Work is changing, and so are absence management practices
Several major trends emerged that will influence future changes in absence management programs.
The majority of small-and-mid-sized employers are rethinking their leave of absence policies in the wake of pressures that have intensified with the COVID-19 pandemic, a new survey by HUB International has found.
Workforce absence management can be a challenge for even the most experienced human resource leaders at any time. But the pandemic made it more difficult, especially with new government mandates under federal coronavirus rescue programs even as other statutory paid leave programs are expanding.
Related: Pandemic driving greater business support for paid leave
HUB’s 2021 Workforce Absence Management Survey found that 75% of respondents considered COVID-19 a catalyst for future changes in their paid leave programs. Conducted in March and April of 2021, the survey of 547 HR leaders in organizations with 50 to 1,000 employees found that 40% believe their policies need to be more attractive. Already, 25% have altered their programs.
Several major trends emerged that will influence future changes in absence management programs among employers of this size.
The much-discussed increase in telecommuting, for example, is not likely to be a fluke. Not surprisingly, half of respondents intend to make it permanent, as three-fourths who allowed remote work before the pandemic saw no difference in performance.
On another front, however, this group’s practices for paid parental leave fall short of those that larger employers have in place. Only 25% offer paid parental leave, providing an average of one to two weeks. By contrast, 40% to 45% of larger organizations offer paid parental leave and for an average of six to eight weeks.
Respondents cited their inability to afford paid parental leave benefits as the top reason for not providing them. This is likely to hinder smaller organizations’ ability to attract people in the intensifying seller’s market for workers.
Similarly, only a quarter provide paid family leave, and then, only meeting minimum requirements. The majority – 84% – plan to neither add to or expand these benefits. A proposed national Paid Family and Medical Leave would require employers to give 12 weeks of paid family and medical leave. But its passage is not guaranteed, and it is unclear how a national requirement would preempt existing statutory requirements[1].
Employers should take a hard look at their leave management programs if they expect to maintain, if not improve, their competitive advantage in the ongoing talent wars – never mind ensure statutory compliance.
The survey also found that federal and state leave mandates present challenges, but not overwhelming ones. Emergency measures in response to COVID-19 required sick leave and family and medical leave. Despite the additional burden, 80% of respondents indicated that they didn’t struggle to comply with mandated leaves – a finding atypical to HUB’s experience. This may be a function of the generally smaller geographic footprint of small- to medium-size employers, which have fewer locations and fewer state mandates.
Following certain guidelines will make the process and end results most effective:
- Don’t design absence management strategies in a vacuum. They are integral to a holistic benefits strategy that aligns with recruiting and retention strategies but also encompasses health and wealth benefits.
- Paid leave programs should ensure statutory compliance with policies, and they should be stated in a way that truly reflects the organization’s intentions. They also should measure up to competitive benchmarks.
- Understand that employees can find absence management programs difficult and confusing. Respond accordingly with policy descriptions and explanations that are clearly stated and reflect the value that’s placed on employees.
Workforce absence management programs have become even more critical in today’s environment. Managed strategically under an integrated benefits program, they don’t just help shape business cultures, but also make for more efficient organizations that appeal to potential employees.
David Setzkorn is senior vice president and national practice leader for Absence Management at global insurance brokerage Hub International. He has more than 10 years of experience working in the carrier space as a subject matter expert on Leave Administration. His experience includes consultation and development of Absence Management and ADA programs with clients from implementation, training and ongoing compliance with state and federal regulations as well as product and program development for carriers.
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