Unlocking Business Benefits: 4 Types of Absence Management Services
It can be a lot of work for the HR team to keep track of employee absences - whether it's occasional absences or a formal leave application under federal or state leave laws. By outsourcing the work to an absence management service or using a cloud-based absence management platform, you can remove some of the hassle.
But what do absence management services actually do, and what types of leaves can they handle? Let's take a look at absence management solutions and how they can help you streamline the administration of leave and compensation claims.
What are absence management services?
Absence management services are third-party companies that help you approve and manage leave requests and disability benefits claims. Many of them offer end-to-end absence management services, which means they handle employee inquiries, assess eligibility and ensure compliance with applicable leave laws.
Outsourcing HR functions can make absence management easier, but it can also be expensive and lead to other complications. Another solution is to use absence management software, which makes it possible to keep absence management in-house, but make it more efficient with the help of cloud-based technology.
IceHrm simplifies, for example, absence management, claims management and return to work with a cloud-based platform without code.
The benefits of absence management services
Absence management services can be particularly useful if the business is growing and the workload associated with leave management is greater than the in-house team can handle. But organizations with a large HR department can also benefit from outsourcing or digitizing absence management.
Here are three ways absence management services and software can help.
Reduced workload
The biggest advantage is reduced workload and administrative costs. Instead of handling FMLA forms and other aspects of absence management, the HR team can focus on supporting employees on personal, medical or military leave.
Digital solutions for leave management also make it possible to automate recurring or repetitive HR tasks and streamline the workflow so that they take less time and cost less money.
Better compliance with laws and regulations
State and federal leave laws are complex, and your obligations may vary depending on the state you operate in and the size of your company. Private businesses with 50 or more employees are usually subject to the FMLA, while businesses with 15 or more employees may be covered by the Americans with Disabilities Act (ADA).
Outsourcing your HR functions to an absence management service or using absence management software can significantly reduce compliance issues.
Better data
Streamlining absence management also makes it easier to monitor employees' attendance and identify problems and trends in real time. You can use this data to plan for upcoming absences, manage frequent absences or predict the need for overtime.
On a larger scale, you can use absence data to analyze your workforce, which can help you with succession planning and other long-term decisions.
4 types of absence management
Which absence management solution is best for you depends on the types of absences you need to manage. Here are four of the most common types of absence:
1. FMLA leave
The Family and Medical Leave Act (FMLA) provides up to 12 weeks of unpaid leave to eligible employees with a qualifying family or medical condition. This includes, among other things
- birth or adoption of a child
- Injury or illness of a family member
- an employee's own serious injury or illness
- certain situations related to military service
Employees have the right to return to the same position and to maintain health care while on leave. Since an employee can take FMLA leave periodically or for several different conditions, it is important to follow up FMLA leave accurately and keep adequate medical documentation to ensure that leave entitlements are not exceeded.
2. ADA Leave
The Americans with Disabilities Act (ADA) requires employers to provide "reasonable accommodation" for employees with a qualifying disability. Since leave or reduced work hours may be considered reasonable accommodation, it may be necessary to record ADA leaves as part of absence management.
Your absence management service or software solution can help you determine if the ADA applies and navigate the interactive ADA process.
3. Leave on account of disability
Some states, including New York and California, require employers to carry short-term disability insurance, which provides temporary wage compensation if an employee must take a leave of absence due to a short-term disability. Some employers also offer long-term disability insurance as a staff benefit.
As disability leave can overlap with other types of leave and usually has a waiting or elimination period, you must record this in your leave system.
4. Paid family leave
Some employees may be entitled to Paid Family Leave (PFL) or Paid Family and Medical Leave (PFML). These programs offer wage compensation to employees while they are on parental leave or another type of leave.
Like FMLA, employees typically must work a certain number of hours before they are entitled to paid family leave - another reason why it's important to keep accurate records of attendance and absences in the absence management system.
What does absence management include?
Absence management services include everything from outsourcing the entire HR department to specially adapted software development and consultancy. Here are three features you should look for:
Approval of absence
One of the biggest challenges associated with absence management is the approval process. Each individual request must be checked against company policies and applicable leave laws. The HR team may need to review sensitive documentation related to the employee's medical condition or disability.
When you use an absence management platform like Icehrm, employees get access to an online portal where they can submit their own leave requests and upload documentation. The HR team can review leave requests, verify medical records and track leave balances in a secure, cloud-based system.
Handling compensation claims
Claims for occupational injury compensation and short-term disability follow different rules and procedures.
You can interact with appraisers, generate OSHA reports and track accommodations from both desktop and mobile devices. In addition, you get access to damage analysis, so you can monitor damage by time, month, age group and more.
Process for return to work
The Stay at Work/Return to Work process is an important part of any absence management system. This process makes it possible for sick or injured employees to continue at work or to return to work more quickly, so that they become physically healthy and get better finances.
You must, of course, ensure that the employees are able to return to full-time work or to a lighter task if necessary.
Improve employees' experience with absence management
Absence management is not only about cutting costs or ensuring that HR regulations are complied with - it is also about making life easier for the employees. When employees can submit leave requests electronically and don't have to stress about medical paperwork, they are less likely to make last-minute requests or take unexpected absences.
In summary, IceHrm presents a comprehensive solution to streamline absence management, offering a cloud-based platform that encompasses everything from approval processes to compensation claims and return-to-work procedures. Elevate your HR efficiency with IceHrm and foster a seamless experience for both employees and administrators.