The Hidden Costs of Leave Administration

Managing employee leave is a crucial HR function, but for many organizations, it’s also a source of frustration, inefficiency, and risk. From navigating an ever-changing regulatory landscape to handling manual processes that drain productivity, leave administration can be a constant challenge. And when employees experience a confusing or inconsistent leave process, it doesn’t just impact HR — it affects engagement, retention, and overall workplace morale. 

Why organizations struggle with leave administration

While there are a variety of challenges organizations grapple with when it comes to leave administration, these three consistently rise to the top.

1. Compliance complexity creates risk

Keeping up with the evolving landscape of leave laws is one of the biggest hurdles for HR teams. Between the Family and Medical Leave Act (FMLA), the Americans with Disabilities Act (ADA), and a growing collection of state and local paid leave laws, organizations must continuously adapt to avoid noncompliance. 

The stakes are high: FMLA-related lawsuits cost organizations an average of $80,000 per claim, not to mention the damage to employee trust and company reputation. It’s no surprise that 79% of employers cite state and local paid leave laws as their number one challenge in leave administration. Additionally, nearly 7 in 10 employers rank compliance as a top concern, a sharp increase from 5 in 10 just a few years ago.

2. Inefficiency hurts productivity and morale

Without automation or integrated tools, leave administration often relies on labor-intensive manual processes, from eligibility checks and leave tracking to return-to-work coordination. These inefficiencies not only slow down HR workflows but also create bottlenecks that impact employees waiting for approvals and updates. 

HR departments are already stretched thin. More than half are understaffed, leading to 57% of HR professionals working beyond normal capacity. Instead of focusing on strategic HR initiatives, many are spending up to 57% of their time on administrative tasks. This lack of efficiency affects productivity across the organization and leaves little room for HR teams to support broader business goals.

3. A poor leave experience impacts retention

Taking leave should be a smooth and supportive process for employees. But in many organizations, it’s anything but. Confusing policies, lack of clear communication, and delays in approvals create frustration and uncertainty. Employees who struggle to navigate the leave process may feel unsupported, leading to decreased engagement and increased turnover. 

An inconsistent or complicated leave experience also places a heavier burden on HR teams, who must manage employee confusion, field repeated questions, and resolve issues that could have been avoided with a more structured and transparent process. 

A smarter approach to leave administration 

Organizations don’t have to struggle with these challenges alone. That’s why OneSource Virtual has launched our Leave Administration service — helping HR teams ensure compliance, reduce administrative burdens, and create a better leave experience for employees. 

Ensure compliance without the headache 

Our automated compliance tracking and real-time legal updates mean you’re always aligned with federal, state, and local leave laws, without manual effort. We ensure accurate documentation and record-keeping within Workday, monitor compliance through embedded tools and automation, and provide eligibility tracking and approval management aligned with legal requirements. Plus, we offer proactive updates to reflect changing regulations, so you never fall behind. 

Reduce HR’s workload while keeping full visibility 

We handle the entire leave management process — from eligibility checks to documentation — so HR teams can focus on more strategic initiatives. With end-to-end leave management, automated workflows for form processing and policy support, and seamless integration with Workday as the system of record, we eliminate the manual effort that slows HR down. At the same time, we keep HR fully informed with real-time updates and streamlined communication processes that reduce back-and-forth and ensure efficiency. 

Turn leave administration into a positive employee experience 

To ensure a positive employee experience, we provide an employee help center for policy and process support, self-service tools for initiating and reviewing leave requests, and proactive guidance to keep employees informed every step of the way. With clear, consistent communication throughout the leave process, employees feel supported, and HR spends less time managing uncertainty and fielding repetitive questions. 

Ready to simplify leave management? 

If leave administration is draining your HR resources and creating compliance risks, it’s time for a better solution. Our Leave Administration service helps you stay compliant, eliminate inefficiencies, and improve the employee experience — all within Workday. 

Learn more about our services or reach out to start a conversation today.