This document discusses strategies for reducing sickness absence costs. It defines different types of absences and estimates the tangible and intangible costs of employee absence for companies of various sizes. Common causes of absence like stress are examined, as are interventions like training managers, implementing wellness programs, and selecting absence management providers. The document provides steps to decrease absence rates through education, monitoring, counseling, follow-up, and corrective action when needed.

1. Slashing the costs of sickness
absence
by Toronto Training and HR
September 2013

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. Page 3
Introduction

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. Page 5
Definitions

6. Definitions
• Absence
• Short-term
• Long-term
• Culpable
• Non-culpable or innocent
• Authorized
• Unauthorized
• Wilful
• Circumstances outside one’s
control
Page 6

7. Page 7
Costs of absence

8. Costs of absence 1 of 2
• Tangible
• Intangible
Page 8

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. Page 10
Measuring absence

11. Measuring absence
• The lost time rate
• The frequency rate
• The Bradford factor
Page 11

12. Page 12
Causes of absence

13. Causes of absence 1 of 2
• Non-manual workers
• Manual workers
Page 13

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. Page 15
Substance abuse

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. Page 17
Identifying and reducing
stress

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. Page 19
Legitimate or not?

20. Legitimate or not?
Page 20

21. Page 21
Termination for just cause

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. 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. Page 24
Positive practices

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. 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. 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. Page 28
Components of a healthy
workplace

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. Page 30
Wellbeing benefits

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. 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. Page 33
US survey from 2012

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. Page 35
Canadian survey from
2012

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. Page 37
Interventions

38. Interventions
• Short-term
• Long-term
Page 38

39. Page 39
The recovery and return to
work process

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. Page 41
Training line managers

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. 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. Page 44
Changes made in the last
year

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. Page 46
Selecting an absence
management services
provider

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. 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. Page 49
Decreasing absenteeism
rates

50. Decreasing absenteeism rates
• Educate
• Monitor
• Counsel
• Follow-up
• Corrective action
Page 50

51. Page 51
Conclusion and questions

52. Page 52
Conclusion and questions
Summary
Videos
Questions