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4. 4 Agenda Case Study* What We Had
What We Did
What We Found
Return on Investment
The Legacy three years on
*The case study company is then employer Dimension Data
5. 5 What We Had Inconsistent employee-absence notification procedure - calling line-manager, HR, receptionist, voicemail all or none of the above!
Inconsistent tracking, management, reporting and financial accounting of absence
Unreliable audit trail and HR visibility to effectively manage persistent short-term absence cases
No policy to manage long-term absent staff
Discretionary inconsistent application of CSP policy
No focus on, or promotion of, employee well-being
6. 6 What We Had Fiscal 2004 Facts Average 5.5* days absence per employee per annum *includes 1.5 days unreported absence
Direct absence cost of Ł462,000 per annum (Ł210 per employee per day of absence)
Seven unmanaged long-term absence cases
Company funded healthcare/Private Medical Insurance (PMI) premium Ł140,000 per annum (with increasing premium and negative claims experience)
No other well-being benefits, services or initiatives
7. 7 What We Did Assessed direct and indirect cost of absence
Investigated industry practices
Evaluated market providers & products
Developed comprehensive absence & well-being policy AND secured executive support!
Communicated policy to managers and staff
Provided regular progress reports to business
Reviewed and amended policy with staff representatives
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9. 9 After Launch We Found
.. Problem Departments (managers/work practices) were identified and could be addressed
Just 4% of staff were responsible for 23% of absence (all of it short-term absence)
Improved health & attendance of breach staff when their absence was discussed and CSP was withheld!
50%+ of the persistent short term offenders left of own accord (no staff dismissed due to absence)
Long-term absent staff benefited from professional OH phased return-to-work program & had favourable view of company upon return to work
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11. 11 Return on Investment Year One Company funded healthcare/PMI premium - reduced employer excess, dependent premium & P11d liability
Company funded OH provision Ł20,000 (eight employees) - positive impact on healthcare claims history & renewal premium
Employer Liability Insurance - premium reduction year-on-year returning almost 2x annual Absence Management Programme cost to company!
Direct Absence costs reduced from Ł462,000 to Ł210,000 per annum
Employee absence - reduced from 5.5 days to 2.5 days per annum
The initiative delivered - Ł312,000 Direct Saving to company (after costs) within 18 months!
12. 12 The Legacy Three Years On Absence notification procedure, return to work procedure & CSP benefit all managed in fair, consistent and legally compliant manner
Employee notification to hotline only one stop absence reporting and automatic notification to line-manager and HR
Structured and transparent absence management process with automatic action prompts
Company Sick Pay (CSP) benefit up to 100 days paid sick leave per annum
13. 13 The Legacy Three Years On Company funded EAP, Absence Management Programme and OH package promotes employee well-being, work-life balance and demonstrates company commitment to staff
Effective, professional and pro-active case management of potential long-term absent staff with Occupational Health partner
Defined short-term absence triggers enabling prompt & pro-active management of possible problem people
Defined policy for compassionate leave, emergency leave and other leave
December 2007
Absence trending at 1% to 1.5% per annum since launch