Leave Management

Leave management is a broad category encompassing paid leave such as paid time off (PTO), vacation or sick leave; disability and absence programs like short-term disability; and other leave categories including paid and unpaid parental and bereavement leave.

Paid leave is consistently one of the highest benefit expenses for employers.  The average cost of paid leave is $4.20 per hour worked (8.6% of total compensation) for U.S. private industry employers with more than 500 employees.  In comparison, insurance benefits (including health, life, short-term disability and long-term disability insurance) averaged $4.62 per hour worked (9.5% of total compensation) and retirement and savings averaged $2.94 per hour worked (6.0% of total compensation).1

While leave may seem like a costly perk for employers, the benefits of well-managed leave programs often outweigh the expense through positive impacts on performance, employee health and well-being, talent acquisition, retention and absence management.

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Featured Resources

Position Statement: Paid Sick Leave LawsNational Business Group on Health’s Position on Paid Sick Leave Laws
The Business Group supports employers determining the appropriate amount of paid leave for their unique workforces. However, given the proliferation of state and local laws and Congress' inaction to provide federal uniformity, the Business Group developed tenets that employers can share with lawmakers inclined to legislate in this area geared towards reducing administrative burden and removing restrictions on innovative plan designs.

The Parent PackageThe Parent Package
This toolkit encourages employers to bundle and communicate a comprehensive suite of benefits for employees along their parenthood journey. It provides business case and benchmarking data to help employers make data-driven decisions.

Leave Management Toolkit Trends & Solutions in Leave Management: What Employers Need to Know 
This toolkit shares the associated costs and value of leave, an overview of leave programs and business considerations and current trends and innovative practices in leave management.



Also of Interest

Leave Optimization Forum
The Forum addresses shared challenges and opportunities around leave policies and their intersection with health, well-being and productivity.

Strategies for Leave Coverage
This slide deck describes four strategies for maintaining business continuity and employee engagement while an employee is on an extended leave.

Surveys on Leave
This resource shares summaries of recent NBGH surveys on leave programs. Topics range from family and parental leave to paid and unpaid sabbatical programs to absence and disability management.

Mandated Paid Sick Leave and Parental/Family Leave: What Employers Ought to Know
The Business Group reviewed federal, state and local paid sick leave laws and highlighted state and local paid parental and family leave laws.

Family Medical Leave Act (FMLA) / Paid Leave Policy
Policy information on FMLA and Paid Leave.

The Impact of Caregiving on Work
This infographic describes the impact of caregiving on employee well-being and business priorities.

Chart: State and Local Wage Replacement Laws for Parental and Family Leave
A regularly updated chart tracking State and local laws on paid parental and family leave.

NBGH Employer Community
Network and exchange information on designing leave and absence management programs.


Also of Interest

1 Department of Labor Bureau of Labor Statistics. Employer Costs for Employee Compensation -- June 2017


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