Coordinated leave policies can make administration go smoothly, study finds

It may not always be top of the HR list of priorities but outdated leave management policies can add up, a new study shows. NFP, a benefits consultant firm, says that lack of coordination of maternity leave offerings with short-term disability, and state provided medical leave benefits leaves money on the table. Procedures and policies are key elements to the process whether companies are using a third-party administrator or have dedicated benefits specialists to handle leave administration.

“Despite efforts to ensure compliance, many employers are finding it a challenge to create comprehensive leave policies. Hybrid, remote and dispersed workforces have only added to the challenges,” says Maria Trapenasso, Human Capital Solutions national practice leader, NFP. “With HR leaders taking on more and more within their organizations, it can be difficult to stay on top of regulatory complexities, avoid missed financial opportunities, and provide the support employees need. Our Leave Benchmarking Study is designed to start conversations with these leaders and work toward enhancements that can make a meaningful difference for their people and ultimately the overall performance of their organizations.”

Most employers offer leave for birth of a child (94%), with slightly less doing so for adoption (88%) and foster care (72%). Further, only 25% of employers differentiate between primary and secondary caregiver leave, “a clear indicator that this type of policy is more complex to administer than first thought,” observes Trapenasso. “Employers should seek counsel when using this type of policy because it is complex, and they need to ensure compliance.”

Nearly three-quarters (74%) of employers say they offer no amount of family caregiver leave. “There’s a large workforce demographic in the ‘sandwich generation’ responsible for taking care of their children and elderly parents at the same time. It’s vital for employers to realize the importance of providing their employees with paid leave to care for their loved ones of every age,” says Trapenasso.

Employers have also adjusted their bereavement leave policies in response to cultural shifts that have broadened the definition of family. The study found nearly one-quarter of bereavement leave policies allow an employee to take time off for a miscarriage or failed IVF (24%). Additionally, some employers offer bereavement leave allowances for any close relations (32%) and the death of a pet (7%).

Some other notable findings from the survey are that 45% of employers offer Juneteenth as a paid company holiday, more than three-quarters (77%) offer the same amount of PTO to exempt and non-exempt employees, and 61% provide more than five paid sick days per year.

Read more: Outdated worker leave practices may be costing employers money

“Overall, the study shows that recent shifts in employee attitudes have triggered many employers to align their leave policies with the needs of their workforce, corporate values and peer standards. Administering employee leaves can be complex, particularly if required to comply with multiple state leave regulations. But there are ways to streamline policies to make them efficient and compliant at the same time,” concludes Trapenasso.