Managing incapacity: best practice
Section 9 of the Personnel Today Management Resources one stop guide on managing incapacity. Other sections.
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Understand how other employers approach the management of incapacity Gather an overview of research on employer activity in sickness absence Appreciate the benefits on the bottom line of taking effective action Identify further resources and
contacts to help your policies |
Improving the bottom line
Employers who have introduced effective absence management policies are reporting noticeable improvements on their bottom line, cutting costs as a result of fewer staff taking time off, and improving productivity as a whole.
Return-to-work interviews are seen as an important way of managing sickness absence, as are formal procedures for notifying absence and disciplinary procedures in the case of non-manual staff. Three quarters of the employers in the CIPD research (Employee Absence, 2002) who used return to work interviews made them mandatory for all absences from work, regardless of length.
Managers in the Work Foundation survey (Maximising Attendance) believe that motivating staff is the key to managing attendance, followed by return to work interviews and accurate monitoring. But only 40 per cent of organisations in the research believe that they are aware of all absence in the organisation, and in five per cent of cases, organisations say that less than half of all absence is recorded. Smaller organisations are more likely to believe that all absence is recorded. Performance management systems and performance pay are least likely to have a positive effect on attendance, according to the Work Foundation.
Other organisations believe that different types of absence demand different approaches. For instance, participants in the CIPD survey think return to work interviews are more effective for short-term absence, but that involving occupational health professionals works better for long-term absence. Almost 40 per cent of those with rehabilitation programmes say that these are the best way of managing long-term absence.
Work-life absence
Developing best practice schemes also means taking a holistic approach, according to many participants in the CIPD survey. Home and family responsibilities are a frequent cause of absence, and family friendly initiatives are therefore an effective way of cutting absence. However, only one third of organisations have been able to prove that such initiatives have cut absence, says the CIPD.
Any holistic strategy should take both long and short-term absence into account. According to the Institute for Employment Studies, most companies who do focus on absence are only looking at short-term absenteeism. This can be misleading, as long-term absence can rise even when short-term absence is being reduced.
Rehabilitation measures
For its survey (Back in work), the TUC talked to safety reps about nine ways in which an employer could help staff get back to work. The following methods were highlighted:
Champions of absence management
Organisations which have brought in effective practices include Boots, Transport for London, the Prison Service, the Inland Revenue and Vauxhall Motors. Public sector organisations are often very active in this area, because of high levels of absenteeism.
The CIPD found that five absence-management measures were used by over three quarters of respondents to their survey. These were:
In addition, 40 per cent reported that special training is used for line managers.
In general, public sector employers were the most likely to use of all these means of cutting absence. The only exception to this was disciplinary action, which was most widely used in manufacturing and production, and in private sector services.
Occupational health involvement
The CIPD research found that 59 per cent of organisations involve occupational health (OH) professionals in absence management. The following OH approaches to absence management are used:
The TUC's Revitalising health and safety strategy research found that good-practice workplaces were more likely to provide a wide range of occupational health facilities, and 65 per cent had an OH department or officer. A small number - six per cent - also had case managers to co-ordinate an individual return to work and rehabilitation.
Many organisations are now trying to 'manage attendance' by involving OH staff more proactively. Schemes which OH professionals may be involved in include absence management for line managers, return to work interviews, and a more open approach to illnesses such as mental health problems. Trigger levels are normally set relating to 'unacceptable' amounts or frequencies of sickness, at which point OH staff consult with the worker.
Disability awareness
Legislation such as the Disability Discrimination Act 1995 continues to raise employer awareness of disabled employees in the workplace. The management of individuals who become disabled as the result of sickness may mean employers having to make 'reasonable adjustments' before they can return to their job.
Absence management
The TUC found that early intervention can play an important part in promoting a successful return to work. Long absence makes a return less likely. With this in mind, 86 per cent of workplaces surveyed by the TUC use absence monitoring. Case conferences also work well: many organisations with good sickness absence monitoring now review long term cases regularly, with OH staff, the line manager and human resources being involved.
Disciplinary procedures
In the CBI survey, disciplinary procedures are still the most frequently used absence management tool, cited by 73 per cent of CBI respondents. Return-to-work interviews and formal notification procedures are also widely used. More than 80 per cent of CBI respondents thought it was possible to cut absence in their organisation, but fewer than half have set a target. Those that have express it as a proportion of working time, typically around 3.2 per cent. As a number of working days, the average target is 6.8 days a year.
Returning to work
Maintaining regular contact with staff who are on long-term sick leave is vitally important in helping them return to work - the CIPD found that some 90 per cent of employers were doing this, and 43 per cent said this was the most effective method of dealing with long-term sick leave. More than four fifths of employers also reported the use of return-to-work interviews, reduced hours (either on a temporary or permanent basis) and/or changes to the work tasks or workload. And more than two thirds provided either stress counselling or an employment assistance programme.
Two measures - stress counselling and employee assistance programmes - are more than twice as likely to be used by public sector organisations than in the private sector. The only measure which was more widely used by private sector organisations was fast referral to private medical care.
Return-to-work interviews are seen as the most effective way of managing absence by employers in the CBI survey, followed by formal procedures for notifying absence and disciplinary procedures in the case of non-manual staff. Three quarters of the CBI respondents use them for all absences, regardless of length.
Benchmarking
The majority of organisations are still not benchmarking their absence management performance against those of other organisations. Public sector organisations are more likely than others to do this. The CIPD has found that currently, only 38 per cent of organisations overall benchmark their absence management performance against others, while only 23 per cent of employers compare absence levels of other employers in the same region.
However, 68 per cent of public sector organisations benchmarked absence against other organisations in the sector.
Absence management policies
These are used by the majority of large employers. Of organisations with more than 2,000 employees, the CIPD found that 94 per cent had a formal policy. This falls to 71 per cent for smaller employees.
case studies
Doncaster Council
In 2001-2002, long-term absence cost Doncaster Council £3.3m. A new best practice guide has now been introduced, and the council has taken a positive line with staff, encouraging good attendance rather than punishing poor attendance. Now a designated officer in each directorate co-ordinates data, and line managers are crucial to this process. The organisation tries to intervene early, and to make sure that lines of communication between managers and employees are clear. Training for managers has been an intrinsic part of the process, as has union involvement and understanding.
At the launch in July 2000, all line managers attended a mandatory one-day training session, which was also attended by union reps. Doncaster Council now has one of the lowest levels of sickness absence among metropolitan authorities, and is doing more work on stress management to see if the rate of absenteeism can be reduced still further.
Lancashire Police
Days lost to sickness across the Police Force as a whole have dropped by almost 10 per cent following the introduction of modern HR techniques and sweeping reforms. Across the force, the number of working days lost per officer has dropped from 12.2 in 2000-2001 to 11.5 in 2001-2002, and the number of police officers retiring on medical grounds has fallen from 1,209 to 1,114 over the same period.
At Lancashire Police, average sickness days now run at 11.6 per officer, and health professionals now hold weekly meetings to discuss new sickness cases and make sure that there are early interventions if staff do go off sick.
The force has also brought in its own physiotherapy programme to help get injured officers back to work, and now allows injured officers back to work on restricted duties if they are physically unfit for normal work.
A fast-track surgery programme also means that injured officers are treated more quickly and recover sooner as a result.
Proctor & Gamble
The pharmaceutical company has relatively low rates of sickness absence - between 2 per cent and 2.5 per cent of working days lost a year. But rates are higher in sites that have been acquired, where the culture is different, and in manufacturing, where a continuing trend for multiskilling presents few opportunities for returning staff to take up lighter duties. The firm aims to be positive, with OH nurses at nine sites involved in the process, case management of long-term sickness devolved to OH specialists on site and ill health retirement considered only when all other options have been assessed and rejected.
Managers keep in regular contact with staff on long-term sick leave, including arranging home visits. The aim is to identify opportunities to bring then back to work - for instance, arranging transport if they are well enough to work but not to drive. Proctor & Gamble is now also working with local GPs to help improve awareness of what can be done in the workplace to improve an employee's chance of a successful return to work.
London Borough of Brent
The London Borough of Brent, which has a workforce of over 6,000 people, has completed a review of sickness absence procedures. Revised procedures now involve more proactive and consistent management of long-term sickness absence, backed up by a new occupational health contract.
Key features of the new scheme include absence triggers, keeping in contact with employees and management training. The council has around 40 staff on long-term sickness absence, and Audit Commission data for 2000-2001 shows 13.1 days sick per employee. The HR department has helped managers have a clear definition of long-term sickness absence, and clear systems to deal with it. The council is now working towards better liaison between department HR and managers making OH referrals, as well as regular monitoring. A comprehensive training programme is supporting the roll-out of the new system.
The Post Office
The Post Office, one of the largest employers in the UK, has appointed a dedicated case manager to long-term sickness absence. Absence management policies in the organisation are currently under review.
Long-term absence is defined as anything over three weeks, at which point nurses or OH professionals will give an assessment of the case. Home visits are also carried out, and are seen as primarily a line manager's responsibility, though many don't like carrying this out. Long-term absence is also monitored by monthly case conferences, and an occupational physician will attend once every three months. An employee helpline is also available to staff on long-term sick-leave who are suffering from stress, and a network of counsellors is available to staff who need more support than this.
Staff coming back to work are supported by their line manager and the OH practitioner who agree the approach, the target and the time frame. For the future, the Post Office wants to develop a more integrated approach to employee health which is closer to safety issues.
New Holland UK
New Holland, Europe's largest tractor manufacturer, introduced new absence management procedures two years ago, following a review of best-practice comparisons elsewhere.
The company decided to adopt a closely monitored, proactive absence management system, and set up joint absence management control procedures with trade unions. The new policy now includes revised case management procedures, new software for absence control data and desk procedures for all supervisors on how they should respond to all given reasons for absence.
All managers and supervisors are trained in the new system and there is a joint management/union absence control committee.
The new absence management procedures have helped to cut the direct cost of non-attendance from around £1.3m in sick pay in 1989-99 to £800,000 in 1999-2000. Now the firm is piloting a scheme to reduce musculoskeletal disorders by giving advice about carrying out repetitive tasks safely to staff in assembly areas.
