According to Aon Hewitt’s new absence management report, 85 percent of employers rank robust subject matter expertise regarding compliance as the most important component when measuring an absence management program’s success.
Of the 200 surveyed U.S. employers, which represent more than 3 million employees, 66 percent of respondents say improved employee productivity, behind compliance, is the next most important factor.
“We know during the recession, human resource departments were forced to do more with less, showing they could improve productivity while lowering costs,” says Matt Morris, senior counsel and leaves of absence practice leader for Aon Hewitt. “Yet our survey shows these same departments value compliance support above all else in measuring a successful program, which is understandable, given a decrease in resources and an increase in state and federal legal complexity. This includes outcomes such as productivity and cost.”
The report also shows that 79 percent of employers have fully or partially incorporated their leave of absence administration with non-occupational disability programs, such as salary continuation, short-term disability and long-term disability. Sixty-nine percent have fully or partially incorporated with occupational disability and workers’ compensation programs.
Improved compliance ranks as the main factor in ensuring a successful absence management program by 52 percent of respondents, which was followed by enhanced data and reporting at 45 percent, better outcomes at 43 percent and improved employer experience at 42 percent. Compensation and health care are also named as the two most vital services to be incorporated with absence management programs.
“These survey responses illustrate how employers value the integration of absence management with related HR processes,” Morris says. “Clearly, the link between payroll, the health care administrator and absence management is critical. Two of the most frequently asked questions when an employee is on leave are, ‘What will happen to my pay?’ and, ‘What will happen with my benefits?’ An integrated program helps in dealing with these issues successfully.”
Forty-one percent of employers outsource their leave of absence programs, a jump from 30 percent in 2008 and 17 percent in 2004. Among those employers, 80 percent say outsourcing offers better compliance with laws and regulations. Eighty percent also believe a more timely distribution of required notifications exists with outsourcing while 79 percent say there is more consistent administration. Additionally, 29 percent of these employers anticipate increasing the degree of leave of absence outsourcing programs over the following 12 to 18 months.
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