Key considerations for leave policies

There are a lot of components to consider when it comes to creating a leave policy of any kind. To build a policy that works for businesses and employees, leaders should consider:

Leave laws. Understand the myriad of local, state, and federal legislation that could impact a leave policy. Several states across the country have passed mandated paid family leave laws, with many other states considering legislation in the new year. Understanding the legislation will help in having compliant leave policies in place.

Eligibility criteria. When will employees be eligible for leave? Immediately upon hire? After six months? The answer will depend on many factors and often varies based on mandated leave laws, industry, headcount, and company culture. Working with a specialist focused on HR and leave planning can help leaders in the education process of learning what policies will work best.

Qualifying events. Under what circumstances should parental leave be granted? Parental leave policies can impact whether candidates take an offer, so it's important for organizations to have inclusive parental leave policies that account for parents of any gender as well as adoptive parents. Employers may want to consider their approach for each of the following: the birth of a child, placement of a foster or adopted child, loss of a child, and transitions related to caring for family members' children.

Duration and length of leave. Business owners should consider how much time employees will get for parental leave. Since small business owners often feel employee absences more acutely than larger organizations, leave durations will vary by business size and needs. While there are mandatory amounts set by local, state, and federal laws, business owners must decide if their policies will match these mandatory leave durations or exceed them. Companies must also consider whether they will offer intermittent time off to parents who prefer that approach as well as how to handle leave when both parents work for the same employer. In these cases, some employers may split the leave to mitigate the impact of absences. Policy year choices also have an effect on duration and timing as calendar and fiscal year policies may be handled differently. Employers will also need to consider if leave policies should roll forward from the date leave began or look-back from the last date that leave was taken.

Paid time off. Handling paid time off for parental leave can be tricky, but it comes down to each company's unique needs. Small business owners may offer a portion of an employee's salary for the duration, while other organizations may be in a position to provide the employee with their full salary during parental leave. Other businesses may choose to only offer paid time off for a portion of the time and allow additional time off without pay. Employers will also need to determine whether there is a need to coordinate salary continuation with a state wage-replacement program or offer short-term disability.

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