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HR Systems Are Failing Employees on Leave, New AbsenceSoft Report Finds

Employee leave is no longer a niche HR function—it’s a universal workforce reality. But according to new research from AbsenceSoft, the systems designed to manage leave and workplace accommodations are falling short in ways that affect employees, employers, and compliance alike.

The company’s 2026 Leave and Accommodations Employee Experience Report, based on a survey of 2,000 employees at organizations with more than 500 workers, paints a revealing picture: employees across every generation are requesting leave at similar rates, yet the reasons behind those requests—and the experiences navigating the process—vary dramatically.

Just as concerning, many employees report confusing workflows, delays, and even workplace penalties tied to protected leave, raising red flags for HR leaders responsible for compliance with regulations like the Family and Medical Leave Act (FMLA), the Americans with Disabilities Act (ADA), and the Pregnant Workers Fairness Act (PWFA).

The takeaway: while workforce needs are evolving rapidly, many organizations still rely on outdated processes that struggle to keep up.

Every Generation Takes Leave—But for Different Reasons

One of the report’s clearest findings is that leave is now a cross-generational reality.

Employees from Gen Z through Baby Boomers report nearly identical comfort levels when requesting a leave of absence, suggesting that stigma around taking leave may be declining.

But the drivers behind those requests differ widely by generation.

Gen Z employees most often cite mental health as the primary reason for leave, with 24% identifying it as their top driver. Millennials show similar patterns but also report illness or injury recovery as a major factor.

For Gen X workers, the challenge looks different. Often referred to as the “sandwich generation,” they are balancing caregiving responsibilities for both children and aging parents. As a result, caregiving and medical procedures each account for 23% of their leave requests.

Baby Boomers, meanwhile, most frequently take leave for physical illness recovery and family caregiving.

Pregnancy, childbirth, and parental bonding account for 12% of all leaves—primarily affecting younger segments of the workforce.

The data highlights a key challenge for HR leaders: leave programs must support a wide range of needs, from mental health recovery to caregiving responsibilities and chronic illness.

Mental Health and Neurodiversity Requests Are Rising

Accommodation requests are evolving alongside workforce demographics.

Younger employees—particularly Gen Z—are leading the shift toward accommodations related to mental health and neurodiversity.

According to the report:

  • 31% of Gen Z accommodation requests involve mental health

  • 11% involve neurodiversity conditions such as ADHD, autism, or dyslexia

Millennials also report mental health as a major driver, alongside recovery from illness or injury.

Older generations tend to request different forms of support. Gen X and Baby Boomers are more likely to request specialized equipment or modified job duties, reflecting physical conditions or age-related health needs.

Yet despite the growing demand for mental health and neurodiversity accommodations, employees requesting them often encounter the most friction.

More than a third of neurodiversity-related accommodation requests took longer than expected to process, and 28% of employees feared retaliation for making the request. Mental health requests showed similar patterns, with 30% experiencing delays and 20% reporting fear of retaliation.

That dynamic may reflect a gap between workforce expectations and HR program design.

“Gen Z is the first generation to enter the workforce having grown up with IEPs, 504 plans, and formal accommodations as a normal part of their lives,” said Seth Turner, Founder and Senior Advisor at AbsenceSoft.

“They are not going to leave that expectation at the door. HR teams should expect accommodation requests to continue increasing.”

Flexibility Is the Most Requested Accommodation

Despite generational differences in the reasons behind accommodation requests, employees largely agree on the type of support they want most: flexibility.

More than half of accommodation requests involve schedule or shift changes, making flexibility the most common request across the workforce.

Remote work and modified job duties follow closely behind.

The report found:

  • Nearly one-third of accommodation requests involve remote work

  • About a quarter involve modified job responsibilities

Younger workers are particularly focused on schedule adjustments. Gen Z employees most frequently request flexible or reduced schedules, followed by permanent shift changes.

Millennials show a similar pattern but also place strong emphasis on remote work options.

Meanwhile, Gen X and Baby Boomers increasingly request specialized equipment or ergonomic adjustments to support physical health needs.

Return-to-office mandates are further complicating the situation, driving up requests not only for remote work but also for office-related accommodations such as seating adjustments, parking access, and specialized equipment.

Leave Processes Are Confusing—and Risky

While generational needs vary, dissatisfaction with the leave process appears nearly universal.

Employees reported widespread challenges navigating leave and accommodations programs:

  • 47% encountered paperwork or deadline issues

  • 44% experienced confusion around pay or benefits

  • 39% described the process as unclear or difficult to understand

For organizations, these breakdowns represent more than a poor employee experience—they may also create compliance risks.

Sixteen percent of respondents said they experienced negative workplace consequences during or after protected leave, including lost hours, demotions, reduced responsibilities, or termination.

Such outcomes could signal violations of federal protections under laws such as FMLA or ADA.

Another concern: nearly one-third of leave cases are managed by frontline supervisors rather than HR departments, increasing the risk of inconsistent decisions or regulatory missteps.

Return-to-Work Programs Are Often Overlooked

The report also highlights a critical gap that many organizations overlook: the return-to-work process.

While companies often focus heavily on approving leave requests, far fewer prioritize reintegration once employees return.

According to the survey:

  • Only 51% of employees said their team knew they were returning

  • Just half reported feeling welcomed back

  • Only 33% had their system access ready on their first day back

  • Only 26% had a formal return-to-work conversation with their manager

Even fewer employees—just 8%—had a structured ramp-up plan to ease their transition back into work.

And only 19% said someone checked whether they needed accommodations upon returning.

These gaps can undermine retention, especially for employees returning from serious health challenges or caregiving responsibilities.

Technology May Be the Missing Piece

One of the report’s strongest signals is that employees want more modern, digital ways to manage leave and accommodations.

Nearly three-quarters of leave takers said they would prefer handling at least part of the process from a mobile device. Among accommodation requesters, 63% expressed the same preference.

Self-service portals and text-based communication were cited by 45% of respondents as the single improvement that would most enhance the leave experience.

For HR teams managing increasingly complex compliance requirements, digital platforms may also help standardize processes and reduce administrative errors.

As workforce expectations evolve and regulatory requirements grow more complex, organizations may need more advanced tools to manage leave at scale.

A Critical Moment for HR Operations

AbsenceSoft’s research suggests the leave management function—long viewed as an administrative necessity—is rapidly becoming a strategic HR priority.

Workforces are becoming more diverse, employee expectations around mental health and flexibility are increasing, and regulatory oversight continues to expand.

At the same time, many organizations still rely on manual processes and decentralized decision-making.

When those systems fail, the consequences extend beyond paperwork errors. They can erode trust, increase legal risk, and drive employees away at moments when they most need support.

As Turner puts it, the issue isn’t whether employees will need leave—it’s whether organizations are prepared to manage it effectively.

“HR teams deserve better tools,” he said. “And employees deserve better outcomes.”

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