Risk Insider: Terri Rhodes

Five Leading Trends in Managing Leaves of Absence

By: | March 7, 2017 • 3 min read
Terri L. Rhodes is CEO of the Disability Management Employer Coalition. Terri was an Absence and Disability Management Consultant for Mercer, and also served as Director of Absence and Disability for Health Net and Corporate IDM Program Manager for Abbott Laboratories.

I have said this before, but will say it again. The way employers manage their obligations under state and federal law is changing, and it is more complex than ever before.

Federal programs like the Family and Medical Leave Act (FMLA) and the Americans with Disabilities Act (ADA) have been joined by state, county and city leave laws that overlay federal programs with paid sick leave and paid family leave requirements.

The good news is that employers are meeting the challenges these complex regulations bring and, in many cases, using them as an opportunity to implement deeper enhancements to their programs to both increase employee productivity and lower absence and disability costs.

These efforts are highlighted in the “2016 DMEC Employer Leave Management Survey.” This broad picture of positive change can be seen in the top five leave management trends found in the report.

Outsourcing. Satisfaction with outsourcing is high, as employers believe it improves compliance, customer service and efficiency. More employers are outsourcing FMLA management, while ADA accommodation outsourcing is still in its infancy. Many employers are turning to their existing vendor partners to integrate short-term and long-term disability with FMLA, and an increasing number of employers are also including employee assistance programs (EAPs) in this integration.

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Training. Even as employers are better able to manage leaves, they believe more training is necessary. Mandatory manager training and more online tools are preferable solutions. Respondents also believe training and other resources should be extended to legal staff, consultants and third-party administrators.

Uniform Policies. Uniformity and centralization, which continue to increase, move employers to a more total absence management approach. Legal resources to achieve uniformity and centralization are provided in-house for large employers, while smaller employers (fewer than 500 employees) are more likely to use external legal counsel. These types of activities improve an employer’s preparedness for U.S. DOL and EEOC inquiries.

I have said this before, but will say it again. The way employers manage their obligations under state and federal law is changing, and it is more complex than ever before.

Technology. Employer use of automated systems for FMLA management continues to grow. A slowly increasing number of employers are using data feeds rather than manual updates to their HRIS, time and attendance, and payroll systems. Employers believe automation reduces the time and resource burden, and provides much needed regulatory expertise. Reports are easier to produce and provide more useful and actionable data.

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Paid Leave. Employers are constructing leave programs more generous than required as they rely on external legal counsel to guide them. For those employers that currently offer paid family care leave, the overwhelming majority (78 percent) have paid leave programs that include both parental leave and other family member leave, and 77 percent of respondents apply paid leave to all employees in their organizations.

Employers increasingly view paid leave as an important way to attract and keep talent, especially in a tightening labor market. While it certainly has a compliance element, it is also increasingly viewed as a competitive advantage and tool to help drive deeper changes in absence and disability management practices.

While a federal paid leave law is not on the immediate horizon, employee leave will continue to influence employers, HR, absence, and disability management professionals as well as legal strategies.

More from Risk & Insurance

More from Risk & Insurance

2017 RIMS

Cyber Threat Will Get More Difficult

Companies should focus on response, resiliency and recovery when it comes to cyber risks.
By: | April 19, 2017 • 2 min read
Topics: Cyber Risks | RIMS

“The sky is not falling” when it comes to cyber security, but the threat is a growing challenge for companies.

“I am not a cyber apocalyptic kind of guy,” said Gen. Michael Hayden, former head of the Central Intelligence Agency and National Security Agency, who currently is a principal at the Chertoff Group, a security consultancy.

Gen. Michael Hayden, former head of the CIA and NSA, and principal, The Chertoff Group

“There are lots of things to worry about in the cyber domain and you don’t have to be apocalyptic to be concerned,” said Hayden prior to his presentation at a Global Risk Forum sponsored by Lockton on Sunday afternoon on the geopolitical threats facing the United States.

“We have only begun to consider the threat as it currently exists in the cyber domain.”

Hayden said cyber risk is equal to the threat times your vulnerability to the threat, times the consequences of a successful attack.

At present, companies are focusing on the vulnerability aspect, and responding by building “high walls and deep moats” to keep attackers out, he said. If you do that successfully, it will prevent 80 percent of the attackers.

“It’s all about making yourself a tougher target than the next like target,” he said.

But that still leaves 20 percent vulnerability, so companies need to focus on the consequences: It’s about response, resiliency and recovery, he said.

The range of attackers is vast, including nations that have used cyber attacks to disrupt Sony (the North Koreans angry about a movie), the Sands Casino (Iranians angry about the owner’s comments about their country), and U.S. banks (Iranians seeking to disrupt iconic U.S. institutions after the Stuxnet attack on their nuclear program), he said.

“You don’t have to offend anybody to be a target,” he said. “It may be enough to be iconic.”

The world order that has existed for the past 75 years “is melting away” and the world is less stable.

And no matter how much private companies do, it may not be enough.

“The big questions in cyber now are law and policy,” Hayden said. “We have not yet decided as a people what we want or will allow our government to do to keep us safe in the cyber domain.”

The U.S. government defends the country’s land, sea and air, but when it comes to cyber, defenses have been mostly left to private enterprises, he said.

“I don’t know that we have quite decided the balance between the government’s role and the private sector’s role,” he said.

As for the government’s role in the geopolitical challenges facing it, Hayden said he has seen times that were more dangerous, but never more complicated.

The world order that has existed for the past 75 years “is melting away” and the world is less stable, he said.

Nations such as North Korea, Iran, Russia and Pakistan are “ambitious, brittle and nuclear.” The Islamic world is in a clash between secular and religious governance, and China, which he said is “competitive and occasionally confrontational” is facing its own demographic and economic challenges.

“It’s going to be a tough century,” Hayden said.

Anne Freedman is managing editor of Risk & Insurance. She can be reached at [email protected]