November 29, 2010 Denver, Colorado – OCI, a Data Integration and Software Services provider, conducted a study on the financial impact that an automated, integrated absence management system has on the overall absence experience. The study is unique; taking a long-term view of a single employer’s results when they had no absence management program in place, when an absence program was in place, and when the company used an automated absence management system.
“Implementing an organized method to ensure that employees are healthy, at work, and productive is not recent news. However, understanding the relationships between benefits, and ways to reduce lost time, is not easy,” said Archie Anderson, President of OCI. “At OCI, we understand the importance of capturing the necessary data to uncover absence trends and utilize this information to improve absence programs. We tested the methodology, measurement and management that a company chooses to manage their employee absence to best understand the financial impact of our data-driven approach.”
The study relied on total lost days per leave as its key variable. OCI then compared the employer’s results against a reference population that acted as a control group to ensure that the results were meaningful. The impact of the automated absence management system was staggering:
- The company saved $1.3 million from avoiding 11,500 lost days due to STD claims.
- The company saved $5.3 million from avoiding 48,000 lost days due to WC claims.
- The company saved $1.3 million from avoiding 11,700 lost days due to LTD claims.
- The company saved $0.5 million by preventing ‘flow-through’ FMLA claims to STD/LTD and WC.
In total, OCI’s study demonstrated over $8 million in savings for the employer by limiting lost time through the use of an absence management system and integrated program. Additionally, the analytic study illustrated the costs that can be avoided by preventing FMLA claims from becoming workers’ compensation, STD, and LTD claims.
To read the full whitepaper on this study, Cost Savings Impact & ROI of LeaveXpertTM, please visit www.oci.com/oci_leavexpert.
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About OCI – OCI is a data integration and software services provider that helps companies make better-informed decisions about their risk management, employee benefit, and technology dependent programs. Using secure web-based applications, a flexible, client-centric approach and deep industry experience, our solutions transform data into information and knowledge, giving our customers the power to increase administrative efficiency, reduce expenditures and improve productivity.
Tags: OCIThis entry was posted on Tuesday, November 29th, 2011 at 1:00 am and is filed under Employee Benefits, General HR, HR Technology. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.