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Most employers insource leave management programs

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Most employers internally manage their leave management programs, a new report reveals.

The Disability Management Employer Coalition, San Diego, released this finding in its 2012 Employer Leave Management Survey. Published this month and jointly sponsored by DMEC and the Spring Consulting Group, the report tracks employer methods, challenges and success in the administration of various leave initiatives, among those programs falling under the Family and Medical Leave Act (FMLA).

The report finds that all organizations with 100 to 500 employees internally manage their leave management programs. Organizations with 500 to 999 employees externally manage (or outsource) on average 10 percent of their leave management programs. By contrast, companies with more than 20,000 employees outsource nearly 4 in 10 (38 percent) of such initiatives.

Companies with 1,000-4,999 employees, 5,000-9,999 employees and 10,000-19,999 employees outsource 35 percent, 26 percent and 31 percent, respectively, of their leave management programs.

For those employers that outsource leave management, short-term disability and long-term disability continue to be the most common programs outsourced to the same vendor, the report notes. In 2012, 46 percent and 47 percent of companies outsource STD and LTD programs, respectively, to the same vendor. In 2011, the percentages were roughly the same: 47 percent (STD) and 45 percent (LTD).

When asked how satisfied they are with their outsourced vendor’s ability to comply with regulations, 94 percent of respondents said they were “somewhat satisfied” “satisfied” or “extremely “satisfied.” Respondents expressing satisfaction remained high in respect to other criteria, including the vendor’s ability to:

interact with departments (92 percent)

deliver effective customer service (91 percent)

provide sufficient resources (91 percent)

Provide legislative updates (91 percent)

Integrate with other vendors (90 percent)

Provide data interfaces (89 percent)

Identify improvement opportunities (86 percent)

Share reporting metrics (84 percent)