Impact of
Managing FMLA
on Employers
How much does
FMLA compliance cost?
49%
of employees don’t know their
organizations’ absence-related costs
And those who claimed to know their
organizations’ costs often underestimated them.
Compliance with FMLA costs
employers more than
$21 billion
In lost productivity, continued health benefits, and
labor replacement.
Time requested among
full time employees’
Requested FMLA leave
over a 5-year period
Requested STD
Requested LTD
1 in 3
employees are on FMLA leave at any given time in some industries
FMLA results in stress and
lost productivity
21%
claim work doesn’t get done which
can result in lost productivity
47%
of employers cover unplanned
absences using overtime or
extra shifts
Can better management
reduce your costs?
Typical Cost of Employee Absence
in a company of 500 employees, with 24% requesting fmla in 5-year period
120
Employees requested FMLA
X
$960
per employee
equals
$115,200
typical cost over 5 year period
Employers are spending an average of 2.5 hours
managing each FMLA case
Employers believe
they’ve granted
unfounded
time off
52%
of all US
63%
with more than
500 employee
Companies that manually self-administer FMLA have higher rates of abuse, which correlates with higher approval rates, higher intermittent leave times, and more total hours in FMLA absences.
Average verdict for FMLA cases related to wrongful termination is nearly
$335,000
Typical savings when managing FMLA
in a company of 500 employees using a tool
like Absence Management Software
56.25
hours saved annually from
administration
63.75
employee leaves of absence
days avoided
equals
$12,740.63
total savings
Manage all Absences
In one place
Replace manual leave of absence spreadsheet tracking with a fully automated technology. ClaimVantage Absence Management Software guides your company through the compliance puzzle, step-by-step, including managing FMLA compliance, state-specific regulations, and ADA management.
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Sources
HRO today Absence Minded July/August 2012
http://www.hrotoday.com/content/6201/absence-minded
IBI Research, Early Warnings: Using FMLA to Understand and Manage Disability Absence, 02/2016
http://ibiweb.org/research-resources/detail/early-warnings-using-fmla-to-understand-and-manage-disability-absence
CIPD Absence Management:
Annual Survey Report 2016
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