What's Happening?
Sedgwick, a leading risk and claims administration company, has published its latest Workforce Absence and Disability Trends Report. The report highlights key trends from 2025 and offers predictions for 2026,
focusing on the evolving landscape of workforce absence management. It addresses the impact of emerging technologies, such as AI, on absence management and the future of work. The report also discusses the challenges HR leaders face in adapting to shifting regulations, including changes in Department of Labor priorities and compliance rules under the Family and Medical Leave Act (FMLA) and Americans with Disabilities Act (ADA). Key trends identified include the increasing importance of flexible benefits, the rise of mental health issues as a leading cause of employee absence, and the need to rethink return-to-work strategies in a flexible work environment.
Why It's Important?
The report is significant as it provides HR leaders with insights into managing workforce absence in a rapidly changing environment. With the rise of mental health issues and the adoption of AI, companies must adapt their policies to maintain productivity and compliance. The report's predictions for 2026, such as potential expansions in paid family and medical leave and changes to the Pregnancy Workers Fairness Act, highlight the need for organizations to stay informed about regulatory developments. These insights are crucial for companies to safeguard resources, ensure compliance, and support employee well-being, ultimately impacting their ability to thrive in a competitive market.
What's Next?
Sedgwick's report suggests that HR leaders should prepare for potential regulatory changes and the increasing role of AI in absence management. Organizations may need to adjust their policies to accommodate new federal and state regulations, particularly regarding paid family and medical leave. Additionally, companies should consider how AI can be leveraged to improve absence management and forecasting. As the workforce landscape continues to evolve, staying ahead of these trends will be essential for maintaining compliance and supporting employee health and productivity.
