slashing the costs of sickness absence september 2013

Slashing the costs of sickness absence

by Toronto Training and HR

September 2013

CONTENTS5-6 Definitions7-9 Costs of absence10-11 Measuring absence12-14 Causes of absence15-16 Substance abuse17-18 Identifying and reducing stress19-20 Legitimate or not21-23 Termination for just cause24-27 Positive practices28-29 Components of a healthy workplace30-32 Wellbeing benefits33-34 US survey from 201235-36 Canadian survey from 201237-38 Interventions39-40 The recovery and return to work process41-43 Training line managers44-45 Changes made in the last year46-48 Selecting an absence management provider49-50 Decreasing absence rates51-52 Conclusion and questions

Introduction

Introduction to Toronto Training and HR

Toronto Training and HR is a specialist training and human resources consultancy headed by Timothy Holden 10 years in banking10 years in training and human resourcesFreelance practitioner since 2006The core services provided by Toronto Training and HR are:

Training event designTraining event deliveryReducing costs, saving time plus improving employee engagement and moraleServices for job seekers

Definitions

Definitions• Absence• Short-term• Long-term• Culpable• Non-culpable or innocent• Authorized• Unauthorized• Wilful• Circumstances outside

one’s control

Costs of absence

Costs of absence 1 of 2

• Tangible• Intangible

Costs of absence 2 of 2

Costs

Employees 1% 3% 5%

100 $41,600 $124,800 $208,000

500 $208,000 $624,000 $1,040,000

1,000 $416,000 $1,248,000 $2,080,000

5,000 $2,080,000 $6,240,000 $10,400,000

10,000 $4,160,800 $12,480,000 $20,800,000

Measuring absence

Measuring absence

• The lost time rate• The frequency rate• The Bradford factor

Causes of absence

Causes of absence 1 of 2• Non-manual workers• Manual workers

Causes of absence 2 of 2

STRESS• Workloads and volume of

work• Management style• Non-work factors

(relationships/family)• Relationships at work • Considerable organizational

change/restructuring• Non-work factors (personal

illness/health issues)• Pressure to meet targets

Substance abuse

Substance abuse

• Statistics• The problem with

substance abuse• Warning flags in the

workplace• Treatment of substance

abusers• Use of the carrot and the

stick• Medical monitoring

Identifying and reducing stress

Identifying and reducing stress

• Employee surveys• Stress audits• Employee assistance

program• Greater involvement of

occupational health specialists

• Written stress policy• Stress management

training for all employees• Changes in work

organization• Focus groups

Legitimate or not?

Termination for just cause

Termination for just cause 1 of 2

• Seriousness of the absenteeism/lateness

• Whether the employee has been warned in the past

• Whether the employee occupies a senior position or has considerable length of service

• Whether the employee’s conduct prejudiced the employer’s operation

Termination for just cause 2 of 2

• Whether the employer has tolerated similar conduct in the past

• Whether the reason for the absence was reasonable and therefore excusable

• Whether the employee was dishonest about the reason for their absence

• Whether the employee’s absence was intentional

Positive practices

Positive practices 1 of 3

• Saying ‘hello’• Saying ‘thank you’• Random acts of kindness• ‘Pitching in’• Taking time to listen• Telling someone that they

have done a good job• A smile• Taking time to talk to

someone in person


FOR THE TEAM• Be on time, be prepared,

participate• Treat others they would like

to be treated – try to understand who they are

• If you have an issue with a team member, talk privately – listen to understand (don’t use e-mail)


FOR THE TEAM (CONTINUED)• Be optimistic and positive

about the team• Don’t cut each other off or

have side conversations• Avoid blaming or

complaining – focus discussions on present and future solutions

Components of a healthy workplace

Components of a healthy workplace

• Nature of work –work we value, autonomy, & control

• Work-life balance• Supportive co-workers and

managers• Positive & optimistic

approach to communication

• True teamwork• Health focused

organization

Wellbeing benefits

Wellbeing benefits 1 of 2• Access to counselling

service• Access to physiotherapy• Advice on healthy eating• Critical illness insurance• Dental insurance• Employee assistance

programs• Free fresh fruit• Group income protection• Health screening• Healthcare cash plans• Healthy canteen options

Wellbeing benefits 2 of 2• In-house gym• Long-term disability• On-site massage• Personal accident

insurance• Personalized healthy living

programs• Private medical insurance • Self-funded health plans• Stop smoking support• Subsidized gym

membership• Walking/pedometer

initiatives

US survey from 2012

US survey from 2012• 503 respondents• Larger or midsized

employers have higher incidence

• Impact on productivity• Use of tools and

benchmarks• Causes of absence• Reasons for absence• Strategies to reduce

absence• Tools and systems• Outsourcing

Canadian survey from 2012

Canadian survey from 2012• Unionized or non-unionized• Women or men• Workers with children…• Public or private sector• On-the-job differences• Happy or sad

Interventions

Interventions

• Short-term• Long-term

The recovery and return to work process

The recovery and return to work process

• Keeping in contact with sick employees

• Planning and undertaking workplace controls or adjustments

• Using professional advice and treatment

• Planning and co-ordinating a return-to-work plan

Training line managers

Training line managers 1 of 2

• The organization’s absence policies and procedures

• Their role in the absence management program

• The legal and disciplinary aspects of absence including potential discrimination issues

• Maintaining absence record-keeping and understanding facts and figures on absence

Training line managers 2 of 2

• The role of occupational health services and proactive measures to support wellness

• The management of complex cases, focusing on what they can and cannot do

• The operation of trigger points

• The development of return-to-work interview skills

• The development of counselling skills

Changes made in the last year

Changes made in the last year

• New or revised absence management policy

• New or revised monitoring procedures

• Reinforced existing absence management policy

• Absence rate has become a key performance indicator

• Involved occupational health professionals

• Introduced trigger system

Selecting an absence management services

provider

Selecting an absence management services provider

1 of 2• Develop a customized strategy

tailored to the employer’s needs

• Be able to integrate its absence management services with an employer’s current processes and procedures, as well as health management programs such as EAPs or wellness

Selecting an absence management services provider

2 of 2• Have a dedicated legal team in

place to comply with evolving province/federal regulations

• Create an easy, seamless transition for all participants

• Have a dedicated absence team for intake of calls, claims and other support

Decreasing absenteeism rates

Decreasing absenteeism rates

• Educate• Monitor• Counsel• Follow-up• Corrective action

Conclusion and questions

Conclusion and questions

SummaryVideosQuestions

slashing the costs of sickness absence september 2013

Business

targets page

intentional page

questions page

person page

costs of absence

ones control page

employers operation

future solutions page