- Sick leave is evolving. Many companies are seeing higher utilization of sick days following the pandemic.
- Sick leave policies benefit companies. Encouraging employees to use their sick days can help avoid burnout and reduced productivity.
- Communicate the policy. The communications plan surrounding leave policies is just as important as the policy.
- Start planning for 2024. Review your company's policy to find what's working and what needs to be updated.
Since the COVID pandemic, many employers are finding that their workers are more inclined to utilize their sick days — including on days when they're not sick.
In 2023, the number of white-collar employees using sick leave has increased by 9% compared to 2019. Among Millennial and Gen Z employees, sick leave use has increased by 45% compared to before the pandemic.
The shift has been attributed to several factors: taking time off due to having COVID or similar illnesses; utilizing sick days for mental health; a greater desire, particularly among younger workers, to use all of their available benefits; and reduced fears about appearing unreliable or losing a job because of record-low unemployment. Disillusionment about workplace loyalty may also play a role after pandemic layoffs.
Today, employees view sick days with a broader scope — with some utilizing them on days when they feel burned out or simply aren’t motivated to work. The evolving views on sick leave may necessitate a review of the culture and communication around leave for many companies.
“The fact is that people with higher self-reported well-being are more engaged, less likely to leave and more productive,” said Laine Thomas Conway, vice president, engagement services strategy and enablement at Alight. “Encouraging people to take the time to focus on all the elements — mind, body, wallet and life — of their well-being actually helps employers.”
Examining the Structure of Sick Leave
Generally speaking, a sick leave policy should be designed to reasonably cover most employees' needs each year — between five and 10 days is often standard — and include provisions such as short-term disability for longer-term health issues.
State and local paid leave laws play a role in determining sick leave policies. That said, at many workplaces, leave policies are expanding.
A recent WorldatWork survey found that the percentage of surveyed companies offering “PTO bank” policies that combine vacation time, sick leave and other paid leave under one umbrella increased from 47% to 54% between 2015 and 2022.
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“Paid sick leaves allow people to stay home when they need to, instead of having to choose between making rent and passing their germs along to colleagues because they couldn’t afford to stay home,” said Kevin Curry, senior vice president, absence management solutions at Alight.
Urge Employees to Use Benefits
When it comes to encouraging employees to utilize their paid time off and other benefits to help prevent burnout — which is being experienced by 46% of U.S. employees and increasing over the past three years, according to Alight — a top-down strategy is key.
“Time away should be celebrated by leadership if a company expects to foster a culture that encourages employees to take vacation,” said Alex Henry, North American group benefits leader at WTW.
Shauna Bryngelson, senior principal, national absence, innovation and growth leader at Mercer, noted that businesses should better communicate resources, such as employee assistance programs, that may help employees before they experience severe burnout or other mental health issues that require extended time off.
“Employers really have to dig into their pre-leave and ongoing leave data and employee views to create a supportive space that is not 'after the fact,'” she said.
End-of-the-Year Tips
With cold and flu season approaching, businesses should utilize a thoughtful communications strategy to ensure employees know the resources and benefits available to them.
Policies should be easy to access and include examples and FAQs, and managers should be provided with resources to help them guide employees, including in situations when employees don't have sick leave remaining for the year.
“Before the end of the year, find a way to communicate about time off with a seasonal angle, staying healthy during the cold and flu season or holiday stress,” Thomas Conway said.
As the year comes to a close, this is a good time for employers to take a fresh look at their leave policies, learn if any related laws have changed that will affect next year (the Disability Management Employer Coalition is one resource), and determine if they should make changes to their policies for 2024 or bolster their communications plans surrounding the policies. Check with employees to learn what is or isn't working with the current policies.
Henry said employers must acknowledge the various dynamics at play, including a change in how and where work is performed and employees’ views on work itself, and take a holistic view of their absence, disability and time-off programs to align it with those sentiments.
“These types of evaluations can pay significant dividends from an attraction and retention perspective,” he said, “[and] ensure appropriate cost management of these programs and compliance with the myriad of leave laws in existence today.”
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