The Value of Leave Integration
2023 Guardian Absence Management Activity Index and Study
The changing work environment, in combination with a competitive labor market and increasing workforce mental health concerns, has been top of mind for organizations when it comes to benefits and absence management strategy.
Employers have made more significant strides with integrated leave management, outsourcing, and expanding paid leave types to incorporate reasonable equity provisions, with a focus on compliance and better employee experience.
Integrated absence management across leave and disability programs increased by nearly 20% compared to 2021, with almost 6 in 10 organizations having the same administration for short-term disability (STD) and the Family and Medical Leave Act (FMLA). Our research found that when STD/FMLA are integrated, employers tend to be more advanced in their leave management practices and achieve better outcomes as a result.
Absence management integration across employee benefits
When using integrated absence management processes, better outcomes can often be achieved.
In addition, integrating supplemental health insurance with STD streamlines the claims process and ensures employees get timely access to the benefits they need. This practice has a positive impact on the employee experience, as a high degree of integration across programs and coordination of claims across STD/FMLA means less confusion or forgetfulness about the benefits workers have available to them — plus fewer steps for them to take to get the benefits for which they’re eligible.
The more integrated the leave management model, the better the outcomes achieved.
More than 7 in 10 employers who outsource PFML use the same vendor as they do for FMLA.
More organizations are leveraging private plans in states with paid family and medical leave (PFML) laws.
Using the same vendor for PFML and FMLA is helpful considering that the greatest challenges employers face in managing absence programs are keeping up with state and local leave laws and coordinating all absence types. This is especially true for organizations with a high volume of remote workers.
The impact of mental health on leave management
Mental health continues to be a crisis for American workers, and employers are taking note. Twice as many organizations are expanding employee access to mental wellness resources in 2022 versus 2016. These efforts are paying off, as organizations that offer mental health benefits separate from an EAP (Employee Assistance Program) and place a high priority on mental health are able to achieve all nine outcomes in this study at a higher rate than those who don’t — especially those outcomes related to reduced lost time and reduced costs of absence.
Eighty percent of employers report that mental health issues are contributing to absence at their organizations.
The technology that employees value for integrated absence management
The ability to make a single request for all applicable leaves using technology is among the top factors that positively impact employees’ absence management experience. When it comes to reporting an initial leave, online adoption has increased significantly compared to the past years. Gone are the days of paper forms.
Technology tools that help employees track their leave, improve data accessibility, and achieve comprehensive reporting contribute to advancement, too. According to 36% of respondents, when an employee has the ability to track their leave availability and eligibility, it’s a key factor in positively impacting their absence experience, especially where STD and FMLA are outsourced to the same external vendor (44%).
The number of employers able to produce or obtain five or more reports increased 23% since 2018.
Strong stay-at-work programs and greater flexibility drive positive outcomes
Employee awareness of their rights under the Americans with Disabilities Act (ADA) has increased, and organizations have therefore become more flexible in their willingness and ability to make accommodations. This evolution is reflected in stay-at-work (SAW) activities.
This year’s research demonstrates a strong connection between return-to-work (RTW) rates and flexibility: The more flexible an employer is (in terms of telework and scheduling), the likelier they are to improve RTW rates at their organization.
Read the full report for the latest findings on integrated leave management
Read Guardian's report, “The Value of Leave Integration: Coordinating benefits plans and leave policies contributes to improved outcomes,” to learn what to prioritize in your absence management and integration program.
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