Employee Benefits Conference Initiatives to Reduce Sickness Absence, Improve Employee WellBeing

1
Employee Benefits Conference Initiatives to
Reduce Sickness Absence, Improve Employee
Well-Being Cut Costs LondonOctober 2006
2
Agenda

• What We Had
• What We Did
• What We Found
• Where We Are Now
• Return on Investment

3
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

4
What We Had - 2004 Facts

• Average 5.5 days absence per employee per annum
  includes 1.5 days unreported absence
• Direct absence cost of 462,000 per annum (210
  per employee per day of absence)
• Seven unmanaged long-term absence cases
• Company funded healthcare/Private Medical
  Insurance (PMI) premium 140,000 per annum (with
  increasing premium and negative claims
  experience)
• No other well-being benefits or services

5
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

6
What We Did

• Introduced Absencia absence management system
  from EmployMend
• Introduced Employee Assistance Program (EAP) from
  BUPA
• Introduced Occupational Health service (OH) from
  Health Case Management Ltd
• Trained and equipped managers to manage absence
  and recognise manage work-place stress

7
What We Did

• Introduced effective promotion communication to
  staff from induction to in-service credit card
  benefits aide-memoir

8
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
  yet)
• Long-term absent staff benefited from
  professional OH phased return-to-work program
  had favourable view of company upon return

9
Where We Are Now

• 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

10
Where We Are Now

• Company funded EAP, Absencia 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

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Return on Investment
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Return on Investment

• Company funded healthcare/PMI premium - reduced
  employer excess, dependent premium P11d
  liability
• Company funded OH provision 20,000 (eight
  employees) - positive impact on healthcare claims
  history renewal premium
• Employer Liability Insurance - premium reduction
  year-on-year returning almost 2x annual Absencia
  cost to company!
• Direct Absence costs reduced from 462,000 to
  210,000 per annum
• Employee absence - reduced from 5.5 days to 2.5
  days per annum
• The initiative has delivered - 312,000 Direct
  Saving to company (after costs) and within 18
  months!