Absence Management
Savings Calculator

Evaluate your potential return on investment for outsourcing vs. managing leaves in-house

If you are like many employers, you recognize the benefits of outsourcing leave management, but want to know how it could impact your company’s bottom line.

Our Absence Management Savings Calculator can help you review the costs associated with managing leaves based on providing the information requested below. We’ve started the process for you by filling in some of the fields. You can tailor the information based on your company and experience with leave management.

Company Background Information

Number of employees Number must be 50 or more.

Industry type Industry information is used to calculate average FML leave duration, if unknown.

Average annual salary Source: 2020 Department of Labor.

Calculate your incidence rate or select average 2020 Disability Management Employer Coalition Whitepaper, if average is used.

Calculate

Average

Average annual FML incidence rate 2020 Disability Management Employer Coalition Whitepaper.

Average FML leave duration (in work days) Integrated Benefits Institute, 2019.

Anticipated FML PEPM fee Fee is based on a number of variables specific to the employer and services elected.

Annual FML Cost Drivers Estimated costs associated with managing FML in-house.

Average HR salary 2020 salary.com.

Number of HR employees managing FML

Average hours a week per employee managing FML

Total HR costs

Legal/compliance expenses Per EEOC, average damages awarded to an employee who wins a wrongful termination FML lawsuit $87,500-$450,000.

Litigation expenses Department of Labor.
Average cost to defend a lawsuit whether the employer wins or loses.

Total costs of managing FML in-house per year

Annual Lost Productivity Estimated cost of employee absence.

Cost of lost productivity Estimated dollar value based on the input provided showing the annual number of days lost to FML and the estimated full-time employee equivalent. $0

Total number of days lost to FML per year “Number of employees on leave” x “Average duration days”. 0

Estimated full time equivalents lost “Total number of days lost to FML” / 260 working days per year. 0

Benefits of Outsourcing Calculated dollar value of the potential savings for improved incidence and approval rates.

Estimated cost savings from change in approval rates $0

Estimated cost savings of improved incidence rate $0

Lost time savings $0

Return on Investment Calculation Estimated financial impact of outsourcing vs. managing employee leaves in-house.

Lost time savings $0

Lost time savings per employee $0

Other FML cost per employee $0

Total cost savings per employee $0

FML fee per employee per year $0

FML ROI per employee “Total cost savings per employee / FML fee per employee per year”. $0

Total return on investment “FML ROI per employee” x “Number of Employees”. $0

Total return on investment ratio Anticipated savings for every dollar spent per employee per year on outsourcing. 0

If you would like to make an adjustment or input another scenario:

For more information and to review your options, visit:
guardianlife.com/absence-management

Disclaimer

This tool is for illustrative purposes only. This information is not intended as financial advice and should not be relied upon as the only source of information. Results are based on certain assumptions and industry data. Actual results will vary and are not guaranteed. For more information about the sources of data used with this tool, Click here.

Guardian® is a registered service mark of The Guardian Life Insurance Company of America.

2021-120874 (05-23)

Absence Management Savings Calculator Data Sources

Average Annual Salary: 2020 Department of Labor

Average Incidence Rate: 2020 Disability Management Employer Coalition

Average FML Rate: 2020 Disability Management Employer Coalition Whitepaper

Average HR Salary: 2020 salary.com

Average FML Leave Duration: Integrated Benefits Institute, 2019

Average Legal & Compliance Expenses: EEOC

Average Litigation Expenses: Department of Labor

Average Improved Incidence Rates: 2021 Guardian Absence Management Redefined Study

Average Improved Approval Rates: 2021 Guardian Absence Management Redefined Study