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Half day open interactive workshop on absence management held in Toronto.
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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
Page 3
Introduction
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 course design- Training course delivery- Reducing costs- Saving time- Improving employee engagement &
morale- Services for job seekers
Page 5
Definitions
Page 6
DefinitionsIncidental unplanned absencesExtended absencesPlanned absences
Page 7
Reasons for absence
Page 8
Reasons for absence 1 of 2MedicalSocialPhysiological
Page 9
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
Page 10
Types of absence
Page 11
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
Page 12
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
Page 13
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
Page 14
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
Page 15
Costs of excessive absence
Page 16
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.
Page 17
Costs of excessive absence 2 of 4
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
Page 18
Costs of excessive absence 3 of 4
Direct costsIndirect costsTotal cost
Page 19
Costs of excessive absence 4 of 4
PRODUCTIVITY LOSSReplacement approachCost of replacement workersEfficiency of replacement workers
Page 20
Total attendance management
Page 21
Total attendance management 1 of 3
What is it?Objective settingIntegrated approachPreventionCasual absenceSTD/LTDWorkers’ compensation
Page 22
Total attendance management 2 of 3
Establish clear policies, procedures, roles and responsibilitiesEngage people leaders to participate effectively in attendance management
Page 15
attendance management 3 of 2
Page 24
Factors that influence absenteeism rates in
Canada
Page 25
Factors that influence absenteeism rates in
CanadaUnionization Permanent statusSize of the organizationProvincePay for sickness absenceType of jobDependant children
Page 26
Reducing unscheduled absence
Page 27
Reducing unscheduled absence
Consider work-life balance measuresClearly explain roles, duties, projects and tasks Simplify processes and administrationEncourage communication
Page 28
Steps that allow an employer to act legally
Page 29
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.
Page 30
Steps that allow an employer to act legally 2 of
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
Page 31
Steps that allow an employer to act legally 3 of
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
Page 32
Steps that allow an employer to act legally 4 of
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?
Page 33
The Naccarato decision
Page 34
The Naccarato decision
BackgroundLimits on the duty to accommodateNaccarato decisionWhat Naccarato means for employers
Page 35
The Coast Mountain Bus Company case
Page 36
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
Page 37
Musculoskeletal disorders
Page 38
Musculoskeletal disorders
Principles of managementWhat are the symptoms?Acute, recurrent or chronic
Page 39
Return to work interviews
Page 40
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
Page 41
Return to work interviews 2 of 4
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
Page 42
Return to work interviews 3 of 4
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
Page 43
Return to work interviews 4 of 4
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
Page 44
Attendance bonuses
Page 45
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
Page 46
Problems with absence records
Page 47
Problems with absence records
Inadequate absence information requiredInaccurate recordsRecord-keeping system hinders analysis of absencesRecord-keeping system prevents proper analysis of absences
Page 48
Tackling absence
Page 49
Tackling absence 1 of 4
Dust down your policiesHold calibration sessionsProvide a support structureClear reporting is crucialGet people back to workPolicies aren’t everything
Page 50
Tackling absence 2 of 4
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
Page 51
Tackling absence 3 of 4
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.
Page 52
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
Page 53
Case study
Page 54
Case study
Page 55
Conclusion & Questions
Page 56
Conclusion
SummaryQuestions