It can be very challenging for employers to keep track of changing and varying leave regulations, especially while juggling other business responsibilities and working to achieve business objectives. Compliance with the Family Medical Leave Act (FMLA) and other leave laws falls at the far end of the difficulty spectrum for employers, according to Paul D. Taylor, vice president, Group Disability Product Management for MetLife. Leave laws continually change, and while federal laws provide basic guidance for all employers, nuances often come into play in the form of state and municipal laws and regulations. What's more, says Taylor, is that in the employee benefits space, most leave legislation is relatively new. "That means that there hasn't been much practical application yet, so legislation is still subject to a lot of interpretation, which further complicates administration for employers."

Additional factors that pose administrative challenges to employers when it comes to absence management are flexible work arrangements, intermittent claims, and the "rolling" method of determining leave entitlement. Many companies, in order to attract and retain top talent, offer flexible work arrangements to better meet the lifestyle needs of their employees. These arrangements can be very difficult to track if there isn't a centralized and flexible administration system in place. On the back end, intermittent claims often present great difficulty for employers with respect to claims management. There can be situations in which an employee requires time off every other week for medical appointments, for example, and keeping track of these absences can be challenging. With a rolling 12-month calendar, an employer must look back over the last 12 months from the date of an employee's initial leave request, add all FMLA time the employee has used during the previous 12 months, and then subtract that total from the employee's leave allotment. "Making sure leave time becomes available as the calendar progresses can be complicated without the right system in place," says Taylor.

Those employers that choose to implement a total absence management program, whether handled in-house or outsourced, are likely to find that their organization benefits from the following: reduced absence abuse; reduced costs in terms of lost time at work and productivity loss; and better reporting for managers, which enable better workforce management. A program can be administered in-house if an employer is able to find a way to invest in the necessary technology. Many times, though, employers find that outsourcing the program is a valuable investment. The "pros" for outsourcing absence management include reducing the challenge of staying current with regulatory and compliance changes - those that are enacted and proposed. According to Taylor, "Staying current with all of these changes can be a full-time job for someone or several people. It can greatly benefit an employer to have an expert in leave administration stay on top of all of these regulations on their behalf."

Outsourcing can also provide managers and employees with self-service tools and an increased level of information to manage absences and identify absence trends. It allows a consistent process for an organization, which helps eliminate the likelihood of an employer granting unnecessary time off and reduces the risk of improper denial of benefits. In an effort to minimize the potential for violations of FML laws, employers may be more likely to grant leave for requests they feel may not be legitimate. According to a survey completed by the Society of Human Resource Management, "FMLA and Its Impact on Organizations," about four out of 10 (39%) participating HR professionals indicated they had approved leave requests that they perceived as not being legitimate. Outsourcing to an expert enables Human Resource associates to focus on more strategic tasks, and can also provide employers with dedicated customer delivery leaders who analyze absence data and trends to provide actionable workforce management solutions, as well as reports that help identify employee absence patterns.

Taylor indicates that at the helm of MetLife Total Absence Management^SM is a flexible system for administering all of the various components of a company's leave program. The technology allows automation and ultimately a lower cost for administration. "We are also proud of our online and analytical capabilities. We are able to make it easy for employers and employees to submit leaves, access information in real-time and interpret data to determine the root causes of positive and negative trends," adds Taylor.

Taylor says that MetLife has noticed increasing interest in absence management solutions on the part of employers. Especially as health care reform has moved to the front of many HR and benefits professionals' to-do lists, Taylor expects that the need to spend time interpreting this legislation will be yet another catalyst for employers to outsource FMLA and other absence administration. Brokers and consultants have an opportunity to add value to discussions with their employer clients, especially as employers understand there is a clear monetary cost associated with absences. They also understand that absences weigh on productivity. With the current economic environment and resultant belt tightening, there is a chance to discuss with clients the impact of absences and how implementing a strategic, cross-enterprise absence management solution can be an important investment.

For more information on MetLife Total Absence Management, visit metlife.com/totaldisabilitysolutions.

Metropolitan Life Insurance Company
New York, NY 10166

L0211162360[exp0212][All States]

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