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3 Reasons to Consider Outsourcing Leave Management

FMLA InfographicIn the HR world, leave management can encompass several responsibilities.  It includes training all managers on keeping accurate attendance records, coaching employees on how to request time off, and most importantly, the very time-consuming piece of keeping up with changes to federal, state or local laws while administering medical leave if applicable.

Paid time off has a significant financial impact on a company’s bottom line, and unpaid time off from work can lead to low morale and productivity decline. Consistent and accurate leave management helps the Finance and HR Departments sleep better at night, knowing that their employees’ needs are met.

Here are three areas to consider that may help you determine if outsourcing leave management might make sense for your company.  And good news: Purple Ink can help!

  1. Do you currently have a dedicated team member or benefits representative administering leave management?  In some large employers, this might be a full time equivalent, or for smaller employers, your one HR person might be responsible.  Ask yourself if your benefits team is overwhelmed. A Guardian Life Insurance Company of America study has found “the additional duties of managing benefits costs, improving administrative efficiency and maintaining plan compliance, ‘all while trying to improve workforce health and productivity,’ is pushing employers far out of their comfort zones.”  Often, leave management falls to the bottom of the to do list and deadlines are missed.  This can put your company at risk for non-compliance and lead to additional fines.  If you think your company could use an additional resource, Purple Ink can help –  and this frees your staff up to work on more productive tasks.
  2. Is your company keeping accurate records and consistently administering family medical leave?  Are all managers aware of when to ask an employee to contact HR for FMLA?  Employees must provide 30 days’ notice for a foreseeable leave or as soon as practicable for an unforeseen leave.  Is this happening?  Is your HR representative providing the Family Medical Leave Designation Notice within 5 business days of the required medical information from the employee?  Purple Ink can help streamline this process and avoid any delay to keep you in line with federal and state requirements.
  3. What is your company culture?  Do you have staff or management that feels some departments’ requests for leave are handled differently, or are managers getting too involved in the process?  Outsourcing leave management can help shield businesses from learning details of FMLA, which can help decrease the likelihood that HIPAA rights will be violated and avoid future lawsuits.  Yes, your company and HR team will stay involved if you outsource FMLA, but you might find that both the employer and employee are more at ease dealing with a neutral party.

If you have considered this in the past and think it might be the time, reach out to Purple Ink to schedule a leave management consultation. We have dedicated consultants that will ultimately save you time and money, and most importantly, give you peace of mind that you are consistent, compliant and responsible with leave management.

Laura North
Laura North
Laura is a Purple Ink Consultant with over a decade of human resources experience in the healthcare and insurance sectors. She thrives for all levels of employees to understand and truly utilize their benefits to the fullest potential.

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