Let's start by considering what the question means. Some may think that they are good at managing absence simply because they keep accurate records and prepare regular reports analysing absence statistics. (You may be surprised how many organisations cannot even provide basic statistics). Others may argue that they have very strict control measures, with pay penalties and disciplinary processes to counter absence. However, neither of these approaches is actually managing absence. This is a key area for UK industry with something like 200 million working days lost each year, at a cost of well over £10 billion.

MEASURING THE COST OF ABSENCE

The cost of absence is not simply the money that the employer pays to the absent employee, even if that is limited to Statutory Sickness Pay. The real cost can be much more significant. Take the following examples:

1. Loss of productivity, especially where absence is not pre-warned, such as short-term sickness. Whether this is simply that a few jobs take longer to do, a customer has to wait longer than normal or a whole team and expensive machinery fails to start on time will depend on the nature of the person and organisation involved.

2. Cost of providing cover including, where appropriate, training.

3. Cost of mistakes made by staff asked to cover tasks that they are not used to.

4. Inefficiency caused by mistakes / loss of morale if a team is left short-handed.

5. Damaged team relationships if some feel that they are carrying a heavier burden than others.

6. Ultimately, failure to tackle any of the above may lead to incurring the costs of a resignation, which could include the costs related to recruitment, induction etc.

So perhaps you should take a few moments to consider just how much time is lost in your company through absence and what the real costs may be.

In particular consider whether short-term absences may be especially disruptive to parts of your organisation and how members of a team are affected when one member of that team is absent, perhaps without warning

Of course, a certain level of absence cannot be avoided and should always be one of the factors built in to any planning of an organisation's manpower needs. However, the key question must be "how much of the absence in your organisation can be avoided, and how?"

GATHERING INFORMATION

Some records such as those relating to accidents are required by law. Otherwise, apart from the obvious means of recording absences, you may wish to consider, or if already in place, review, “return- to-work” interviews. These can help to identify the real reasons for the absence, as surprisingly often, the reason reported does not give the true picture.

It is important that the information is then analysed to identify any trends, common causes etc. The exact nature of this analysis will depend on the situation, the type of staff involved and the needs of the organisation.

SICKNESS PAYMENTS

There are three kinds of sickness payment:

• statutory ñ prescribed SSP,

• contractual ñ typically a period of full pay followed by a period of half pay and,

• discretionary ñ which can be useful but should be used with care to avoid inadvertent favouritism or discrimination.

Whatever your rules are covering notification of absence and payments, as with all elements of good HR practice, it is important that they are well publicised and consistently applied.

REDUCING LONG-TERM ABSENCE

There will always be genuine long-term absences for illnesses or accidents, such as a broken leg, operations, results of a car accident and so on. But even these can be reduced.

Consider the causes of these long-term absences. Then think about the actions that you could take to reduce the likelihood of the absence in the first place or to shorten the time off. They are not all expensive.

Accidents at work: Apart from all the legal requirements, by promoting good working practices and safety at work you will not only reduce absence from accidents but may also reduce your insurance premium.

Accidents at home: Health and safety education should not be limited to the workplace. Far more accidents happen at home than at work. A small investment should pay dividends.

Car accidents: Many companies are accepting that they have to provide safe-driving training for drivers of company vehicles, if only to prevent escalation of insurance costs. The saving in time off (or worse) is rarely built into the equation. The effects can be supported by ensuring that payment systems for drivers (or simply general pressure of work, such as sales targets and meeting times) do not encourage unsafe (fast) driving. As the current road safety campaign proclaims, better late than never.

Long term injury (including back pain): Again, there are legal requirements in many occupations for health screening but an increasing number of companies are recognising that the provision of an occupational health service (usually part time) can not only bring many dividends, including providing a credible source of health and safety education but also encourage the correct treatment so that staff can be back at work as quickly as is possible, but without undue risk.

Long-term illness: Some illnesses cannot be predicted and have to be allowed to run their course but, as above, occupational health awareness may help to identify and treat some illnesses at an early stage.

Stress: this was covered earlier in this series as a topic in it's own right and is recognised by many as the growth area of absence management. It is not the intention to go over this area again today but by recognising the difference between stress and pressure it should be clear that there are many steps that can be taken to reduce the instances of absence caused by stress.

REDUCING SHORT-TERM ABSENCE

Before tackling this area it is important to consider whether there is a problem and, if so, what are the main causes. This may be specific to an individual organisation so it is difficult to offer precise suggestions or solutions. Causes and options for action may include some of the following:

1. Short-term absence may be caused by the inability to take holiday, perhaps because of restrictions on leave or because of requirements for advanced notification. If so, it may be appropriate to look at options surrounding leave entitlement.

2. Short-term absence may be encouraged by organisational culture. If so, then steps can be taken to gradually change such a culture.

3. In some organisations, it is feasible to consider financial penalties for short-term absence, such as attendance bonuses, or incentives for good attendance such as a financial bonus, a prize or by increasing holiday entitlement.

4. The newly introduced family friendly policies should divert some sickness absence into the allowed time off for family reasons.

5. Although not appropriate in many jobs, the introduction of flexible working hours has been shown to reduce short-term absence as appointments and other domestic duties can be arranged outside working hours.

6. The introduction of on-site occupational health advice will also encourage staff to use the facility rather than seek a GP appointment that may lead to time off.

ATTITUDES TO ABSENCE

How do staff feel when they are absent? This will vary from individual to individual but will, without doubt, be strongly influenced by the culture in the organisation. In some companies, a reasonable amount of absence is seen as normal, almost as an extension to holiday. This may be because the holidays allowed are insufficient in the first place, or scheduled for certain times of the year leaving little or no flexibility at other times. There are other companies where there is a distinct fear of being absent. Whilst this may discourage unnecessary absence it may also discourage genuine absence and is unlikely to reflect well on the organisation. A variation on this theme is the culture that absence shows weakness and that staff should struggle in to work however they may feel. This may demonstrate an individual's high motivation but again can lead to the same organisational side effects as the 'fear' culture.

USING DISCIPLINE/CAPABILITY PROCEDURES

There is no reason why a properly written disciplinary procedure, implemented fairly and consistently, cannot allow disciplinary action to be taken against persistent offenders, especially those who regularly take short-term absence. For longer-term absence it may be appropriate to consider capability for the job. Your HR advisor should be comfortable in these areas. If not, external help is readily available. This can prove extremely cost effective. The important factor to remember is that each case has to be dealt with fairly and with equanimity ñ taking account of the relevant legislation, such as on Disability Discrimination etc. Having a clear procedure to handle absence issues should ensure that you can manage your workforce more effectively and efficiently.

THE ANSWER?

As with most questions concerning people within organisations you will not be surprised to read that there is no single right answer for all organisations, however, the following recommendations are points to consider when drawing up any policies to cover this area of HR management:

1. Collect sensible and meaningful statistics on absence, including primary reasons, length and frequency of absence.

2. Consider the true costs of absence.

3. Identify how absence fits in with the culture of your organisation.

4. Consider what steps (including those outlined above) can be taken within your organisation to reduce absence in a cost effective and positive manner. Taking the organisational culture into account, consider the balance between incentives and penalties.

5. Specifically consider the option of utilising a specialist occupational health advisor.

6. Ensure that all managers are aware of the efforts to manage absence effectively and offered appropriate training in handling such matters as return to work interviews, handling sensitive absences and recognising stress. l