Is your organization ready for today’s Leave landscape?

As we navigate 2026, employers are facing many challenges and Leave has never been more complex or costly. The impact of administering a Leave program can be staggering with rising absenteeism rates, an increasingly complex regulatory landscape, and administrative systems that may not be able to keep pace with modern workforce demands. Yet many organizations remain unaware of just how vulnerable their current approach may be.

Employers have ranked staying updated and compliant with state and local Leave laws their top challenge for the third year in a row, increasing from 39% in 2024 to 45% in 2025.¹ In addition to administration, 75% of employers indicated that employee absences made a moderate or large impact to their organization’s productivity and revenue.²

These real pain points can impact your ability to run an efficient, compliant and strategic organization. How ready is your organization to tackle these challenges?

The growing complexity of Leave

The Leave landscape has transformed dramatically over the past few years, and the pace of change shows no signs of slowing. As of 2025, 13 states plus Washington D.C. have mandated Paid Family and Medical Leave (PFML) programs, which include expanded “family member” definitions and varied eligibility and Leave reasons. This regulatory expansion means that multi-state employers must now navigate a complex patchwork of requirements, each with its own nuances, deadlines and potential penalties for non-compliance.

If your HR systems don’t talk to each other or aren’t receiving regular legislative updates, this has the potential to lead to inefficiencies that can compound over time. A recent survey shows that only 35% of employers polled indicated they had an integrated system to track employee absences. Furthermore, the most common method for employees to request an absence was through written absence requests by form or email at 66%.² Relying on manual or unsystematic processes for administering Leave programs can potentially result in errors and inefficiencies for HR teams that can quickly add up.

The potential hidden administrative burden

While direct costs are easily measurable, the administrative burden of Leave Management can go unrecognized. HR teams can spend countless hours each week:

• Tracking Leave requests;
• Determining which laws apply to which employees (e.g. Family and Medical Leave Act, PFML, Americans with Disabilities Act, Pregnant Workers Fairness Act);
• Calculating Leave balances;
• Coordinating with payroll; and
• Communicating with employees and managers.

This administrative work can pull HR professionals away from strategic initiatives that can potentially help drive business value.

The regulatory environment isn’t standing still either with additional statutory PFML plans effective through 2028, meaning today’s compliant program could quickly become outdated. Organizations that take a reactionary approach to their Leave program can be significantly impacted by legislative updates.

What challenges does your Leave program face?

Your Leave Management program may be facing rising costs, increasing regulatory complexity, administrative burden and knowledge gaps. But understanding these challenges is just the first step. What’s next?

Organizations that invest in modern Leave Management infrastructure have the opportunity to gain competitive advantages through improved employee experience, reduced compliance risk and more efficient operations. Easing an HR team’s administrative burden can help them focus on other important organizational objectives. Managers equipped with proper training and tools can support their teams more effectively.

Ready to assess where you stand?

We’ve created a Leave Management Readiness Checklist designed specifically to help HR leaders evaluate their organization’s preparedness across 10 critical dimensions — from compliance and technology to manager education and strategic positioning. This quick self-assessment takes just five minutes and provides insights into your gaps and opportunities, along with suggestions based on your results. Understanding your current readiness is the essential first step toward building the Leave Management program that best fits your needs.

Download the Checklist

For more resources, check out our Leave Resources page.