Making the case for
Absence Management.
Purpose.
Share key insights relevant to executive
management, making the case for
Absence Management and integrated
program management as a productivity
booster and key business strategy.
2
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Introduction.
• When employees are out of work due to an illness, injury and/or leave
of absence, their absence impacts the organization’s productivity.
• Absence Management and integrating programs can bring
impressive results. Top advantages to implementing an integrated
program as ranked by employers who integrate include1:
– Consistent administration.
– Better tracking or reporting.
– Easier or better experience
for employees.
– Reduced costs.
– Increased control.
– Improved compliance.
1
Spring Consulting Group, LLC. 2009/2010 Employer Survey of Integrated Disability,
Absence & Health Management Survey, August 2010.
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What is Absence Management?
• The management of lost work time, whether
disability or non-disability related. Including:
– Short-term Disability (STD).
– Long-term Disability (LTD).
– Workers’ Compensation.
– Federal Family Medical Leave (FML).
– State leaves.
– Company-sponsored leaves.
• Consists of programs that can be implemented
simultaneously or added and integrated over time.
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3989 NS 10/10 Copyright © 2010 by The Hartford. All rights reserved. No part of this document may be published or reproduced without the permission of The Hartford.
Employer Market Landscape.
• Evolution of leave legislation, FMLA
and State.
• Risk and benefit managers realize the
potential legal exposure from
mismanagement of leaves.1
• Silos breaking down within organizations1
(risk and benefits management).
• 56 percent of U.S. companies plan to
incorporate absence management within
three to five years.2
• Growth of program integration1, e.g.,
disability, Workers’ Compensation
and leave management.
1
2
5
Spring Consulting Group, LLC. 2009/2010 Employer Survey of Integrated Disability, Absence & Health Management Survey, August 2010.
Hewitt’s 2010 Road Ahead – Emerging Health Trends survey, Hewitt Associates, March 2010.
3989 NS 10/10 Copyright © 2010 by The Hartford. All rights reserved. No part of this document may be published or reproduced without the permission of The Hartford.
Employee absence and productivity cost.
• Over 1 million cases involving lost work
days in private industry due to illness
or injury.1
• Daily worker absence (all reasons)
= up to 25 percent to 30 percent of an
employer’s workforce.2
Total Cost of Absence:
More than
$100 billion
each year.3
U.S. Bureau of Labor Statistics, www.bls.gov, “Workplace Injury and Illness Summary” news release, October 29, 2009, viewed on November 1, 2010.
www.dorlandhealth.com, Taming Disability, by Deborah Dibenedetto, February 1, 2009, viewed on November 1, 2010.
3 U.S. Bureau of Labor Statistics data, www.bls.gov, viewed on November 1, 2010.
1
2
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Why Absence Management?
• Protocols and processes to effectively integrate programs.
• Comprehensive disability and leave management.
• Ease benefit, claims and leave administration.
• Effective work and non-work related return-to-work programs and our
best practice models.
• Tracks and measures absence events.
• Provides employers with a broader view of absences.
• Reports and metrics to understand program performance, outcomes
and trends.
• Helps improve employee productivity.1
• Improves employee and employer experience.
1
7
Spring Consulting Group, LLC. 2009/2010 Employer Survey of Integrated Disability, Absence & Health Management Survey, August 2010.
3989 NS 10/10 Copyright © 2010 by The Hartford. All rights reserved. No part of this document may be published or reproduced without the permission of The Hartford.
How employers like you are benefiting.
When asked, employers say the top six
advantages to integrated programs are:1
• Consistent administration.
• Better tracking or reporting.
• Easier or better experience
for employees.
• Reduced costs.
• Increased control.
• Improved compliance.
1 Spring
8
Consulting Group, LLC, 2009/2010 Employer Survey of Integrated Disability, Absence & Health Management Survey, August 2010.
3989 NS 10/10 Copyright © 2010 by The Hartford. All rights reserved. No part of this document may be published or reproduced without the permission of The Hartford.
ROI on Absence Management.
• Employers with integrated
programs have experienced
11 percent savings in lost
time, direct costs and
return-to-work rates.1
• May reduce the risk of legal
exposure on claims and
leaves by treating all
employee
absence consistently
and proactively.
• Potential savings in full-time
equivalents from outsourcing
your leave management
program.
1
9
Spring Consulting Group, LLC, 2009/2010 Employer Survey of Integrated Disability, Absence & Health Management Survey, August 2010.
3989 NS 10/10 Copyright © 2010 by The Hartford. All rights reserved. No part of this document may be published or reproduced without the permission of The Hartford.
The Hartford Productivity Advantage.
• A solution for managing and
tracking absence events – both
work and
non-work related.
• Includes:
– Workers’ Compensation.
– Short-term Disability (STD).
– Long-term Disability (LTD).
– Leave Management (FMLA,
State, & other leaves).
• Modular: Products can be
implemented simultaneously or
added and integrated over time.
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Resources at your fingertips.
• The Hartford Productivity Lab:
thehartford.com/productivity.
• Contact a Hartford representative.
• Using our Absence Advisor
productivity tool, we can provide
an estimate on the savings in
FTEs that you might experience
by outsourcing your leave
management program.
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and Specialty Risk Services and issuing companies Hartford Life Insurance Company, Hartford Life and Accident Insurance Company and Hartford Fire Insurance Company. All non-property and
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This document outlines in general terms certain benefits and services that may be afforded under a Hartford policy or service contract. In the event of a conflict, the terms and conditions of
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3989 NS 10/10 Copyright © 2010 by The Hartford. All rights reserved. No part of this document may be published or reproduced without the permission of The Hartford.