Nearly Half of U.S. Employers are Unprepared to Administer Paid Leave Programs, New Study Finds
As states mandate Paid Family Medical Leave and Paid Family Leave programs, employers are burdened with complexity of paid leave compliance
A new study reveals that nearly half of U.S. employers are unprepared to administer paid leave programs. These findings shed light on the complexity of PFML, or Paid Family Medical Leave, and PFL, or Paid Family Leave, laws. Due to the ongoing changes and nuances of varying PFML laws across states, paid leave programs will be a top employer concern as they explore how new PFML requirements can be integrated into their current policies. Conducted by Versta Research on behalf of The Standard, the study highlights how the burden of administering these programs can be daunting for many employers.
HR Technology News: Dictionary.Com Announces Expanded Products To Help Users Adapt And Enjoy Learning For Today
“PFML laws are becoming disruptive for employers and highlighting a real need for comprehensive absence management programs. PFML programs require active attention, expertise and appropriate resources to administer along with other leave laws and employee benefits”
Tracking and complying with legislative requirements is challenging and sometimes overwhelming for companies. In fact, 40% of employers anticipate difficulties over the next few years when it comes to managing multiple leave programs, staying current with requirements that overlap with other leave programs and managing requirements across multiple states. Compounding these uncertainties, a majority of study participants also expressed a lack of confidence in their state’s ability to administer a PFML program (64%) or their state’s financial stability to pay claims (59%).
HR Technology News: TecHRseries Interview with Mark Sawyier, Co-Founder and CEO at Bonfyre
Responses indicate many employers are also unaware of the PFML/PFL options available to them, including state-run programs, private carriers or managing programs in-house. Almost half of employers who participated in the study say they still need basic information about coverage levels, costs, how plans are administered and levels of coverage from the states. This would explain why only 25% of companies report feeling “very well prepared” to administer new programs.
Outsourcing administration to a partner that specializes in PFML programs is a compelling option for many employers, of which 47% cited two critical reasons for outsourcing including lack of internal bandwidth (42%) and lack of internal expertise (37%).
“PFML laws are becoming disruptive for employers and highlighting a real need for comprehensive absence management programs. PFML programs require active attention, expertise and appropriate resources to administer along with other leave laws and employee benefits,” says Rene McDonald, product and service manager at The Standard. “Employers are asking a lot of questions and seeking guidance. We are seeing a great need for absence management support, and there are opportunities for companies to get that support from an expert carrier/partner like The Standard.”
HR Technology News: IBM Study: COVID-19 Is Accelerating The Skills Gap And Raising Employee Expectations Of Their…