Dive Brief:

• One in three employers now outsource all of their benefits administration, a 20% gain since 2013, according to a new survey.
• Employers are also using more vendors for support, as nearly two-thirds that outsource at least some benefits administration are using multiple vendors, up from 48% in 2013, according to the third annual Guardian Workplace Benefits Study.
• Only half of employers surveyed believe their company is "very effective" in tracking and managing employee leave, including FMLA, disability and other paid-time off. Conversely, employers with 100 or more employees, who more commonly outsource leave management, are also more likely to report they are effectively tracking leaves compared to smaller companies.

Dive Insight:

According to The Guardian, the study indicates that outsourcing employee absence management will continue to grow, as employers look to "increase employee productivity, adhere to FMLA, ADA and ADAA requirements, expand wellness initiatives, and provide more assistance for employees returning to work following a disability."

Ray Marra, senior vice president, Group Products at Guardian, says that as emerging technology and specialized expertise increasingly become available, employers and HR decision makers should embrace these offerings for advantages that go beyond addressing the typical complexities of administering benefits.