# 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

$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.

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.

When taking leave with Cocoon, we expect employees to receive approximately 99% of the benefits available to them. This is because we automate the most complex parts of compliance, claims, and pay which results in a more accurate and seamless leave experience.

## Methodology

Cocoon is a leave management software that automates the complexities of compliance, claims, and payroll for People teams and their employees. We advocate very strongly for comprehensive paid leave policies that support employees through all moments of life, and we understand this comes at a certain financial cost to employers. This paid leave cost analysis tool is meant to give employers a detailed view into the actual cost of implementing (or improving) paid leave policies. It takes into account indirect costs that are often overlooked, like attrition rates—you’ll see that the lower your paid leave policy is, the higher your attrition costs are.