Outsourcing absence management

Proper management helps bottom line, overall productivity
By Rochelle Morandini and Vanessa La Fortune
|Canadian HR Reporter|Last Updated: 09/20/2010

Almost one in five (17 per cent) Canadian organizations outsource absence management and another seven per cent plan to do so by 2012, according to HR Outsourcing: Canadian Trends and Insights 2010, a survey of 69 senior executives by Hewitt.

When employers track and manage absence properly and effectively, they enhance the employee experience while reinforcing their due diligence and better containing costs. In addition, by maximizing their learning from the aggregate data provided, organizations can leverage this information to develop strategies to best invest in the health of their workforce and improve overall productivity.

It’s important to note there are two kinds of absences — employee disability absence and leaves of absence unrelated to disability. While many organizations have been keen to outsource benefits administration and disability management, dealing effectively with non-disability leaves of absence is often overlooked, even though the administrative burden can be substantial.