Paid leave cost analysis

With no federal paid leave, employees are at the mercy of whether or not they live in a state with paid family and medical leave benefits. Employers have the opportunity (and responsibility) to step up and offer paid leave policies. Use this paid leave cost analysis tool to make the case for paid leave internally.

The cost of paid leave

Enter your company’s details to calculate the estimated cost of offering paid leave. The final calculation takes into account your inputs, available state benefits, attrition costs, and internal time spent on leave. See the methodology section for more information.

Paid leave program cost

$291,975.22

Total paid out to employees on leave

Cost of attrition related to leave

Cost of internal time spent on leave

Total benefits received by employees

With Cocoon

$202,899.58

$89,075.64 in savings

FAQ

These numbers seem a little high, can you help me understand why?

Our paid leave cost analysis tool takes into account direct and indirect costs related to paid leave. Attrition rates are often overlooked, but are incredibly important to understand the holistic cost of offering paid leave. Research shows that paid leave significantly increases the likelihood of a birthing parent returning to the workplace.

How can I pitch a paid leave program internally?

Paid leave is table stakes for today’s employees. Without a paid leave policy (or with a minimal paid leave policy) we’re missing out on top talent and losing internal talent. Our company’s paid leave policy is a reflection of how much we value our employees—not only is it the right thing to do, it’s a smart business decision. Supporting data: paid leave cost analysis and how your company matches up against peers.

Is there anywhere I can see what my peer companies are offering for paid leave?

Cocoon’s 2024 Paid leave benchmark report provides insight into how much time employers are offering for paid parental, medical, and caregiver leave across different company sizes and industries.

What does “fully paid” leave mean?

Fully paid, employer top-up, and 100% of pay all mean the same thing—an employer makes sure that employees receive their full pay when on leave, even if it comes from a variety of sources. These sources can include state benefits, private benefits, and employer pay.

Why is the cost of offering paid leave lower when using Cocoon?

When employers handle leave internally or use other leave providers, they manage only certain aspects of the process, or they handle tasks manually. This leaves room for errors, a subpar employee experience, and no single source of truth for employees and employers. When not using Cocoon, we expect employees to receive approximately 70% of the total benefits available to them due to various factors—such as struggling to navigate state programs, misunderstanding how private disability programs interact with state disability programs, poorly handling incorrect or late claim submissions, and missing claim follow-ups. When taking leave with Cocoon, we expect employees to receive approximately 99% of the benefits available to them.