Webinar Recap – The Evolution of Paid Leave
With a massive uptick in remote work and a trend toward increased regulation at the state and local levels, employers face challenges they’ve never encountered before. As they navigate an increasingly complex leave landscape, it’s no wonder 6 in 10 employers1 say that managing employee leave is more complex than ever.
Guardian’s Absence Management Channel Director, Garlande Patz, teamed up with HUB International's Sr. Vice President of Workforce Absence Management, Whitney Day, in this recent webinar that zeroes in on leave management from the employer’s perspective. Patz and Day explore the continually changing state and local paid family medical leave ( PFML) policies that keep employers on their toes, how employers are leveraging both outsourcing and opt-out provisions to manage the expansion, and five ways that employers can keep pace with the evolving leave landscape.
Many employers turn to outsourcing — or opt out of the state program quagmire altogether
Employers consistently cite “keeping up with state and local leave laws” as the number one challenge they face when managing employee leave. And research shows it’s a growing pain point. Since 2016, the number of employers that have reported it as their top challenge has grown by almost 15%.
As a result, many employers have turned to outsourcing for administrative support, compliance oversight, and a streamlined experience from start to finish. In 2012, only 20% of employers outsourced leave management, compared to 51% a decade later2. “Back in 2012,” says Patz, “outsourcing leave was usually reserved for mega employers upward of 5,000 or 10,000 employees across the country. But today we’re seeing a big shift in that employers of all sizes are outsourcing.”
While outsourcing is one way that employers are keeping their leave practices on track, some employers that operate in states with voluntary PFML programs are choosing to opt out of the state’s programs altogether in favor of designing their own consistent, location-agnostic leave policies. Employers that have workers in multiple states with paid leave laws are three times more likely to feel challenged by maintaining absence management compliance — and these are the employers who tend to pursue the opt-out path3.
Five things that employers can do now to stay on top of leave management trends
Staying on top of trends requires a plan and an eye toward the future. Here are a few actionable things that employers can begin tackling today to stay on track with leave management.
Align policy with goals: Start out strategically. What are your goals five years down the road? Know your corporate objectives so you can ensure that your leave policies align with them.
Benchmark other organizations: Use data to benchmark against other organizations in your market — and know where you want to be. Market competitive? World-class? Somewhere in between? Align your policies with the benchmark data.
Remove the confusion: There’s enough complexity out there. As much as possible, try not to contribute to it. Work through your policies and make sure the language is clear, accessible, and easy to understand.
Leverage data and analytics: Look to both the market and your company’s internal data and analytics to guide how your policies will meet the needs of your employees. When there are multiple programs, how will they work together in the way that makes the most sense for your workforce? Consider policy in terms of age demographics, salary bands, and more. Leverage data to ensure that your policies align with the goals of these populations.
Be mindful of precedent: What’s already out there? Consider state precedents, precedents set by your company, various precedents in the market, and more. Ensure inclusive policies that consider these actions.
"Once you can really take a step back and look at all of these angles, you’ll be able to have a really solid policy put in place,” says Day.
How is your company taking on leave management? Are these steps top of mind for you and your organization? Watch the full webinar to learn more about how companies are dealing with the growing complexities around state and local compliance.