AI-Powered Solutions Provide the Data Employers Need to Enhance Total Rewards Packages for the Changing Workforce Needs

NFP's 2024 Leave Management and HR Trend Report examines employer sentiment on leave policies, such as bereavement, grandparental, family caregiver and menopausal

NEW YORK, Oct. 24, 2023 /PRNewswire/ -- NFP, a leading benefits consultant today released new benchmarking data via its 2024 Leave Management and HR Trend Report (the "report"), which includes survey data and HR trends. The report showed ways employers can adopt and leverage artificial intelligence (AI) powered solutions to enable HR data-driven strategy that enhances the employee experience, such as the utilization of AI for leave management. While 22% of respondents are likely to use AI to manage or monitor their employee leave in the future, nearly one-third (32%) are not even aware AI could be used to leverage leave management.

"We have an unprecedented five generations in the workforce, each with their own unique needs, so a 'one size fits all' approach to total rewards just doesn't work anymore," said Maria Trapenasso, head of Human Capital Solutions practice, NFP. "Employers of choice are embracing the generational diversity by leveraging insights from AI-powered solutions to create total rewards that help workers improve their mental and physical well-being and stay engaged, while also sending the message 'You are important to this company and your needs matter.'"

Among a variety of insights and data from the report was the finding that, despite its limited adoption, employers that use AI-powered solutions can retrieve previously inaccessible paid time off (PTO) insights that facilitate better benefits design. These analytics can detect PTO usage patterns across the organization and enable HR to optimize policies, better understand trends of diverse work groups and inform programs customized for employees' evolving work-life priorities.

Recognizing the need to support employees in times of crisis, bereavement policies are evolving, just as states (CA, IL, MD, OR, WA) enact bereavement leave laws that include compliance demands on employers. "Recent state bereavement leave mandates are informing proactive HR policymakers, with 25% of survey respondents foreseeing a need to change their bereavement policies, including in states where it's not yet required by law," said Trapenasso.

Increasingly, employers have a heightened awareness of a worker's need for time off around a miscarriage or unsuccessful in vitro fertilization (IVF) attempt. According to survey results, 28% of employers have expanded their bereavement leave policy to include time off to grieve after miscarriages or failed IVF attempts, with 18% offering more than one week of PTO. Additionally, 15% of respondents are offering between one and three weeks of PTO for the death of a beloved pet.

The report revealed many employers think they are satisfying their employees' leave benefits needs, when actually they are not. There is a significant gap between employer and employee perception according to the report, as 56% of employers said their PTO/vacation policies were lacking while also conveying that 73% of their employees were not satisfied with their PTO/vacation benefit. "If you want to attract and retain top talent, employers need to better understand what is meaningful to their workforce when it comes to leave benefits. It's the only way to close this perception gap."

Many respondents said they recognize the impact menopause has on their workforce. While only 4% of respondents offer some type of accommodation for menopause, 32% said they hadn't considered it but would be open to offering this benefit within the next five years. "Contrasting the cost of replacing employees who are going through menopause versus supporting them, it becomes clear money spent on adopting initiatives for employees going through this life change is prudent," said Trapenasso.

Forward looking employers can offer unique benefits to retain different generations of workers. The sandwich generation, individuals simultaneously caring for both aging parents and young children, would benefit from expanded family caregiver leave — which is currently offered by only 29% of respondents. Additionally, some employers (8%) are also offering grandparental leave, while more than one-third (35%) said they had not considered it but are open to offering it within the next five years to retain older talent.

"We are encouraging HR leaders and decision-makers to take a candid look at whether their leave offerings are truly working to attract and retain the best talent," said Trapenasso. "If there's room for improvement, now is the time to enhance programs to meet the diverse needs of today's workforce, especially as they review their policies for 2024."

About the Leave Benchmarking Report
NFP conducted research to identify the leave management practices that drive policy across various US industries. To gather this information, NFP commissioned Empatix to conduct a nationwide quantitative benchmarking survey with 522 respondents to further understand organizational practices and offerings. The survey gathered data related to maternity/parental leave, holidays, paid time off, family caregiver leave and bereavement leave. NFP compiled the results and created a report to provide to HR practice leaders with insight on leave policy trends, best practices and compliance.

About NFP
NFP is a leading property and casualty broker, benefits consultant, wealth manager, and retirement plan advisor that provides solutions enabling client success through the expertise of over 8,000 global employees, investments in innovative technologies, and enduring relationships with highly rated insurers, vendors and financial institutions. NFP is the 9th best place to work for large employers in insurance, 7th largest privately-owned broker, 7th largest benefits broker by global revenue and 13th largest broker of US business (all rankings according to Business Insurance).

In January 2023, NFP launched its Human Capital Solutions practice to provide its clients with expert solutions for their most complex HR challenges. The practice offers comprehensive HR solutions and consultive expertise in career transition, HR operations, HR technology, international HR, people development, recruiting, strategic HR and total rewards.

Visit NFP.com to discover how NFP empowers clients to meet their goals.

SOURCE NFP Corp.