We’ve all seen the consequences of an overambitious DIY project—social media is full of regretful show-and-tells featuring spackled fireplaces, cracked tiles, and leaky showers. What starts as a cost-saving effort can quickly spiral into unexpected complications, wasted time, and the inevitable realization: Maybe we should have hired an expert.

When it comes to managing leave and disability programs, the same logic applies. These programs are as foundational to the health and well-being of your workforce as a concrete foundation is to a home. Yet, many HR leaders’ first instinct is to grab the duct tape, roll up their sleeves, and attempt to MacGyver a solution together. At first glance, handling everything in-house might seem like the more cost-effective route. But when you factor in compliance risks, administrative workload, and the strain on HR teams, the true cost of DIY management—monetary or otherwise—starts to add up.

So, how do the numbers really shake out? Let’s take a closer look at the time, money, and risks involved—and why outsourcing might not just be a convenience but a strategic advantage.

The downsides of DIY management

HR teams are already stretched thin, balancing daily operations, employee engagement, and strategic initiatives. Adding time-intensive leave and disability management to HR’s already full plate might lead to some nasty spills. 100% of HR leaders in Larkin’s 2024 Benchmark Survey identified Leave of Absence Administration as a top challenge, underscoring just how demanding this area can be.

While managing leave and disability internally might seem like a low-cost solution, the hidden costs of diverting your HR team’s attention from daily operations and strategic objectives are high. DIY often leads to increased HR escalations and unforeseen expenses that could undermine any initial savings. At the same time, employees on leave or using disability benefits require extensive support to navigate these complex procedures, further straining your team and reducing the attention available to other employees.

However, as thorny as all that is, it pales in comparison to the biggest risk in DIY-ing a leave and benefits program: non-compliance.

Non-compliance is a risky business

Staying compliant with over 400 constantly changing leave laws and adjusting policies accordingly is a Herculean task. Add to this the challenge of managing the varied work statuses and locations of employees—ranging from full-time, contract, and exempt to executive roles across US states and Canadian borders—and the complexity of tracking and applying it all becomes overwhelming. 82% of HR leaders surveyed cited compliance as a major stressor that they would like additional support and expertise to manage confidently.

Complex rules, serious consequences

Stressed and overloaded staff are more prone to errors, and non-compliance can be costly. Even worse, FMLA compliance can feel stubbornly inscrutable, and even seemingly simple cases can be powder kegs for potential litigation; just ask the employer who made a $1.3 million FMLA mistake by firing an employee after a Mexico trip. Defending an FMLA lawsuit averages $80,000, regardless of outcome, with losses potentially reaching an average of $335,000. Handling this in-house risks not just significant financial loss but also damaging publicity that can tarnish a company’s reputation and impact its ability to attract or retain top talent. Moreover, managers and supervisors can be directly sued and held personally liable for damages.

Defending an FMLA lawsuit averages $80,000, regardless of outcome.

Bigger workloads, higher stress

On average, an HR team managing leave in-house will need an additional 20 hours per week to tackle communication, documentation, deadlines, and administration under the Family and Medical Leave Act (FMLA). Your HR team is keenly aware that while they serve all employees, those on leave and accessing benefits require and deserve extra care and attention. They understand that the quality of support during challenging or life-changing times can determine whether employees return to work. A scenario that stretches your team thin and heightens their anxiety.

 

How do specialized providers compare to DIY leave management?

If all this sounds overwhelming, you’d be correct. Many HR teams start with the best intentions—assuming that handling leave internally will save money and give them more control—only to find that the complexities of compliance, employee needs, and administrative demands quickly add up. That’s where specialized leave management providers come in.

Specialized providers make for happier, healthier employees

Leave and benefits administrators will interact with your employees during some of their most challenging times—whether they’re injured, ill, caregiving, adjusting to a disability, or welcoming a new baby. Leave and benefit providers have specialized expertise that allows them to provide enhanced support and guidance to workers dealing with complex and stressful issues—resulting in happier, healthier employees.

These benefits multiply when you partner with a provider like Larkin, who takes a “people-first” approach to leave and benefits. How?

High-touch humans enhance clarity

Each employee is paired with their own Leave Administrator who guides them from the initial request through their return to work. Our administrators provide empathy and clear guidance on rights, responsibilities, and next steps. Plus, when your employee calls us during business hours, they will always speak with a real person.

Care concierge delivers critical expertise at critical times

Larkin’s Digital Care Advisor, an AI-powered tool, assists employees in finding child or elder care and exploring funding options through corporate, state, or federal programs. Rather than searching online endlessly, users can ask questions and receive a comprehensive action plan during convenient hours. 
This efficient support may even eliminate the need for a potential leave of absence.

Technological support delivers care on-demand

The Employee Portal and Larkin mobile app provide employees with a simple and convenient platform to manage their prioritized tasks, monitor leave status or payments, and communicate with their administrator. They can also complete and sign forms digitally, eliminating the hassle of printing and returning paperwork.

But employees aren’t the only ones who can benefit from third-party leave and benefit management.

Specialized leave and benefit providers give HR teams space to breathe, and expertise to excel

The benefit of specialized expertise gives a major boost to employers as well. At Larkin, we managed 40,000 leaves in 2022 alone. The assurance of a compliant company and supported, informed employees is at the core of what companies like Larkin offer employers. But how we deliver that is where a “people-first” Larkin partnership adds that extra value.

Full-team support

Your Team Leads are there for inquiries and case details, while Account Management will discuss your 
plan’s performance and any long-term changes. Team Leads can draw on the knowledge and experience 
of leaders from Account Management, Analytics, and Technology to address any queries or concerns you 
may have.

Tailored services

Just as we continuously evaluate our products and services for efficiency and effectiveness, we dedicate time to understanding your specific needs and challenges. This allows us to collaborate closely with you to tailor solutions and customize the entire program for optimal results.

Insights and notifications

Our Employer Portal is a self-service gateway to all your leave data, from the big picture to the individual details. You can analyze trends, understand updates, track leave milestones, generate dynamic reports, and filter by status or type. Our system sends notifications for requests, approvals, extensions, and more to keep you informed, all linking directly to the Portal for easy access.

Fewer hidden costs, higher ROI

Time is money, and while competitors might offer lower Per Employee Per Month (PEPM) costs, these often lead to increased HR escalations and hidden expenses. The high-quality service we provide ensures a seamless journey for your employees, saving time and enhancing your return on investment.

Specialized providers deliver measurable ROI

Whether you have 500 or 20,000 employees, managing leaves and navigating regulations is complex, 
time-consuming, and fraught with potential pitfalls. Larkin replaces that stressful burden with an efficient, supportive, and strategic partnership that delivers certainty and ROI.