Compliance Showcase: Vendor Transition

DMEC Staff@Work

Absence Management Data Conundrum: History or “Clean Slate” with New Vendor?

History or Clean Slate_Vendor ImplementationBy Ashley Chodorowski, MBA

Sr. Business Consultant

You have spent months looking for a vendor to help you administer your absence program, and you finally found the one! Regardless of whether you choose to outsource all absence services or use a third-party software solution, you will be faced with a conundrum: do you load up historical leaves, or do you start fresh with a clean slate?

Before we dive into the details, let’s answer some common concerns when changing vendors. Either the new vendor can take over all claims or the old vendor can administer the “runoff” of remaining closed leaves until all associated compliance tasks are fulfilled. The new vendor may charge to take over those old claims, making implementation costs higher. Or if the old vendor retains the old claims, they may have some motivation to charge reasonably as contracts in the industry are not typically long-term, and returning to a former vendor is quite common.

In general, for a smooth transition, you want to move as much as possible to the new vendor. If you have an old vendor administering the runoff, encourage coordination between vendors; don’t allow a vendor change to inconvenience your employees.

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