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Expansion of Paid Leave Mandates Creates Compliance Complexity for Employers, Says Mercer

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Mercer's 2024 Absence and Disability Management Survey reveals significant changes in paid leave benefits. Compliance with state and local mandates has become the top concern for employers, with 70% ranking it as a priority, up from 50% in 2021. To address this, 72% of employers have increased resources for compliance.

Paid parental leave has surged from 25% in 2015 to 73% in 2024, with an average of 8 weeks offered. Employers are also making these programs more inclusive, covering adoption (67%) and surrogacy (33%). Flexible PTO has increased, with 32% of employers offering it to some employees, up from 20% in 2021.

Companies are recognizing more diverse reasons for leave, including pregnancy loss (62%) and miscarriage (58%). The observance of Juneteenth as a company holiday has risen from 9% in 2021 to 41% in 2024, while Martin Luther King Jr. Day observance increased from 55% to 63%.

Il sondaggio sulla gestione delle assenze e delle disabilità di Mercer per il 2024 rivela cambiamenti significativi nei benefici per il congedo retribuito. La conformità alle normative statali e locali è diventata la principale preoccupazione per i datori di lavoro, con il 70% che la considera una priorità, rispetto al 50% nel 2021. Per affrontare questo problema, il 72% dei datori di lavoro ha aumentato le risorse per la conformità.

Il congedo parentale retribuito è balzato dal 25% nel 2015 al 73% nel 2024, con una media di 8 settimane offerte. I datori di lavoro stanno anche rendendo questi programmi più inclusivi, coprendo l'adozione (67%) e la surrogazione (33%). Il PTO flessibile è aumentato, con il 32% dei datori di lavoro che lo offrono ad alcuni dipendenti, rispetto al 20% nel 2021.

Le aziende stanno riconoscendo una gamma più ampia di motivi per prendere congedo, inclusi la perdita della gravidanza (62%) e l'aborto spontaneo (58%). L'osservanza di Juneteenth come festività aziendale è aumentata dal 9% nel 2021 al 41% nel 2024, mentre l'osservanza del Martin Luther King Jr. Day è passata dal 55% al 63%.

La encuesta de gestión de ausencias y discapacidad de Mercer de 2024 revela cambios significativos en los beneficios de licencia remunerada. El cumplimiento de las normativas estatales y locales se ha convertido en la principal preocupación para los empleadores, con un 70% que lo clasifica como una prioridad, frente al 50% en 2021. Para abordar esto, el 72% de los empleadores ha aumentado los recursos para cumplir con estas normativas.

La licencia parental remunerada ha aumentado del 25% en 2015 al 73% en 2024, con un promedio de 8 semanas ofrecidas. Los empleadores también están haciendo que estos programas sean más inclusivos, cubriendo la adopción (67%) y la gestación subrogada (33%). El PTO flexible ha crecido, con un 32% de los empleadores que lo ofrecen a algunos empleados, frente al 20% en 2021.

Las empresas están reconociendo motivos más diversos para tomar licencia, incluidos la pérdida de embarazo (62%) y el aborto espontáneo (58%). La celebración de Juneteenth como festivo de la empresa ha aumentado del 9% en 2021 al 41% en 2024, mientras que la celebración del Día de Martin Luther King Jr. aumentó del 55% al 63%.

머서의 2024년 결근 및 장애 관리 조사는 유급 휴가 혜택에서 중요한 변화를 드러냅니다. 주 및 지역 법규 준수가 고용주에게 가장 큰 우려 사항이 되었으며, 70%가 이를 우선사항으로 평가하고 있습니다. 이는 2021년 50%에서 증가한 수치입니다. 이를 해결하기 위해 72%의 고용주가 법규 준수를 위한 자원을 늘렸습니다.

유급 부모 휴가는 2015년 25%에서 2024년에는 73%로 급증했으며, 평균 8주가 제공됩니다. 고용주들은 또한 이러한 프로그램을 더 포용적으로 만들어 입양(67%)과 대리모(33%)를 포함하고 있습니다. 유연한 PTO 역시 증가하여 32%의 고용주가 일부 직원에게 이를 제공하고 있으며, 이는 2021년 20%에서 증가한 수치입니다.

회사는 임신 손실(62%)과 유산(58%)을 포함한 더 다양한 이유로 결근을 인정하고 있습니다. 준틴스를 회사 공휴일로 인정하는 비율은 2021년 9%에서 2024년 41%로 증가했으며, 마틴 루서 킹 주니어의 날 기념 비율도 55%에서 63%로 증가했습니다.

Le sondage 2024 sur la gestion des absences et des handicaps de Mercer révèle des changements significatifs dans les avantages liés au congé payé. La conformité aux réglementations étatiques et locales est devenue la principale préoccupation des employeurs, 70 % la classant comme priorité, contre 50 % en 2021. Pour y faire face, 72 % des employeurs ont augmenté les ressources consacrées à la conformité.

Le congé parental rémunéré a explosé de 25 % en 2015 à 73 % en 2024, avec une moyenne de 8 semaines offertes. Les employeurs rendent également ces programmes plus inclusifs en couvrant l'adoption (67 %) et la gestation pour autrui (33 %). Le PTO flexible a augmenté, 32 % des employeurs l'offrant à certains employés, en hausse par rapport à 20 % en 2021.

Les entreprises reconnaissent des raisons de congé de plus en plus diverses, y compris la perte de grossesse (62 %) et la fausse couche (58 %). L'observance de Juneteenth en tant que jour férié d'entreprise a augmenté de 9 % en 2021 à 41 % en 2024, tandis que l'observation du jour de Martin Luther King Jr. est passée de 55 % à 63 %.

Die Mercer Umfrage zur Abwesenheits- und Invaliditätsverwaltung 2024 zeigt bedeutende Veränderungen bei den bezahlten Urlaubsleistungen. Die Einhaltung staatlicher und lokaler Vorschriften hat sich zur obersten Sorge für Arbeitgeber entwickelt, wobei 70% dies als Priorität einstufen, verglichen mit 50% im Jahr 2021. Um diesem Problem zu begegnen, haben 72% der Arbeitgeber die Ressourcen für die Einhaltung erhöht.

Bezahlte Elternzeit ist von 25% im Jahr 2015 auf 73% im Jahr 2024 gestiegen, wobei im Durchschnitt 8 Wochen angeboten werden. Arbeitgeber gestalten diese Programme auch inklusiver, indem sie Adoption (67%) und Leihmutterschaft (33%) abdecken. Flexible PTO hat zugenommen, wobei 32% der Arbeitgeber dies einigen Mitarbeitern anbieten, ein Anstieg von 20% im Jahr 2021.

Unternehmen erkennen zunehmend diverse Gründe für Abwesenheiten an, darunter Schwangerschaftsverlust (62%) und Fehlgeburten (58%). Die Anerkennung von Juneteenth als Firmenfeiertag ist von 9% im Jahr 2021 auf 41% im Jahr 2024 gestiegen, während die Anerkennung des Martin Luther King Jr. Days von 55% auf 63% gestiegen ist.

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NEW YORK--(BUSINESS WIRE)-- Mercer, a business of Marsh McLennan (NYSE: MMC) and a global leader in helping clients realize their investment objectives, shape the future of work and enhance health and retirement outcomes for their people, today released the results of its 2024 Absence and Disability Management Survey. The results shed light on the changing landscape of paid leave benefits.

“At one time, employers’ main concern regarding time off was the impact on business operations. As leave programs have become more complex, that has changed," said Rich Fuerstenberg, a Senior Partner in Mercer’s US Health and Benefits practice. “In our survey, compliance with state and local leave mandates and improving leave administration emerged as employers’ top two priorities.”

Top challenge for employers: compliance with state and local mandates

The rapid expansion of disability, sick and leave mandates poses compliance challenges, especially for multi-state employers. Nearly seven in 10 employers rank compliance as one of their top three concerns, up from about five in 10 in 2021. To address these challenges, 72% of employers reported increasing resources to ensure compliance.

Employers are also grappling with leave administration. The survey found that 66% of employers cited improving leave administration as one of their top three concerns, up from just 41% in 2021.

Paid parental leave and flexible paid time off (PTO) surge

Over the past decade, employers have implemented paid parental leave to enable employees to spend more time with their children. It is now offered by 73% of employers, up from just 25% in 2015.

Employers are also making paid parental leave programs more inclusive by offering paid leave to employees who become parents through adoption (67%) or surrogacy (33%). This resonates with findings from an earlier Mercer survey showing that employers are making reproductive benefits more inclusive as well. Paid parental leave is eight weeks on average.

Almost a third of employers (32%) provide flexible PTO to at least some of their employees, up from 20% in 2021. Under such a policy, sometimes called “unlimited PTO,” employees are permitted to use their discretion in how much time they take off from work, subject to manager approval. Notably, 11% now offer flexible PTO to all workers, a marked change from prior years when typically only executives or salaried employees enjoyed this benefit.

In addition, employers are recognizing the importance of PTO in helping employees manage traumatic events. While employers have long provided paid bereavement leave to mourn the loss of an immediate family member (95%), they have recently started to offer time for other significant losses, such as for the death of an extended family member or close friend (54%), pregnancy loss (62%) or miscarriage (58%).

More fixed company holidays

The percentage of employers observing Juneteenth as a company holiday has jumped from 9% in 2021 to 41% in 2024, while the percentage of those observing Martin Luther King Jr. Day has risen from 55% to 63%. With the addition of these holidays, the median number of fixed holidays offered by employers has risen from nine to 10 days.

“More companies are recognizing the importance of paid leave as a way to communicate their values and priorities to their employees,” said Mr. Fuerstenberg. “By providing paid time off for significant events and observing holidays that hold cultural and historical significance, employers are demonstrating their commitment to fostering an inclusive and supportive work environment. These initiatives not only benefit employees but also contribute to a stronger sense of community within the organization.”

About Mercer’s Absence and Disability Management Survey 2024

Mercer surveyed 630 US organizations of all sizes on their absence and disability management practices from January to March 2024. Find more information here.

About Mercer

Mercer, a business of Marsh McLennan (NYSE: MMC), is a global leader in helping clients realize their investment objectives, shape the future of work and enhance health and retirement outcomes for their people. Marsh McLennan is a global leader in risk, strategy and people, advising clients in 130 countries across four businesses: Marsh, Guy Carpenter, Mercer and Oliver Wyman. With annual revenue of $23 billion and more than 85,000 colleagues, Marsh McLennan helps build the confidence to thrive through the power of perspective. For more information, visit mercer.com, or follow on LinkedIn and X.

Media:

Ashleigh Jang

Mercer

+1 917 647 0070

Ashleigh.Jang@mercer.com

Source: Mercer

FAQ

What is the top challenge for employers regarding paid leave according to Mercer's 2024 survey?

According to Mercer's 2024 Absence and Disability Management Survey, the top challenge for employers regarding paid leave is compliance with state and local mandates, with nearly 70% of employers ranking it as one of their top three concerns.

How has the adoption of paid parental leave changed since 2015?

The adoption of paid parental leave has significantly increased from 25% in 2015 to 73% in 2024, according to Mercer's survey. The average paid parental leave offered is now eight weeks.

What percentage of employers offer flexible PTO in 2024?

According to Mercer's 2024 survey, 32% of employers now offer flexible PTO (sometimes called 'unlimited PTO') to at least some of their employees, up from 20% in 2021.

How has the observance of Juneteenth as a company holiday changed since 2021?

The observance of Juneteenth as a company holiday has significantly increased from 9% in 2021 to 41% in 2024, according to Mercer's survey results.

What percentage of employers provide paid leave for pregnancy loss in 2024?

Mercer's 2024 survey reveals that 62% of employers now offer paid leave for pregnancy loss, demonstrating a growing recognition of diverse reasons for employee leave.

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