Skip to main content
  • Foundation
  • Executive network
  • CEO Circle
  • Enterprise Solutions
  • Linkage Logo
  • Store
  • Sign In
  • Account
    • My Account
    • Logout
    • Global
    • India
    • MENA
SHRM
About
Book a Speaker
Join Today
Renew
Rejoin Now
Renew
  • Membership
  • Certification
    Certification

    Smiling asian student studying in library with laptop books doing online research for coursework, making notes for essay homework assignment, online education e-learning concept
    Get Certified!

    Be recognized as an HR leader with your SHRM-CP or SHRM-SCP credential.

    • How to Get Certified

      Demonstrate your ability to apply HR principles to real-life situations. No other HR certification compares.

      • How to Get Certified
      • Eligibility Criteria
      • Exam Details and Fees
      • SHRM-CP
      • SHRM-SCP
      • Which Certification is Best for Me
      • Certification FAQs
    • Prepare for the Exam

      Give yourself the best chance to pass your SHRM certification exam.

      • Exam Preparation
      • SHRM BASK
      • SHRM Learning System
      • Instructor-Led Learning
      • Self-Study
      • Study Aids & Add-ons
    • Recertification

      Recertify your SHRM Credentials before your end date!

      • Specialty Credentials
      • Qualifications
  • Topics & Tools
    Topics & Tools

    Stay up to date with workplace news and leverage our vast library of resources to streamline day-to-day HR tasks.

    The white house in washington, dc.
    Executive Order Impact Zone

    Do not abandon, but evaluate and evolve. It is about legal, equal opportunity for all.

    • News & Trends

      Follow breaking news and emerging workplace trends.

      Legal & Compliance

      Stay informed on workplace legal updates and their impacts.

      From the Workplace

      Explore diverse perspectives from your peers on today's workplaces.

      Flagships

      Get curated collections of podcasts, videos, articles, and more produced by SHRM.

    • HR Topics
      • AI in the Workplace
      • Civility at Work
      • Compensation & Benefits
      • Inclusion & Diversity
      • Talent Acquisition
      • Workplace Technology
      • Workplace Violence Prevention
      SEE ALL
      SHRM Research
    • Tools & Samples

      Access member resources and tools to streamline HR tasks.

      • Forms & Checklists
      • How-To Guides
      • Interactive Tools
      • Job Descriptions
      • Policies
      • Toolkits
      SEE ALL
      Ask an Advisor
  • Events & Education
    Events & Education

    SHRM25 in San Diego, June 29 - July 2, 2025
    Join us for SHRM25 in San Diego

    Register for the World’s Largest HR Conference being held on June 29 - July 2, 2025

    • Events
      • SHRM25
      • The AI+HI Project 2025
      • INCLUSION 2025
      • Talent 2026
      • Linkage Institute 2025
      SEE ALL
      Webinars
    • Educational Programs

      Designed and delivered by HR experts to empower you with the knowledge and tools you need to drive lasting change in the workplace.

      Specialty Credentials

      Demonstrate targeted competence and enhance credibility among peers and employers.

      Qualifications

      Gain a deeper understanding and develop critical skills.

    • Team Training & Development

      Customized training programs unique to your organization’s needs.

  • Business Solutions
  • Advocacy
    Advocacy

    Make your voice heard on public policy issues impacting the workplace.

    Advocacy
    SHRM's President & CEO testifies to Congress on "The State of American Education"
    • Policy Areas
      • Workforce Development
      • Workplace Inclusion
      • Workplace Flexibility & Leave
      • Workplace Governance
      • Workplace Health Care
      • Workplace Immigration
      State Affairs

      SHRM advances policy solutions in state legislatures nationwide.

      Global Policy

      SHRM is the go-to for global HR leaders and businesses on workplace matters.

    • Advocacy Team (A-Team)

      SHRM’s A-Team is a key member benefit, giving you the tools, insights, and opportunities to shape workplace policy and drive real impact.

      Take Action

      Urge lawmakers to support policies that create lasting, positive change.

      Advocacy & Legislative Resources

      Access SHRM’s curated policy materials and content.

    • SHRM-Led Coalitions
      • Generation Cares
      • The Section 127 Coalition
      • Learn More & Partner with SHRM Government Affairs
  • Community
    Community

    Woman raising hand in group
    Find a SHRM Chapter

    Easily find a local professional or student chapter in your area.

    • Chapters

      Find local connections from over 607 chapters and state councils and create your personalized HR network.

      SHRM Connect

      Post polls, get crowdsourced answers to your questions and network with other HR professionals online.

      SHRM Northern California

      Join SHRM members in the greater San Francisco Bay area for local events and networking.

    • Membership Councils

      Learn about SHRM's five regional councils and the Membership Advisory Council (MAC).

      • Membership Advisory Council
      • Regional Councils
    • Volunteers

      Learn about volunteer opportunities with SHRM.

      • Volunteer Leader Resource Center
Close
  • Membership
  • Certification
    back
    Certification
    Smiling asian student studying in library with laptop books doing online research for coursework, making notes for essay homework assignment, online education e-learning concept
    Get Certified!

    Be recognized as an HR leader with your SHRM-CP or SHRM-SCP credential.

    • How to Get Certified

      Demonstrate your ability to apply HR principles to real-life situations. No other HR certification compares.

      • How to Get Certified
      • Eligibility Criteria
      • Exam Details and Fees
      • SHRM-CP
      • SHRM-SCP
      • Which Certification is Best for Me
      • Certification FAQs
    • Prepare for the Exam

      Give yourself the best chance to pass your SHRM certification exam.

      • Exam Preparation
      • SHRM BASK
      • SHRM Learning System
      • Instructor-Led Learning
      • Self-Study
      • Study Aids & Add-ons
    • Recertification

      Recertify your SHRM Credentials before your end date!

      • Specialty Credentials
      • Qualifications
  • Topics & Tools
    back
    Topics & Tools

    Stay up to date with workplace news and leverage our vast library of resources to streamline day-to-day HR tasks.

    The white house in washington, dc.
    Executive Order Impact Zone

    Do not abandon, but evaluate and evolve. It is about legal, equal opportunity for all.

    • News & Trends

      Follow breaking news and emerging workplace trends.

      Legal & Compliance

      Stay informed on workplace legal updates and their impacts.

      From the Workplace

      Explore diverse perspectives from your peers on today's workplaces.

      Flagships

      Get curated collections of podcasts, videos, articles, and more produced by SHRM.

    • HR Topics
      • AI in the Workplace
      • Civility at Work
      • Compensation & Benefits
      • Inclusion & Diversity
      • Talent Acquisition
      • Workplace Technology
      • Workplace Violence Prevention
      SEE ALL
      SHRM Research
    • Tools & Samples

      Access member resources and tools to streamline HR tasks.

      • Forms & Checklists
      • How-To Guides
      • Interactive Tools
      • Job Descriptions
      • Policies
      • Toolkits
      SEE ALL
      Ask an Advisor
  • Events & Education
    back
    Events & Education
    SHRM25 in San Diego, June 29 - July 2, 2025
    Join us for SHRM25 in San Diego

    Register for the World’s Largest HR Conference being held on June 29 - July 2, 2025

    • Events
      • SHRM25
      • The AI+HI Project 2025
      • INCLUSION 2025
      • Talent 2026
      • Linkage Institute 2025
      SEE ALL
      Webinars
    • Educational Programs

      Designed and delivered by HR experts to empower you with the knowledge and tools you need to drive lasting change in the workplace.

      Specialty Credentials

      Demonstrate targeted competence and enhance credibility among peers and employers.

      Qualifications

      Gain a deeper understanding and develop critical skills.

    • Team Training & Development

      Customized training programs unique to your organization’s needs.

  • Business Solutions
  • Advocacy
    back
    Advocacy

    Make your voice heard on public policy issues impacting the workplace.

    Advocacy
    SHRM's President & CEO testifies to Congress on "The State of American Education"
    • Policy Areas
      • Workforce Development
      • Workplace Inclusion
      • Workplace Flexibility & Leave
      • Workplace Governance
      • Workplace Health Care
      • Workplace Immigration
      State Affairs

      SHRM advances policy solutions in state legislatures nationwide.

      Global Policy

      SHRM is the go-to for global HR leaders and businesses on workplace matters.

    • Advocacy Team (A-Team)

      SHRM’s A-Team is a key member benefit, giving you the tools, insights, and opportunities to shape workplace policy and drive real impact.

      Take Action

      Urge lawmakers to support policies that create lasting, positive change.

      Advocacy & Legislative Resources

      Access SHRM’s curated policy materials and content.

    • SHRM-Led Coalitions
      • Generation Cares
      • The Section 127 Coalition
      • Learn More & Partner with SHRM Government Affairs
  • Community
    back
    Community
    Woman raising hand in group
    Find a SHRM Chapter

    Easily find a local professional or student chapter in your area.

    • Chapters

      Find local connections from over 607 chapters and state councils and create your personalized HR network.

      SHRM Connect

      Post polls, get crowdsourced answers to your questions and network with other HR professionals online.

      SHRM Northern California

      Join SHRM members in the greater San Francisco Bay area for local events and networking.

    • Membership Councils

      Learn about SHRM's five regional councils and the Membership Advisory Council (MAC).

      • Membership Advisory Council
      • Regional Councils
    • Volunteers

      Learn about volunteer opportunities with SHRM.

      • Volunteer Leader Resource Center
Join Today
Renew
Rejoin Now
Renew
  • Store
    • Global
    • India
    • MENA
  • About
  • Book a Speaker
  • Foundation
  • Executive network
  • CEO Circle
  • Enterprise Solutions
  • Linkage Logo
SHRM
Sign In
  • Account
    • My Account
    • Logout
Close

  1. Topics & Tools
  2. Workplace News & Trends
  3. Choosing the Right Leave Management Vendor Pays Off
Share
  • Linked In
  • Facebook
  • Twitter
  • Email

Lorem ipsum dolor sit amet, consectetur adipiscing elit. Vivamus convallis sem tellus, vitae egestas felis vestibule ut.


Error message details.

Copy button
Reuse Permissions

Request permission to republish or redistribute SHRM content and materials.


Learn More
News

Choosing the Right Leave Management Vendor Pays Off

October 5, 2021 | Dave Zielinski

A woman working on a computer with a spreadsheet on it.


​Leave management ranks among HR's most challenging tasks since it requires balancing employees' needs with a complex web of legal regulations.

As organizations continue to add new types of leave and the leave management process grows more daunting, more HR departments are choosing to outsource parts of the process to third-party administrators. Providers of software-as-a-service (SaaS) platforms can remove much of the compliance and leave tracking burden. Application programming interfaces (APIs) make it easier and more reliable to integrate third-party leave software with existing human resource information systems (HRIS) and payroll systems.

But not all leave management software vendors are created equal. Experts suggest using a comprehensive set of criteria when evaluating and choosing an SaaS partner.

Advantages of Outsourcing

Leave management software vendors can automate leave workflows and required employee communications; automatically update HR leaders when new federal, state or local leave regulations are passed; and handle complex tasks like leave-related payroll calculations.

Studies show organizations are placing a new strategic focus on absence management by creating more formal programs and policies around the issue. Gallagher's 2021 Workforce Trends Report on physical and emotional well-being found the number of companies that will apply a structured approach to absence management is expected to grow from 50 percent to 63 percent within two years.

The Gallagher study found that most HR priorities regarding leave management are still centered around complying with federal, state and municipal regulations, with 55 percent of survey respondents citing such compliance as a top priority. The impact of absence on productivity was another significant concern, with 40 percent of respondents listing it as a top priority. A third concern was educating line managers on available leave types and requirements related to complying with regulations.

Experts say one of the biggest advantages of third-party software providers is they help HR more efficiently track all aspects of employee leave and take many routine tasks off their plates. The software can track employees who take a variety of leave types, monitor return-to-work dates, send deadline notifications, integrate with centralized team calendars and also educate employees, in plain language, about how leave works. 

"The best platforms allow HR to track all employees who are on leave in detail and report back easily to managers," said Rich Fuerstenberg, a senior partner with research and advisory firm Mercer. "You no longer have to use ad hoc reporting methods or spreadsheets for that purpose."

Software vendors also can help HR stay abreast of ever-evolving federal, state and municipal regulations tied to administering leave, Fuerstenberg said.

"Most providers update changes to federal or state regulations around leave automatically in their systems," he said. "You may know New York law like the back of your hand but aren't as clear about the law in California, Washington or Massachusetts. The top vendors will keep you updated and push out any changes to those regulations automatically."

Jackie Reinberg, a senior director of the absence, disability management and life practice at Willis Towers Watson, said leave management software platforms can help HR create consistent, custom and real-time leave communications, documentation and audit trails.

"These platforms also allow HR to create customized reporting and analytics," Reinberg said. "Many also offer intuitive employee and employer portals to manage leaves and help organizations measure the employee experience."

Fuerstenberg said employee portals in particular can help create a better leave experience for workers. Many have features that explain complex leave policies to employees in understandable terms and have a variety of self-service features.

"Employees also can use the portals to see if a current leave request has been approved and for how long or to report intermittent leave like taking a family member to the doctor under the FMLA," Fuerstenberg said. "Some portals also allow employees to upload relevant information if their condition changes, like medical documents or notes from doctors."

Other features are systems that combine human and machine talent to perform leave-related payroll calculations.

"We account for all of the qualifying factors that determine an employee's payout scenario while they are on leave," said Jennifer Henderson, founder and CEO of TiLT, a leave management technology platform in Fort Collins, Colo. "That includes the amount as well as duration of pay as well as factoring in various pay inputs." Those inputs might include states that have passed paid-leave legislation, information from other third-party administrators related to short- or long-term disability leave, or data from the client company itself, she said.

"That jigsaw puzzle of pay can be complex to manage and open to human error if it's not properly automated," Henderson said. "What we do is allow machines to do what machines do best for HR clients and for people to do what people do best."

Improved APIs Ease Integration Concerns

One reason HR leaders have been reluctant to outsource leave administration is a concern about giving up control of payroll cycles or HR data to third-party providers. Employee leave touches multiple computer systems and, in the past, outsourcing required setting up reverse file feeds with external providers to existing payroll or HRIS platforms, which can be a time-consuming and costly process.

But Fuerstenberg said more vendors are now using advanced APIs that more easily integrate disparate technology platforms and make most of those old concerns moot.

"Third-party software vendors have invested much more in API connectivity," he said. "For employers who've been reluctant to outsource, these technology improvements make system interoperability much smoother than in the past, and data updates now happen in real time, not as overnight batch files."

How to Evaluate Leave Management Vendors

Experts suggest using a number of key criteria when choosing a leave management technology provider. General criteria to help differentiate SaaS providers should include ability and experience interfacing with a client's HRIS, payroll and time and attendance systems; real-time eligibility determination and implementation support; employee training; and embedded compliance features.

Reinberg also recommends using these specific criteria when evaluating leave software vendors:

  • Ability to effectively communicate with employees throughout the leave process. "That includes the ability to e-mail, two-way texting and customizing communications to meet the unique needs of the organization," Reinberg said.
  • Bidirectional data feeds or modern APIs that allow the leave software provider to easily integrate with an existing payroll or HRIS platform. "In addition, you want the provider to be able to interface with other leave programs that an employer may outsource, like short-term disability and workers' compensation where appropriate," Reinberg said.
  • Artificial intelligence that allows for variable or personalized distribution of e-mail, correspondence and data storage. Vendors are increasingly using AI for tasks like reviewing claim notes to look for clinical opportunities that claim managers may miss, experts say.
  • Scope of technology issues. Assess any limits a vendor may have on the number and type of leaves, ability to capture organizational structure details, and customization of letter suites and automated processes, Reinberg said.

Dave Zielinski is a freelance business writer and editor in Minneapolis.

Benefits
Leave Management
Technology

Artificial Intelligence in the Workplace

​An organization run by AI is not a futuristic concept. Such technology is already a part of many workplaces and will continue to shape the labor market and HR. Here's how employers and employees can successfully manage generative AI and other AI-powered systems.



Related Content

Kelly Dobbs Bunting speaks onstage at SHRM24
(opens in a new tab)
News
Why AI+HI Is Essential to Compliance

HR must always include human intelligence and oversight of AI in decision-making in hiring and firing, a legal expert said at SHRM24. She added that HR can ensure compliance by meeting the strictest AI standards, which will be in Colorado’s upcoming AI law.

(opens in a new tab)
News
A 4-Day Workweek? AI-Fueled Efficiencies Could Make It Happen

The proliferation of artificial intelligence in the workplace, and the ensuing expected increase in productivity and efficiency, could help usher in the four-day workweek, some experts predict.

(opens in a new tab)
News
How One Company Uses Digital Tools to Boost Employee Well-Being

Learn how Marsh McLennan successfully boosts staff well-being with digital tools, improving productivity and work satisfaction for more than 20,000 employees.

HR Daily Newsletter

Stay up to date with the latest HR news, trends, and expert advice each business day.

Success title

Success caption

Manage Subscriptions
  • About SHRM
  • Careers at SHRM
  • Press Room
  • Contact SHRM
  • Book a SHRM Executive Speaker
  • Advertise with Us
  • Partner with Us
  • Copyright & Permissions
  • Post a Job
  • Find an HR Job
Follow Us
  • LinkedIn
  • Facebook
  • Twitter
  • Instagram
  • YouTube
  • SHRM Newsletters
  • Ask An Advisor

© 2025 SHRM. All Rights Reserved

SHRM provides content as a service to its readers and members. It does not offer legal advice, and cannot guarantee the accuracy or suitability of its content for a particular purpose. Disclaimer


  1. Privacy Policy

  2. Terms of Use

  3. Accessibility

Join SHRM for Exclusive Access to Member Content

SHRM Members enjoy unlimited access to articles and exclusive member resources.

Already a member?
Free Article
Limit Reached

Get unlimited access to articles and member-exclusive resources.

You've reached the limit of 1 free article this month. Join to access unlimited articles and member-only resources.

Already a member?
Free Article
Exclusive Executive-Level Content

This content is for the SHRM Executive Network and Executive Content Subscription members only.

You've reached the limit of 1 free article this month. Join the Executive Network and enjoy unlimited content.

Already a member?
Free Article
Exclusive Executive-Level Content

This content is for the SHRM Executive Network and Executive Content Subscription members only.

You've reached the limit of 1 free article this month. Join and enjoy unlimited access to SHRM Executive Network Content.

Already a member?
Unlock Your Career with SHRM Membership

Please enjoy this free resource! Join SHRM for unlimited access to exclusive articles and tools.

Already a member?

Your membership is almost expired! Renew today for unlimited access to member content.

Renew now

Your membership has expired. Renew today for unlimited access to member content.

Renew Now

Your Executive Network membership is nearing its expiration. Renew now to maintain access.

Renew Now

Your membership has expired. Renew your Executive Network benefits today.

Renew Now