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MANAGING EMPLOYEE DRIVEN LOSS IN MEDICAL PRACTICES

MANAGING EMPLOYEE DRIVEN LOSS IN MEDICAL PRACTICES. Tuesday 8 th June 2010. INTRODUCTION. What is employee driven loss? Sickness Wasted time in work Overtime Implementation. INTRODUCTION. Margins are to tighten in the next 5 years.

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MANAGING EMPLOYEE DRIVEN LOSS IN MEDICAL PRACTICES

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  1. MANAGING EMPLOYEE DRIVEN LOSS IN MEDICAL PRACTICES Tuesday 8th June 2010

  2. INTRODUCTION What is employee driven loss? Sickness Wasted time in work Overtime Implementation

  3. INTRODUCTION Margins are to tighten in the next 5 years. Efficiency efforts will be increased at Government levels but less change management will mean resources stretched at ground level. Funding will most likely be cut but front line services are expected to be maintained. You manage a business! Now is the time to closely examine employee driven loss and minimise the impact on the profitability of the business. You will be best placed to tackle the challenges that the future presents if your staff costs v output ratio is efficient.

  4. WHAT IS EMPLOYEE DRIVEN COST? Loss caused by an employee either through absence, inefficiency, negligence or theft. Employee driven loss accounts for £27.1billion of annual loss across North America, Europe and the Asia-Pacific region (Bamfield 2009). Loss flowing from absence or reduced productivity could amount to billions more. Sickness absence alone costs UK business £476 per employee per year on average (ONS 2009). Inefficiency and wasted time costs millions a year and has a direct effect on your bottom line.

  5. SICKNESS MANAGEMENT More than half of businesses do not have sickness targets (CIPD 2010). Practice Managers should know the rates of absence and seek to reduce if too high. 6.4 days per year in the private sector and 9.7 in the public sector (CIPD 2009). What are yours? You should aim to reduce year on year until a realistic level is attained.

  6. REDUCING SICKNESS ABSENCE Introduce a full and comprehensive sickness policy. Record absences centrally. Institute a solid notification and recording procedure. Return to work interviews for all absences. Examination of sick pay policies – is company sick pay being exploited? Be inventive – use incentives. Know your rights and your legal position at every stage. Disciplinary policy for absences with trigger points – implement it!

  7. WASTED TIME IN WORK Need comprehensive policies covering internet, mobile phone use, telephone use, email use, monitoring etc. Policies need to be drafted to fit your business needs and then implemented. Employees wasting time on personal tasks massively reduces efficiency. Monitoring provides you with the data. Don’t have a toothless policy gathering dust and be afraid to use it, have a lawyer draft a bespoke policy and then work with them to enforce it.

  8. OVERTIME Necessary evil on occasion but businesses should avoid regular overtime in the current environment. Management of shift patterns can all but eliminate the need. May involve structural changes that result in contractual variations – properly drafted contracts and handbooks will have a variation clause to allow such changes with proper notice. There are pitfalls (breach of contract and constructive dismissal) but very little is sacrosanct. When varying, remember the key points, justification, consultation and variation.

  9. OVERTIME See a lawyer to guide you through the process. Flexible working – make it work for you but avoid the pitfalls (tribunal claims for indirect discrimination are difficult to defend). Look at reducing overtime rates to standard hourly rates.

  10. IMPLEMENTATION Don’t be afraid to implement changes. Know the law and be decisive. Be prepared for employee reactions and manage them effectively. Your chances of being successfully sued if you take legal advice are very small. Your ability to manage employee loss has a direct effect on the profitability of the business and should be a top priority.

  11. CLB Employment Solutionswww.clbemployment.com Tuesday 8th June 2010

  12. CANTER LEVIN & BERG • We were established in 1947 in Liverpool city centre and now have regional offices throughout the North West • We have 15 partners and 200 staff • We specialise in employment law, with our team comprising both solicitors and barristers all of whom have vast experience in contentious and none contentious practise • We are one of only 5% of law firms in England to have achieved Lexcel Accreditation from the Law Society for excellence in practice management • In 2009 our client satisfaction scores for Employment Solutions were 100% positive

  13. CANTER LEVIN & BERG Client retention is at 96% We are ISO 9001 and Investors in People accredited We represent hundreds of businesses ranging from SMEs with 20 staff to multi nationals and local authorities with over 8,000 staff We have clients throughout the UK from Brighton to Inverness!

  14. WHY US? • One-to-one contact with named employment solicitor or barrister • Personal e-mail and freephone telephone number • Emphasis on quality of service • Unlimited advice from your employment solicitor with no additional charges for drafting of documentation • Insurance built in to provide extra protection from ET claims • TUPE and Redundancy - no extra. • Litigation and counsel assistance at tribunal • Market leading fixed fee and payable monthly

  15. SERVICE FEATURES • Dedicated employment lawyer during business hours • On call employment lawyer outside of business hours • Preparation of contracts of employment and related documentation • Employment handbook written for your business and updated periodically in line with changes to Employment Law • Monthly e-newsletter & online blog keeping you up to date with all the latest changes and news relating to Employment Law • Full access to online subscription zone – comprehensive library of letters, policies, clauses, agreements and other contracts free to download!

  16. SERVICE FEATURES Thorough onsite audit and preparation of a written report Emergency call out for any client requirement Redundancy exercises: selection, consultation, calculations, and compromise agreements TUPE: due diligence, liability calculations, consultation and ETO Bespoke employment law training sessions with partner or equivalent Full insurance cover for legal costs and awards of compensation in the event of an Employment Tribunal claim Regular service review meetings with Client Services Manager

  17. PACKAGES Prices from Monthly Fees Budget £99.00 Basic £150.00 Standard £250.00 Premium £500.00 NOTE: ALL COSTS EXCLUDE VAT

  18. Q&A Question & Answer session? CLB Employment Solutions, 1 Temple Square, 24 Dale Street, Liverpool L2 5RL 08000 320 974 www.clbemployment.com Contact Laura McDonald: 07794 552896

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