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LIFE●DISABILITYINCOME●INVESTMENTS●RETIREMENT●EMPLOYEEBENEFITS

Trends in Leave Administration Outsourcing

Gene Lanzoni, AVP Marketing June 14, 2016

The Guardian Life Insurance Company of America, 7 Hanover Square, New York, NY 10004. #2016-24107 (Exp. 6/18); GUARDIAN® and the GUARDIAN G® logo are registered service marks of The Guardian Life Insurance Company of America and are used with express permission.

© 2014 The Guardian Life Insurance Company of America. All rights reserved.

Leave Administration

1. Market Trends

2. Considerations & Challenges

3. Keys to Success


Market Trends

MOST EMPLOYERS ARE MAKING AN EFFORT…

8 in 10 employers are making at least some effort to manage absences

Source for all statistics cited is the 2015 Guardian Absence Management Activity Indexsm and Study


…BUT AREN’T ACHIEVING THE DESIRED RESULTS

Market Trends

Nearly half have not achieved goals for:



OBSTACLES EXIST FOR MANY EMPLOYERS

Market Trends

Handling Intermittent FMLA Leaves (59%) Applying Federal/State Leave Laws

(53%)

Lack of In-House Resources/Knowledge (42%)


© 2014 The Guardian Life Insurance Company of America. All rights reserved. 6

►  Compliance Complexity ►  Improved Efficiency ►  Better Employee Experience

Market Trends

ADMINISTRATION OUTSOURCING ON THE RISE

Drivers

Source for all statistics cited is the Third Annual Guardian Workplace Benefits Study


OUTSOURCING CAN LEAD TO BETTER OUTCOMES

19%

29%

46%OutsourceSTD&FML

OutsourceJustSTD

NoOutsourcing

% of Employers Reporting Highest Level of Positive Outcomes

Market Trends


© 2014 The Guardian Life Insurance Company of America. All rights reserved. 8

20% 22% 20% 16%

64% 63% 61%

50%

16% 15% 19% 34%

Total 50-249 250-999 1,000+

Outsource STD & FML

Outsource Just STD

No Outsourcing

ADMINISTRATION OF STD AND FMLA LEAVES

Size of Employer: Number of Full-Time Employees

Market Trends



MarketAverage(Atleast50employees)

SmallEmployers(50-249employees)

Mid-SizeEmployers(250–999employees)

LargeEmployers(1,000+employees)

3.7

3.5

4.3

4.9

Absence Management Activity Index



OBTAINING SENIOR LEADERSHIP SUPPORT What’s in it for the Company?

Getting Started

■  Increase compliance; Decrease liability

■  Improve productivity

■  Lower administrative costs

■  Apply policies consistently across enterprise

■  Reduce abuse of FML benefit

■  Improve employee experience


Compliance Considerations

COMMON REASONS FOR NON-COMPLIANCE

■  Failure to Follow Leave Laws

■ Count FMLA Leaves Toward Absentee Policy

■  Take Disciplinary Action for Using Leaves

■  Termination


STEPS TO ENSURE SUCCESS

Implementation

■  Implementation Manager

■  Clarification of Roles/Responsibilities

■  Detailed Timeline

■  Early Discussion of History & Takeover

■  Engagement from IT / Benefits Administrator

■  Expert Resources for Training

■  Communication Plan


Thank You!

Gene Lanzoni 212-919-2147 [email protected]

trends in leave administration outsourcinggo.sequoia.com/rs/269-etp-979/images/guardian.pdf ·...

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