Each of these types of leave of absence has its own eligibility requirements and administrative process, which can complicate leave management and make compliance with federal and state regulations difficult. To get a better handle on employee absence and leave management administration, benefit integration has become a potential solution. Initiatives to reduce illness and disability absences, as well as health-related lost productivity, are being recognized as an investment with a positive impact on the bottom line.

When asked what benefits were achieved through program integration, employers in the Spring Consulting survey said:

• Consistent administration
• Better tracking or reporting
• Easier or better experience for employees
• Reduced costs
• Increased control
• Improved compliance

The Role of Consultant
Much of the activity surrounding program integration has been with larger employers, or those with more than 1,000 employees. Familiarity with the concept of integrated benefits was twice as high among brokers who focus on the larger employer market than it was for brokers whose primary focus was on employers with 500 to 999 employees, according to The Hartford’s 2010 Producer Study. That is beginning to change, however.

Research by the Integrated Benefits Institute found interest in benefits integration among publicly traded for-profit employers with more than 500 employees was high. When asked which programs should be integrated, brokers in The Hartford’s survey said they felt that all combinations were important, but in particular, disability and workers compensation or disability and FMLA were seen as very important or critical.

The Hartford’s survey found that more than one-third of the brokers who target employers with 500 or more employees said outsourcing leave management and benefit administration is very important or critical to their clients. For many employers, employee absence has become an urgent matter in need of a solution. This is especially true with today’s reduced work force, where even a single worker’s absence may impact productivity.

The ability to control lost-work time due to employee absence and effectively address the administrative challenges associated with multiple benefits programs is a goal for employers of any size. Brokers can help them reach that goal by working closely with vendors to drive innovation to ease administrative burdens, reduce lost-work time, and better manage employee absence.

By educating employers on benefits integration, brokers can:

• Respond to a developing market need
• Gain recognition among employers as a knowledgeable consultant
• Leverage existing relationships to expand book of business
• Support internal cross-selling opportunities
• Increase sales
• Improve customer retention