A Liberty Mutual survey shows that employers fail to take advantage of absence data they collect to manage the costly impact of employees being away from work.
The survey of 300 human resource and benefits professionals show that almost half did not know the costs associated with employee absences. However, more than half ranked understanding and complying with state and federal leave laws as their greatest organizational concern.
"It's impossible to effectively manage a program and its related costs without knowing the impact on the organization," notes Heather Luiz, disability product manager for Liberty Mutual Group Benefits.
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"While employers are clearly aware of how important it is to comply with leave regulations —and are therefore tracking these leaves—many haven't taken steps to use the data they collect to proactively manage absence and control the total financial impact on their companies," she says.
According to the U.S Department of Labor, absence costs employers $100 billion per year.
Liberty Mutual has published a white paper "The Missing Piece of Absence Management—Turning Data into Dollars" to highlight survey findings, as well as offer pieces of advice to employers.
Companies don't have to completely overhaul their way of doing business—the point is to start using data their advantage now, says the white paper: "Whether absence information is handled internally or outsourced, it's important to begin."
Employers can begin by working with outsourced disability carriers or other third-party administrator to develop reports on FMLA and other job-protected leave usage. Employers that manage leaves and/or disability themselves can use payroll, scheduling or human resources management systems data.
"An employer might even turn to its medical or workers compensation provider, broker, or consultant for recommendations on ways to analyze data and begin determining the cost of absence," states the report.
Employers should also review how absences are covered to help to determine the costs coming from overtime, temporary workers, and additional recruiting and training.
"Only after understanding the above costs will an organization be able to tackle the harder-to-quantify, and most likely larger, costs related to lost productivity resulting from employee burnout, missed deadlines, and reduced or delayed response to organizational imperatives," states the white paper.
"Employers already have the data in hand to remain compliant with state and federal regulations," notes Luiz. "We're encouraging them to use this information to better understand and control the cost of absence in their companies."
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