The need to improve recruiting and retention has affected employee benefits and workforce absence management the past two years, in some cases resulting in more liberal policies on hybrid work, paid time off (PTO) and observed holidays.
HUB International’s 2023 Workforce Absence Management Survey, which surveyed 514 employers with 50 to 1,000 employees, found that remote and hybrid work trends continue, with more companies making these options standard. These same employers are also providing additional paid holidays and PTO.
The survey found that employers are implementing these changes largely to stay competitive in the ongoing battle to attract and keep top talent. And employers say they’re likely to implement more changes in absence management to improve the work environment.
Notable findings from HUB’s biennial survey include the following:
- Working from home is no longer the exception. More than half (53%) of respondents allow remote work, mostly through hybrid work arrangements. Of those allowing hybrid work, 73% say remote workers are just as effective as in-office employees and workplace flexibility improves both recruiting and retention.
- Additional paid holidays take hold. Nearly one-quarter of employers have added holidays, compared with 14% in 2021. Worth mentioning is that 24% now have Juneteenth as a paid holiday, compared with only 5% two years earlier.
- More PTO becomes standard. Twenty-three percent of organizations changed paid time off (PTO) programs, and of those, 56% increased paid time off days provided. Companies that increased PTO cited taking care of employees as the top reason for extending this benefit, followed by the desire to be more competitive in recruiting and retention.
- PPL continues to expand. More than one-third of respondents increased their parental leave (PPL), while 64% made no changes.
- FMLA and leave administration remain the same. Similar to results from the 2021 survey, 90% of employers are eligible for FMLA requirements, with 70% discontinuing group benefits at the end of the month that FMLA expires.
5 steps to keep up with the findings
- Align policy with goals. It’s imperative your that organization’s absence management policies align with HR and business goals. Reviewing leave of absence policies to determine if they help meet goals is an essential first step in having a truly effective program.
- Benchmarking counts. Practices of other companies — competitors or otherwise — are a good barometer of how an organization measures up. If possible, identify organizations with similar goals for benchmarking.
- Remove the confusion. Ensure employees have the tools needed to understand their leave options. Providing clarity in how policies work, the benefits and the implications for employees can transform absence programs into powerful retention tools.
- Precedents matter. Going the extra mile to assist individual employees during their leaves may be well intended, but that may require employers to extend similar considerations for all employees in order to stay compliant with local, state and federal laws.
- Leverage data and analytics. A holistic benefits strategy encompasses everything from PTO to health and wealth benefits. Data and analytics tools like HUB’s Workforce Persona Analysis can help your organization get the most out of its absence management policies, while an approach to creating Quality Employee Experiences (QEX) through benefits will improve employee engagement.
HUB International’s expertise on workforce absence management helps organizations gain and maintain a competitive advantage in recruiting and retention. Contact our specialists to learn more.
