The Paid Leave Gap: Employers Risk Losing Talent by Underestimating Employees' Rising Caregiving Demands

Prudential's latest Benefits & Beyond study highlights paid caregiving leave as the most valued employee benefit, yet only about half of employers say they offer it.

With caregiving responsibilities on the rise across all generations, a new study released by Prudential Financial, Inc. (NYSE:PRU) finds that paid time away from work to care for a loved one is now one of the most valued workplace benefits. As American workers continue to face the challenges of everyday financial stress, employers who do not evolve their benefits packages to offer employer-paid caregiving benefits may risk losing top talent.

The second installment of Prudential's 2025 Benefits & Beyond study, "New Workforce Expectations: Why leave programs need to reflect real life," offers insights into why employees take time off, the barriers they face, and employers' top concerns for offering paid leave. Key findings indicate:

• Paid time off to care for a loved one is the top desired caregiving benefit across all employee demographics surveyed. However, only about half of employers (52%) currently offer paid caregiving leave.
• The types of paid leave programs most frequently offered by employers include parental (89%), military (55%), caregiving (52%) and pregnancy loss (51%).
• 63% of companies say they offer employer-paid leave programs, yet one-third of employees say they needed to take an official family or medical leave of at least four days but did not do so. The greatest barrier for these employees is affordability (37%), followed by the fear of the stigma that their employer will think poorly of them (33%), worries that it may affect their career advancement (26%), and not wanting to leave coworkers with the workload (26%).
• While 69% of employers recognize the positive impact offering paid leave has on their business, they still have hesitations. These include a fear of policy abuse (42%) and the belief that employee needs are met by unpaid leave (36%) or short-term disability coverage (30%).

"Caregiving isn't a niche issue — it's a workplace reality," says Michael Estep, president, Prudential Group Insurance. "Employees across every demographic are asking for paid leave, and employers who don't respond risk losing talent. Embracing paid leave as an essential benefit that supports the well-being of caregivers in the workforce can be a powerful strategy to attract and retain talented workers, while also supporting them in ways that can boost satisfaction, loyalty and performance."

The study also highlighted feedback employers received from employees regarding paid leave programs. Employees expressed desires for additional reasons to take a paid leave (31%), additional services not currently offered (30%), and better understanding of their program (30%). This feedback presents an opportunity for employers to better align their programs with employee needs.

"Beyond offering paid leave benefits, employers can foster a broader understanding of how to use the benefit and reduce any stigma around utilizing them through consistent, clear and supportive communications," adds Mark Devine, head of Life, Absence & Disability Products in Prudential Group Insurance.

Navigating the complexities of state leave laws is also an issue for employers explored in the study. By listening to employee needs and consulting with brokers and carriers, employers can develop leave programs that address employee needs while considering state leave laws and legislation, the study found.

Click here to view and download the study. The research was conducted with 2,946 full-time employees and 750 employers in the U.S. via national online surveys in January and February 2025. Visit prudential.com/employers/group-insurance for more information on Prudential Group Insurance's portfolio of workplace benefits, absence management and risk mitigation solutions.

ABOUT PRUDENTIAL

Prudential Financial, Inc. (NYSE:PRU), a global financial services leader and premier active global investment manager with approximately $1.5 trillion in assets under management as of March 31, 2025, has operations in the United States, Asia, Europe, and Latin America. Prudential's diverse and talented employees help make lives better and create financial opportunity for more people by expanding access to investing, insurance, and retirement security. Prudential's iconic Rock symbol has stood for strength, stability, expertise, and innovation for 150 years. For more information, please visit news.prudential.com.

Prudential Group Insurance manufactures and distributes a full range of group life, long-term and short-term disability and corporate and trust-owned life insurance in the U.S. to institutional clients primarily for use within employee and membership benefit plans. The business also sells critical illness, accidental death and dismemberment and other ancillary coverages. In addition, the business provides plan administrative services in connection with its insurance coverages, and administrative services for employee paid and unpaid leave, including FMLA, ADA, and PFL. Group Insurance coverages are issued by The Prudential Insurance Company of America, a Prudential Financial company, Newark, NJ.

Group Insurance coverages are issued by The Prudential Insurance Company of America, a Prudential Financial company, Newark, NJ.

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Marisa Amador

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