Outsourcing of FMLA Administration
calhrgal
2 Posts
The company I work for is considering the possibility of outsourcing the administration for FMLA to a third party administrator. We have locations throughout the US and would like to ensure consistency in the administration of FMLA leave administration as well as lessening the workload of HR staff in the field. I’m wondering if any of you have experience with this and would like to offer your feedback. The introduction of paid family leave in CA next year we believe will impact the level of FMLA requests that we will receive because six weeks of the leave will now be paid because of the new FTDI law.
Comments
Some background: 15,000 ee's in 800+ locations. FML was done by reps at the locations.
We decided to take baby steps first, and centralized it to our corporate HR office. We certainly reduced liability costs that way as opposed to the old way we did it. In 2002, we handled close to 1,000 LOA's.
We ended up not outsourcing for a couple of reasons:
1. We could do it cheaper. Other than pay, benefits, and computer depreciation, there were no other costs involved/
2. If you outsource, and after a few years are unhappy with the company, who will have the expertise in house to move it to another company or bring it back in?
3. FML is going to occur during one of the most trying times during your ee's life. Birth, death, illness. How will they feel when they find out they are not talking to their in house HR, but someone from "the outside"? Also, you can keep closer tabs on how the ee is treated when they are in house.
Bottom line- the only reason I can see to outsource anything is to do a three pronged test. Can they do it cheaper, faster, or better than us? If there is some yes answer there, than you have a basis to work with.
So far so good for us!