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IBEC | the Irish Business and Employers Confederation www.ibec.ie/research

Employee Absenteeism

A Guide to Managing Absence

IBEC is the voice of Irish business and employers both nationally and internationally. It is the umbrella body for Ireland’s leading business and industry groups and associations. IBEC represents more than

7,500 member organisations, of all sizes, in all regions and across all industry sectors.

With acknowledged expertise in all aspects of business representation, policy development, employee relations, human resources, employment law, environment, health and safety, trade and EU affairs, IBEC is uniquely

positioned to provide indispensible, tailored advice to members. To learn more, contact IBEC on www.ibec.ie

IBEC MISSIONIBEC promotes the interests of business and employers in Ireland by working to foster the continuing development of a competitive environment that encourages sustainable

growth, and within which both enterprise and people can flourish.

Employee Absenteeism

A Guide to Managing Absence

July 2011

A Guide to Managing Absence 2011

2 | IBEC Research Unit

Table of Contents

FOREWORD 4

INTRODUCTION 5

RESEARCH METHODOLOGY /NOTES ON INTERPRETATION OF DATA 6

Participant profi le 6

DEFINING/MEASURING ABSENCE AND ABSENCE RATES 8

Number of spells or frequency of absence 9

The Bradford Score 9

Calculating the Bradford Score 9

Monitoring when absence occurs 10

Absence rates 10

Number of days lost per employee 12

RECORDING ABSENCE/ATTENDANCE 13

Methods of recording absence 14

Use of biometric data 14

Case study on use of biometric data 15

Who should record absence? 16

Defi ning problem absence 16

Absence triggers 16

COST OF ABSENCE 18

Components of the cost of absence 18

Checklist for calculating the cost of absence 19

Actual cost of absence (€) 20


IBEC Research Unit | 3

ABSENCE MANAGEMENT STRATEGIES 21

Sick pay and absence 21

Restricting sick pay 21

Fit note 21

Attendance bonus 22

HEALTH EDUCATION/WELLNESS PROGRAMMES 23

Flexible working arrangements and absence 23

Return to work interviews 24

CAUSES OF ABSENCE 26

SHORT-TERM ABSENCE 27

Causes of short-term absence 27

Management of short-term absence 28

LONG-TERM ABSENCE 30

Causes of long-term absence 30

Long-term absence strategy 32

Rehabilitation/reintegration 32

Mental health & absence 33

Work-related stress & absence 35

THE ROLE OF THE LINE MANAGER IN ABSENCE MANAGEMENT 37

THE ROLE OF HR IN ABSENCE MANAGEMENT 39

ABSENCE MANAGEMENT POLICIES 40

CASE STUDIES 41

SAMPLE ATTENDANCE POLICY 49



Foreword

As businesses operating in Ireland face continuing challenges on reducing costs, the area of absence

management is one which has received a signifi cant amount of focus in the last few years. Problem

absence can present a signifi cant direct cost to employers, as well as potentially creating additional

costs that are more diffi cult to quantify, for example, the cost of reduced quality of output, increased

pressure on colleagues and increased administration time in replacing absent employees. This survey

of over 600 companies, carried out during 2010, conservatively estimates the cost of absence in

Ireland per year to be in the region of €1.5 billion.

The 2009 absence rate found in this survey (2.58%) is lower than in our last guideline on absence

produced in 2004(3.38%), and amounts to an average of 5.98 days per employee per year. This report

evidences the positive impact on absence rates of an improved management focus. However, it would

seem that some work remains to be done: over a quarter of respondents indicate that it would be

possible for them to reduce their absence rate further.

In an effort to reduce absence rates, this report would suggest that in addition to measures such as

recording absence data, holding return to work interviews and providing absence data to line managers,

employers are increasingly putting in place employee health and wellbeing supports. Over one in fi ve

respondent companies provide a counselling service to employees, and around one in ten organise

health education programmes. However, the actual effect of these programmes on either short- or

long-term absence is unclear. The potential impact of this type of initiative may lie in its ability to

reduce absence rates over a longer term, or to work in combination with other methods to provide an

effective method of improving employee attendance.

The research unit are grateful, as always, to our member companies who took the time to provide

us with extensive information around their approaches to absence, and without whom this report

would not have been possible. A special word of thanks is due to the companies that provided us with

additional detailed case study material.

We are grateful also to a number of IBEC staff who gave generously of their time and expertise

in putting this report together, in particular to Helen Fitzgerald, Kara McGann, Rhona Murphy and

Lorraine Parkes. We would also like to recognise the efforts of our research team and in particular,

Geraldine Anderson, who authored this report.

We hope you fi nd this report useful.

Brendan Butler

Director of Policy and International Affairs



Introduction

Data from the IBEC quarterly business sentiment survey, as well as anecdotal

evidence, would suggest that the focus on absence management is increasing in

member companies. An awareness of the cost incurred by absent employees, as well

as the imperative for employers to be responsible and to have a duty of care for their

employees are both driving an increased engagement by companies in this area.

This report provides guidance in identifying and dealing with problem absence. The

report explores the potential cost of absence to employers, as well as providing

recommendations on how both short-term and long-term absence can be managed.

The report also examines the role of human resource professionals, highlighting the

various approaches taken by our survey respondents, and paying particular attention

to the co-ordinating role of HR professionals in relation to the ongoing monitoring and

reporting of absence.

This report acknowledges the enhanced role of the line manager in dealing with

employee attendance, and explores the areas in which line managers can be most

effective in the management of absence within companies.

Employers, no matter what their size, or area of activity, will be interested in the

fi ndings of this survey, and will be supported in their endeavours by the practical

guidance and support contained in this report.



RESEARCH METHODOLOGY /NOTES ON INTERPRETATION OF DATA

Survey data was collected from a total of 635 companies across all pay surveys

undertaken by IBEC in 2010. These surveys covered the manufacturing, wholesale

distribution, retail, fi nancial services, contact centres, and software sectors. The

companies included in this report employed a total of 114,025 employees, and were

based in the Republic of Ireland.

It is worth noting that some care should be taken in comparing 2010 results to our

previous report on absence in 2003, as results are drawn from a different sample and

are not, therefore, directly comparable.

PARTICIPANT PROFILE

Over half the respondent companies to the survey had less than 50 employees, while

one in seven respondents employed over 250 staff. Full details are set out in table 1

below.

Table 1: Company size

Company size No. (%) of organisations No. (%) of employees

<50 employees 366 (58%) 7,675 (7%)

50 – 99 employees 91 (14%) 6,477 (6%)

100 – 249 employees 92 (15%) 14,852 (13%)

250 – 499 employees 44 (7%) 15,637 (14%)

Over 500 employees 42 (7%) 69,384 (61%)

Total 635 (100%) 114,025 (100%)

While there was a spread of responses across sectors, almost one in fi ve responses

(18%) were from the wholesale distribution/transport sector. High-tech manufacturing

accounted for 16% of respondent companies, while other services accounted for 15%.

Table 2 overleaf sets out the full details.



Table 2: Sector

Sector No. (%) of organisations No. (%) of

employees

Manufacture of food/drink/tobacco 44(7%) 7,629 (7%)

High-tech manufacturing 100 (16%) 23,281 (20%)

Manufacture of rubber and plastics 25 (4%) 1,708 (1%)

Manufacture of metals/engineering 59 (9%) 4,290 (4%)

Other manufacturing 52 (8%) 3,898 (3%)

Wholesale distribution/ Transport 116 (18%) 22,944 (20%)

Contact centres 15 (2%) 5,355 (5%)

Retail 54 (9%) 20,562 (18%)

Software services 38 (6%) 5,923 (5%)

Financial services 36 (6%) 15,255 (13%)

Other services 96 (15%) 3,180 (3%)

Total 635 (100%) 114,025 (100%)

Table 3: Location

No. (%) of organisations No. (%) of

employees

Dublin 291 (46%) 70,928 (62%)

Cork 59 (9%) 11,066 (10%)

West 44 (7%) 6,067 (5%)

Mid-West 51 (8%) 6,202 (5%)

South-East 69 (11%) 8,765 (8%)

North-West 31 (5%) 3,062 (3%)

North-East 38 (6%) 3,037 (3%)

Wicklow 12 (2%) 771 (1%)

Kildare 17 (3%) 1,478 (1%)

Midlands 23 (4%) 2,649 (2%)

Total 635 (100%) 114,025 (100%)

Almost half the respondents to the survey were based in the Dublin region. However,

there was a good spread of responses in areas outside Dublin also, with for example,

the south-east accounting for over one in ten responses. Additionally, the Cork region,

the Mid-west and the West accounted for almost a quarter of responses between them.

Table 3 above sets out the full details.



DEFINING/MEASURING ABSENCE AND ABSENCE RATES

Absence can be defi ned as ‘unscheduled disruption of the work process due to days lost as

a result of sickness or any other cause not excused through statutory entitlements or company

approval’.

Under this defi nition, the following are not included as absence:

• Statutory leave i.e. annual leave and public holidays, maternity leave, parental

leave, force majeure, carer’s leave;

• Days lost due to strikes and lay-off; and

• Excused leave such as bereavement leave, exam/study leave, marriage and

paternity leave.

• For the purposes of comparability respondents to the survey were asked to

calculate their absence rate using the following formula:

The above formula has some limitations in that the average absence rate can relate

to few absences of longer duration, or several shorter absences, or a combination of

the two. As a result, an absence rate can remain relatively stable over time even if the

underlying absence behaviour has changed. In order to uncover underlying absence

trends and patterns, a more exact measure of the extent and nature of the absence

problem may be required. Measures of absence frequency can provide a better

indicator of short-term absence than the absence rate on its own and may be a more

valuable measure in planning absence control. Three measures of absence frequency

are important to consider, in addition to the average absence rate:

• The average number of days lost per employee per annum;

i.e. the total number of days lost divided by the total number of employees.

• The individual spells of absence or the frequency rate;

i.e. the total number of spells divided by the total number of employees.

• The average duration of an absence spell.

i.e. the total number of days lost divided by the number of spells of absence.

Number of days absence in period under investigation

(total number of employees) x (total number of work days available)X 100

TOTAL DAYS LOST =



NUMBER OF SPELLS OR FREQUENCY OF ABSENCE

A spell is an unbroken period of time off, amounting to anything from a day to a year or

more. The calculation of spells enables us to determine the frequency and duration of

absences, that is, the number of occasions on which people are absent and the number

of days they are inclined to be away. Knowing the number of spells of absence can help

in identifying potential problem absence, where several short spells of absence may be

occurring. A useful tool in measuring both the frequency and duration of absences is

the Bradford score, outlined below.

THE BRADFORD SCORE

In many organisations, particularly where the majority of staff work shifts and rotas,

the disruption caused by frequent short-term absences is often greater than that

caused by occasional longer term absences. By their nature, short-term absences are

more diffi cult to predict and their unexpected nature makes them diffi cult to plan for.

The Bradford score combines both frequency and duration as measures of absence.

These scores indicate the composition of an individual’s absence record, comprising a

few, or many, spells of short or long duration. This method of monitoring absenteeism

weights the score in such a way as to identify those with a number of short spells of

absence which require management attention. The Bradford score system helps to

ensure that there is consistency in management’s approach to dealing with absence

problems. It can be used to monitor trends in sickness absence and is one way to

provide ‘trigger’ points. The area of absence triggers will be explored subsequently in

this report. However, it is worth noting at this point that the Bradford score, while a

useful tool to provide insights into absence patterns, should not be used in isolation to

trigger a management response to absence.

CALCULATING THE BRADFORD SCORE

The Bradford score is calculated by multiplying the square of the number of absences

by the total number of working days lost. For example, someone who was absent from

work on fi ve occasions with a total of 14 working days off work would have a Bradford

score of 5x5x14=350.



The formula is as follows:-

(S x S x D) or (S2 x D)

Where S = number of spells of absence in last 52 weeks (or other relevant period of

time)

D = total number of days of absence in the last 52 weeks (or other relevant period of

time).

Example

An employee has four episodes each of three days in the last 52 weeks.

(S x S x D) or (S2 x D) = Bradford Score

S = 4 (i.e. number of absences),

D = 12 (i.e. the total number of days absence in the period)

4 x 4 x 12 = 192

Staff with more frequent absences will achieve higher scores and, therefore, receive

more attention under this approach.

MONITORING WHEN ABSENCE OCCURS

General examination of absence data will provide some information on when absence

occurs and allow a pattern to be identifi ed in terms of when absences are taking place.

Among respondents to the IBEC survey, some 37% monitor/identify when absences

tend to occur. Of these, almost three quarters (74%) identify absences that straddle

the weekend i.e. Monday/Friday absences. Among those that identify such absence, on

average, Monday/Friday absence accounts for just over a quarter (26%) of all short-

term absence. Over two out of fi ve companies (42%) that monitor this type of absence

have taken measures to address the problem.

ABSENCE RATES

Some 502 companies provided information in relation to their absence rate for the full

year 2009. The average rate of absence was 2.58%, with a median of 2.0%. Of these

502 companies, 51% had an absence rate of less than 2%. Some 21% of companies

indicated an absence rate of between two and three per cent and 28% a rate of over

3%.

Larger companies, on average, reported higher absence rates and companies with



fewer than 50 employees generally reported lower rates. For smaller companies, the

average absence rate was 2.17%, while for companies with over 500 employees, the

average annual absence rate was 3.58%.

The IBEC survey covered responses from manufacturing, wholesale distribution

companies as well as software, contact centres, fi nancial services and retail companies.

Across sectors, the highest average absence was recorded in contact centres (3.67%)

with the lowest average rate occurring in the software services sector (1.56%). Full

details of absence rates by sector and company size are set out in tables 4 - 5 below.

Table 4: Average absence rate by company size (2009)

Company size Average Absence Rate (%) Median Absence Rate (%)

<50 employees 2.17% 1.80%

50 – 99 employees 2.85% 2.40%

100 – 249 employees 3.06% 2.76%

250 – 499 employees 3.46% 3.36%

Over 500 employees 3.58% 3.27%

Total (N=502) 2.58% 2.00%

Table 5: Average absence rate by sector (2009)

Sector Average Absence Rate

(%)

Median Absence Rate

(%)

Manufacture of

food/drink/tobacco

3.29% 2.86%

High-tech manufacturing 2.99% 2.50%

Manufacture of rubber and

plastics

3.27% 3.00%

Manufacture of

metals/engineering

3.23% 2.68%

Other manufacturing 2.95% 2.89%

Wholesale

distribution/ Transport

2.09% 1.50%

Contact centres 3.67% 3.50%

Retail 2.06% 1.94%

Software services 1.56% 1.26%

Financial services 2.43% 1.90%

Other services 2.17% 2.00%

Total (N=502) 2.58% 2.00%



NUMBER OF DAYS LOST PER EMPLOYEE

The average number of days work lost per employee averaged at 5.98 days across 502

respondent companies. When we extrapolate this fi gure to the economy generally, the

total cost to the economy of days lost through absence was around 11 million days.

Given the difference between the highest and lowest rates of absence recorded by the

survey respondents, it would seem from an objective point of view that there is scope

to improve absence rates among the respondent companies, in general. Individually,

some 27% of respondents to the IBEC survey felt that it would be possible for them to

reduce their absence rate.

Long-term absence, which will be explored in detail in a later chapter, accounted for

23% of all absence days.

It is worth noting that not all absence is problem absence. When employees are ill,

they are generally being responsible in remaining home from work in order to allow

themselves time to recover and prevent the spread of illness to work colleagues.

However, some monitoring of the reasons for absence, the frequency of spells

of absence and the duration of absences, as well as when absences occur i.e. does

absence straddle a weekend for example, or take place at bank holidays or other

holiday periods, can provide insight into absence patterns. This can be of immense

benefi t in determining if an absence problem exists within the company.



RECORDING ABSENCE/ATTENDANCE

Understanding the dimensions of an absence problem is essential. Without putting

in place measures to monitor and record absence/attendance, companies will fi nd it

diffi cult to understand if a problem exists and/or the extent and cost of the problem.

Monitoring absence allows companies to answer such simple questions as:

• Who is absent?

• Why?

• When?

• How often?

• Is the absence certifi ed by a doctor or uncertifi ed?

Keeping a record of absence sends out a message to employees that attendance is a

priority in the workforce and that failure to attend for work will be noticed. If records

are not kept, there may be a perception that some level of absence is tolerated within

the company. The availability of attendance or absence records further allows a

company to benchmark either across divisions, company locations or against rates

set either internally or by corporate headquarters. A record of absence can establish

patterns of poor attendance for example,

• With particular employees

• With particular departments

• With particular work patterns, e.g. particular shifts

• At different skill levels

• At particular times

• With types of absence (i.e. long-term or short-term)

Recording absence additionally allows targets to be set. Where a uniform attendance

standard or target rate is defi ned for all employees, it becomes easier to identify cases

that deviate from the standard or normal position. At the same time it can provide

an imperative for supervisors or managers to deal with absence abuse, as with an

objective measure and analysis tool in place, taking action against problem absence

becomes more easily done.

Within the IBEC survey 78% of employers indicate that they record absence. Some

74% of these companies record absence on a formal basis and 23% on an informal

basis. Almost all, (95%) of companies with over 500 employees indicate that they

record absence (the remaining 5% did not provide details). For smaller companies, i.e.

less than 50 employees, seven out of ten companies in this category indicated that

they record absence (25% did not provide details). By sector, high tech and fi nancial

services sectors were more likely to record absence with 97% of software services



companies and 92% of fi nancial services companies recording absence. Some 88% of

high tech manufacturing companies recorded absence.

METHODS OF RECORDING ABSENCE

There are a number of methods of recording absence:

• Manually (e.g. through the manual completion of absence record cards, time

sheets, diaries or sign-in books);

• Mechanically (e.g. a clock-in system);

• Computerised system; or

• Spreadsheet (manual or computerised)

Additionally the use of biometrics is also becoming a feature in the current survey with

1% of employees indicating that they use fi ngerprint or other biometric information

to register attendance. Employers considering the introduction of biometrics are

encouraged to take legal advice in relation to data protection issues which may arise.

In the IBEC survey, differentiation was made between categories of employee in

relation to how absence was recorded. Many of the companies in the survey did

not employ manual grades and this creates some diffi culty in comparing manual

categories to other categories of employee. However it would seem that for manual

grades, computerised recording of absence was more common than manual systems.

For staff and management categories however, manual systems were still more widely

used than computerised systems. In the case of staff, manual recording occurred

in 40% of respondent companies with computerised recording in 30%. In the case

of management, manual recording occurred in 37% of respondent companies, with

computerised recording in 26%. Very few companies, less than 1% across all categories

of employee used spreadsheets to record absence.

USE OF BIOMETRIC DATA

A small proportion of survey respondents (1%) indicated that they used methods such

as fi ngerprinting, retinal scans or iris recognition software to record attendance. There

are some specifi c considerations in relation to the use of this method, outlined below.

Biometrics are used by companies as identifi cation systems, which confi rm the identity

of an individual; or as authentication/verifi cation systems. Secure storage of this data

is a key consideration for companies that use biometrics. Companies need to ensure

that they have appropriate security measures in place to prevent unauthorized access,

alteration, disclosure or destruction of the data held.



In deciding to use biometric systems companies need to ensure that the data was

fairly obtained and processed, particularly in the case of sensitive data. They also need

to ensure that the information held is proportionate and not seen to be excessive.

The Data Protection Commissioners provide guidance notes on the use of biometric

systems and examine a number of factors to determine what would be seen to be

excessive, these include:

• The nature of the workplace;

• Purpose of the system, is there a less intrusive method?

• Effi ciency of the system;

• Reliability;

• Accuracy;

• Transparency.

The Data Protection Commissioners advise companies thinking of introducing such as

system to conduct a privacy impact assessment. Further details on a privacy impact

assessment can be found on the website of the Data Protection Commissioners

www.dataprotection.ie

CASE STUDY ON USE OF BIOMETRIC DATA

In case study 1 of 2005, available on the website of the Data Commissioner1, a number

of employees at a public institution complained about the use of a biometric time and

attendance system, stating that it was ‘an unreasonable intrusion of their privacy’.

The issue examined by the Commissioner was whether or not the use of a biometric

system for this purpose, which involved data being stored on a central database, was

proportionate.

The company said that the biometric system was the outcome of a security review

process. The Commissioner established that the data collected was held in encrypted

code and was derived from a person’s fi nger. This template was then used for future

authentication. The company stressed that, as a reader was used, no picture of a

fi ngerprint was formed and so this could not be used to re-generate a fi ngerprint.

The Commissioner looked at the concerns of management regarding physical

security of the premises and unauthorized access to restricted areas. It also took into

consideration the features of the biometric system. It was found that the system was

proportionate and did not constitute an unjustifi ed interference with the privacy of the

employees.

1 www.dataprotection.ie



WHO SHOULD RECORD ABSENCE?

According to the IBEC survey, the line manager records the initial absence in over a

third of respondent companies (36%). However the initial recording of absence was

centralised in just under one third of respondent companies (32%). Following on from

the initial absence record, over half the respondent companies (52%) indicated that

subsequent data recording was centralised. One in ten companies indicated that line

managers were responsible for recording absence information after the initial absence.

As the fi rst point of contact with the employee the line manager is often best placed to

notice the individual’s absence. The line manager may also be more likely to be aware

of issues relating to the individual and may be in a good position to form a view on

whether or not the absence is genuine.

Having the line manager record absence, however, can also create diffi culties where a

standard approach is not implemented across departments. This may result in some

managers implementing the policy in great detail, while others do not. This could

give rise to unfairness within the system, as employees may feel that they are being

unfairly held to higher standards than colleagues. A detailed look at the role of the line

manager in absence management occurs later in this report.

DEFINING PROBLEM ABSENCE

Once monitoring systems are put in place to identify absence, spells and patterns

of absence, the system then requires an objective judgement on whether particular

absence amounts to a problem absence or not. The appropriate use of absence

‘triggers’ can be helpful in this regard.

ABSENCE TRIGGERS

Absence triggers are an increasingly common way of helping to identify where and

when action on attendance is needed. In order to do this the attendance record of

individual employees may be monitored against set criteria. This allows the company

to identify whether or not the level and/or pattern of individual absence is acceptable.

The company may use ‘triggers’ to identify areas of concern.

Triggers fall into two broad categories:

• Informal arrangements where periodic reviews of an employee’s sickness

absence pattern are undertaken. It is left to the manager to determine whether

any action is required.



• More tightly specifi ed absence thresholds, used by some employers to identify

when managers should introduce a formal review, counselling, refer to

occupational health, or take disciplinary action.

Typical triggers may be:

• cumulative days absence in a set period;

• number of spells in a set period;

• combinations of days and spells;

• pattern-related.



COST OF ABSENCE

Few organisations have mechanisms in place to measure the cost of absence and where

they exist relatively few companies examine the fi ndings systematically. Around a

quarter of the respondents to this survey (24%) calculate the cost of absence, either

formally (64%) or informally (36%). The CIPD study of UK absence in 2010 found that

fewer than half the respondents to their survey (45%) monitor the cost of absence.

This was a slight increase on the comparative fi gure of 41% in 2009.2

COMPONENTS OF THE COST OF ABSENCE

The most widely recorded components of the cost of absence are direct costs, including

the cost of sick pay, followed by replacement for employee, medical referrals and

overtime. While it is more diffi cult to quantify the indirect costs of absence, some effort

here is useful in that it allows a more realistic picture of the actual cost of absence to

be developed. Companies in the recent IBEC survey were more likely to include only

direct costs (in particular the company sick pay scheme) as opposed to indirect costs.

(See Table 6 below.) Notwithstanding this, the survey shows an increase compared

with earlier surveys, in the proportion of companies examining administration/HR

time in managing absence and/or increased work pressure on colleagues.

Table 6: Costs included in calculating the cost of absence.

Absence cost components Percentage of Companies

Direct costs Company sick pay scheme 66

Replacement for employee 34

Overtime 28

Medical referrals 30

Indirect costs Effect on productivity 32

Effect on quality 14

Admin/HR time in managing absence 21

Increased work pressure on colleagues 22

Other costs 1

TOTAL 161 (100%)

2 CIPD, (2010) ‘Absence Management – Annual Survey Report 2010’, UK, p.13



Costs can be increased several times over by the repercussions of absence on other

employees. Issues such as lowered morale, delays in work processes, idle machines etc

all incur costs to the company, even though some of these costs may be diffi cult to

quantify. Dilts, Deitsch & Paul3 describe the implicit costs of absenteeism as affecting

‘in domino fashion such intangibles as employee morale, discipline and job satisfaction

which in turn, increases labour turnover and reduces worker productivity, thereby

reducing product quality and making product scheduling more diffi cult.’

The following table outlines a series of items that potentially could be included in

calculating the cost of absence. Both direct and indirect cost items are included on the

following list.

CHECKLIST FOR CALCULATING THE COST OF ABSENCE

3 Dilts, D.A., Deitsch, C.R. and Paul, R.J. (1985) ‘Getting Absent Workers Back on the Job – An Analytical Approach.’ p21 Quorum

Books: Connecticut

1 Direct Costs of Absence (Annual)

1.1 Occupational Sick Pay

1.2 Continued payment of fringe benefi ts during absence

1.3 Overtime payments for those fi lling in for absentees

1.4 Overtime payments for employees later down the line which arise out of absence

1.5 Excess cost of temporary staff (e.g. employment agency fee)

1.6 Overstaffi ng to cover for absence (weekly wage plus employment cost x number of extra staff x 52)

2 Indirect Costs of Absence (Annual)

2.1 Cost of recruiting and training extra staff (cost per person x number of persons)

2.2 Cost of management/supervisory time devoted to dealing with absence-related issues, e.g. revising schedules,

disciplining, record keeping, counselling, etc. (hours devoted per week x hourly rate x 52)

2.3 Reduced productivity from work being done by less experienced/more tired employees, from returning workers

operating at lower point in learning curve (excess hours per annum required to achieve standard output x hourly

pay rate, or lost output per annum x profi t contribution per unit of output)

2.4 Lower product quality of work due to replacement of staff, cost of rejects, i.e. cost of scrap materials and cost

of re-work, i.e. materials and labour costs to put things right and cost of extra premiums to maintain saleable

volume (e.g. extra overtime to make up the volume).

2.5 Cost of disruptions/section shutdown due to absenteeism; estimate of profi t foregone by lost production or

fi nancial penalty incurred due to late delivery; cost of feeding other parts of the company.

2.6 Extra costs incurred to meet slipped deadline (e.g. freighted by air instead of sea.)

2.7 Loss of customers due to failure to meet deadline or to inferior product quality (last fi nancial year) – profi t loss

from customers who did not re-order as expected (when this can be related to absence)

2.8 Low morale amongst other staff caused by lax attendance of certain employees (lateness, turnover, failure to

work at measured standard performance).

2.9 Cost of absence monitoring equipment and staff. Estimate the cost involved in equipment purchase or hire, and

wages and employment costs of staff.

2.10 Insert any other calculations relevant to your organisation

Cost p.a. Grand TOTAL €

Source: Huczynski, A. and Fitzpatrick, M. (1989) Modifi ed from Table 1: Calculating the Trues Cost of Absence

‘End the Mystery: Calculating the true cost of employee absence’. Employee Relations Vol. 11, No. 6. 12-15



ACTUAL COST OF ABSENCE (€)

In terms of actual costs, only 10% of companies in the IBEC study provided information.

On average, the cost per employee in these companies was €818 euro per employee,

per annum, which is a slightly lower fi gure than that recorded in the 2003 report. If we

take this fi gure of €818 per employee and project it to include all those in employment

in the same period, we fi nd that the total cost of absence per annum is around €1.5bn.

In the UK, the Confederation of British Industry (CBI) found that the average direct

cost of absence per employee was £595 – approximately €675, with a total loss to the

economy of £16.8bn in 2009.4 Also in the UK, the Chartered Institute of Personnel

Development (CIPD) found a very similar cost of absence among respondents to its

survey, conducted in 2010. According to the CIPD, the median cost of absence per

employee was £600, approximately €681.5

4 CBI/Pfi zer, (2010), ‘On the Path to Recovery: Absence and Workplace Health Survey 2010’, UK, p14.




ABSENCE MANAGEMENT STRATEGIES

SICK PAY AND ABSENCE

There is occasionally a perception that the existence of a sick pay scheme can

encourage absence as some employees may see the existence of such a scheme as a

licence for absence. In the case of the IBEC survey, there was a slight difference in the

level of absence in companies with a sick pay scheme. The average absence for those

with a sick pay scheme in place was 2.73%, while the lower average rate of 2.13% was

recorded in companies that did not operate sick pay schemes for employees. Almost

two-thirds (66%) of respondents to the IBEC survey had a sick pay scheme in place.

RESTRICTING SICK PAY

Where there is a sick pay scheme in operation, employees are guaranteed some

payment in the event of illness. This is designed to provide employees with some

protection in times when they cannot work due to illness. The existence of a sick pay

scheme is sometimes considered to be a contributory factor to short-term absence,

or even to encourage it. This is due to the way some schemes are managed, with

employees feeling ‘entitled’ to take a certain number of days casual absence per

annum. The restriction of sick pay is generally part of the control mechanism built into

a scheme and consists of either:

• Restricting the number of paid days casual absence in a given period of time, or

• Suspension from benefi t where abuse of the scheme has been proven or where

the absent employee has failed to comply with the rules of the organisation’s

sick pay scheme.

• Retaining an element of discretion as to when sick pay may be impeded.

FIT NOTE

In the UK from April 6th 2010, the sick note was replaced with a ‘fi t note’. The essential

difference is that on the ‘fi t note’ a GP can advise that the employee is ‘not fi t for work’

or that they ‘may be fi t for work’ under certain conditions, for example,

• If they return to work gradually, for example, by starting part-time

• If they can work different hours temporarily

• If they can perform different duties or tasks

• If they have additional support to do their job, for example, if they have back

pain, avoiding heavy lifting



On the ‘fi t note’ the GP can also give general information around the individual’s illness

and how it may affect his/her ability to work.

On foot of the provision of a ‘fi t note’, the employee and employer can then discuss

how best to proceed, deciding on what support the employer can give to ensure that

the employee can return to work as soon as possible.

ATTENDANCE BONUS

Employers can consider rewarding employees who have an excellent, or near excellent,

attendance record with an attendance bonus. However, there are some disadvantages

surrounding attendance bonuses in that over time they can lose their effectiveness, or

alternatively, they are not at a high enough level to encourage increased attendance.

A further argument against this approach is that the employees who gain the bonuses

tend to be the people that would have attended work anyway.

An additional consideration for employers is that employment equality issues may

arise, and legal advice should be sought if you are considering the introduction of such

a bonus.

In relation to the management of short-term absence, attendance bonuses were used

in only 15% of respondent companies.

The option of non-cash incentives can also be considered by organisations. These can

be awarded on an individual or team basis.



HEALTH EDUCATION/WELLNESS PROGRAMMES

In an attempt to reduce the levels of employee sickness, employers can try to improve

and promote the health and well-being of their employees through offering occupational

health services, supporting health promotion activities, and, in some cases, employee

assistance programmes (EAPs). These types of services can include:

• Stress workshops

• Back pain treatment

• Blood pressure measurement

• Physical activity assessment

• Body fat and healthy eating analysis

• Smoking and alcohol assessment

• Good use of VDU and work station design

• A confi dential counselling service (generally covered under an EAP).

From a recent (2010) IBEC survey of Human Resource Management practices in

member companies, over one-third of respondents6 had engaged in employee health

screening in the 12 months preceding the survey. Almost one in fi ve (18%) had had

a stress management campaign and just over one in ten (11%) had held a mental

wellbeing campaign in the previous year. While these results relate to companies with

reasonably advanced HR practices in operation, it would seem evident that company

engagement in this area is becoming signifi cant.

FLEXIBLE WORKING ARRANGEMENTS AND ABSENCE

Much has been written about fl exible working arrangements and their impact on absence

levels. It is argued that if employees have fl exibility in their working arrangements,

they will be better able to reconcile personal, family and work responsibilities and

thus will not need to take time off work to deal with these issues. These types of

arrangements, it is suggested, bring benefi ts to both employees and to the company in

terms of increased morale and higher productivity.

Over six out of ten companies in the IBEC survey (62%) stated that they had some

form of fl exible working in place. The overall existence of these types of arrangements,

however, did not appear to be associated with a lower absence rate. Overall, companies

6 The IBEC HRM survey was conducted during October/November 2010, and provides a comprehensive overview of HR policies and

practices in respondent companies. A total of 228 companies took part, from manufacturing, distribution and services sectors.



operating fl exible work systems recorded a slightly higher average absence rate of

2.72%, compared with 2.36% in companies where fl exible work arrangements are not

in place.

However, across various fl exible work types, the results vary somewhat. For companies

with home or tele-working fi ve days per week, the absence rate was lower at 2.08%,

than for those companies that did not operate it (2.73%). Similarly for companies that

operated home working one or two days per week, their average absence rate was

2.38%, compared with 2.80% in companies without such an arrangement. Flexi-time

also seemed to have a slight effect in that the absence rate for companies with fl exi-

time in operation was 2.58% and 2.77% for companies that did not operate fl exi-time.

Companies operating shift, have an almost 1% higher absence rate than those who do

not operate shift systems. Companies operating part-time work also report a higher

average absence rate of 2.77% compared with 2.56% in companies where part-time

working is not in operation.

It is worth noting that the absence rate within companies may be infl uenced by factors

other than the existence or otherwise of these arrangements. However, it would seem

that the above provides some evidence that the type of fl exible working arrangement

in place may affect absence rates.

RETURN TO WORK INTERVIEWS

Return to work interviews are an extremely useful tool in dealing with employee

absence. According to the CIPD study7 fi ndings, return to work interviews are regarded

as one of the most effective tools for managing short-term absence. The return to

work discussion gives the line manager/supervisor an opportunity to welcome the job

holder back to work. This interview also enables a check to be made that the employee

is well enough to return to work. The necessary paperwork can be completed, so that

the absence and its conclusion are properly recorded. Additionally, the fact that an

established procedure is in place to investigate and discuss absence with an employee

may act as a deterrent for non-attendance on foot of disingenuous reasons.

In order for return to work interviews to be successful, a number of criteria need to be

borne in mind.

• Interviews should be carried out as promptly as possible following the absentee’s

return to work




• The employee should be welcomed back to work and given an opportunity to

discuss the reasons for his/her absence.

• If the absence is part of a pattern of absence, the interviewer should explore any

particular issues that the employee may have which are leading to absence.

• Should the interviewer have reason to believe that the absence forms part of an

ongoing pattern of absence, and/or constitutes a problem absence the interview

offers an opportunity to raise this with the individual concerned.

• If the problem absence is part of an ongoing pattern, then the interviewer

should consider whether the pattern of absence may be due to an ongoing

disability, within the meaning of the Employment Equality Acts 1998 - 2008 or,

alternatively, outline any action that may be taken for example, invoking the

disciplinary procedure, or issuing of verbal or written warnings.

• The manager can also, as part of this interview, outline the effect of the

individual’s absence on the department, i.e. what arrangements were in place

during the absence and explain any changes in work practices that might have

occurred while the employee was absent.

• The supervisor/line manager should then brief the returning employee about the

current situation i.e. what tasks are now priorities, what work has already been

carried out and where the employee should now focus his/her efforts.

Return-to-work interviews should be consistent and fair. They are an acknowledgement

that the employee has been out, and help to ease the employee back into the workforce

after an absence. They provide an opportunity for the employee to outline any issues

that may arise for them as a result of their illness, and provide the employer with an

opportunity to discuss any potential issues from the employer side.

Having a return to work interview demonstrates clearly to employees that the employer

is sympathetic to genuine illness but that there is a procedure in place through which

problem absence can be identifi ed and dealt with. It sends the clear message that the

company takes absence seriously and shows management’s strong commitment to

controlling absence in the workplace.



CAUSES OF ABSENCE

It is often diffi cult to isolate the true cause of absence. Why do some companies

have higher absence rates than others? With illness identifi ed as the main cause of

absence, do their employees get sicker than other employees, or are there other

reasons? Because illness-related explanations are generally the only reasons accepted

as legitimate for unplanned absences from work, other reasons for absence can go

unnoticed or unmeasured.

There are many reasons why employees do not attend work, apart from illness. These

can include psychological factors, such as when employees perceive their work life

as being unfair in terms of return for input. There are also individuals who need to

exert some control over their work environment, and without this, take time off. Other

employees may have unreasonable expectations compared with the reality of the job

itself, while still others may feel that their effort in the workplace is not recognised

and that ‘no one cares anyway.’ There can additionally be sensitive issues that prevent

people from going to work such as diffi culties with partners, or drug or alcohol

dependency.

Staying away from work occasionally may also be regarded by some, or all, members

of the work group as acceptable behaviour. Voluntary absenteeism is not simply seen

as the result of individual behaviour, it is also substantially infl uenced by the existence

of an ‘absence culture’. The culture of an organisation i.e. its values, beliefs and norms

can also affect attendance in a positive way by having an ‘attendance culture’ (i.e. there

is encouragement/support/rewards/expectations for, and of, high levels of attendance),

or in a negative way by having an ‘absence culture’ (i.e. where absence is ignored/not

managed/not punished/accepted).



SHORT-TERM ABSENCE

CAUSES OF SHORT-TERM ABSENCE

In the IBEC survey, around one third of respondents (35%) recorded the causes of

short-term absence. The same proportion (35%) recorded the causes of long-term

absence. The main causes of short-term absence were minor illnesses, such as

colds/fl u, stomach upset, headaches etc for both males and females. Some 44% of

respondents identifi ed this as the primary cause of absence for men and 49% as the

primary cause of short-term absence for women.

In terms of causes other than minor illness, home responsibilities and recurring health

problems also ranked as the main causes of short-term absence for both males and

females. Work stress was mentioned as a main cause for males in 5% of respondent

companies and for females in 4%. Mental ill-health as a factor for males was recorded

in 2% of respondents and for females in 3%. Tables 7 and 8 set out the full details.

Table 7: Causes of short-term absence - Males

Cause of short-term absence 1st cause Mentioned as a cause

(1st, 2nd or 3rd)

Minor illness 44% 61%

Recurring Health problems 1% 17%

Home responsibilities 1% 16%

Personal problems 1% 13%

Back pain 2% 11%

Other absences not due to genuine ill

health

1% 11%

Accidents outside work 0% 10%

Low morale/job commitment 1% 7%

Work stress (increase in work

demands)

1% 5%

Alcohol/alcohol related problems 1% 4%

Accidents at work 0% 4%

Commuting diffi culties 0% 3%

Mental ill health 0% 2%

Management/employee relations 0% 1%

Bullying/harassment 0% 1%

Other 0% 2%



Table 8: Causes of short-term absence – Females

Cause of short-term absence 1st cause Mentioned as a

cause

(1st, 2nd or 3rd)

Minor illness 39% 57%




Back pain 1% 7%


health

0% 7%



Work stress (increase in work

demands)

0% 4%


Commuting diffi culties 0% 3%





Other 0% 3%

MANAGEMENT OF SHORT-TERM ABSENCE

There are many measures that an organisation can take to manage absence. Almost

three-quarters of the companies in the IBEC survey (74%) indicated that they had at

least one of the measures listed in the questionnaire to manage short-term absence

and more than 40% had fi ve or more of these measures. As Figure 1 shows, apart from

recording and analysing absence data (these being the two most common short-term

absence management measures) companies are most likely to provide line managers/

supervisors with regular absence information (40%), in addition to holding return to

work interviews (37%), as measures to manage short-term absence.



Measures to manage short-term absence

Recording of absence data

Analysis of absence data

Provide line managers/supervisors with regular

absence information

Invoke disciplinary procedure

Hold interviews on return to work

Provide medical examination

Specify absence ‘triggers’

Restrict occupational sick pay scheme

Provide counselling service

Flexible working arrangements

Provide absence management training for line managers

Attendance bonus/reward scheme

Self-certifi cation

Organise health education programmes

Figure 1: Measures to manage short-term absence

69%

45%

40%

37%

37%

36%

26%

23%

22%

21%

19%

15%

12%

11%



LONG-TERM ABSENCE

There are various defi nitions of ‘long-term’ absence. The IBEC study defi nes long term

absence as absence that lasts more than 20 days. According to companies in the

IBEC survey who provided data on both the total number of days lost plus the number

of those days that were long-term absence, 23% of days lost were due to long-term

absence. This was similar to the CBI 2010 survey fi nding of 22% of days lost due to

long-term absence8.

CAUSES OF LONG-TERM ABSENCE

Less information was provided by respondents in relation to the causes of long-term

absence than those of short-term absence. The main cause recorded by respondents

was recurring health problems for both males and females (12%) – ranked either 1st,

2nd or 3rd as a cause of long-term absence. In the 2010 survey, mental ill health ranked

as the third most important reason for long–term absence for males (9%) and the

second most important reason for females (9%). Given that a signifi cant number of

respondent companies did not provide information in relation to the causes of long-

term absence, it can be diffi cult to draw conclusions from this data. Potentially, an

improved awareness of the issue of mental health among employers or a willingness

on the part of employees to identify mental ill-health as the reason for long-term

absence may be factors.

8 CBI, (2010), ‘On the Path to Recovery: Absence and Workplace Health Survey 2010’, UK, p.20.



Table 9: Causes of long-term absence – Males

Cause of long-term absence 1st cause

Mentioned as a cause

(1st, 2nd or 3rd)




Back pain 2% 7%



Work stress (increase in work demands) 1% 4%





health 0% 1%



Table 10: Causes of long-term absence – Females

Cause of long-term absence 1st cause

Mentioned as a cause

(1st, 2nd or 3rd)





Back pain 1% 5%


Work stress (increase in work demands) 1% 4%



health 0% 1%

Alcohol/alcohol-related problems 0% 1%






LONG-TERM ABSENCE STRATEGY

Just over half (57%) of respondents in the IBEC survey indicated that they had a

strategy for long-term absence, the most common elements being keeping regular

contact with employees when they are out sick, in addition to having a return to work

interview and assessment. Around one in three companies provide re-training for

employees when they return to work, while just over a fi fth (22%) of those with a

strategy provide temporary or permanent redeployment opportunities to assist the

employee in returning to work.

REHABILITATION/REINTEGRATION

Estimates of the number of people who are on long-term sickness benefi ts vary across

the EU, but they approach 10% of the labour force in some countries. In Ireland, in

2009, a total of 77,665 people were in receipt of illness benefi t (i.e. a payment made

to insured persons who are unfi t for work due to illness). A further 52,922 were on

invalidity pension (payable instead of disability benefi t if a person has been incapable

of work for at least 12 months)9.

Research has shown that the longer a person is absent from work, the harder it is for

him/her to return. According to Philips et al 10, there is evidence to suggest that ‘a

proactive approach to supporting the return to work of ill and injured workers can have

benefi cial consequences both in terms of reducing lost working days and securing an

employee’s continued employment’.

Philips et al suggest that management should not only be taking action against

‘illegitimate’ long-term absence, but should also be trying to facilitate the return to work

of those who are ‘legitimately’ absent, as a result of ill health. His fi ndings pointed to a

number of areas where employers could review their current arrangements in relation

to managing long-term absence, including putting in place appropriate procedures,

and the adoption of a case management approach. Employers are also reminded

of their obligations under S.16 of the Employment Equality Acts to seek reasonable

accomodation for employees who are suffering from a disability.

Under a case management approach, all those with relevant expertise and management

responsibility meet to discuss how a particular case should be handled. This offers a

9 Department of Social Protection, (2009) ‘Statistical Information on Social Welfare Services 2009’, Table E3, ‘Number of Recipients of

Illness, Disability and Caring Payments by Payment Type’ p.52

10 Philips, J., Cunningham, L., Dibben, P.,(2002) ‘Absence management and the issues of job retention and return to work’, Human

Resource Management Journal, Vol.12, No.2, Pages 82-94



way of avoiding the risk that responsibility is carried by one individual, often the line

manager, who may have neither the expertise or resources to deal effectively with an

ongoing long-term absence situation.

Research has shown that line managers can be hesitant to get too closely involved in

the handling of cases involving serious illness and that they tend to accord long-term

absence management a relatively low priority in relation to their other duties. The

use of a case study approach could go some way to overcoming these problems and

assisting the more consistent management of cases.

In terms of managing long-term absence, as a matter of good practice, employers

should keep communication channels open with the employee on long-term leave. The

employer should have ongoing contact with the employee as to when they will be

fi t to return to work, and assure them of their ongoing value to the company, while

they are out. This contact should be appropriate depending on the reason for the

absence. The employer should ensure, where possible, that the employee remains

engaged with the company and reassured as to their re-integration into the workplace

on their return. It can be helpful to appoint an individual employee with responsibility

for managing this communication process, and assist in the reintegration of returning

employees. Maintaining regular contact with those on long-term absence can help

reduce any feelings of isolation, show them that their contribution to the organisation

is being missed and demonstrate the company’s concern for their welfare. The lack

of any contact could be interpreted as a sign that the company is not concerned and

that there is no pressing need for them to return to work. However the reason for the

absence must always be considered when determining the appropriate level of contact.

In the CBI/Pfi zer report on Absence 2010, over nine in ten (93%) respondents said

that they have some form of rehabilitation in place, up from 81% in 2007. The fi gures

refl ect that employers increasingly recognise the importance of having policies to

help employees return to work from long-term sickness absence, which accounted for

nearly a quarter of working time lost in 2009.11

Focusing, formalising and better monitoring and management of absence was the one

of the main reasons cited for the decrease in both short and long-term absence in the

IBEC survey.

MENTAL HEALTH & ABSENCE

In the current survey, mental ill health is one of the main causes of long-term absence

11 CBI/Pfi zer, (2010), ‘On the Path to Recovery: Absence and Workplace Health Survey 2010’, UK, p.31



cited by employers. There has been a slight increase in the proportion of employers

stating mental illness as one of the main causes of long-term absence for males in

the current survey from 8% (2003) to 15% (2009). For females, the proportion also

increased from 8% (2003) to 11% (2009).

Dealing with mental ill health at work can be diffi cult for both employer and employee.

The employee may not wish to disclose the existence of a mental health diffi culty to

their employer for fear that they may be discriminated against or stigmatised. From an

employer’s point of view, however, disclosure of a mental illness allows the employer to

provide various supports to the employee that can assist them in the work environment.

The employer should therefore strive to provide a safe culture and safe environment,

where an employee feels comfortable in disclosing any mental health diffi culties, feels

able to ask for any supports needed, and is assured that their disclosure of such an

illness will not have a negative future impact on their career. An organisational culture

of acceptance will also reduce the possible pressure individual employees may feel to

turn up at work, when they do not feel able to do so, so as to avoid disclosing their

illness to their employer.

It is particularly important in the case of absence due to mental illness for the

employer to remain in regular contact with the employee throughout the period of

absence. Regular communication can have a positive effect on the employees’ self

confi dence, reassuring them that they are valued and missed at work. This contact

should be appropriate, depending on the reason for the absence. If in doubt as to

the nature of contact which should be made, especially in work related stress case

please seek advice from your IBEC advisor. To enable a return to work, structures

such as fl exible working arrangements or fl exible start times to suit individual needs

should be explored and implemented, where possible, and agreed by both parties. The

existence of an employee assistance programme (EAP) may also help in providing a

source of support for the employee. According to IBEC data many EAPs are provided

by an external provider, which may serve to further reinforce the confi dentiality of the

arrangement and encourage the employee to avail of the supports offered through

this programme.

When returning to work, it is also important that the employer and employee work

together to determine the appropriate level of work to be undertaken upon return to

work. Often, a perceived side-effect of absence due to mental ill health can be that

the employee feels penalised for being ill, if duties and responsibilities are removed

following a period of illness. While this may stem from a willingness on the employer

side to assist, it may have unintended negative effects on the employee, possibly

undermining self confi dence and making it more diffi cult for the employee to feel

comfortable in the workplace. Good communication with the employee concerned

can assist both parties in understanding the pressures of each side, and will assist in



coming to a suitable arrangement that works for both the employer and employee.

Reasonable accommodation can therefore often be arrived at.

For detailed advice in relation to dealing with absence due to mental illness, please

contact your IBEC HR Advisor.

WORK-RELATED STRESS & ABSENCE

While stress and mental illness often form part of the same discussion, they in fact

relate to quite different things. Work-related stress is defi ned by the Health and Safety

Authority as ‘referring to those reactions due to pressure/deadlines/threats/anxieties

within the working environment’12. Mental ill health has a biological basis, which while it

can be affected by work stress, generally has its causes outside the workplace.

Work-related stress often occurs where job roles are not clear and/or the employee

feels that they have a limited ability to control their own work. In order to avoid

work-related stress the employer should, where possible, take care to ensure that

organisational structures, policies and procedures are clear, unambiguous and unlikely

to create additional diffi culties or confusion for employees. Shift patterns, work

programmes and schedules should be designed carefully to minimise potential for

stress. Clarity around job roles, provision of appropriate training and management

of demands placed on individual employees, will all help to mitigate the potential for

stress. If an employee is under work-related stress, this can ultimately have major

effects on their ongoing work, and can lead to increased absence, poorer concentration

on tasks, increased anger/irritability levels and an overall reduced ability to cope.

It is worth noting that the particular demands of the workplace may create diffi culties

for some employees but not for others. It is also worth noting that stress manifesting

in the workplace may have its origins outside the work environment altogether.

Employees can feel stress when the demands placed on them either outside or at work

stretch their ability to cope.

Employees should therefore, according to the HSA guideline ‘learn to cope with

reasonable pressures, and develop ways of adapting to the demands of work’.13 A

workplace policy to build resilience can be benefi cial in this regard. Such a policy

should broadly encourage healthy approaches to life and work and can help individuals

to develop a personal methodology to reduce stress in both their working lives and

their lives outside work.

12 Health and Safety Authority, (2009) ‘Work-related stress: A guide for employers’, Ireland, p.3

13 Health and Safety Authority, (2009) ‘Work-related stress: A guide for employers’, Ireland, p.4



In a supportive work environment, open communication can lead to the isolation of

work practices or workplace issues that cause stress. It could be the case that the

employee needs further training to be more comfortable with aspects of the work, or

that they may need some additional support in relation to particular tasks. Optimally,

the employer and employee should determine together what supports are required

by the employee. The employer should then decide if they are in a position to provide

these supports on an ongoing basis.

For further advice in dealing with absence and work-related stress, please contact your

IBEC HR Advisor.



THE ROLE OF THE LINE MANAGER IN ABSENCE MANAGEMENT

The role of the line manager in absence management has been increasing in recent

years. Line managers are sometimes the only people who may be aware that a particular

employee is absent. They are best placed to understand the circumstances around

an individual’s absence and to have noticed a problem at an early stage. Therefore,

their active involvement in the company’s absence procedures is pivotal to the overall

effectiveness and future success of an absence policy.

Underlining the above, the IBEC survey found that in the vast majority of companies

where absence was recorded, some 82% of companies fed back information on

absence rates to line managers/supervisors. In around a quarter of these companies

this feedback occurred only when there was a problem, however one in fi ve companies

fed back weekly to supervisors on absence rates, with a further 33% feeding back to

supervisors monthly. A further underlining of the important role of the line manager

lies in the return to work interview. Three out of fi ve respondents interview employees

on their return to work, where there is concern about an employee’s level of short-

term absence. In 65% of these companies, the initial interview is conducted by the line

manager. And in one in ten of these companies, the line manager also conducts the

follow-up interview where applicable.

In addition to ensuring that work is appropriately covered during the employee’s

absence, there are a number of critical actions that line managers need to take in

order to address absenteeism. They need to -

• ensure that staff are fully conversant with the organisation’s views and

procedures for dealing with absence;

• be the fi rst point of contact when an employee phones in sick;

• maintain appropriately detailed, accurate and up-to-date absence records for

their staff (e.g. date; nature of illness/reason for absence; expected return to

work date; doctor’s certifi cate obtained; etc.).

• have a working knowledge of the Employment Equality Acts 1998 - 2008.

Line managers on an ongoing basis may also assist with:

• Identifying any patterns or trends of absence which cause concern;

• The holding of return to work interviews;

• Disciplinary procedures where necessary;

• Offering support and welfare provision to employees on sick leave – often

through referrals to other sources of help (e.g. a counselling or occupational



health service);

• Keeping the HR department up-to-date on absence data requirements in addition

to any problems.

To ensure that line managers are comfortable and competent in their role, they need to

have the full support of senior management. Both parties need to be aware of the aim

of the absence procedures. Should there be any discrepancies between departments

the policy can lose its effectiveness. Staff may fail to recognise it as a formal part of

the organisations strategy, deserving recognition and adherence comparable to that

shown towards other procedures such as those for dealing with grievance or discipline.



THE ROLE OF HR IN ABSENCE MANAGEMENT

From the results of the IBEC survey, the role of HR in relation to absence management

is very important. From the recording of absence (32% record absence in a centralised

way) to the ongoing management of absence (i.e. HR more likely to record ongoing

absence), the importance of the role of HR in monitoring and advising on procedures

in relation to absence is clear.

One of the key roles for HR is their role as advisors in relation to absence. In relation to

conducting back to work interviews etc. their input is vital. In terms of administration/

monitoring or measuring absence, HR can provide the records in conjunction with

other departments or line manager to identify and deal with problem absence. In

larger companies, HR regularly have responsibility for providing centralised fi gures on

absence either across departments or to head offi ce, for example.

Additionally, in the case of long-term absence, HR are regularly involved, particularly

where an active role is taken by the company in managing this type of absence. The

role of HR when disciplinary procedures have been instigated is also clear. Across the

survey respondents over four out of ten companies had invoked disciplinary action due

to absenteeism, while a quarter (24%) had dismissed an employee due to absenteeism.

The role of HR in the areas of implementation of disciplinary or personal improvement

plans for employees has been widely documented elsewhere, and confi rms the

importance of the role of HR in the management of absence, and in particular dealing

with problem absence, on an organisation-wise basis.



ABSENCE MANAGEMENT POLICIES

An absence management policy will normally include processes and procedures

for both employees and those responsible for recording absence. A good absence

management policy will normally outline the following:

The organisations approach to absence:

• the principles of the policy e.g. fairness, consistency, etc.

• the position of the organisation e.g. low tolerance of unauthorised absence, high

levels of support for genuinely ill employees

• the objectives of the policy: e.g. aims to create and promote a positive and

healthy workforce, target absence rates etc.

• the services available within the organisation: e.g. employee assistance

programmes (EAPs), counselling programmes, rehabilitation/re-integration

programmes.

• how absence is defi ned and measured within the organisation.

Notifi cation procedures for employees that are out sick:

• how the notifi cation of sick leave takes place e.g. who the employee should

notify, requirements for medical certifi cation, details of self certifi cation

procedure, where applicable.

The role of the line manager/supervisor, or other person in the organisation responsible

for recording absence:

• how the line manager should deal with absence recording, documentation in

relation to absence, counselling, return to work interviews etc.

• the responsibilities of the line manager in relation to recording absence and

details the level of discretion available to the line manager in dealing with

problem absence, in compliance with the Employment Equality Act 1998 - 2008.

• details how problem absence is identifi ed and to whom the problem should be

referred.

The role of the medical department/company doctor/ nurse etc..

Disciplinary processes and procedures.

A sample attendance policy is provided on page 49 of this report.



CASE STUDIES

Engineering Company

Based in Southeast

115 full time employees

Profi le of Company

The company is in operation in Ireland for 23 years, and is engaged in the engineering

sector. The company is not unionised. There is one shift system in operation in the

company. The shift operates 8am – 4.30pm/4.30pm – 12 midnight/12 midnight – 8am.

A clock-in system is utilised.

The company does not operate a sick pay scheme and has no attendance bonus in

place.

Outline of current absence situation

The current absence rate in the company is around 3%. The company considers that

this rate is satisfactory.

The company does not currently have any employees on long-term absence.

In relation to short-term absence the company has two main issues:

• employees that have problem uncertifi ed short-term absence, or consistent

lates, and

• employees whose absence increases around holiday periods, where employees

may be travelling out of the country for holidays, or to visit family abroad.

Current management of absence

In relation to lates, a system operates whereby a daily record of lates is kept by HR using

data from the clock-in system. Where a problem is immediately obvious on a particular

day, then HR in consultation with the plant manager will deal with it straightaway.

1



From the daily clock-in records a monthly report is compiled into a spreadsheet and

shared with the plant manager. Company policy dictates that three lates in a single

month constitutes problem absence, and a fi rst warning will be issued on foot of this.

If the problem persists, the employee will move through the disciplinary procedure,

and a continued failure on the part of the employee to improve will ultimately result

in dismissal.

The company are obviously sympathetic to employees where diffi cult circumstances

exist, and work extensively with the employee to ensure that, where possible,

improvements can be made. But ultimately, the company sees turning up on time to

work as the responsibility of the employee, and in the interests of fairness to other

workers takes repeated failure to turn up on time, seriously. Employees, at all times,

can appeal company decisions through their own grievance procedures.

The situation in relation to repeated or pattern short-term absences is similar. Where

several unexplained or uncertifi ed absences occur, or where a pattern has emerged

in relation to absences around particular times, the employee will be met on return

to work. They will be asked to provide an explanation for their absence. Where an

explanation is not provided, or no sick certifi cate forthcoming, or where no annual

leave remains to cover the absence, the disciplinary procedure will be invoked.

Where certifi cates have been provided, the company may refer an employee to their

own doctor for examination.

Success in managing absence

Over time the company has formalised their approach to absence and have been

successful in creating a culture where employees are aware that absence is a matter

of priority for the company. The company have successfully reduced absence in a

number of areas, and are satisfi ed that their current absence rate is sustainable. The

company remain very supportive of individual employees where absences are genuine.

Future management of absence

The company is currently examining the possibility of setting up an attendance bonus

scheme, but is still at the discussion stage in relation to this.



Manufacturing company North west

160 employees

In operation in Ireland since 1978.

Shift systems

The company operates two shift patterns.

A three-cycle shift system, daily fi ve days per week, 8am – 4pm / 4pm - midnight /

midnight – 8am. Staff rotate across different shifts.

A four-cycle shift system operates from 8.00am - 8pm and 8.00pm - 8.00am.

Employees work 3 days in week one, and 4 days (2 + 2 days) in week two. Employees

rotate between days and nights. Over four weeks, employees work on two weekends

also, one weekend on day shift and one weekend on night shift.

The company occasionally operates a permanent weekend shift, as circumstances

warrant, however this system is not in operation currently.

The absence rate for the four-shift system remains almost consistently at zero, and

employee satisfaction ratings derived from employee surveys show high levels of

satisfaction from workers on this particular shift pattern.

Sick pay scheme

A sick pay scheme is in operation. On the fi rst day of absence the employee receives

no pay. From second day of absence to 5th day of absence 60% of salary is paid. From

days 6 – 20, full pay is provided, and from days 21 – 40 half pay is given. Records are

kept on a rolling 12 month basis.

Certifi cates are required within two days. Company reserve the right to refer employee

to company doctor for evaluation.

Attendance bonus

An attendance bonus is in place – however company remains unconvinced about the

effectiveness of this bonus. The company feels that the bonus rewards those that

would have turned up at work anyway, and does not deter employees from problem

absence. The attendance bonus is paid weekly, for a full week’s attendance.

2



Recording of attendance

The company operates a clock-in system, which is utilised by every employee. The

company uses a HR dashboard system, which provides details to management of

several HR metrics including the number of direct/indirect employees, as well as

absence rates for each month. The company averages around 1.5% casual absence,

excluding long-term absence. The company are satisfi ed that this is an acceptable level

of absence.

The clock-in system data is also used to identify patterns in employee absence. The

company believes that over time trends will appear in absence behaviour. In the past

seasonal absences have been identifi ed within trend data as well as the more regular

Monday/Friday absences.

Company culture

The company is very clear that absence is a priority for management. Absence fi gures

appear on the HR dashboard and are reviewed. Attendance data is also reviewed to

see if any particular patterns emerge. The disciplinary procedure is used where poor

absence behaviour continues over a period of time, and does not improve despite

engagement with management.

How absence is managed?

The company is sympathetic to genuine absences and to absence when a set of

circumstances results in unusual absence patterns for employees. However, the

company takes absence seriously, and will conduct return to work interviews for

employees where a problem absence pattern has been identifi ed.

Once the company has identifi ed a problem absence pattern, they will talk to the

employee concerned, to let them know that their absence is becoming an issue. It is

the company’s experience that most employees will adjust their behaviour following

this talk and that further action will be unnecessary. However, where the poor absence

behaviour continues, the employer will instigate the disciplinary procedure and

proceed to deliver, in the fi rst instance, a verbal warning, followed by two successive

written warnings, culminating in dismissal where the behaviour is prolonged and not

improving. The company has dismissed employees for repeated absence in the past.



Long-term absence

The company has a number of employees on long-term absence. The long-term

absence rate is 2.9%. The company stays in touch with employees on long-term leave

and may ask that such employees attend the company doctor from time to time.

Successful absence management strategies

The company believes that the fact that employees lose a day’s pay immediately deters

employees from casual absence. Additionally, the company culture is that absence is

monitored and poor absence behaviour will result in action from the company. Whether

that action is a talk with the employee or the instigation of the disciplinary procedure,

the company will act to ensure that problem absence is minimised.



IT manufacturing and services company

Company operates a large-scale manufacturing and services business in Ireland. The

company has several shift systems in place in its manufacturing business, and on the

services side, supports time zones and holidays in different countries and regions of

the world.

Sick pay schemes

The company has a sick pay scheme in place. Through acquisitions some employees

may have had different entitlements than others, however, an effort has been made to

rationalise and consolidate various schemes over the years. In relation to sick pay, this

is now mostly aligned across the business. Employees are paid for the fi rst three days

they are out and on the fourth day must submit a sickness certifi cate. Employees must

inform their direct line manager of their absence either in person or by voice message

within the fi rst two hours of their shift.

Company approach

The company has an expectation of 100% attendance. Employees are responsible for

uploading data and information themselves in relation to attendance at work, leave etc.

The line manager has access to individual data and reviews this data regularly. From

a management perspective there is a lot of diligence around ensuring that absence is

managed. There is a monthly meeting during which the absence rates and patterns of

employees are reviewed.

The company has two monitoring methods:

Monitoring the trend – if particular shifts are consistently missed, or employees

consistently do not make it to work on particular days or nights.

Monitoring the percentage absence – measured on a rolling basis and reviewed

monthly. If an employee has a high percentage absence then a conversation is held

with the employee where they are asked about their absence. If the absence is due to

ongoing health problems, then the matter can be referred to the occupational nurse

or physician for evaluation.

3



Return to work – short-term absence

When an employee has been absent, they must attend a return to work interview. This

interview involves the completion of a form which sets out the reasons for the absence.

Occasionally, the company has found that absence may increase when an employee

becomes shift-intolerant. Where possible the company work with the employee and

with HR to come up with an alternative approach on an individual basis, and try to

assist the worker in altering working hours/patterns etc, where possible.

Long-term absence

The company has a low level of long-term absence, currently there are around 20 people

from a staff of over 4,000 people on long-term absence. Employees are considered to

be long-term absent after an absence of six months from work. At this point, the

relationship with the employee is managed by the occupational health service of the

company. There is regular communication in relation to employees on long-term

absence between the company’s physician, HR, line manager and occupational health

service.

Return to work – long-term absence

Contact is maintained with the employee and when they are ready to return to work,

their health is evaluated by the occupational health professionals in the company,

and their return to work validated. There is a 12-week re-integration phase when

an employee on long-term absence returns to work. During this 12-week period the

employee returns to work on a phased basis, with hours of work, duties etc decided in

consultation with the employee and the company physician.

Role of line manager

The role of the line manager is important in managing absence. All absence policies

and attendance expectations are clear to both the employer and the employee. The

company believes that the key to managing absence effectively is in the application

of these policies. In this regard, the line managers role is very important, not only

from the point of view of managing the absence of individual employees, but also from

the point of view of providing guidance and support to other line managers in their

management of problem absence. Regular meetings are held with line management to

examine patterns and rates of absence, and where a problem absence exists, managers

will be asked to account for it. This ensures that line managers are actively managing

absence, and that absence management policies are adhered to across the company.



Company satisfaction with absence rates

The company does not concern itself with overall absence rates, but rather prefers

to manage absence on an individual basis. The company is satisfi ed that any problem

absence is identifi ed using their existing methods, and that both employees and

management are familiar with the well structured absence policies of the company. The

company has also remained fl exible in working with employees with problem absence

to determine the cause and where possible to assist. The company ultimately prefer to

avoid the formal disciplinary process, where possible, however the disciplinary process

will be invoked where the employee consistently fails to engage with the company in

managing their absence.



SAMPLE ATTENDANCE POLICY

The organisation places great emphasis on the attendance of all employees at work and

will monitor each employee’s attendance record. Attendance is an important aspect of

job performance and the organisation aims to ensure that lateness and absence are

kept to a minimum.

The purpose of this policy is to regulate the procedure for attendance and to apply

consistent standards throughout the organisation.

Authorised absence

The following constitute authorised absence from work, once proper notifi cation

procedures are followed:

• approved annual leave;

• protective leave (eg, maternity, parental leave);

• approved business trips or external training courses;

• compassionate or other leave approved in advance by the organisation.

Unauthorised absence

An employee who is absent from work and who has not notifi ed the organisation

as to the reason for the absence, will be written to by the HR Department seeking

confi rmation of the employee’s situation. Failure to cooperate with the organisation in

this instance will result in the disciplinary procedure being applied.

Procedure for reporting absence

Unless prior approval has been given, an employee absent from work must notify the

line manager as to the cause and likely duration of absence within half an hour of their

scheduled starting time on the fi rst day of absence.

Your supervisor or manager must be contacted directly and spoken too. Voice

messages or text messages are not acceptable, nor is leaving a message with another

staff member.

In cases of absence due to illness, absences of more than two days must be supported

by medical certifi cation. Certifi cates should be sent to the organisation, no later than

the third day of absence. For absence extending beyond one week, a weekly medical



certifi cate is required.

Medical certifi cates must include the following details:

• name and address of doctor;

• name and address of patient;

• statement indicating, in general terms, the nature of the illness or injury;

• opinion of doctor that patient is unfi t for work;

• expected duration of incapacity;

• dates of issue and doctor’s signature.

Return to work

On the employee’s return to work the line manager will conduct a return-to-work

interview. This interview allows the manager to discuss the health and welfare of

the employee; provide support to employees; review the employee’s attendance and

lateness record and highlight any concerns about attendance levels.

Medical appointments

Wherever possible, appointments should be arranged in the employee’s own time.

Alternatively, where there is minimum disruption to the working day, managers may

agree with employees that the hours are made up at another time. Where this is not

possible, employees should notify their manager of an appointment at the earliest

opportunity, and may be required to provide documentation in evidence of the

appointment.

Support

It is the aim of the organisation to ensure that any employee with a disability or who

requires ongoing medical attention will be supported by the organisation. Employees

are encouraged to talk to their manager or the HR department in this regard. All

information will be kept strictly confi dential.

Time-keeping

The organisation places great emphasis on punctuality and will monitor each

employee’s time-keeping record. Each employee has a responsibility to ensure they

are at their workplace ready to start work at the appointed start time. Employees

are also required to make a prompt start following lunch and breaks. Managers are

expected to monitor and manage time-keeping.



Employees are considered to be late if they arrive at their work place after the

scheduled start time. If an employee arrives for work more than 15 minutes late, he or

she must report to the supervisor or line manager.

The appropriate stage of the disciplinary procedure will be instituted where an

employee is persistently late. (An organisation should communicate to all employees

what it deems to be persistent lateness.)

Having reported to work, an employee may not leave the premises without prior

permission of the supervisor or line manager and without clocking out, where

appropriate.

Record keeping

Employees are required to ensure that the time recording system is accurate and up-

to-date at all times. Inaccurate or poor recording may lead to the initiation of the

disciplinary procedure. Recording the information (or clocking in or out) for another

employee is not allowed and may also lead to the initiation of the disciplinary procedure.

Review

Attendance and lateness is monitored on a regular basis. The organisation will report

on absenteeism on a monthly rolling basis, in accordance with established practice.

Where levels of absenteeism fall below acceptable standards, the organisation will

seek to identify probable causes and rectify them.

IBEC RESEARCH UNIT

IRISH BUSINESS AND EMPLOYERS CONFEDERATION

Confederation House 84/86 Lower Baggot Street Dublin 2 PHONE + 353 (0)1 605 1500 FAX + 353 (0)1 638 1500

EMAIL [email protected] www.ibec.ie

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Knockrea House Douglas Road

Cork

PHONE + 353 (0)21 429 5511EMAIL [email protected]

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Charlotte Quay Limerick


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