Learn the most important factors to consider when developing employee leave plans, according to SHRM best practices. Ace your SHRM-SCP certification exam with our expert insights.
Table of Contents
Question
When developing leave plans, which factors are the most critical to consider?
A. Objectives and legal requirements
B. Types and employment eligibility
C. Cost and budgetary implications
D. Policies and procedures for use
Answer
The most critical factors to consider when developing leave plans are:
A. Objectives and legal requirements
Explanation
When creating leave plans and policies, it’s essential that HR professionals first clearly define the objectives and goals of the leave program. What is the organization aiming to achieve through its leave policies? Common objectives include:
- Providing time off for employees to rest, recharge, and attend to personal matters
- Supporting employee wellness, work-life balance, and job satisfaction
- Attracting and retaining talent through competitive benefits
- Complying with all applicable leave laws and regulations
Speaking of legal requirements, this is the other most crucial factor that must guide leave plan development. There are numerous federal, state, and local laws in the U.S. that mandate certain types of employee leave, such as:
- Family and Medical Leave Act (FMLA)
- Americans with Disabilities Act (ADA)
- Pregnancy Discrimination Act
- State/local paid sick leave laws
- State/local paid family leave laws
- Military leave laws
HR must ensure that leave plans, at a minimum, provide the leave required by these laws for eligible employees. Failing to comply can lead to costly legal claims and penalties.
While the other factors listed – types of leave, eligibility rules, costs, policies and procedures – are also important considerations, getting the objectives and legal compliance aspects right is most critical. The objectives set the foundation for the entire leave program. And legal compliance is non-negotiable.
By focusing first on clear objectives and adherence to leave laws, HR professionals can then move on to determining the appropriate leave types to offer, eligibility rules, budgetary implications, and day-to-day policies and procedures to meet the organization’s goals while minimizing legal risk. But objectives and legal requirements should be the starting point and key priorities.
When developing leave plans, HR should first consider why the organization is considering a paid leave program (i.e., the objectives) and applicable legal requirements that mandate the employer to provide paid leave.
Identifying leave types, employment eligibility, policies and procedures for use, cost, and budgetary considerations should be considered after the leave objectives and legal requirements are identified.
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