Paid time off to care for a loved one is no longer a niche perk—it’s a workplace essential.
That’s the message from the latest 2025 Benefits & Beyond study by Prudential Financial, which finds that paid caregiving leave has climbed to the top of employees’ benefits wishlists across all generations. But here’s the catch: only about half of employers (52%) currently offer it.
As financial pressures grow and caregiving responsibilities become more common among U.S. workers, employers who fail to evolve their leave policies risk not just employee dissatisfaction—but outright attrition.
The Great Leave Disconnect
Despite 63% of companies claiming to offer some form of employer-paid leave, a third of employees said they needed family or medical leave of four days or more but didn’t take it. Why not?
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Affordability was the top barrier (37%)
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Fear of stigma or being seen negatively by employers (33%)
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Concerns about career advancement (26%)
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Not wanting to burden coworkers (26%)
It’s a troubling gap between benefit availability and benefit usability—one that speaks to broader workplace culture issues.
“Caregiving isn’t a niche issue—it’s a workplace reality,” said Michael Estep, President of Prudential Group Insurance. “Employers who don’t respond risk losing talent.”
Employers Are Hesitant—But Employees Are Clear
Parental leave (offered by 89% of companies) is still the dominant form of paid time off, followed by military leave (55%), caregiving leave (52%), and pregnancy loss leave (51%). But while 69% of employers agree that paid leave improves business outcomes, many still hold back. The study cites:
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Fear of policy abuse (42%)
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A belief that unpaid leave is sufficient (36%)
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Reliance on short-term disability coverage (30%)
This mismatch shows up in employee feedback too. When asked how paid leave programs could improve, workers pointed to:
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Expanded qualifying reasons for leave (31%)
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Additional services and support (30%)
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Clearer communication about benefits (30%)
As Mark Devine, head of Life, Absence & Disability Products at Prudential, puts it: “Offering paid leave is only half the battle. Employers need to clearly communicate its value and normalize its use to reduce stigma.”
Talent Strategy Meets Policy Complexity
Employers also face challenges navigating a patchwork of state leave laws, which further complicates program design. But Prudential’s study suggests a path forward: listening to employee needs and working with brokers and carriers to build more flexible, inclusive, and compliant programs.
The research surveyed nearly 3,000 full-time employees and 750 employers and reflects growing tension in the modern workplace: employees are more vocal and values-driven, while employers are still playing catch-up on benefits that meet real-life challenges.
The Bottom Line
The U.S. workforce is aging, caregiving is rising, and burnout is real. In this landscape, paid caregiving leave isn’t a luxury—it’s a competitive advantage.
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