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Why Should You Outsource Disability and Absence Management?

HR discussing absence management services.

Is outsourcing benefits administration right for your company?

When it comes to managing employee leaves, there is a lot to consider, from the staff and time needed to track and administer absences, to the expertise needed to stay compliant with ever-changing regulations. Not to mention lost productivity and the poor employee experience that can result from mismanagement. 

Today, more employers of all sizes are turning to external resources to help manage employee absences. In fact, many are outsourcing their Short Term Disability (STD) and Family and Medical Leave (FML) administration to the same vendor.

Given that most FML requests are related to an employee’s own health issue, centralizing absence management with disability coverage makes good sense and has proven to be a best practice that drives better outcomes.

Did you know?*

  • More than four in 10 employers outsource both their STD and FMLA administration — up significantly (175%) from 2012 — and most of those (86%) use a single vendor to handle both leave types.
  • Large companies continue to place greater emphasis on proactively managing leaves and absences.
  • However, efforts to increase absence management activity intensified across all employer segments, especially among employers with fewer than 1,000 employees.


Download our flyer to learn key reasons why employers are choosing to outsource and how it can benefit your company.


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2015 Guardian Absence Management Study
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2013 Absence Management Activity Study

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