Cocoon manages paid leave policies so employers can focus on their people

Can your paid leave policies get employees to stay? 

Family leave benefits have become a crucial tool in recruiting and retaining employees, but managing the logistics of insurance claims and state regulations is a headache for employers. However, putting people first sends a message that employees are apt to respond to, says Lauren Dai, chief operating officer and co-founder of Cocoon, a leave management platform. 

"Employers are looking for a green light to tell their people, we're a company that cares not only about what you produce as an engineer, as a finance person, as a lawyer, but also who you are as a person and your holistic experience," Dai says. 

Cocoon helps employers provide that experience by simplifying and automating the leave process. The platform automates insurance filings and guides employers through compliance challenges, while also streamlining payroll changes for employees. Cocoon also offers educational resources for managers and employees, to help build a supportive plan around their time away. 

Read more: A social media campaign is starting a nationwide conversation about paid family leave

Additionally, Cocoon is tackling the stigma and secrecy around paid leave, and released benchmark data revealing the policies of 108 companies in the tech space. Dai says these conversations can foster more inclusive policies and greater transparency across all industries. 

Dai chatted with EBN about why it's critical to offer comprehensive paid leave, and what inspired her and her co-founder to start their business.  

How has the conversation around family leave changed in the wake of COVID? 
It used to be that people thought of leave and the benefits around leave as something that was less of a focus, compared to your typical benefits around health insurance or even things that are perks, like lunch benefits and so on. What we've learned during COVID is that these life moments that we need leave for — whether it's having a baby or caring for an older parent — don't happen that frequently. And when they do happen, it really matters. There are very few of these inflection points in people's lives and careers, and it's at those points where we're seeing people either fall in love with their company all over again or not. 

Cocoon released benchmark data revealing leave times across industries — how can that transparency make an impact on employees? 

Lauren Dai, COO of Cocoon

The reason we started Cocoon was to make this something that we wanted for ourselves and our friends and family. When I first shared the idea with my mom, who is originally from China and is a wonderful scientist, she teared up, because even though she had access to caregiver leave and bereavement leave, she never took it. I never knew she was struggling with that, she didn't share that with me, and I think a lot of caregivers go through that invisible struggle. When I asked her why, she shared that she felt that there was already so much that you're battling against, as a woman of color in technology or in science. To add one more thing, that feels so challenging.

Read more: Haleon is giving workers 26 weeks of paid parental leave 

Certainly these benchmarks help companies figure out what's competitive for them, but it really helps normalize something that all of us go through and all of us need, and that can make us better contributors to our companies long-term.

What needs to change about leave policies, and how is Cocoon moving the needle? 
We've been at companies that have the most incredibly generous benefits in the world, and yet we still hear stories where friends of ours are being wheeled into surgery bringing their laptops with them to try and apply for disability insurance, or going through six weeks with only half of their paycheck because they're waiting for that check to come from their state or insurance company. To have that stress around your own livelihoods during a time when you're having a baby or going through surgery or caring for an older family member, it's very difficult. 

The reason we started Cocoon is to make this something that can be as instant and simple and as big-hearted as possible. How can we make leave as easy as Apple Pay, where in under 10 minutes, you understand your time and your pay, and you've got your insurance claims taken care of so you can focus on your family. We truly are advocates, not just for access to paid leave in terms of things like time and pay, but also the experience for people. Our mission is to take the work and that stress and anxiety out of leave for both people, and for the employers who care deeply about their people. And then additionally, to expand access to leave to more people.

What can employers do to make sure their leave is comprehensive, and also stress-free for their employees? 
The biggest question we get asked is, what should our leave benefit be? That's the best place to start — for HR leaders, it's so complicated. You want to be competitive, but you're also worried because you have people in California and Utah and New York, and the regulations are constantly evolving, too. Talk to some of your peers and look at some of the benchmarking data that's out there. 

Read more: How paid leave can be a financial safety net for your employees

Also, empower your people — and I don't mean just the people taking leave, but importantly, the people who are supporting those people, especially managers who can help you transition and craft a leave plan, figure out how things work while you're out, and then return to work and ramp back in. can make a difference. Employers want to do the best for their employees, but they don't always know how to make it happen. So these conversations are super helpful for that.