Taking a Closer Look at the FMLA

Attracting and retaining top employees is a key issue for many companies in today’s marketplace. With cost control a high priority for employers nationwide, businesses can benefit from understanding the various noncompensation-related factors that can help contribute to greater workplace satisfaction.

Workplace Initiatives

One way for companies to attract and retain high quality workers is to broaden their family and medical leave policies. From an employee’s perspective, the guarantee of a job at the end of such a leave is an extremely desirable aspect of an overall benefits package. Employers can benefit too, since low employee turnover decreases training costs and results in fewer disruptions to continuity. Thus, many companies recognize that it makes good business sense to adopt a family-friendly approach, because the benefits outweigh—or at least offset—the costs that may otherwise be incurred.

Under the Family and Medical Leave Act (FMLA) of 1993, businesses with more than 50 employees are required to provide eligible employees with up to 12 weeks of unpaid leave for childbirth, adoption, or the serious illness of an employee or immediate family member. However, small businesses—to which the FMLA does not apply—are not required to do so, but may voluntarily choose to enact benevolent leave policies.

According to a U.S. Department of Labor (DOL) report, Balancing the Needs of Families and Employers: Family and Medical Leave Surveys 2000 Update, more than 35 million employees had taken leave under the FMLA as of the year 2000. The DOL reported that 78.7% of employees who took leave under the FMLA felt that their time off had a positive effect on their ability to care for family members, and 93.5% felt their leave enabled them to more easily comply with instructions from their doctors. In addition, 83.7% felt their leave sped up their recovery (DOL, 2000).

In terms of business productivity, profitability, and growth, employers subject to FMLA regulations generally felt the legislation had no noticeable impact on their operations. To cover for an employee’s absence, 98.3% of surveyed establishments temporarily assigned work to other employees. Furthermore, of all companies surveyed (including those not subject to the FMLA), approximately one out of five offer leave beyond the 12 weeks guaranteed by the FMLA (DOL, 2000).

Coverage Concerns

While many employers may theoretically favor the idea of family and medical leave, it is not surprising that they may be concerned about how to provide adequate work coverage during an extended leave. Assigning the work to other employees or outsourcing certain functions may be practical in some cases, but not in others.

Fortunately, the rise in the number of qualified individuals working for temporary help agencies offers a contemporary solution. In the past, “temps” may have been viewed as less qualified workers. However, today, it’s rapidly becoming clear that more and more individuals are choosing temping as an alternative work style. Also, today’s temps are available for all types and levels of positions. Whether a company needs a short-term secretary, graphic designer, engineer, computer programmer, or even a chief financial officer, temporary agencies now exist to fill the bill.

It Makes Good Business Sense

A family-friendly work environment can offer benefits for all parties in a workplace. Workers who have chosen temping as an alternative work style benefit from the recognition that they can step in and make valuable short-term contributions. Employees benefit when their employers recognize and support their need to care for newborns and aging parents, and when they provide job security during medical leaves. Finally, small businesses gain by reducing turnover and retaining skilled employees.

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