Number of U.S. Employees

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4 Number of U.S. Employees 11% 14% 39% 14% 22% Less than to 999 1,000 to 4,999 5,000 to 19,999 20,000 or more

5 Regulatory Leave Federal Family and Medical Leave Act (FMLA) State Family and Medical Leaves (paid and unpaid) Military Leave (USERRA) Non-Regulatory or Company Specific Leave Medical Leave (Non-FMLA Qualifying) Paid Military Leave Personal Leave State Military Leave Bereavement Leave Jury Duty Other Company Specific Leave Other State Mandated Leaves Municipal/County Leaves (paid and unpaid) ADA Leave as an Accommodation

6 This year s report organizes responses into useful size segments and comments on differences by industry, number of locations and population types where notable. It also focuses on practical application that you can take back to your organizations.

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10 Federal FMLA Outsourcing 40% Average for 1, % Average for 50+ Employers that have budget to outsource are bundling and strategically funding their programs with external vendors and feeling satisfied with their arrangements.

11 Bundling with Leave Vendor STD, LTD, Statutory for 1,000+ WC, Medical, EAP, Wellness for < 1,000 Vendors coordinate for employers by streamlining communications (e.g., STD to LTD transitions, STD/FMLA concurrent cases) and coordinating compensation and benefits.

12 Federal FMLA Insourcing 60% Average for 1, % Average for 50+ Employers that have bandwidth to manage leave internally are increasingly leveraging technology to assist them

13 Leave Technology Capabilities Ability to Run Standard Reports Eligibility Determination Provision of Relevant Forms Provision of Letter/ Templates Prompts for Workflow Tasks 29% Ability to Capture Electronic Signatures 29% 46% 54% 71% 93% The technology used by larger companies has more robust capabilities, particularly prompts for workflow tasks and letter/ templates. Inclusion of Training Guides 19% Other 6%

14 Intermittent time is still the most difficult FMLA activity for employers of all sizes and industries. FMLA Activities Ranked as Difficult or Extremely Difficult Tracking intermittent time 40% 36% Tracking continuous, reduced schedule or intermittent bonding* 0% 31% Interacting with ADA and ADAAA 30% 30% Tracking reduced schedule time Transferring employees to alternative positions *Note: New answer choice in % 23% 29% 29% Tools and resources that make FMLA leave administration easier are manager training, automated tracking systems/software, and outsourcing or co-sourcing to a vendor.

15 Training challenges are often due to time constraints, high turnover, and lack of support and buy-in from both upper management and supervisors.

16 Offer Paid Family Leave Larger companies, especially 20,000+, (54%) vs. smaller companies (under 1,000, 21%) Telecommunications, information management, utilities/energy, education and finance/insurance industries

17 Services Employers Would Outsource for Paid Parental/Paid Family Care Leave Leave management e.g., triggers for letters, forms, approval/denial 78% 83% Distribution of communications e.g., letters, forms 76% 80% Leave tracking 73% 82% Intake/initial reporting of time 73% 80% Approval/denial of request Eligibility determination 71% 71% 77% 78% Paid Parental Leave (n=82) Paid Family Care Leave (n=45)

18 Putting a formal accommodation and RTW program in place results in higher confidence levels, with most respondents including accommodation as part of their RTW program. Many (68%) employers require employees to certify fitness for duty before returning to work. Adjusting work schedules Making the workplace assessable Providing leave Acquiring or modifying equipment Restructuring jobs/modifying employee duties 89% 83% 88% 81% 87% 81% 76% 73% 70% 66%

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22 The top challenges in 2017 are relying on managers for leave enforcement, training supervisors and managers on FMLA, and managing intermittent leave. Ranking of Challenges to Organizations (Rated as Extremely Challenging) Major Challenges Relying on managers for leave enforcement Training supervisors and managers on FMLA Managing intermittent leave Keeping up with new federal, state and/or municipal/county laws Controlling employee abuse 20% 16% 20% 16% 20% 15% 17% 22% 16% 15% Keeping up with new laws for small; intermittent leave and training for mid to large Managing intermittent leave, training supervisors on FMLA, relying on managers for leave enforcement, controlling employee abuse for jumbo

23 Reasons Why Training is Challenging Supervisor/Manager lack of interest Supervisor/Manager lack of exposure HR/Benefits lack of budget / financial resources Supervisor/Manager bandwidth HR/Benefits bandwidth Supervisor/Manager turnover 27% 26% 19% 26% 20% 18% 18% 37% 45% 54% 46% % Regardless of size, and consistent with last year, employers say training and education, particularly formal online training modules and/or mandatory manager training would make training easier. Many also mention that more resources, including additional skilled staff and online toolkits, would help. Other 6% 14%

24 How do employers see their leave of absence program evolving over the next two years?

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