Lost productivity through employee absences exacts a significant toll on employers. Net labor replacement costs, continuation of group health benefits, and administrative burden also factor in to the high cost of FMLA compliance. So, it's not surprising that intermittent FMLA leave and reporting were named the two biggest absence management challenges by participants of the "Best Practices for Absence Management" session at the 2010 Benefits Forum & Expo in September. 

FMLA Leave Administration: How to reduce administrative costs and productivity loss

 

Lost productivity through employee absences exacts a significant toll on employers. Net labor replacement costs, continuation of group health benefits, and administrative burden also factor in to the high cost of FMLA compliance. So, it's not surprising that intermittent FMLA leave and reporting were named the two biggest absence management challenges by participants of the "Best Practices for Absence Management" session at the 2010 Benefits Forum & Expo in September

FMLA facts and statistics
Consider:
  • Between 4% and 10% of U.S. employees are absent on any given day. (Employee Benefit News September 2010)
  • Lost time claims can cost organizations more than $19,000 per employee per year. (Employee Benefit News September 2010)
  • It takes employers an average of 2.5 hours to manage a single FMLA case. (SHRM, July 2007)
  • It costs employers an average of $78,000 to defend an FMLA lawsuit, regardless of outcome (U.S. Department of Labor Wage and Human Resource Division 2006)
  • Employers using decentralized FMLA management are more at risk of over-entitling their employees to FMLA leaves. (Mercer, Sept 2009)
A stress-free transition back to productivity

An employee on leave needs income - and for employers, a disabled employee means lost productivity. Whether it's the birth of a newborn, time off to care for an ailing family member, or a serious illness that disables an employee, the reasons behind the decision to request FMLA leave are often emotional.

As workers look first to their employers for guidance, it's important to become an advocate for the employee, to process the claim efficiently and to provide the education and resources that will help establish the safest, most effective return-to-work program. With the growing complexity of FMLA laws, the of risk of noncompliance rises and adds to the administrative burden.

Is your HR department equipped to process and coordinate leaves expeditiously and make sure your employees receive the services they need to return to work as quickly as possible, and in a positive frame of mind?

Considerations for outsourcing your leave administration

Can any other FMLA administration carrier say yes to all these services?

  • Administer federal and state FMLA leave requests seamlessly
  • Calculate entitlement using all methods - rolling back, rolling forward, calendar or other fixed dates
  • Administer continuous, intermittent and reduced schedule leave types
  • Provide first level clinical review of questionable FMLA medical certifications
  • Manage 2nd/3rd opinion management
  • Send timely notifications to employees, including notification of rights under FMLA
  • Manage absence through return to work, FMLA exhaustion or employee no longer qualifying for leave
  • Determine return to work verification

Health and productivity solutions for employer and employee
Learn how you can increase both productivity and your bottom line with Ceridian Absence Management, a truly full service option. Contact Ceridian today to get started, 1-800-729-7655.