4 Trends In Workplace Absence Management

Key responses to changing absence management dynamics

  The complexities of the human resources (HR) management function continue to grow. It is not just a function of divergent generations of workers with distinct needs and preferences, but an abundance of policies and benefits to be overseen, many layered with local, state and federal rules.
 
The challenge for HR is keeping up with those complexities, the changing environment and the competition to win at recruitment and retention. That is a tall order given today’s job market.

One area where HR teams might sharpen their focus is absence management, as policies have been fundamentally altered since 2020 in the aftermath of the Covid-19 shutdown. Among the trends to solidify: remote work is common. More employers are offering more paid holidays. And paid time off (PTO) allowances have increased.
 
HUB International’s 2023 Absence Management Survey found that more changes are likely ahead. Seventy-one percent of respondents (versus 64% in 2021) said their benefits overall still need improvement. Here are leading trends shaping workforce absence management.

Four Workforce Absence Management Trends to Watch

1. Telecommuting is here to stay. Remote work has reshaped the entire work experience. Only 6% of respondents told Gallup they prefer on-site jobs, and 53% of respondents allow telecommuting, saying remote employees are as productive as in-office workers.
 
2. Paid parental (and other) leaves expand. Smaller employers (with 50 to 100 employees) are seeing the benefit of paid parental leave, offered by 24% of HUB respondents versus 16% in 2021. And 70% of those offering parental leave are standardizing it across the workforce. To the extent that it is offered equally to birth and non-birth parents, that makes such policies more aligned with Equal Employment Opportunity Commission (EEOC) requirements. The amount of paid leave overall is also increasing, according to 36% of those respondents. Those not offering paid parental leave cite cost (40%) or state-mandated PFML (Paid Family and Medical Leave) requirements.
 
3. Juneteenth acquires legitimacy. More employers also are offering additional paid holidays than in 2021, too – nearly 25% versus 14%. Juneteenth, for example, is now more commonly offered than Veterans Day among 24% of the small to mid-sized organizations surveyed. That reconsideration stemmed, said 53%, from diversity and inclusion initiatives.
 
4. Paid time off also expands. Nearly a quarter of respondents changed their paid time off (PTO) policies in the previous 12 months. Of those, 56% added to the number of days provided, with 60% saying it made them more competitive and also met employees’ needs.

Five Steps to Take to Keep Up – and Stay Competitive

1. Align policy with goals. It is not uncommon for an organization’s absence management policies to be misaligned with its HR goals. A thorough review of leave of absence policies is important to evaluate if policies are actually helping meet goals.
 
2. Determine how you measure up through benchmarking. Practices of other companies — competitors or otherwise — can serve as a good barometer for comparison purposes. If possible, identify organizations to benchmark with similar HR goals.
 
3. Assess how clearly policies are explained. Employees do not always understand their options in absence management programs. Ensuring clarity in how policies work and their implications for employees can transform absence programs into powerful retention tools – making workers feel valued. 
 
4. Be careful of setting precedents. Going the extra mile to assist individual employees during their leaves may be well intended but may set precedents employers need to consider so they comply with local, state, and federal laws.
 
5. Make data and analytics count. A holistic benefits strategy encompasses everything from PTO to health and wealth benefits. Data and analytics tools that help you evaluate everything from the use of leaves to generational and cultural needs and influences can help employers get the most out of their policies over the long term – and keep the competitive edge in hiring and retaining good people.

Whitney Day serves as the Senior Vice President of Workforce Absence Management at Hub International, an insurance brokerage, and also leads its People & Technology Consulting practice.