The Presence Of Absence – East The Presence Of Absence – East Midlands Attendance Management Midlands Attendance Management Summit 2008Summit 2008

Paul Southby, Regional Director, CBI East Paul Southby, Regional Director, CBI East MidlandsMidlands

About the CBIAbout the CBI

• Lobbying on behalf of UK businessLobbying on behalf of UK business

• Work with government and others to help UK Work with government and others to help UK business compete more effectivelybusiness compete more effectively

• Aim to help create and sustain conditions in which Aim to help create and sustain conditions in which UK business can prosper for the benefit of allUK business can prosper for the benefit of all

• UK’s official business representative in the EUUK’s official business representative in the EU

• National international and regional offices National international and regional offices

Who does the CBI represent?Who does the CBI represent?

• Mainly represent private sector businessMainly represent private sector business

• 80 of the FTSE 100 in membership80 of the FTSE 100 in membership

• Speak for 240,000 businesses nationally, some via Speak for 240,000 businesses nationally, some via trade associationstrade associations

• Regional representative of large business in the Regional representative of large business in the East Midlands in new Regional Economic Cabinet East Midlands in new Regional Economic Cabinet chaired by regional ministerchaired by regional minister

CBI/AXA Absence And Labour CBI/AXA Absence And Labour Turnover Survey 2008Turnover Survey 2008

• 2008 is 212008 is 21stst year of publication year of publication

• Definitive source of long-term trend data on the Definitive source of long-term trend data on the extent costs causes and solutions to workplace extent costs causes and solutions to workplace absenceabsence

• Based on representative sample covering all Based on representative sample covering all industry sectors (70% private/30% public) save industry sectors (70% private/30% public) save agricultureagriculture

• All sizes of organisation represented, and all UK All sizes of organisation represented, and all UK regionsregions

Extent of absence Extent of absence

• Absence stands at an average of 6.7 days per Absence stands at an average of 6.7 days per employeeemployee

• 9.3 days difference between best and worst 9.3 days difference between best and worst performersperformers

• Absence is higher among manual employeesAbsence is higher among manual employees

• Smaller organisations fare better than large onesSmaller organisations fare better than large ones

• Absence rates are significantly higher in the public Absence rates are significantly higher in the public sectorsector

Regional variations in absence Regional variations in absence

• In the East Midlands the average days lost is 6.6 – In the East Midlands the average days lost is 6.6 – slightly lower than averageslightly lower than average

• Absence levels are lowest in the South (5.6), Absence levels are lowest in the South (5.6), Northern Ireland (5.7) and Greater London (5.9)Northern Ireland (5.7) and Greater London (5.9)

• Absence levels are highest in Yorkshire and Absence levels are highest in Yorkshire and Humberside (8.9), the North West (8.9) Wales (7.6) Humberside (8.9), the North West (8.9) Wales (7.6) the West Midlands (7.5) and the South East (7.4)the West Midlands (7.5) and the South East (7.4)

Why have absence rates declined?Why have absence rates declined?

• Good management policies and closer monitoringGood management policies and closer monitoring

• Changes in workforce cultureChanges in workforce culture

• Also, external factors such as medical advances Also, external factors such as medical advances and healthier lifestylesand healthier lifestyles

• Surprisingly few believe improvements in the NHS Surprisingly few believe improvements in the NHS have helped – only 8% identified them as a key have helped – only 8% identified them as a key factorfactor

Costs of absenceCosts of absence

• Direct cost of absence is £517 per employee – 3.1% Direct cost of absence is £517 per employee – 3.1% of payroll/£13.2bn to the UK economyof payroll/£13.2bn to the UK economy

• Indirect costs add a further £263 per employeeIndirect costs add a further £263 per employee

• Larger employers report higher absence costsLarger employers report higher absence costs

• Absence costs vary considerably by sectorAbsence costs vary considerably by sector

• Cost of absence higher in the public sector - £692 Cost of absence higher in the public sector - £692 per employee -v- £459 in private sectorper employee -v- £459 in private sector

Causes of absenceCauses of absence

• Mainly illness but also home and family Mainly illness but also home and family responsibilities and medical appointmentsresponsibilities and medical appointments

• Long term absence accounted for 40% of working Long term absence accounted for 40% of working time losttime lost

• Minor illness caused most short term absenceMinor illness caused most short term absence

• Non-work related stress anxiety and depression is Non-work related stress anxiety and depression is the most common cause of long term absence for the most common cause of long term absence for non-manual workers, for manual workers back painnon-manual workers, for manual workers back pain

However ...However ...

• Employers estimate that 12% of sickness absence Employers estimate that 12% of sickness absence is not genuine ...is not genuine ...

• ... and 65% believe some absence is an ... and 65% believe some absence is an unauthorised extension of weekends and 60% unauthorised extension of weekends and 60% believe of holidays ...believe of holidays ...

• ... and more than half had to discipline, and more ... and more than half had to discipline, and more than a third to dismiss someone for persistent than a third to dismiss someone for persistent absenceabsence

Attendance management policiesAttendance management policies

• Management action typically triggered by three Management action typically triggered by three spells or ten days of absencespells or ten days of absence

• Most employers operate rehabilitation policiesMost employers operate rehabilitation policies

• Employers take stress seriouslyEmployers take stress seriously

• Government could do more (e.g. capability-focused Government could do more (e.g. capability-focused medical certificates) to help employers address medical certificates) to help employers address sickness absencesickness absence

Employee health and well-beingEmployee health and well-being

• More than two thirds of employers have a well-being More than two thirds of employers have a well-being policypolicy

• Employers believe well-being policies can improve Employers believe well-being policies can improve staff morale and cut absencestaff morale and cut absence

• Praise for a job well done is felt to be the most Praise for a job well done is felt to be the most important contributor to staff moraleimportant contributor to staff morale

• Most organisations are satisfied with levels of Most organisations are satisfied with levels of moralemorale

Labour turnoverLabour turnover

• Labour turnover increased slightly to 14.9% over the Labour turnover increased slightly to 14.9% over the survey yearsurvey year

• Some regional companies have reported a dramatic Some regional companies have reported a dramatic reduction in turnover in the last 6 monthsreduction in turnover in the last 6 months

• Turnover varies by sector, and by region (East Turnover varies by sector, and by region (East Midlands is about average)Midlands is about average)

• Job security – constant for the survey, but regional Job security – constant for the survey, but regional companies report a recent reduction (for obvious companies report a recent reduction (for obvious reasons)reasons)