Does absence make the heart grow fonder or is it just another labour cost?

COSTS OF ABSENCE

Apart from the obvious financial implications of sick pay the ‘other costs’ of absence, can be extensive. These include:

• Direct and indirect loss of productivity;

• Reduction in the quality of customer service;

• Cost of cover by temps - including their training;

• Increased risk of mistakes;

• Loss of morale and damaged team relationships;

• Possible loss of staff with all the associated costs that this entails.

Generally, the hidden costs of sudden short-term absence are greater than those of genuine long-term absence simply because the latter allows for greater advanced planning of cover.

KEEPING RECORDS/DISCIPLINE

Remember that accurate records are essential as if action is taken, such as a reduction of pay or taking disciplinary action, it is essential that you can demonstrate fairness and consistency. Remember however, that the instigation of disciplinary action, if it is not justified, carries risks of a complaint to a Tribunal and also may damage staff relationships and morale.

MATERNITY AND DISABILITY

It is important that special care is taken when considering absence related to either maternity or disability. Recent changes in the law have increased the burden of protection for disabled groups and it is strongly recommended that specialist advice should be taken in this area.

ACTION TO REDUCE ABSENCE

Of course some absence is inevitable but you can take steps to reduce absence, such as the following:

• Reduce accidents at work by promoting safe working practices;

• Reduce accidents at home by offering education about hazards at home;

• Reduce car accidents by promoting safe driving (can also reduce insurance costs on company car schemes);

• Use occupational health specialists to encourage and manage staff who are absent “back into work”;

• Promote health awareness to encourage early diagnosis of illness;

• Be aware of the possible causes of stress;

• Provide training for managers and supervisors in all relevant aspects of managing absence;

• Ensure sensitive and fair use of capability and disciplinary processes where and when appropriate to do so.

MEDICAL CERTIFICATES: POSSIBLE CHANGES

Many of the more mature readers of this page should be able to recalI the time when statutory sick pay and, particularly, self certification for shorter absences was first introduced amidst an outcry from many employers that this was a charter for cheats. Some employers were extremely reluctant to accept self certification - even when most of the sick pay could be reclaimed from the state.

A new debate is now under way with the medical profession, supported by some employers questioning whether GPs should be issuing sick certificates at all! Apparently, GPs receive over 22 million requests for certificates each year.

It is argued that there is inconsistency between GPs and that some hand out sickness certificates far too easily, undermine attempts to rehabilitate employees and cannot be expected to understand specific working environments. Some doctors are concerned that relationships with their patients may be damaged by the existing system, due to conflicting loyalties and the emergence of a ‘complaints culture’.

As a result a survey is under way of employers and employees views on the current system. In addition, trials are being conducted in the Midlands to consider the feasibility of two alternative systems:

• The first alternative involves the use of occupational health nurses, working for the employer;

• The second, for those employers who do not use part or full time Occupational Health staff, involves a call centre staffed by nurses who will provide telephone advise and issue certificates without seeing the patient. The call centre approach is based on systems in operation elsewhere including in Sweden and the US.

Potential benefits include greater consistency of approach, particularly if an in-house solution is used, as there will be greater awareness of the job and the working environment to inform a decision as to whether or not to certify absence. From the GP’s point of view, surgery queues should be reduced, as many appointments are simply to acquire certification rather than diagnosis or treatment.

STRESS

One of the hardest types of absence to deal with is that related to stress, as there are few physical symptoms and few simple remedies.

Although many people have forecast that stress will continue to be the fastest growing cause of absence, this may not, as yet, prove to be the case. One indicator suggests that the reported number of cases of work related stress actually fell last year. This figure, however, is only based upon those serious cases reported by specialists, around 7,000 per year, and ignores the huge raft of people who are diagnosed as suffering from stress by their GP. A recent report by the Health & Safety Executive indicated that over half a million people in the UK perceived that they were experiencing work related stress at a level that was sufficient to affect their health.

You may not be too surprised to learn that the highest incidence of work related stress seems to fall upon teachers, nurses, police, medical practitioners and other public sector workers (including social workers), rather than the fresh produce or horticultural industries but this should not be seen as a reason for complacency. There is also a significant amount of stress related absence which is not directly attributed as work related stress, such as that linked to domestic issues and financial problems, but it seems logical to assume that the latter reasons are more likely to be prevalent amongst the lower paid.

EMPLOYEE ASSISTANCE PROGRAMMES

Many organisations, currently about one in four, have introduced EAP’s with the particular rationale of providing confidential access to staff who need help or advice in dealing with stress - whether work related or not. It is normal that this service is provided by an external organisation so it is equally available to smaller organisations as well as larger ones.

Experience shows that the majority of enquiries focus on issues surrounding workload, specific traumatic incidents and organisational change. Statistics show that staff who make use of counselling, both telephone and face to face are likely to return to work more quickly, so this can be a cost effective exercise. A further benefit is that as well as being seen as a proactive measure the existence of an EAP will also help the organisation to offer a defence against claims based upon accusations of stress related illness.