Slashing the costs of sickness
absence
by Toronto Training and HR
September 2013
CONTENTS
5-6 Definitions
7-9 Costs of absence
10-11 Measuring absence
12-14 Causes of absence
15-16 Substance abuse
17-18 ...
Page 3
Introduction
Page 4
Introduction to Toronto Training
and HR
Toronto Training and HR is a specialist training and
human resources consul...
Page 5
Definitions
Definitions
• Absence
• Short-term
• Long-term
• Culpable
• Non-culpable or innocent
• Authorized
• Unauthorized
• Wilful
...
Page 7
Costs of absence
Costs of absence 1 of 2
• Tangible
• Intangible
Page 8
Costs of absence 2 of 2
Page 9
Costs
Employees 1% 3% 5%
100 $41,600 $124,800 $208,000
500 $208,000 $624,000 $1,040,000
1,0...
Page 10
Measuring absence
Measuring absence
• The lost time rate
• The frequency rate
• The Bradford factor
Page 11
Page 12
Causes of absence
Causes of absence 1 of 2
• Non-manual workers
• Manual workers
Page 13
Causes of absence 2 of 2
STRESS
• Workloads and volume of work
• Management style
• Non-work factors
(relationships/family...
Page 15
Substance abuse
Substance abuse
• Statistics
• The problem with substance
abuse
• Warning flags in the workplace
• Treatment of substance
...
Page 17
Identifying and reducing
stress
Identifying and reducing stress
• Employee surveys
• Stress audits
• Employee assistance program
• Greater involvement of
...
Page 19
Legitimate or not?
Legitimate or not?
Page 20
Page 21
Termination for just cause
Termination for just cause 1 of 2
• Seriousness of the
absenteeism/lateness
• Whether the employee has
been warned in the ...
Termination for just cause 2 of 2
• Whether the employer has
tolerated similar conduct in the
past
• Whether the reason fo...
Page 24
Positive practices
Positive practices 1 of 3
• Saying ‘hello’
• Saying ‘thank you’
• Random acts of kindness
• ‘Pitching in’
• Taking time to...
Positive practices 2 of 3
FOR THE TEAM
• Be on time, be prepared,
participate
• Treat others they would like to
be treated...
Positive practices 3 of 3
FOR THE TEAM (CONTINUED)
• Be optimistic and positive
about the team
• Don’t cut each other off ...
Page 28
Components of a healthy
workplace
Components of a healthy workplace
• Nature of work –work we
value, autonomy, & control
• Work-life balance
• Supportive co...
Page 30
Wellbeing benefits
Wellbeing benefits 1 of 2
• Access to counselling service
• Access to physiotherapy
• Advice on healthy eating
• Critical ...
Wellbeing benefits 2 of 2
• In-house gym
• Long-term disability
• On-site massage
• Personal accident insurance
• Personal...
Page 33
US survey from 2012
US survey from 2012
• 503 respondents
• Larger or midsized employers
have higher incidence
• Impact on productivity
• Use ...
Page 35
Canadian survey from
2012
Canadian survey from 2012
• Unionized or non-unionized
• Women or men
• Workers with children…
• Public or private sector
...
Page 37
Interventions
Interventions
• Short-term
• Long-term
Page 38
Page 39
The recovery and return to
work process
The recovery and return to work
process
• Keeping in contact with sick
employees
• Planning and undertaking
workplace cont...
Page 41
Training line managers
Training line managers 1 of 2
• The organization’s absence
policies and procedures
• Their role in the absence
management ...
Training line managers 2 of 2
• The role of occupational health
services and proactive
measures to support wellness
• The ...
Page 44
Changes made in the last
year
Changes made in the last year
• New or revised absence
management policy
• New or revised monitoring
procedures
• Reinforc...
Page 46
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
...
Selecting an absence management
services provider 2 of 2
• Have a dedicated legal team in
place to comply with evolving
pr...
Page 49
Decreasing absenteeism
rates
Decreasing absenteeism rates
• Educate
• Monitor
• Counsel
• Follow-up
• Corrective action
Page 50
Page 51
Conclusion and questions
Page 52
Conclusion and questions
Summary
Videos
Questions
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Slashing the costs of sickness absence September 2013

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Half day open training event held in Toronto, Ontario.

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Slashing the costs of sickness absence September 2013

  1. 1. Slashing the costs of sickness absence by Toronto Training and HR September 2013
  2. 2. CONTENTS 5-6 Definitions 7-9 Costs of absence 10-11 Measuring absence 12-14 Causes of absence 15-16 Substance abuse 17-18 Identifying and reducing stress 19-20 Legitimate or not 21-23 Termination for just cause 24-27 Positive practices 28-29 Components of a healthy workplace 30-32 Wellbeing benefits 33-34 US survey from 2012 35-36 Canadian survey from 2012 37-38 Interventions 39-40 The recovery and return to work process 41-43 Training line managers 44-45 Changes made in the last year 46-48 Selecting an absence management provider 49-50 Decreasing absence rates 51-52 Conclusion and questions Page 2
  3. 3. Page 3 Introduction
  4. 4. Page 4 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 event design Training event delivery Reducing costs, saving time plus improving employee engagement and morale Services for job seekers
  5. 5. Page 5 Definitions
  6. 6. Definitions • Absence • Short-term • Long-term • Culpable • Non-culpable or innocent • Authorized • Unauthorized • Wilful • Circumstances outside one’s control Page 6
  7. 7. Page 7 Costs of absence
  8. 8. Costs of absence 1 of 2 • Tangible • Intangible Page 8
  9. 9. Costs of absence 2 of 2 Page 9 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
  10. 10. Page 10 Measuring absence
  11. 11. Measuring absence • The lost time rate • The frequency rate • The Bradford factor Page 11
  12. 12. Page 12 Causes of absence
  13. 13. Causes of absence 1 of 2 • Non-manual workers • Manual workers Page 13
  14. 14. 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 Page 14
  15. 15. Page 15 Substance abuse
  16. 16. 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 Page 16
  17. 17. Page 17 Identifying and reducing stress
  18. 18. 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 Page 18
  19. 19. Page 19 Legitimate or not?
  20. 20. Legitimate or not? Page 20
  21. 21. Page 21 Termination for just cause
  22. 22. 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 Page 22
  23. 23. 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 Page 23
  24. 24. Page 24 Positive practices
  25. 25. 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 Page 25
  26. 26. Positive practices 2 of 3 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) Page 26
  27. 27. Positive practices 3 of 3 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 Page 27
  28. 28. Page 28 Components of a healthy workplace
  29. 29. 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 Page 29
  30. 30. Page 30 Wellbeing benefits
  31. 31. 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 Page 31
  32. 32. 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 Page 32
  33. 33. Page 33 US survey from 2012
  34. 34. 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 Page 34
  35. 35. Page 35 Canadian survey from 2012
  36. 36. 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 Page 36
  37. 37. Page 37 Interventions
  38. 38. Interventions • Short-term • Long-term Page 38
  39. 39. Page 39 The recovery and return to work process
  40. 40. 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 Page 40
  41. 41. Page 41 Training line managers
  42. 42. 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 Page 42
  43. 43. 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 Page 43
  44. 44. Page 44 Changes made in the last year
  45. 45. 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 Page 45
  46. 46. Page 46 Selecting an absence management services provider
  47. 47. 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 Page 47
  48. 48. 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 Page 48
  49. 49. Page 49 Decreasing absenteeism rates
  50. 50. Decreasing absenteeism rates • Educate • Monitor • Counsel • Follow-up • Corrective action Page 50
  51. 51. Page 51 Conclusion and questions
  52. 52. Page 52 Conclusion and questions Summary Videos Questions
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