If we can agree that effective workforce management is a key driver of success for any organization, then the seven reasons below should underscore the importance of accurate leave management in being a catalyst for that driver. Historically, leave of absence management has often been thought of as a necessity in order to follow legal requirements, and while that is still important today, modern organizations understand that accurate leave management plays a pivotal role in maintaining productivity, enhancing employee morale, and strengthening overall organizational health.
Commence the compelling…
1. Mitigate Leave of Absence Compliance Risks
If it’s not already, ensuring legal compliance in leave of absence management should be of the utmost importance for your organization. Labor laws and regulations, such as the Family and Medical Leave Act (FMLA) and the Americans with Disabilities Act (ADA), mandate specific requirements for employee leaves that all covered employers are required to adhere to.
This is why accurate leave of absence management practices are critical. Accurately administering your LOAs safeguards your organization from potential legal repercussions, including lawsuits, penalties, and reputational damage. Consistently applied policies (more on that below) help establish a foundation of trust with your employee population, showcasing a commitment to upholding their rights and entitlements.
Properly navigating the legal landscape of leave management not only protects your organization but also reinforces its ethical and responsible approach to employee welfare.
2. Accurate Leave Management Boosts Employee Morale and Satisfaction
Employees don’t ask for a lot (well…some do). We all want to be viewed as humans, compensated commensurate to our skills, and to be treated as fairly as any other colleague. A bad leave of absence experience can (and often does) submarine an employee’s morale and overall satisfaction at an organization. This is why accurate leave management plays a significant role in bolstering both morale and satisfaction, because when employees experience a fair and consistent process for requesting and managing their leaves of absence, it fosters a sense of equity they can tangibly feel.
When they know they can take time off without concerns about fairness or repercussions positively impacts their well-being they feel valued and supported, which does wonders for a mood lift.
Why else does it matter? Better morale enhances retention rates, reduces turnover, and boosts the overall work atmosphere. Accurate leave management isn’t just about compliance; it’s a vital tool for cultivating a motivated and content workforce, driving productivity and organizational success.
3. Good Leave Management Processes Ensure Operational Efficiencies
For the proverbial trains to run on time, it’s critical to have an accurate, real-time understanding of where workloads might need to be adjusted and shifted as employees come on and off of leaves. Without effective leave management processes, maintaining your organization’s operational efficiencies becomes akin to herding cats and hoping the job gets done (turns out cats are notoriously bad at herding themselves).
When leave requests are meticulously tracked and managed, however, workloads can be distributed strategically to prevent disruptions. This ensures that projects and tasks continue smoothly during employee absences and the bottom line isn’t negatively impacted by a leave.
By helping proactively plan for workforce gaps, you reduce the likelihood of understaffing issues and the associated drop in productivity. Moreover, streamlined leave management minimizes administrative time sucks (more on that below as well), allowing you and your team to focus on more strategic initiatives. Overall, well-structured leave management processes enhance your organization’s ability to function seamlessly, meeting its goals efficiently and keeping both employees and operations running down the tracks smoothly.
4. Keep Costs Down With Better Leave of Absence Management
Bastions of the budget rejoice! Not only does accurate leave management help with everything mentioned above (and below), but it can also have some majorly positive impacts on your organization’s bottom line.
Those operational efficiencies that keep your org running smoothly mean there’s no dip in your org’s ledger. The boosting of morale means fewer resources spent on replacing employees who have walked out the door due to a bad leave of absence experience. All mitigating compliance risk does is keep your legal department out of hot water and costly courtrooms. The average cost to defend one FMLA lawsuit is $83,000.
Further, without accurate leave management processes in place, you may be accidentally overpaying employees while on leave. If you accidentally underpay them then you may have a rats nest of payroll spreadsheets to untangle to ensure you’re making them whole (and again, staying our of legal hot water). On top of that, without accurate and efficient processes you may not have the ability to effectively take advantage of state benefits that could alleviate your organization of thousands of dollars spent in payroll…per leave.
Better, more accurate leave management is quite simply a boon to your bottom line.
5. Reduce Your Leave Management Administrative Burdens
“Spreadsheets! SO many spreadsheets!” If this sounds like something you’ve screamed in your head while trying to manage your organization’s leaves of absence, you are far from alone. In fact, based on our experience you’re likely the rule, not the exception to it.
Automated leave tracking systems simplify leave requests, approvals, and tracking, eliminating the need for time-consuming manual paperwork while ensuring data accuracy. Feels like that’s a bit of a mic drop sentence, but in order to make the paragraphs look more robust we’ll add that this means without being bogged down by paperwork and triple-checking Excel cells, you can focus on strategic initiatives, employee development, and other passion projects.
Circling back to our favorite topic of compliance, accurate leave management reduces the likelihood of disputes or clerical errors (we’re only human!), saving your team valuable time and resources that would otherwise be spent on resolving issues.
6. Accurate Leave Management Boosts Employee Productivity
Overall organizational efficiencies are one thing, but more granularly, better leave management processes can also enhance individual employee productivity. When leave requests are managed effectively, it helps ensure the prevention of overburdening the individuals who may need to pick up some extra slack and helps maintain a smooth workflow.
It also reduces distractions. By minimizing disputes and uncertainties related to leave policies and whether they’re being accurately applied, employees can instead concentrate better on their tasks, reducing confusion and boosting their overall productivity.
Accurate leave management fosters a work environment where employees feel supported and valued, leading to higher job satisfaction and, consequently, increased motivation to perform at their best, contributing significantly to the organization’s overall productivity.
7. The Importance of Consistent Compliance with Corporate Policies
In order to beat the legal heat as it pertains to leave of absence management, it’s best to crank up the “AC.” That’s “accuracy and consistency,” which if you’ve made it this far (hi, Samantha), you’re likely recognizing is the name of the game with it comes to all things LOA.
While every organization has its own set of policies and procedures related to leaves of absence, applying them accurately and consistently ensures that you’re promoting fairness and equity among all employees requesting a leave.
Your policies are the backbone of your organization’s operations, reflecting its values, objectives, and commitment to fairness. Upholding consistent standards when administering your policies ensures that all employees are treated fairly, which prevents potential legal issues and disputes and helps your org maintain its reputation and credibility, both internally and externally.
On the flip side, inconsistencies in policy adherence can lead to confusion, discontent among employees, and a weakened brand image. Less than ideal, we think you’d agree.
How to Improve Your Leave Management Accuracy
Now that we’ve (hopefully) provided 7 compelling reasons why accurate leave of absence management is a critical component of a high-functioning organization, how do you get there from where you are today?
The most effective way to accomplish this is to implement a modern leave management solution that automates and centralizes the process. Ditching the spreadsheets and relying on insurance carriers to manage leaves of absence is step 1.
You also must solidify clear and comprehensive leave policies, and emphasize educating employees on their rights and responsibilities. It’s a best practice to regularly review and adjust leave policies as needed to stay aligned with organizational goals. Encourage employees to submit leave requests well in advance and make the process as simple as possible, allowing ample time for planning.
Training your team to stay updated on evolving labor laws and regulations to ensure legal compliance is another important factor, as well as maintaining and storing meticulous records, documenting all leave-related transactions accurately (or finding a leave management solution that does all the above for you).
By prioritizing these measures, you can enhance leave management accuracy, reducing errors and fostering a more efficient and compliant work environment.
About Tilt
Tilt is leading the charge in all things leave of absence management through easy-to-use tech and human touch. Since 2017, our proprietary platform and Empathy Warriors have been helping customers make leave not suck by eliminating administrative burdens, keeping companies compliant, and providing a truly positive and supportive leave of absence experience for their people.
