For HR leaders managing a high-volume, high-stakes leave program, one of the biggest strategic decisions is whether to outsource, insource, or pursue a hybrid approach. There is no single right answer, and each approach can work well depending on your workforce, structure, and internal capacity.
Managing FMLA is complex and time-consuming, especially for organizations with large and dispersed workforces. With detailed regulations, strict deadlines, and high stakes for compliance, even small mistakes can expose an employer to risk. According to a 2021 survey by the Disability Management Employer Coalition (DMEC), 45% of companies insource leave management, 32% co-source, and 24% outsource. That mix shows just how varied and flexible the landscape is today.
No matter which direction you choose, the path to success is clear when you have the right tools and partnerships in place.
The Case for FMLA Outsourcing
Outsourcing FMLA administration can immediately reduce the burden on internal HR teams. It can also bring structure and consistency to leave programs, especially when high turnover, complex scheduling, or multiple locations are involved.
With the right partner, outsourcing can deliver a seamless, high-quality experience for employees and HR alike. Best-in-class third-party administrators (TPAs) such as Newfront and BBP Admin are setting a new standard with personalized, white-glove service that aligns with client goals and values. These partners offer not just compliance expertise, but also a commitment to the employee experience that makes a real difference during critical life events.
When outsourcing is done with a trusted partner and the right platform, you gain HR efficiency, reduced risk, and give employees a better leave experience.
Why Many Employers Insource with Technology
For organizations with strong internal HR teams and a commitment to culture-driven support, insourcing can be just as effective. With the right leave management technology in place, employers can automate manual work, centralize case data, and stay compliant without relying on external vendors.
Many AbsenceSoft customers, like Carvana, American Airlines, and Purdue University, choose to insource to:
- Maintain direct control over the leave process
- Deliver a more personalized employee experience
- Keep leave management aligned with internal policies and culture
- Increase visibility and reduce turnaround time
With purpose-built software, HR teams report up to 66% reductions in administrative time. They are also better equipped to manage overlapping state laws, eligibility calculations, and rising case volumes. You can read our HR Leader’s Guide to Building an Insourced Leave and Accommodations Program for more information about how to insource leave management with the right technology.
What About Co-Sourcing?
Co-sourcing refers to a hybrid approach, where some parts of the process are handled by an external partner and others remain internal. This model works well when organizations want the flexibility to manage certain steps in-house while still benefiting from outside support.
For example, a company may use a third party to manage leave determinations while internal HR handles employee communication. Or, they may rely on a shared platform to coordinate documentation and case tracking across both internal and external teams.
Co-sourcing works best when roles and workflows are clearly defined, and when both parties are supported by the same modern technology.
Which Solution is Right for My Organization?
The right approach depends on your business goals, your HR team structure, and the level of visibility and control you need. Each model can support compliance, efficiency, and employee care when implemented well.
Outsourcing may be the right fit if your organization:
- Needs immediate relief from growing leave volume
- Has limited in-house capacity or relies on shared services
- Wants a trusted partner to fully own the process
Insourcing with technology may be the right fit if you:
- Want complete oversight of the leave experience
- Have strong internal HR coverage across shifts or locations
- Are looking to reduce costs or personalize leave support
Ready to evaluate your options? Our CLMS-certified specialists work with HR teams, TPAs, and brokers every day to build better leave programs. Whether you manage FMLA in-house or partner with a vendor, AbsenceSoft gives you the platform and support to deliver a consistent, compliant experience. Schedule a conversation to see how AbsenceSoft can support your strategy.