Article Updated for 2020:
Voluntary leave of absence policies are a smart way for employers to increase employee retention while offering workers additional time to take care of personal responsibilities. Since this additional benefit is not controlled by the government, companies must ensure the policy is clearly defined and communicated to employees to reduce misuse of the procedure.
The Family and Medical Leave Act enables eligible employees to take a 12-week unpaid, but job-protected, leave with no loss of health benefits for personal or family reasons. To qualify for this absence under the FMLA, a worker must have been employed by a covered enterprise for at least 12 months, have worked at least 1,250 hours in the 12-month period and work at a location with 50 employees or more or within 75 miles of the location, according to the Department of Labor.
But what about personal leaves of absence for new hires that haven’t been with the company that long? Companies can implement a voluntary leave of absence policy as a courtesy to employees. Let’s look at the pros and cons:
Pro: Worker loyalty
Since this personal leave of absence policy is voluntary, companies extend this benefit as a form of generosity. Businesses that offer this additional leave are demonstrating their interest in a worker’s well-being. As a result, employees feel valued by their employer, increasing their dedication to not only their job but to the company overall.
According to a national CareerBuilder survey, 65 percent of respondents cited a lack of worker appreciation as the reason they were seeking new employment. Therefore, a high level of respect for employees can lead to increased retention.
Con: Absent employee costs
It’s more difficult to turn a profit when employees aren’t working. According to Circadian, a workforce solution provider, employee absenteeism costs $2,650 per year for each salaried worker and $3,600 for every hourly worker. These figures result from not only the leave of the worker, but the cost of replacement workers, reduced productivity, and the effects of reduced quality of goods and services due to understaffing, Forbes reported.
Pro: Policy is tailored by company
The rules of a voluntary leave procedure are at the jurisdiction of the company and approval is based on employer discretion.
Businesses should make sure their voluntary leave procedure is clearly defined and communicated to workers. Job protection is not required under these policies. If a company decides to offer this added benefit, it should be detailed in the policy. Human resources should also enforce a request and review process for voluntary leave. This ensures the business is given the appropriate amount of time to find a replacement, if necessary, or prepare for the absence, while also guaranteeing the leave is being used correctly.
Con: Abuse of policy
Since the voluntary leave policy is designed by the company itself and isn’t mandated by any federal guidelines, employees can take advantage of the plan’s flexible nature. The reasons for abusing voluntary leave vary by employee, but human resources should be aware of any actions that point to the misuse of the benefit, including repeated weekend extensions.
Next steps for HR
Since voluntary personal leave of absence policies are an extension of employee benefits, there are certain steps that should be taken.
First, HR should create a documented version of the policy, outlining all features, as well as the procedure for requesting time off and the guidelines for the application’s review. Included in this breakdown should be a requirement of early warning for not only the overall company but an employee’s department, according to U.S. News and World Report. Additionally, the policy should contain qualifying criteria for the voluntary policy, as well as a detailed run-down of how reviews will be conducted.
Next, the employer should communicate all of this information to new and current employees and provide a copy of the policy for personal records. Additionally, HR should ensure workers are aware of the FMLA regulations, how they pertain to employee-entitled leave, and the employer courtesy of establishing a voluntary policy.
Lastly, encourage workers to be as transparent as possible with their bosses and the HR team so the company can provide the best option for personal leave. Make sure employees know that it is not necessary to share the details of their leave, but to give employers a picture of the timeline for one’s absence.
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