2025 Leave Report: Insights to Guide 2026 Leave Planning

Why Leave Policies Are More Critical Than Ever

Employee expectations are shifting. Today’s workforce places as much value on paid time off, flexibility and family care as they do on salary and retirement benefits. At the same time, a patchwork of state leave laws is adding complexity for employers of all sizes.

The result? Leave policies have become a strategic tool for retention and recruitment. Organizations that fall behind risk losing talent to competitors offering more comprehensive benefits.

“Each year, our Leave Report helps employers see where they stand in a shifting benefits landscape. Clients use this data to stay competitive. As more employees prioritize flexibility, family care, and well-being, the organizations that get leave right will be the ones that win the talent conversation.”

— Marcy Updike, National Director, Market Research, Alera Group Employee Benefits

Key Trends from the 2025 Leave Report

Alera Group’s 2025 Healthcare and Employee Benefits Leave Report, based on responses from 1,630 employers across industries and company sizes, highlights how organizations are structuring their time-off and leave programs. While the full report provides detailed benchmarking, here are a few of the notable trends:

• Holidays: On average, 95% of employers provide paid holidays. Juneteenth and Martin Luther King Jr. Day continue to rise in popularity, while fewer employers are offering Columbus Day/Indigenous Peoples Day.
• PTO Models: Employers are nearly split between a PTO bank model and a traditional model. Larger employers tend to favor PTO banks, while smaller employers are more likely to use traditional structures.
• Parental Leave: Paid parental leave is now common among larger employers, most often providing six or more weeks at 100% pay.
• Additional Leave Types: Bereavement leave has become a standard expectation. Volunteer days, sabbaticals, and mental health days remain less common, but are slowly gaining traction.
• FMLA Tracking: Smaller organizations often manage tracking in-house, while larger employers increasingly outsource to ensure compliance.

These findings reflect the broad spectrum of approaches across industries and employer sizes, offering valuable context for benchmarking.

Why This Matters for 2026 Planning

As you set policies for 2026 and beyond, understanding how your peers are structuring time off is essential. The insights from this report can help you:

• Benchmark your PTO, holiday and leave policies against similar organizations.
• Identify gaps that may impact recruitment and retention in a competitive talent market.
• Plan proactively for evolving employee expectations.
• Strengthen your employee value proposition by aligning benefits with what today’s workforce values most.

The 2025 Leave Report is more than just a collection of statistics — it’s a tool to spark conversations and guide strategic decision-making about time off and leave benefits.

Download the Full Report

The full report provides a comprehensive examination of leave strategies across various industries, company sizes and geographies, enabling you to assess your current approach and plan with confidence.

Download the 2025 Leave Report

For HR leaders and business executives, this report provides the benchmarking you need to stay competitive. And when it comes time to interpret the findings for your unique situation, Alera Group consultants are here to help you design a leave program that is consistent, compliant and competitive.

Looking for local expertise? Find an Alera Group office near you to connect with a local consultant.