53percent) provide less than three weeks of full pay.
“More employees in the sandwich generation are using vacation time to manage long-term caregiving responsibilities for loved ones instead of resting and recharging,” said Trapenasso. “This growing imbalance can lead to burnout. It's a trend that speaks to the need for more comprehensive and flexible leave policies. Employers that expand caregiver leave to reflect today’s caregiving realities foster a more inclusive and resilient workplace.”
Menopause Leave: Progress and Plateau
Despite impacting nearly 20 percent of the U.S. female workforce, menopause leave remains a critically underserved area even as it shifts from a private concern to a public policy priority, with advocacy campaigns and growing momentum in legislatures and workplaces. According to the research, only 10 percent of employers currently offer menopause accommodation, such as flexible hours or hormone therapy, for employees experiencing menopause symptoms.
"While some accommodations are gaining traction, comprehensive menopause support remains rare," said Trapenasso. "The costs of inaction are real. Unmanaged symptoms can create productivity loss, disengagement and erosion of performance. Employers who act now can distinguish themselves, closing a benefits gap that directly affects retention and engagement for a large portion of the workforce.”
Evolving Bereavement, Shifts in Family, Culture and Perception
Employers are increasingly expanding bereavement leave beyond traditional family loss to reflect a more compassionate view of grief. Policies include leave for miscarriage, unsuccessful IVF and pet loss, though the duration and structure of support vary widely. “Flexibility for personal loss is essential but must be balanced with compliance,” said Trapenasso. “Clear, consistent policies that acknowledge grief experiences help ensure fairness and regulatory alignment.”
Maternity leave remains a foundational benefit, signaling continued employer commitment to supporting new mothers. To optimize resources, nearly four-in-10 employers (39 percent) now require employees to file short-term disability claims. Parental leave is also evolving: 59% of employers offer benefits, yet 27 percent still differentiate between primary and secondary caregivers, raising potential legal risks tied to presumptions about individuals' roles.
Workforce culture perks, such as Summer Fridays are gaining momentum, with 22 percent of employers offering this benefit and another 6 percent likely to do so. “Symbolic perks signal trust and flexibility, supporting work-life balance and boosting morale,” said Trapenasso. “When policies are clear and inclusive, employees feel supported — and that drives engagement.”
Technology Gaps
The survey uncovered an opportunity for organizations to better leverage digital tools for leave automation, tracking and analytics. Almost three-quarters (73 percent) of employers still manage their leave internally, but nearly half (47 percent) do so without dedicated software support, instead relying on manual processes that can lead to inefficiencies and errors. Notably, a sizable portion of employers (40 percent) report minimal efficiency gains from their leave technology, citing underused features and poor data quality.
“Modernizing leave management technology and administration is essential for improving efficiency, reducing compliance risk and enhancing employee experience,” said Trapenasso. “Organizations that invest in robust, integrated platforms and clear communication will be better positioned to support their workforce and adapt to changing regulatory landscapes.”
About the 2026 NFP U.S. Leave Management Report
NFP conducted research to identify key trends and emerging shifts across leave management practices and commissioned Empatix to lead a nationwide quantitative benchmarking survey that gathered data across various U.S. industries. The survey, which was distributed in May and June 2025, queried decision makers who influence leave policy decisions around maternity/parental leave, holidays, paid time off, family caregiver leave, bereavement leave and leave administration. NFP compiled the results to provide HR practice leaders with insights on leave policy trends, best practices and compliance considerations for 2026.
