Spotlight on Competitive Time Off Practices

Workplace experiences are evolving. U.S. employers are facing a competitive talent market and this challenge is expected to continue.

​Lockton surveyed 1,200+ organizations to find out how employers use time off programs to combat these challenges. Learn more about the findings from the survey in the 2023 HR Trends - Spotlight on Competitive Time Off Practices
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1. Paid Time Off is Essential for Attraction and Retention: In today's competitive labor market, paid time off (PTO) and leave benefits are crucial for attracting and retaining employees. Younger generations, like Gen Z, highly value these benefits, making them a powerful tool for talent management. Employers are also exploring unconventional programs such as sabbaticals to enhance their appeal.
   
2. Modernizing Time Off Programs Can Save Money: Traditional PTO programs can create financial liabilities for employers, especially when unused PTO accrues year after year. Some organizations are adopting unlimited time off programs to provide flexibility while reducing financial liabilities associated with unused days. This approach is becoming increasingly popular, particularly among director-level employees.
   
3. Inclusive Time Off Plans and DEI Initiatives: Employers committed to diversity, equity, and inclusion (DEI) tend to have lower turnover rates and higher employee satisfaction. They are also providing inclusive time off plans by offering socially significant paid days off, such as Martin Luther King Jr. Day and Juneteenth. Employers are expanding family, caregiving, parental, and bereavement programs to be more accessible and equitable.
   
4. Complexity of Compliance with Leave Laws: The United States lacks federally mandated paid leave programs, leading to a complex patchwork of state and local leave laws. Managing these differences poses a burden for many employers who struggle with understanding changes needed for their programs, determining funding sources, and deciding who should administer these programs. Proposed legislation aimed at simplifying compliance has not been successful, leaving employers to navigate this complexity on their own.
   

Progressive time off and time away programs are increasingly used by employers as part of their talent strategies.

Key Findings from Lockton HR Trends Survey on Evolving Workplace Practices include...
⌛ Paid Parental Leave: More employers are now offering or enhancing paid parental leave programs, recognizing the benefits for both individuals and organizations.
⏳ PTO for Talent Acquisition: 82% of employers consider time off benefits as crucial when attracting and retaining top talent. Vacation/PTO ranks high on employees' priority lists.
⏲ Inclusion Challenges: Employers need to address caregiver support better, especially considering the aging population. For instance, many employees are unaware of health plan coverage for menopause symptoms.
⌛ Company-Wide Holiday Breaks: Companies are adopting company-wide shutdowns during holidays to give employees a "real break"
⏳ Floating Holidays: Nearly half of employers offer floating holidays to accommodate diverse employee observances and foster inclusion.
⏲ Modest Increase in Time Off Programs: 42% of employers made changes to their time off programs in the past year, with a focus on sustaining and investing in specific program areas.
⌛ Program Revision Reasons: The shift from pandemic response to strategic talent retention is driving program changes. Employers are now prioritizing competitive advantage, alignment with trends, and employee feedback.
⏳ Internal & External Factors: Employers consider a mix of internal and external factors when revising time off programs, with a balanced approach to program drivers.

For the full survey results, please email me - [email protected]