Positive Leave Experience Boosts Employee Retention: Guardian

A new report from The Guardian Life Insurance Company of America shows that employees who have a positive experience during periods of leave are more likely to remain with their employer long-term and report higher morale.

“When processes are streamlined, communications are clear, and there is a single point of contact for questions, employees are more likely to feel supported before, during, and after a leave, directly translating into improved morale and loyalty,” stated  Jessica Vanscavish, Head, Disability, Absence, Life, and Supplemental Health, Guardian.

The Employee Leave Experience report surveyed 1,215 benefit professionals and 2,000 employees in the United States to examine attitudes and practices related to leave, including sick leave, vacation, mental health days, bereavement, maternity and paternity leave, paid family and medical leave, short and long-term disability insurance, and FMLA. Guardian found that employees who report a positive leave experience are twice as likely to say their employer cares about their well-being and 75% more likely to stay at their job for five or more years.

The study highlighted key factors influencing the leave experience. Manager support was cited by 50% of employers and 56% of employees as the most significant contributor to a positive experience. Other important factors include the ability to make a single leave request for multiple leave types and ease of online interactions.

Employers indicated evolving priorities in absence management. Forty percent said supporting employees to remain at work is their top goal, while 36% focused on compliance, 33% on fostering a culture of care, and 29% on ensuring safe and meaningful return-to-work processes. More than 80% of employers are considering broad paid leave policies that address multiple reasons for absence, rather than maintaining separate policies.

Mental health issues were a prominent driver of absences. Eighty-one percent of employers reported that mental health contributes to time off, with increases seen in mental health and postpartum depression claims. Employees on leave frequently used mental health counseling (39%) and physical therapy benefits (35%), with 15% claiming supplemental health insurance benefits.

Nearly eight in 10 employers rated their leave programs as “excellent” or “good” across multiple measures, including disability/FMLA requests, return-to-work processes, claims payments, and education for employees and managers. Employers are also exploring integration of artificial intelligence, with 65% considering AI in absence management and 19% already incorporating it into disability and FMLA administration.