Reducing absenteeism May 2011

Reducing absenteeism

by Toronto Training and HR

May 2011

Contents3-4 Introduction to Toronto Training and HR5-6 Definitions7-9 Reasons for absence10-14 Types of absence15-19 Costs of excessive absence20-23 Total attendance management24-25 Factors that influence absenteeism

rates in Canada 26-27 Reducing unscheduled absence28-32 Steps that allow an employer to act legally33-34 The Naccarato decision35-36 The Coast Mountain Bus Company

case 37-38 Musculoskeletal disorders39-43 Return to work interviews44-45 Attendance bonuses46-47 Problems with absence records

48-52 Tackling absence53-54 Case study55-56 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 banking• 10 years in training and human resources• Freelance practitioner since 2006• The core services provided by Toronto Training and HR

are:- Training course design- Training course delivery- Reducing costs- Saving time- Improving employee engagement &

morale- Services for job seekers

Definitions

DefinitionsIncidental unplanned absencesExtended absencesPlanned absences

Reasons for absence

Reasons for absence 1 of 2MedicalSocialPhysiological

Reasons for absence 2 of 2EXPLANATIONS FOR THE RISE IN CANADAAn aging demographic Rising levels of work-related stress Ever-increasing proportion of women in the workforce with multiple responsibilities Increasing prevalence of liberal leave policies

Types of absence

Types of absence; poor timekeeping

Solutions•Clear standards•Early intervention•Clarify unacceptable limits

Actions •Record all instances and conversations•Honest 1:1 communication•Team agenda if widespread

Support individual

•Explore root cause; consider contributory factors•Be attentive to unique needs•Consider work-life balance measures

Support team •Nip lateness in the bud•Consider disciplinary action if unsatisfactory reason and it persists

Types of absence; short-term frequent absence

Solutions• Encourage notification asap and by a set

time• Prompt return to work discussion• Explore the root cause

Actions• Record all instances for all employees• Keep in regular contact• Get clear indication of nature of illness and

likely return date

Support individual

•Offer support where you can•Explore possibility of underlying medical condition•Be alert to other contributory factors

Support team•Nip emerging patterns in the bud•Consider disciplinary action if unsatisfactory reason and it persists

Types of absence; short-term frequent absence (underlying

cause)

Solutions• Encourage notification asap and by a set time• Prompt return to work discussion• Explore root cause

Actions• Record all instances for all employees• Keep in regular contact; and liaise with HR• Get clear indication of nature of illness and likely

return date

Support individual

• Offer support where you can• Suggest medical advice from Occupational Health or

doctor• Be alert to all possible contributory factors• Consider adjustments to role or work environment

Support team• Be attentive to emerging patterns• Consult HR before level of absence reaches an

unacceptable level

Types of absence; long-term frequent absence

Solutions• Successful transition back into the workplace• Retiral on grounds of ill health• Dismissal

Actions• Keep in regular contact• Liaise regularly with HR and seek medical advice• Keep an accurate note of all conversations and

correspondence

Support individual

• Try to anticipate their needs• Reassure entitlement to sick pay• Explore how best to support transition back into

workplace

Support team• Consider how best to manage additional workload• If a return to work looks unlikely, or lengthy, it is

strongly advised that you consult HR before taking any formal action

Costs of excessive absence

Costs of excessive absence 1 of 4

All absence has cost consequences for the employer –administrative and other. Absenteeism that is avoidable, habitual and unscheduled can be particularly costly to an employer, and to the economy as a whole.Disruptive to proper work scheduling and output.


Increased team workloadsLow morale among colleagues expected to take on extra workReduced performance and productivityMissed deadlines due to a lack of trained, experienced employeesDiminished reputation with customers and potential employeesLost business


Direct costsIndirect costsTotal cost


PRODUCTIVITY LOSSReplacement approachCost of replacement workersEfficiency of replacement workers

Total attendance management

Total attendance management 1 of 3

What is it?Objective settingIntegrated approachPreventionCasual absenceSTD/LTDWorkers’ compensation

Total attendance management 2 of 3

Establish clear policies, procedures, roles and responsibilitiesEngage people leaders to participate effectively in attendance management

attendance management 3 of 2

Factors that influence absenteeism rates in

Canada

Factors that influence absenteeism rates in

CanadaUnionization Permanent statusSize of the organizationProvincePay for sickness absenceType of jobDependant children

Reducing unscheduled absence

Reducing unscheduled absence

Consider work-life balance measuresClearly explain roles, duties, projects and tasks Simplify processes and administrationEncourage communication

Steps that allow an employer to act legally

Steps that allow an employer to act legally 1 of

4An employer is entitled to the benefit of its bargain in the employment relationship. At the same time, it is not permissible to punish an employee for non-culpable behaviour because that behaviour is out of the employee's hands.Attendance management programs may be used in response to excessive, blameless absenteeism, but they must be drafted with great care.The law will permit termination for innocent absenteeism when it reaches a given level of seriousness and there is no reasonable prospect for improvement in the future.


4LEGAL PARAMETERS FOR ATTENDANCE MANAGEMENTThere should be no reprisal for taking statutory leaveDuty to accommodate under human rights legislation must be met (disability, family status)Comply with Return to Work obligations under workers’ compensation legislationRespect an employee’s right to privacy – medical information, surveillanceDistinguish between culpable and non-culpable


4ATTENDANCE MANAGEMENT PROGRAMTrigger for entry or progression through Attendance Management Program Numerical criteria must not be arbitraryCriteria must not be discriminatoryConsider the duty to accommodate at every stageRequests for medical information


4QUESTIONS TO ANSWER BEFORE YOU TERMINATE FOR INNOCENT ABSENTEEISMIs the employment relationship frustrated? What is your potential liability if you terminate and a court, human rights tribunal or arbitrator disagrees with your assessment of frustration?

The Naccarato decision

The Naccarato decision

BackgroundLimits on the duty to accommodateNaccarato decisionWhat Naccarato means for employers

The Coast Mountain Bus Company case

The Coast Mountain Bus Company case

BackgroundAttendance Management ProgramReasons of the Court of AppealCritical implications for employer strategies to manage absenteeismWhat’s the problem?Impact of the duty to accommodateHow much absenteeism must be accommodated?Points to consider

Musculoskeletal disorders

Musculoskeletal disorders

Principles of managementWhat are the symptoms?Acute, recurrent or chronic

Return to work interviews

Return to work interviews 1 of 4

PURPOSEWelcome employees backCheck they are well enough to workIdentify the cause of the absenceDiscuss the details of an agreed return to work based on advice given by the doctorEstablish if the sickness is work related and what health & safety issues need to be addressedTease out any other problems at work or at homeDiscuss how they can get back to a normal work routine as quickly as possible, update them on developments


PREPARING FOR A RETURN TO WORK DISCUSSIONThe discussion is confidential so find a quiet place Have everything to hand at the meeting; employee records, notes of previous discussions, advice from their doctorBe prepared to discuss the employee’s absence in detail including any emerging patternsConsider how a return to work will work in practice-what kind of questions will you ask? What does the absence policy say? What issues may crop up during the discussion?How would a phased return work?Explain when the interview will take place and its purpose


THE CONVERSATIONMost discussions will be informal and briefExplore how the employee feels about returning to workBe positive about the employee’s value to the organizationExplore how a return to work will work in practiceAsk your employee what information they would like shared with their work colleaguesBe reassuring throughoutUpdate the employee about changes since they have been away such as the progress on the projects they were working on and any changes to the team


THE CONVERSATIONWhat are the options for the future? Discuss all the options and focus on positive outcomes. Where appropriate the employee may agree to be referred to your organization’s medical officer information or to an occupational health therapist?In some instances disciplinary action may be needed if the explanations for absence/poor timekeeping are deemed unsatisfactory. Have an open mind and agree an action plan but don’t make hasty decisionsTake notes of the meeting

Attendance bonuses

Attendance bonusesConsider making an employee assistance program available to the workforceIdentify drivers of absence that are not sickness related and think how you could mitigate them-for example, flexible working for people with young childrenRemember that attendance bonuses could be viewed as discriminatoryReinvest money that would have been spent on bonuses in a company-funded wellbeing schemeCarry out return-to-work interviews, even for short-term absences

Problems with absence records

Problems with absence records

Inadequate absence information requiredInaccurate recordsRecord-keeping system hinders analysis of absencesRecord-keeping system prevents proper analysis of absences

Tackling absence

Tackling absence 1 of 4

Dust down your policiesHold calibration sessionsProvide a support structureClear reporting is crucialGet people back to workPolicies aren’t everything


Encourage high attendance rather than talking about high absenceRecognise high attendance with non-monetary rewardsHold managers at all levels accountable for absence reductionDeal with frequent short-term absence firstUse return-to-work interviewsTrain managers to become assertive leaders so that they own the problem


Measure rates and direct costs across the board, both long-term and short-term.A recent survey by the Conference Board of Canada revealed that only 40% of employers track absenteeism rates, and the direct cost of absenteeism averaged 2.6% of payroll in these organizations. Education and health and government reported the highest absenteeism rates, whilst Canada suffers from higher absence rates than either the US and the UK.

Tackling absence 4 of 4The Conference Board report outlines steps that organizations can take to better manage their programs. These include: Identifying the root causes of absenteeism Taking proactive steps to improve the health and well-being of employees Having a return-to-work program in place Focusing on communication and education Getting involved early when employees are absentKeeping in constant contact with employees on leave

Case study

Conclusion & Questions

Conclusion

SummaryQuestions

Reducing absenteeism May 2011

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