Lessons learned in absence management
Why time away from work will be 2024's hottest "New Benefit", and how changing leave laws are affecting employers.
Work is changing, and workers are changing, too.
The COVID-19 pandemic and its aftermath have led to widely acknowledged changes to the workplace, most notably when many organizations shifted to fully or partly remote work in 2020. These changes aren’t necessarily lasting is also now apparent. In many cases, companies are reversing course and moving to hybrid work or requiring their workers return to onsite work entirely. But it’s not just work that’s different these days –workers aren’t the same either.
If you’re an employer, it’s important to understand that your employees are more likely than ever before to be struggling with mental health issues, and more aware than ever before of their options to address those health needs as well as their rights under the law to take time away from work or request accommodations, if they need to.
Within our business, we’ve seen that mental health claim utilization has continued to increase. However, the duration of mental health claims has more recently begun to stabilize. In 2021, claim duration spiked after the pandemic – employees were missing around 49 workdays for mental health disability claims. Starting in 2022, the duration began trending down slightly; so far, durations have remained at 47 lost workdays for 2022 and year-to-date in 2023. Mental health issues have a real impact on workforce productivity. The WHO estimates globally, 12 billion working days are lost every year to depression and anxiety at a cost of $1 trillion dollars.
Rising absence claims related to behavioral/mental health is one factor leading to more complexity within absence management. Another factor is the increased number of paid family leave laws, and expansion of leave reasons for existing laws, often accompanied by great complexity. PFL (Paid Family Leave) is confusing by nature, due to overlap with existing unpaid leave laws like FMLA (the Family and Medical Leave Act). In addition, states implementing these laws are sometimes struggling themselves – for example, Oregon and Colorado both made last-minute changes to their regulations that altered their new paid family and medical leave laws. At the state level, there are also new laws and expansion of existing laws to provide leave entitlements to state employees.
For many employers, FML (Family and Medical Leave) is also a complex job-protected leave to administer. Getting FML right means your organization needs HR team members and people leaders who understand FMLA regulations and requirements. Anyone who manages people should know the basics of the FMLA, including eligibility criteria, covered conditions, and employee rights. Your organization also needs clear policies and procedures that outline the process for requesting leave, eligibility requirements, notification procedures and the documentation needed.
It is also critically important to make these policies readily accessible and available to employees. Your managers and HR team aren’t the only ones who need to know about FML – your employees should, too. The ability to take family and medical leave when they need it is a huge benefit for your employees – make sure they know about it. Providing training sessions or information to employees about their FMLA rights and responsibilities is one good step. Employees who are aware of the process for requesting this type of leave and the documentation they will need to provide are more likely to ask for available support when they need to. They should also learn that their job is protected; when they return to work, they’ll be reinstated to the same or an equivalent position with the same pay, benefits and working conditions.
One good way to remove barriers to accessing FML is creating a simple process to request FML that’s integrated with other employee benefits. A single system or platform that lets them access FML along with other benefits, like their 401K, payroll deductions and even employee assistance programs (EAP), is a great way to do this. Standardizing the process via software or an employee engagement platform can also help you avoid a big potential pitfall: lack of consistency. Especially for large employers, it can be difficult to ensure that employees in different regions or operating units are offered the same access to FML. Good enterprise software can prevent inconsistencies.
Related: How HR departments can traverse the complexities of the FMLA
Providing employees with the knowledge of what leaves are available to them and how to request leaves when they’re needed is a key part of providing a supportive environment for your people. That’s because leaves, more than ever, are part of your benefits package. They support employee wellbeing and help employees, and their families, thrive. Leaves are what we refer to as “moments that matter.” When someone needs a leave of absence, whether it’s to welcome a new baby to the family or to have emergency surgery or something else, that’s a life-changing moment. For workers, when employers get the leave right, it creates an indelible impression that they’re being supported. Treat leaves as a benefit – because they are.
Kevin Curry, SVP of Absence Management Solutions at Alight