Managing various leave benefits remains a challenge for employers, survey finds

In a tight labor market attraction and retention are key goals of employers looking to maintain productivity and continuity. Beyond the “standard” benefits being offered, employers are considering other ways to stand out and offer benefits packages that support employee work-life balance and wellness.

A new survey from Marsh McLennan Agency in partnership with the National Business Research Institute, called Absence, Disability, and Leave Benchmarking Report, looks at the top challenges facing midsize company benefits packages. Some of the challenges include: Staying updated and compliant with state and local leave laws (42%) as well as integrating mandated leave, paid leave, disability and company sponsored leave benefits (41%).

Interestingly, the report shows, for employers under 500 lives, about 50% of them handle benefits in-house vs. 50% co-sourcing or outsourcing. Over 500 lives, that changes to 70% of employers outsourcing or co-sourcing.

In other areas, 33% of employers find it a challenge to remain compliant with Family and Medical Leave (FMLA) and Americans with Disabilities Act Amendments Act (ADAAA). However, the majority of employers over 500 lives offer an FMLA lookalike benefit for domestic partners, while many employers under 500 lives do not.

Also, many employers under 500 lives do not require employees to file for Paid Family and Medical Leave and/or statutory disability benefits. Most employers over 500 lives require filing to be eligible for company-specific benefits.

The report also showed that only 13% of mid-market employers offer Indigenous Peoples’ Day as paid time off; 23% offer Veterans Day as paid time off. In terms of personal days, 57% offer at least one day of paid personal leave or a floating holiday; 18% of those employers offer three or more days of paid personal leave or a floating holiday.

Short-term disability (STD) is an issue many employers face, leading to lost income for the employee and lost productivity for the employer. Seventy-three percent of respondents say all their employees receive the same short-term disability or salary continuation benefits plan. Most describe the benefits offered under their short-term disability or salary continuation plan as a ‘percent of salary’ type of benefit.

Read more: Outdated worker leave practices may be costing employers money

But as employer size increases, it is more common for STD programs to be 100% employer-paid. In the health care industry, it is more common for employers to offer different plans to salaried versus hourly employees. Smaller employers are more likely to offer benefits upon the date of hire. Regardless of size, most employers offer benefits within the first 90 days of employment.