The increasing complexity of leave of absence management

Leave of absence (LOA) management has long been a challenge for HR teams, but in recent years, it has evolved from a manageable issue into a full-blown beast. With the increasing complexity of federal and state regulations, expanded employee expectations and a rise in leave requests post-pandemic, many employers struggle to stay compliant and avoid policy abuse.

If you’re wondering how to efficiently manage LOA-related challenges or how to leverage your leave benefits as a tool for attraction and retention, you’re not alone. As regulations and employee expectations evolve, employers must adapt to stay compliant, efficient and competitive.

The growing complexity of leave absence management

Managing LOA compliance has become increasingly complex with the expansion of state-level paid family leave (PFL) programs alongside Family and Medical Leave Act (FMLA) federal requirements. Employers are juggling overlapping regulations, which can lead to miscommunication and confusion as HR teams work to provide accurate information about leave entitlements and processes.

This complexity has only increased post-pandemic, as the trend toward more flexible, expansive leave policies—particularly around caregiving and mental wellness—continues. Employees now expect more comprehensive leave programs to support their health and caregiving needs.

Staying ahead involves more than understanding the laws—it requires aligning leave policies with your broader business strategy to enhance employee satisfaction and retention. Employers that respond with flexible options like intermittent leave or partial days off are meeting demand while improving retention and employee engagement.

Tailoring leave policies to diverse employee needs

Employers increasingly see leave requests tied to caregiving responsibilities for children and aging parents—a trend accelerated by the workforce’s growing sandwich generation. Recent carrier benchmarking data supports this trend, showing a 20% increase in overall leave requests. At the same time, mental health leave requests are on the rise, underscoring the growing need for comprehensive mental wellness support in the workplace.

Employers must assess whether their current leave programs effectively accommodate the evolving needs of their workforce. Analyzing benchmarking data and understanding demographic shifts is a critical first step. Employers should also regularly review leave policies from competitors, consult legal counsel to ensure compliance and align policies with DEI initiatives to foster inclusivity. For example, transitioning from traditional maternity leave to broader parental leave policies that include adoption and surrogacy can support a more diverse workforce. Well-structured leave management processes that accommodate a range of employee needs not only improve employee engagement but can reduce absence rates, easing administrative burdens and ensuring compliance.

Related: Mercer study: Paid leave benefits expand amid compliance challenges

Collaborating with benefits consultants and leveraging technology

Partnering with a benefits consultant who can guide you through the complexities of leave management is key. The most successful consultants help employers vet vendors by looking for platforms that integrate all leave types (disability, FMLA, state-specific leaves and more) into one system with one point of contact. For employees managing multiple leave requests simultaneously, this streamlines HR’s administrative burden while ensuring compliance.

Benefits consultants can also help employers find the right solutions to balance compliance with employee satisfaction. They provide valuable benchmarking data, assist in vetting absence management partners and ensure your policies are tailored to your needs.

In addition to consultant support, automated tracking tools and real-time updates from state agencies can help HR teams navigate compliance more efficiently. Absence management platforms can streamline processes by tracking leave usage, ensuring compliance and providing insights into leave trends—all of which reduce administrative strain on HR departments.

Turning leave policies into competitive advantages

Managing leave of absence requests can be daunting, but with the right strategy, it can be an opportunity rather than a challenge. Staying current with leave laws is not enough—employers should use their leave programs to shape workplace culture into a differentiator that attracts and retains talent. Employers can work with benefits consultants to customize policies that reflect core values, whether by supporting employee wellbeing through mental health leave or offering generous parental and caregiving leave options.

Now is the time to rethink your approach to leave management. When done right, these policies can create a win-win for both your company and your employees, helping to retain top talent while ensuring compliance and efficiency.

Kelly Hoffman, Vice President of Account Management and Private School Market Lead at Corporate Synergies