Paid leave goes digital: How Sparrow handles complex leave policies

HR leaders have a lot on their to-do lists already — managing complex leave policies might not have to be one of them. 

Offering comprehensive paid leave programs is becoming essential for employers amid the Great Resignation and the challenges of the pandemic. In 2021, 23% of private sector employees had access to paid family leave, and 89% were offered unpaid family leave, according to the Bureau of Labor Statistics. Sixty-three percent of employees had paid sick leave. 

While these offerings are important, employees are now looking for more robust and nuanced leave, like caregiving, bereavement and disability plans, says Deborah Hanus, CEO of Sparrow, a leave management platform. A more comprehensive leave program can signal an employer is both competitive in the market and compassionate towards their employees  — as long as they know how to navigate it. 

“There has been a movement around thinking about leave in a much more inclusive way. Of course, parental leave is very important, but to have a fair workplace, everyone needs to understand some of the nuances,” Hanus says. “Being thoughtful of how employers define those policies is a way that helps employees feel cared for, but it’s something a lot of companies still struggle with to some extent.”

Read more: How paid leave can be a financial safety net for your employees

For many employers, the remote workforce has made leave logistics much more challenging, Hanus says. From navigating state requirements and regulations, to the paperwork required for things like disability leave, HR leaders have found themselves under water. 

“It used to be common that a company based in California would have all of their employees in California, so HR could understand the state and federal policies and have the majority of their population covered,” she says. “Now, with everyone working remotely, teams have become much more distributed. Every state's policies and processes and regulations are a little bit different. It's become much more difficult for HR teams to manage the logistics on their own.”   

Read more: COVID forced employers to reexamine their PTO policies

Sparrow is helping support HR leaders by managing leave policies for them. The first step, Hanus says, is defining what a company’s leave policy looks like. For example, do maternity leave policies take into account same-sex couples? Are parental leave times inclusive of adoption? If an employee’s family member gets sick, is there a policy in place for them?  

“You want to make sure that the policies are well-defined and clear and everyone understands exactly what's going to happen. It benefits the company and it also benefits the employee,” Hanus says. “If they have an unusual leave situation, like short-term disability that transitions into a long-term disability, or a caregiving leave that transitions into a bereavement leave, it's great from an employee experience perspective to just have everything extremely well-defined.” 

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Once the parameters are set around how much time is available and the necessary approvals employees need, Sparrow will take over the logistics of their leave, handling the paperwork and regulatory red tape behind the scenes. 

“For the employee, we are filing all of the associated paperwork, managing the intake and processing and answering all of their questions so that they can really prepare for that leave and make sure that they have all of the support that they need,” Hanus says. “On the software side, we are automating as much of the process as possible, saving them time and money and making them more compliant.” 

As HR leaders continue to manage complex issues borne during COVID and beyond, supporting them with leave management can help them focus on what really matters: their people. 

“For someone at every company, employee leave is the hardest part of their job and their biggest pain,” Hanus says. “Sparrow helps with that end-to-end experience so companies have the tools they need to care for their employees and the employee experience, and really focus on providing that human support.” 

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