Transitioning Leave Administration from In-House to Outsourced

A multi-state utility company with approximately 20,000 employees had long managed its leave administration processes internally, despite growing regulatory complexity and operational inefficiencies. The internal team—nearly 20 employees—relied on inconsistent tools, such as spreadsheets and manual tracking, with no centralized system or standard process. As a result, employees on leave were not consistently monitored for return-to-work timelines, leading to situations where individuals remained on employer-paid leave indefinitely. These shortcomings introduced financial leakage, inconsistent policy application, and compliance exposure.

SBA conducted a comprehensive assessment of the client’s “Time Away From Work” (TAFW) processes, identifying gaps in consistency, governance, and return-to-work management. SBA led a full-service RFP to identify a best-fit outsourcing partner with a strong track record of converting insourced models. Following vendor selection, SBA provided hands-on implementation support, including project management, issue tracking, and change management. SBA guided the client through significant systems integration work—particularly around payroll—and helped internal teams adapt to the vendor’s model by facilitating process redesign. The majority of internal staff were repurposed into more strategic roles within the organization.

The client successfully transitioned from a manual, high-touch insourced model to a fully outsourced TAFW solution. With centralized case management, improved compliance controls, and consistent administration across states, the organization reduced financial and governance risk. SBA’s involvement ensured continuity during a complex implementation and positioned the client for scalable, efficient leave management going forward.