As more U.S. states create paid family and medical leave (PFML) programs, the complexity of leave management grows. Many employers are searching for technology solutions to administer and manage leave benefits more effectively.
The Hartford’s 2024 Future of Benefits Study found that 28% of employers believe the pace of change in human resources (HR) technology is too fast. They worry about maintaining a human touch and their employees do not trust digital tools to file claims.1 In fact, the 2024 survey showed that 53% of employees would prefer to request leave from a person, compared with 39% who would prefer to use digital tools and 8% who would prefer to use artificial intelligence. Yet, there is a growing expectation for claim payments to be made quickly and seamlessly.2
Keeping up with the times can be challenging. To narrow the disconnect between leaders and employees, employers should have a clear understanding of their workers’ needs, their comfort level and industry best practices for navigating leaves. A new study of 12,000 employees shows that better communication could help resolve this disconnect.3
Understand the Playing Field
More employers are considering technology options, but which technologies should an employer invest in? How do they know if what they’re investing in today won’t be rendered obsolete by something newer and better tomorrow? Is adding a new platform to an HR tech stack going to improve efficiency or unintentionally slow things down?
If the rapid advancements of technology in the past century have taught us anything, it’s that today’s innovations could quickly become yesterday’s news. And while that line of thinking can cause anxiety, employers should take a deep breath. Just because it’s new, doesn’t mean it’s for you. Certain technology solutions may not meet a company’s business needs, and in fact, a solution that simplifies one part of a process may complicate work elsewhere.
Consider this: A large company with thousands of employees invests in an application programming interface (API) that tracks and tags employees out on leave. It places functions previously completed manually into the “hands” of a computer system. That approach may not work for a small business with a small number of employee leaves per year. While the same convenience is granted on the front end with automation, it takes time and resources to implement that API. Some companies might not find that investment financially worthwhile if they are looking at the same level of manual work on the back end that they were attempting to avoid on the front end.
In this case, they might want to consider a reverse file feed that can be imported into an existing system. Knowing how proposed technology may affect all areas of a company is as crucial as knowing what other solutions are available to support business needs.
Here are a few considerations for employers when evaluating employee benefits technology:
- System awareness: Understand how your data is stored when deciding which technology solutions best suit your needs. There is no one-size-fits-all application. Knowing your systems (and how they handle data) is an important first step in deciding where to best invest your time and money.
- Co-sourcing, not outsourcing: A common employer misconception when investing in technology integration is that absence management and its complexities should be solved once implementation is complete. The relationship between an employer and a technology partner requires ongoing dialogue to ensure all parties understand and can adjust to business needs and expectations. By defining the problems, an employer can take an active role in creating a better experience.
Employers can lay the groundwork for managing leaves by identifying employees’ needs, company infrastructure and benefit pain points. This research will help guide their consultation with technology partners to ensure solutions are sized to each employers’ systems. There will always be new technology on the horizon, but employers should carefully consider whether it’s the right tool for their team.
Sources:
1 The Hartford’s 2024 Future of Benefits Report. Retrieved July 2024.
2 LIMRA. Tech-Driven Transformation: Enhancing Benefits Delivery to Meet Diverse Needs. Retrieved July 2024.
3 PWC. Our Status with Tech at Work: It’s Complicated.Retrieved July 2024.
