Building leave programs to meet the needs of today’s workforce
Employees representing a mix of cohorts – from Gen Z and Millennials to Gen X and Boomers – are all coexisting in today’s rapidly evolving workforce. Each of these generations brings unique considerations and priorities to the table when it comes to employee leave programs.
Acknowledging the differences that are inevitable among a multi-generational workforce is the first step toward creating tailored leave programs that align with employee expectations. The priorities outlined below are generalizations – they certainly aren’t confined to just one generation – but keep them in mind to ensure your leave programs cover the full spectrum of needs and preferences:
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Gen ZSocial purpose is especially important to younger workers. Time off to volunteer and company-organized volunteer events would be valued by this group.
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MillennialsMany employees in this cohort are starting or building families. Parental leave – that supports all types of families – will be important to this group.
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Gen XThe sandwich generation, these employees will be caring for both children and aging parents. Caregiver leave could help ease stress.
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BoomersAs family pressures ease, boomers can pursue other interests. Paid or unpaid sabbaticals might be a way to encourage these experienced employees to stay in the workforce and stay motivated. Providing leave that allows them to help adult children with a new grandchild is another way.
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In Mercer’s 2023 Inside Employees’ Minds Survey, “more time off” was ranked highest as a way to reduce their risk of burnout and promote mental health – and especially among workers under age 35. Providing and encouraging the use of personal days, sick days and vacation days supports all employees. You might even consider a company shutdown during slow periods to give employees the chance to detach completely and recharge, a benefit that would ultimately promote productivity.
Leave policies that offer the most flexibility and inclusivity will be the most likely to meet the differing needs of a multi-generation workforce. One approach would be to offer “flexible holidays” that give employees the autonomy to decide the holidays they take off from work.
While meeting employee needs is paramount, organizations must also consider their financial and operational goals. This challenge requires a delicate balance between employee satisfaction and organizational objectives. If certain benefits would make a positive impact on a segment of employees, but does not work financially, offering a more flexible work schedule is a strong solution.
Yet, even the most thoughtfully designed leave policy is only beneficial to the employees if they are aware of what is available to them and how to utilize these resources. Identifying a variety of communication methods that cater to different generations is paramount to the effectiveness of any rollout. Providing adequate employee training, optimizing vendors and streamlining implementation and utilization processes are all key components of a successful leave program.
With paid time-off ranking as one of the top five reasons why employees choose to stay in their current jobs, an effective leave program is going to positively impact employee retention and attraction. Creating policies that meet employee needs will not only enhance satisfaction but also make organizations more competitive in the market.