Annual survey report 2012 in partnership with 2012 ABSENCE MANAGEMENT 2012 CONTENTS FOREWORD2 ABOUT US 4 SUMMARY OF KEY FINDINGS 5 RATES OF EMPLOYEE ABSENCE 9 THE COST OF ABSENCE 15 OCCUPATIONAL SICK PAY 17 CAUSES OF ABSENCE 20 WORK-RELATED STRESS 25 MANAGING ABSENCE 29 THE IMPACT OF GOVERNMENT INITIATIVES ON ABSENCE MANAGEMENT 35 EMPLOYEE WELL-BEING 37 EMPLOYEE ABSENCE AND THE ECONOMIC CLIMATE 46 BACKGROUND TO THE SURVEY 51 FURTHER SOURCES OF INFORMATION 54 ACKNOWLEDGEMENTS55 ABSENCE MANAGEMENT 2012 CONCLUSIONS48 1 ABSENCE MANAGEMENT FOREWORD Welcome to the thirteenth edition of our Absence likely to be taking steps to address it. However, Management survey report in partnership with there is still further progress needed and, with Simplyhealth. As in previous years, we provide noted increases in presenteeism and stress useful benchmarking data for organisations on remaining the most common cause of long-term absence levels and the cost and causes of absence as absence for the second year running, there is an well as a focus on employee well-being. In addition, even stronger case for action. we report on the questions we asked about the impact of government initiatives on absence Overall, a proactive approach to managing management, and we continue to track the effect absence, which includes effective training, of the economic climate on employee absence. involvement and support for line managers remains critical for success. Furthermore, regularly This survey report highlights some of the reviewing the current and future suitability of challenges organisations are both currently facing absence and well-being approaches is particularly and are anticipating over the coming 12 months. vital, as well as creative thinking around how to With the economic challenges facing the UK, maintain a focus on key issues when budgets are fragile labour markets and ongoing budget cuts, cut or frozen. 2012 remains an uncertain time. For example, we find that a significant number of organisations A good example of an organisation taking such an (two-fifths of public sector and one-fifth of private approach, the Northern Ireland Police Service, is sector organisations) are planning redundancies, featured as a case study in the report. In particular, which puts a further strain on the workforce. we look at how they have actively increased staff engagement and well-being, enabling individuals This year we see noticeable decreases in public to better manage their personal well-being needs. and private sector absence levels. But we must air cipd.co.uk/absencemanagementsurvey 2 caution before celebrating lower absence levels Sickness absence is also a significant focus because this year also sees a continued increase in for policy-makers. November 2011 saw the presenteeism – people continuing to attend work publication of the recommendations from the when they are not well – which can have negative 2011 government-commissioned sickness absence effects for both the individual and the organisation. review (jointly chaired by David Frost and Dame We also find increases in stress and mental health Carol Black). problems. Despite decreasing absence levels, it is imperative to continue to manage absence In addition, in this report we examine effectively, focusing on employee well-being and organisations’ views on the review’s being proactive to address any early warning signs. recommendation for an Independent Assessment Service to manage long-term sickness absence What is encouraging, however, is that more effectively, as well as on some of the other organisations are becoming more mindful of the government initiatives introduced over the last issue of presenteeism, with almost two-thirds few years. taking steps to discourage it. In addition, twothirds of those employers who have identified Dr Jill Miller stress as one of the top five causes of absence are Research Adviser, CIPD 2012 Simplyhealth is delighted to be partnering with Last year saw stress become the number one cause the CIPD for a third year to bring you the Absence of workplace absence for the first time, and this Management survey report. We believe that year it persists. health is the most important thing of all and that employer health and well-being strategies play a In contrast, it’s good to see well-being strategies fundamental role in the management of absence increasing amongst businesses year on year. This and presenteeism. The survey offers us, as people means that there is focus on doing what’s best for managers, insights to inform our own approaches employees and improving business health. The as well as shows us how we can encourage vital role of line managers cannot be disputed. employees to take more responsibility for their Early detection of health issues and ensuring own health and well-being. the correct support is in place helps people with health problems stay in or return to work. It’s fair to say that the double-dip recession is impacting business health as well as employee With well-being strategies and absence well-being, with presenteeism on the rise. The management being high on the agenda for link between presenteeism and mental health government, there is still more to do; over a problems is unsurprising, especially with continued quarter of businesses still do not have a well- job insecurity and rising workloads. People are being strategy in place. It’s our mission to help also still facing financial challenges with pay rises individuals, families, employers and the wider few and far between. community manage their health. Helen Dickinson People Director, Simplyhealth ABSENCE MANAGEMENT 2012 3 ABSENCE MANAGEMENT ABOUT US CIPD Simplyhealth The CIPD is the world’s largest chartered HR At Simplyhealth we focus on healthcare so and development professional body. We’re a individuals and businesses can rely on us for our globally recognised body with more than 135,000 specialist knowledge. We’ve been helping people members across 120 countries – including 84,000 access affordable healthcare for nearly 140 years. We professional members. now cover almost 4 million people with health plans and more than 20,000 companies choose us as their Our members include the next generation of healthcare provider. Our corporate clients include HR professionals and many of the world’s most Astra-Zeneca, British Airways, the Co-operative, influential senior HR leaders from world-class John Lewis Partnership, Royal Mail, Tesco, Yorkshire organisations. Building Society and William Hill. We are the experts’ choice too; we provide cover for all the major We set global standards for best practice in HR and hospital groups in the UK. its specialisms. It’s our aim to support and develop professional capability: shaping thinking, leading We offer private medical insurance, health cash best practice and building HR’s profile in business. plans, dental plans and self-funded health plans to help people with their everyday health and get cover cipd.co.uk for the unexpected. We’re committed to delivering exceptional personal customer service and go out of our way to do the right thing, not the easy thing. The Institute of Customer Services recognises that our customer services team is world class, and we have achieved its sought-after ServiceMark accreditation. We also care about our communities and last year cipd.co.uk/absencemanagementsurvey 4 donated £1.6 million to local causes and national charities. simplyhealth.co.uk 2012 SUMMARY OF KEY FINDINGS This report sets out the findings of the CIPD’s thirteenth national survey of absence management trends, policy and practice. The analysis is based on replies from 667 organisations across the UK employing a total of 1.7 million employees. Absence levels Length of absence Most organisations, particularly in the public sector, Two-thirds of working time lost to absence is record their annual employee absence rate. accounted for by short-term absences of up to seven days. A fifth is attributed to long-term absences The average level of employee absence has fallen (four weeks or more). compared with last year from 7.7 days to 6.8 per employee per year. The private services and public Length of absence varies across sectors. A higher sector report the largest reductions. There is, proportion of absence in the public sector is due to however, high variation across organisations, with long-term absences of four weeks or longer. some reporting extremely high levels of absence. Smaller organisations are more likely to attribute Public sector absence has fallen to the lowest level a higher proportion of their absence to short-term recorded for this sector since we recorded absence leave compared with larger organisations. levels by sector in 2002, with a figure of 7.9 days per employee per year. Cost of absence Less than half of employers monitor the cost of On average, public and non-profit employees have absence. The public sector and larger organisations approximately two days more absence per year than are most likely to do so. their private sector counterparts. Manual workers have one more day absence, on average, than The average annual cost of employee absence per non-manual workers. Absence levels also tend to employee varies considerably across organisations, increase with organisation size. partly because they include different costs in their Overall, more organisations report that their absence per employee is less than last year and back absence levels have decreased (41%) compared with to levels reported in 2010 (2012 median: £600; 2011 the previous year than say it has increased (27%). median: £673; 2010 median: £600). One-third report it has remained the same. The public and non-profit sectors report higher costs The majority of respondents, particularly in of absence per employee than the private sector. organisations with high levels of absence, believe it There is, however, a clear drop in the median cost of is possible to reduce absence. absence per employee this year in the public sector, which is not observed in the other sectors. ABSENCE MANAGEMENT 2012 calculations. On average, the reported cost of 5 ABSENCE MANAGEMENT Occupational sick pay likely to rank mental ill health and musculoskeletal Most employers surveyed (81%) provide injuries among its top five causes of long-term occupational sick pay to all employees. A further absence. 10% provide it to some employees depending on their level in the organisation or the nature of Work-related stress their role. Two-fifths of employers overall (52% in the public sector) report that stress-related absence has There is considerable variation in how long increased over the past year. organisations provide occupational sick pay to an employee (with at least one year’s service) who is on The most common cause of stress, as in previous long-term sick leave. Public sector employers provide years, is workload. This year, however, it appears full pay and then reduced pay for significantly to be even more of an issue. longer than employers from other sectors. Other top causes of stress at work include One in ten organisations have increased or management style, non-work factors such as extended their occupational sick pay over the past relationships and family, relationships at work and 12 months and a similar proportion have decreased considerable organisational change/restructuring. or restricted it. Considerable organisational change/restructuring Causes of absence and job insecurity are more commonly ranked in Minor illnesses (such as colds, flu, stomach upsets, the top causes of stress in the public sector than in headaches and migraines) are by far the most the private. common cause of short-term absence. Three-fifths of organisations are taking steps cipd.co.uk/absencemanagementsurvey 6 Musculoskeletal injuries, back pain and stress are the to identify and reduce stress in the workplace. next most common causes of short-term absence. Nevertheless, more than a quarter (27%) of Stress is more common for non-manual workers, organisations that report stress is one of the top while musculoskeletal injuries and back pain are five causes of absence are not taking any steps to more common for manual workers. address it. Fewer employers rank absences not due to genuine Just over a quarter of employers report they ill health among their top five most common causes have increased their focus on stress management of short-term absence compared with last year. over the past 12 months. As in previous years, Non-genuine absence is reportedly most common in public services employers are most likely to private services organisations. be proactively managing stress; however, the proportion doing so has fallen in comparison The most common causes of long-term absence with previous years. are stress, acute medical conditions (for example stroke, heart attack and cancer), mental ill Popular methods to identify and reduce workplace health, musculoskeletal injuries and back pain. stress include staff surveys, training for managers/ Musculoskeletal injuries and back pain are staff and flexible working options/improved work– particularly common for manual workers while stress life balance. is more common for non-manual workers. Managing absence Stress is particularly common in the public and Almost all organisations surveyed have a written non-profit sectors. The public sector is also more absence/attendance management policy. 2012 Half have introduced changes to some aspect of it has helped to reduce absence levels, possibly their approach in the last year, with public sector because only one in ten think it is being used organisations most likely to have made changes. effectively by GPs. Overall, just under half of employers have a target Half of employers report that the fit note prompts in place for reducing employee absence, although conversations about absence/health between staff this rises to 69% in the public sector. and line managers and just under a third that it helps line managers to manage absence. The most common methods used to manage interviews, trigger mechanisms to review Impact of the abolition of the Default Retirement Age (DRA) on absence attendance, giving sickness absence information Very few organisations report that the abolition to line managers and disciplinary procedures for of the DRA has had an impact on absence levels. A unacceptable absence. These are also seen to be quarter of organisations have, however, increased the most effective methods. their use of flexible working practices as a result short-term absence are return-to-work of the abolition. The most common methods used to manage long-term absence, return-to-work interviews Employee well-being and occupational health involvement, are also There has been a gradual increase over the past reported to be the most effective, as was the case few years in the proportion of organisations with last year. an employee well-being strategy. More than half of organisations now have one in place. Line managers take primary responsibility for managing short-term absence in 70% of The most commonly provided well-being benefits organisations overall, rising to 87% in the public are access to counselling services and employee sector. They take responsibility for managing assistance programmes, but the benefits provided long-term absence in 53% of organisations overall vary considerably across sectors. (74% of the public sector). Not all organisations, however, train managers in absence-handling and As in previous years, the public sector is most fewer provide them with tailored support. likely to promote well-being through benefits to facilitate healthy lifestyles. The private sector is Private sector employers are much more likely to more likely to provide insurance for employees. restrict sick pay than the public sector. They are also more likely to offer private medical insurance Nearly half of organisations report their well- and attendance bonuses or incentives. being spend has not changed compared with the last financial year. Just under a fifth of organisations report their well-being spend a range of methods aimed at promoting good has increased. Similar changes are anticipated health and flexibility. They are also more likely in 2013. to report that attendance is driven by the board, although this is only the case for 28% of the public In little change from last year, less than a quarter sector (10% of the private). of respondents report their organisations evaluate the impact of their well-being spend. The Statement of Fitness to Work The vast majority of organisations across all sectors have used the ‘fit note’, but just one in ten believe ABSENCE MANAGEMENT 2012 Public sector employers are more likely to use 7 ABSENCE MANAGEMENT Employee absence and the recession Nearly two-thirds of employers who have noticed Two-fifths of public sector organisations and at an increase in presenteeism in the last 12 months least a fifth of organisations from other sectors are taking steps to discourage it. report they will be making redundancies over the next six months. Overall, just a third of the Less than a third of organisations (30%) report organisations surveyed report they won’t be they have increased their focus on employee making any redundancies. well-being and health promotion as a result of the economic context. Nearly a third of organisations report an increase in people coming to work ill in the last 12 months and more than two-fifths had noted an increase in reported mental health problems. Both of these issues have increased compared with previous years and are more common in organisations that are anticipating redundancies in the next six months. cipd.co.uk/absencemanagementsurvey 8 2012 RATES OF EMPLOYEE ABSENCE Average absence rates have improved compared with previous years, with greatest average reductions in the private services and public sector. At the organisation level, however, there is considerable variation: while two-fifths report absence has decreased over the past year, a quarter report that it has increased. Most organisations (82%) record their annual Sector variations employee absence rate, recognising its impact on This year absence levels have dropped business success (2011: 81%). In line with previous considerably in the public sector, continuing the years’ findings, public sector organisations are downward trend observed last year (2012: 7.9 most likely to record this information and private days per employee; 2011: 9.1 days; 2010: 9.6 days; services the least (public sector: 94%; private 2009: 9.7 days). In fact, this year public sector services: 73%; manufacturing and production and absence has fallen to the lowest level since we non-profits: 86%).1 recorded absence levels by sector in 2002. There is considerable variation in reported levels This reduction has brought public sector absence of absence, with a few organisations reporting levels just below that of the non-profit sector, very high absence levels, as was the case last although they remain considerably higher than year. In order to avoid a few extreme cases in the private sector (Table 2). 2 skewing the results, we report the 5% trimmed mean (Table 1).3 The figures suggest that, on The private services sector also reports a average, absence has declined compared with considerable decrease in average absence levels last year by one day per employee. this year to 5.7 days per employee, reversing Table 1: Average level of employee absence, all employees Average working time lost per year (%) Average number of days lost per employee per year Standard deviation Mean 5% trimmed mean Standard deviation Mean 2012: all employees 3.0 3.3 3.4 6.8 7.5 7.7 2011: all employees 3.4 3.5 3.8 7.7 8.0 8.7 2010: all employees 3.2 1.9 3.4 7.4 4.3 7.7 Base: 498 (2012); 403 (2011); 429 (2010) ABSENCE MANAGEMENT 2012 5% trimmed mean4 9 ABSENCE MANAGEMENT the trend which saw it rise from 6.4 days per have the highest levels of absence. In the private employee in 2009 to 6.6 days in 2010, to 7.1 days services sector, call centres have a high average last year. It is now at a similarly low level to the level of absence, as we’ve found in previous manufacturing and production sector, which years. reports little change compared with last year. Manual and non-manual absence levels Table 3 shows that there is also considerable Average absence levels suggest that while variation within sectors, although the small absence has fallen for non-manual workers (2012: number of respondents in each industry means 4.7 days per employee per year; 2011: 5.5. days) differences should be treated with caution. Non- there has been no change compared with last profit care services and public sector education year for manual workers. Manual employees had and health organisations reported particularly one more day of absence on average than non- high average absence levels (although there is manual employees.5 considerable variation in absence levels for the education sector). This suggests that it is frontline public and non-profit organisations that Table 2: Average level of employee absence, by sector for all, manual and non-manual employees Average working time lost per year (%) Number of respondents 5% trimmed mean Standard deviation 86 2.6 Private sector services 195 Public services Average number of days lost per employee per year Mean 5% trimmed mean Standard deviation Mean 1.6 2.8 6.0 3.6 6.5 2.5 2.7 2.9 5.7 6.1 6.6 145 3.5 4.5 3.9 7.9 10.2 9.0 All employees Manufacturing and production Non-profit organisations 72 3.6 3.4 4.1 8.2 7.7 9.3 498 3.0 3.3 3.4 6.8 7.5 7.7 Manufacturing and production 35 2.9 1.7 3.1 6.7 3.8 7.1 Private sector services 29 2.1 1.8 2.2 4.9 4.0 5.0 Public services 13 2.0 2.3 2.1 4.5 5.3 4.9 7 2.7 2.1 2.8 6.2 4.8 6.3 84 2.5 1.9 2.6 5.7 4.3 5.9 Manufacturing and production 33 1.2 1.0 1.3 2.7 2.2 2.9 Private sector services 42 2.2 3.2 2.7 5.1 7.3 6.2 Public services 19 3.5 1.5 3.5 7.9 3.5 7.9 13 1.9 0.8 1.8 4.2 1.9 4.2 107 2.0 2.3 2.3 4.7 5.3 5.3 Total Manual employees cipd.co.uk/absencemanagementsurvey 10 Non-profit organisations Total Non-manual employees Non-profit organisations Total 2012 Table 3: Average level of employee absence, all employees by sector breakdowns Average working time lost per year (%) Number of 5% trimmed respondents mean Manufacturing and production Private sector services Average days lost per year Mean 5% trimmed mean Mean 1 n/a* 1.7 n/a* 3.8 Chemicals, oils and pharmaceuticals 9 2.4 2.5 5.6 5.8 Construction 8 2.2 2.2 5.0 5.0 Electricity, gas and water 1 n/a* 3.8 n/a* 8.7 Engineering, electronics and metals 22 2.5 2.7 5.7 6.1 Food, drink and tobacco 13 3.3 3.5 7.4 8.0 General manufacturing 9 3.2 3.2 7.2 7.3 Mining and quarrying 1 n/a* 3.2 n/a* 7.3 Paper and printing 4 2.5 2.4 5.6 5.6 Textiles 4 1.7 1.7 3.8 3.8 Other manufacturing/ production 14 3.1 3.2 7.1 7.3 Professional services (accountancy, advertising, consultancy, legal, etc) 28 1.9 2.5 4.4 5.7 Finance, insurance and real estate 28 2.2 2.3 5.1 5.2 5 2.4 2.4 5.5 5.4 IT services 2.5 2.8 5.7 6.3 8 4.1 4.2 9.3 9.7 Media (broadcasting and publishing, etc) 3 n/a* 1.6 n/a* 3.7 Retail and wholesale 15 2.7 3.0 6.2 6.8 Transport, distribution and storage 21 3.2 3.6 7.3 8.2 7 1.8 1.8 4.1 4.1 Other private services 64 2.7 3.2 6.2 7.2 Central government 13 3.3 3.3 7.6 7.5 Education 26 4.1 5.8 9.3 13.2 Health 24 4.1 4.1 9.4 9.3 Local government 52 3.5 3.6 8.0 8.1 Other public services 30 3.2 3.2 7.3 7.3 Care services 14 5.4 5.9 12.2 13.4 Charity services 17 3.6 4.2 8.1 9.6 Housing association 25 3.6 4.0 8.2 9.1 Other voluntary 16 2.4 2.5 5.5 5.8 * It is not meaningful to calculate the 5% trimmed mean with a low number of respondents. ABSENCE MANAGEMENT 2012 16 Call centres Communications Non-profit organisations Average days lost per year Agriculture and forestry Hotels, catering and leisure Public services Average working time lost per year (%) 11 ABSENCE MANAGEMENT The effect of workforce size due to sampling differences between regions; for Larger organisations tend to have higher levels example, organisations reporting for the whole of of absence than smaller ones (Table 4).6 People the UK have a lower than average absence level, may be deterred from taking absence in smaller but these organisations are mostly from the private organisations because they tend to work in services sector (which has the lowest absence levels) smaller teams and consequently absence is and very few are from the public sector (where more disruptive and noticeable. It is unlikely, absence tends to be higher). The small sample sizes however, that this is the only explanation. do not allow us to separate out whether differences Larger organisations (and the public sector) tend are due to region, sector or size. to offer more generous sick pay schemes (see may have a greater incentive to return to work. Changes in levels of absence within organisations Differences in sick pay schemes, together with The above findings suggest that overall absence organisational culture and absence policies, may has reduced compared with last year, particularly in help explain why absence tends to be higher in the private services and public sector. Respondents the public sector than the private, regardless of were also asked about changes within their own size (Table 5).7 organisations compared with the previous year. Occupational sick pay), without which employees Overall two-fifths report a decrease in their levels of Regional breakdown absence, while just over a quarter report an increase There are regional differences in absence levels (Table 7), suggesting considerable variation in (Table 6).8 Some of these differences are likely to be organisations’ experiences. Table 4: The effect of workforce size Average working time lost per year (%) Number of respondents 5% trimmed mean Standard deviation 5% trimmed mean Standard deviation 29 2.4 3.6 5.5 8.1 50–249 158 2.5 1.8 5.7 4.1 250–999 No. of UK employees 1–49 cipd.co.uk/absencemanagementsurvey 12 Average number of days lost per employee per year (days) 161 3.1 4.9 7.0 11.2 1,000–4,999 90 3.6 2.2 8.1 5.0 5,000+ 51 3.6 1.7 8.1 3.9 Table 5: The effect of workforce size on absence levels, by sector Average number of days lost per employee per year (5% trimmed mean) No. of UK employees Manufacturing and production Private sector services Public services Non-profit organisations 1–49 n/a*(3) 5.1 (16) 5.1 (5) 50–249 6.2 (35) 4.6 (78) 6.2 (16) 7.8 (29) 250–999 5.7 (38) 6.5 (49) 8.2 (46) 7.9 (28) 1,000–4,999 7.3 (7) 7.8 (29) 8.1 (44) 12.1 (10) – (0) 7.7 (17) 8.6 (34) – (0) 5,000+ 12.3 (5) Number of respondents shown in brackets 2012 Table 6: Average level of absence, by region Average working time lost per year (%) Average number of days lost per employee per year (days) Number of respondents 5% trimmed mean Standard deviation 5% trimmed mean Standard deviation East Anglia 20 2.9 2.98 6.6 6.80 East Midlands 26 3.1 1.16 7.0 2.64 West Midlands 29 3.0 1.63 6.7 3.73 North-east of England 15 2.9 0.95 6.7 2.16 North-west of England 36 3.7 2.19 8.4 5.00 South-west of England 39 3.0 3.52 6.8 8.03 Yorkshire and Humberside 29 4.1 9.68 9.3 22.07 South-east of England (excluding London) 61 2.8 1.37 6.4 3.13 London 51 2.6 3.04 6.0 6.94 Scotland 49 3.5 2.79 8.0 6.36 Wales 18 3.8 1.05 8.6 2.39 1 n/a – 120 2.6 2.34 Northern Ireland Whole of UK – – 6.0 5.35 This variation is noted within all sectors (Table 7), know). The sectors with highest absence levels, although private services are least likely to report the public and voluntary sectors, are most likely changes in levels of absence.9 It is encouraging that to believe they can reduce absence levels further in the non-profit sector, where average absence (public: 85%; non-profit: 78%; private sector: 72%).10 levels are highest (Table 2), more than twice as many Larger organisations are also more likely to believe organisations report a decrease in absence than they can reduce absence.11 Nevertheless, while report an increase. Nevertheless, absence clearly organisations with higher absence levels are more remains a challenging issue for many organisations. likely to believe they can reduce absence levels, the majority (61%) of those with very low absence levels Three-quarters of employers believe it is possible to (fewer than three days on average per employee per further reduce employee absence (76%). Only 12% year) also believe they can further reduce absence. do not think it is possible (11% report they don’t Increased Decreased Stayed the same All 27 41 32 Manufacturing and production 32 48 20 Private sector services 24 32 43 Public services 30 50 20 Non-profit organisations 21 45 34 Base: 631 ABSENCE MANAGEMENT 2012 Table 7: Changes in levels of absence within organisations compared with the previous year (%) 13 ABSENCE MANAGEMENT Lengthy absence compared with nearly three-quarters in the private There has been very little change in the length of services sector.12 A higher proportion of absence in employee absences over the past few years. Overall, the public sector is due to long-term absences of nearly two-thirds of working time lost to absence four weeks or longer (Table 8). is accounted for by short-term absences of up to seven days. A fifth of absence is attributed to long- Length of absence is also related to workforce size in term absence (four weeks or more), while 16% is the private services and public sectors, with smaller attributed to absences of between eight days and organisations attributing more of their absence to four weeks (Table 8). short-term leave than larger organisations.13 This relationship is not significant in manufacturing Our findings also show, as in previous years, that and production or the non-profit sector, where the there are significant sector differences. Just over size range of organisations that responded to the half of absence in the public sector is short term, question is more limited. Table 8: The average proportion of sickness absence attributed to short-, medium- and long-term absence, by workforce size and industry sector Number of respondents Up to seven days (%) Eight days up to four weeks (%) Four weeks or longer (%) 372 64 16 19 Manual employees 65 63 17 20 Non-manual employees 87 68 15 17 64 61 18 21 171 72 14 15 Public services 85 54 20 26 Non-profit organisations 52 61 17 21 All employees Industry sector Manufacturing and production Private sector services Number of UK employees 1–49 cipd.co.uk/absencemanagementsurvey 14 17 79 9 12 50–249 122 70 14 16 250–999 124 62 16 21 1,000–4,999 68 60 19 21 5,000+ 35 52 24 24 2012 THE COST OF ABSENCE The average annual absence costs per employee have decreased compared with last year, although they vary considerably across organisations. Less than half of employers monitor the cost of absence. Monitoring the cost of employee absence can calculations (see Table 11). The prevalence of some help organisations identify the cost-benefits extremely high figures also raises the possibility that of investing in better absence management some respondents misread the question and report practices. Less than half of organisations surveyed absence costs for the whole organisation rather than report they do this, showing little change from per employee. The median figures are therefore previous years (2012: 40%; 2011: 42%; 2010: 45%; considered to be most valid and are reported on. 2009: 41%). Larger organisations, and those in the public sector, are significantly more likely to On average, the reported cost of absence per monitor the cost (Table 9). employee is less than last year and back to levels 14 reported in 2010 (2012 median: £600; 2011 median: A total of 124 respondents reported their average £673; 2010 median: £600). As we have found in annual cost of absence per employee per year. There previous years, this overall figure masks considerable is considerable variation in the figures reported differences across sectors. As usual the public and (Table 10). This is at least partly due to our findings non-profit sectors report higher costs of absence that organisations include different costs in their per employee than the private sector. This is likely Table 9: Proportion of organisations that monitor the cost of employee absence (%) Does your organisation monitor the cost of employee absence? Yes No Don’t know 40 49 11 Manufacturing and production 32 59 9 Private sector services 37 55 8 Public services 50 36 14 Non-profit organisations 40 47 12 1–49 32 58 11 50–249 37 53 9 250–999 33 59 9 1,000–4,999 48 38 14 5,000+ 63 21 16 All organisations Industry sector Base: 667 ABSENCE MANAGEMENT 2012 Number of UK employees 15 ABSENCE MANAGEMENT to reflect their more generous sick pay schemes (see There is, however, a clear drop in the median cost of Table 12) and also our findings that in these sectors absence per employee this year in the public sector a higher proportion of absence is long term (Table 8) (Figure 1). The reduction in absence levels in this and consequently more costly to the business. sector reported above (Absence levels) may help explain the reduction in costs. Table 10: Average annual cost of absence per employee per year Cost (£) per employee per year Number of respondents Median 124 600 1,187 0 4,389,173 Manufacturing and production 25 456 971 0 80,000 Private sector services 54 513 861 0 52,000 Public services 24 647 721 220 20,000 Non-profit organisations 21 700 44,975 0 4,389,173 All 5% trimmed mean All employees Figure 1: Median cost (£) of absence per employee per year, by sector 2012 2011 2010 Manufacturing and production 2012 2011 2010 Maximum 600 673 600 456 444 400 Private sector services 2012 2011 2010 513 446 600 Public services 2012 2011 2010 647 800 889 Non-profit organisations 2012 2011 2010 700 743 600 (£) 0 200 400 600 800 1,000 cipd.co.uk/absencemanagementsurvey Table 11: Criteria included in calculation of average cost of employee absence per employee (%) All respondents Manufacturing and production Private sector services Public services Voluntary, community and not-for-profit Occupational sick pay 79 83 76 73 90 Statutory sick pay 69 87 67 50 75 Temporary cover 25 39 24 18 20 Additional overtime costs 21 35 18 18 15 Lost production or service provision 22 17 27 23 15 7 4 4 14 10 Other Base: 114 16 Minimum 2012 OCCUPATIONAL SICK PAY Most organisations provide occupational sick pay, although schemes are most common and generous in the public sector. Three-quarters of public sector employers provide full pay for more than 20 weeks compared with less than a third of the private and non-profit sectors. The provision and cover of occupational sick pay At the lower end, 8% pay the full rate for one to schemes appears to have changed little since we three weeks and most of these do not continue last asked these questions in 2010. Most employers to pay at a reduced rate (Table 13). At the more surveyed (81%) provide occupational sick pay generous end of the scale, two-fifths provide to all employees. A further 10% provide it to full pay to employees on long-term sick leave for some employees depending on their level in the between 21 and 30 weeks and over three-quarters organisation or the nature of their role. Only a of these then continue to pay a reduced rate for minority (3%) do not provide occupational sick pay a further 21–30 weeks. Only a small proportion of to any employees. Regardless of size, public sector organisations (3%) provide full pay for absences of employers are most likely to provide occupational more than 30 weeks. sick pay to all employees (92%) and private sector employers the least (74%, non-profits: 89%).15 Public sector employers are by far the most generous when it comes to how long they will Where occupational sick pay is provided, it provide absent employees with full and reduced usually covers the first three days of absence pay (Table 12). The median number of weeks (90%), particularly in public sector and non-profit that public sector organisations provide full organisations (public sector: 96%; non-profit and reduced pay is at least double that of the sector: 91%; private sector: 86%).16 The majority other sectors. Three-quarters of public sector of sick pay schemes across all sectors provide employers provide full pay for more than 20 payment at the same level as employees’ full weeks compared with less than a third of the wage or salary (96% overall). private and non-profit sectors. About a third of manufacturing and production organisations and non-profit organisations and two-fifths of private organisations provide occupational sick pay to an sector services provide full pay for fewer than employee (with at least one year’s service) who is eight weeks compared with just 15% of public on long-term sick leave (Table 12). There is also a sector organisations. significant relationship between the number of weeks organisations pay at the full rate and how There is also a relationship between size of long they pay at a reduced rate, such that the more organisation and the number of weeks that generous they are with one, the more generous occupational sick pay is provided, with larger they are with the other. organisations being more generous. 17 ABSENCE MANAGEMENT 2012 There is considerable variation in how long 17 ABSENCE MANAGEMENT Table 12: Number of weeks that organisations will provide occupational sick pay to an employee (with at least one year’s service) who is on long-term sick leave Number of weeks (%) 0 1–3 4–7 8–12 13–20 21–30 31+ Mean Standard deviation Median All respondents 1 8 22 15 11 39 3 16.2 13.5 13.0 Manufacturing and production 0 13 22 11 24 23 6 16.1 15.9 13.0 Private sector services 3 13 25 18 13 25 3 13.6 13.8 10.0 Public services 0 1 14 7 1 74 2 22.0 11.5 26.0 Non-profit organisations 0 2 29 29 8 32 0 13.6 9.1 9.5 All respondents 13 3 13 14 11 42 3 15.4 11.1 13.0 Manufacturing and production 33 4 12 4 25 19 4 10.3 10.1 9.0 Private sector services 24 6 15 14 12 23 6 11.4 11.7 8.0 Public services – 1 9 9 3 76 2 21.9 8.5 26.0 Non-profit organisations 4 1 16 33 12 32 1 13.9 9.0 12.0 Full rate Reduced rate Base: 561 Table 13: Number of weeks organisations pay sick pay at a reduced rate, by number of weeks paid at full rate (%) Number of weeks paid at reduced rate (%) 0 1–3 4–7 8–12 13–20 21–30 31+ Number of weeks paid at full rate (%) cipd.co.uk/absencemanagementsurvey 18 0 (9) 44 11 11 11 11 – 11 1–3 weeks (45) 64 20 4 4 2 2 2 4–7 weeks (124) 46 2 36 12 2 1 1 8–12 weeks (86) 43 1 3 45 3 1 2 13–20 weeks (63) 40 – – 2 51 3 5 21–30 weeks (217) 19 – – – 2 77 1 31+ weeks (17) 76 – – – – 6 18 Number of respondents shown in brackets. 2012 Changes to occupational sick pay arrangements While twice as many anticipate decreases over the Most organisations, regardless of size or sector, proportions are small and most expect no change report that their occupational sick pay schemes have (77%), a similar outlook to the last 12 months. A not changed over the past 12 months (79%). One minority anticipate their schemes will be extended in ten report they have increased (7%) or extended to more employees (2%) or restricted to certain their schemes to more employees (2%) over the categories of employees (3%). There are no last year and a similar proportion report their significant differences across sectors. next 12 months (12%) than increases (6%), the occupational sick pay has decreased (9%) or been restricted to certain categories of employees (3%). ABSENCE MANAGEMENT 2012 19 ABSENCE MANAGEMENT CAUSES OF ABSENCE Minor illness, including colds, flu, stomach upsets, headaches and migraines, is the most common cause of short-term absence by far. The most common causes of long-term absence are stress, acute medical conditions, mental ill health, musculoskeletal injuries and back pain. Most organisations, regardless of sector or size, upsets, headaches and migraines (Table 14). collect information on the causes of employee Musculoskeletal injuries, back pain and stress absence (2012: 88%; 2011: 84%; 2010: 86%). are also common causes of short-term absence, Respondents were asked to rank the five most although, as in previous years, musculoskeletal common causes of short- and long-term absence, injuries and back pain are more common causes of for both manual and non-manual workers. absence for manual workers, while stress is more common for non-manual workers. Short-term absence The main causes of short-term absence (four A third of organisations report that home/family weeks or less) are very similar to previous years’ responsibilities are in the top five most common findings for both manual and non-manual causes of absence. Demographic changes to the workers. By far the most common cause is population mean that an increasing proportion of minor illness, including colds, flu, stomach the workforce have responsibilities as carers and Table 14: Common causes of short-term absence (%) Most common cause Manual Non-manual Manual Non-manual 83 87 98 99 Musculoskeletal injuries (for example neck strains and repetitive strain injury, but excluding back pain) 8 2 63 52 Back pain 4 1 56 46 Stress 3 9 48 56 Recurring medical conditions (for example asthma, angina and allergies) 0 0 37 42 Home/family responsibilities 2 0 33 32 Mental ill health (for example clinical depression and anxiety) 2 1 29 30 Injuries/accidents not related to work 1 0 19 22 Acute medical conditions (for example stroke, heart attack and cancer) 0 0 19 18 Pregnancy-related absence (not maternity leave) 0 0 9 15 Work-related injuries/accidents 0 0 21 6 Drink- or drug-related conditions 0 0 2 1 Other absences not due to genuine ill health 1 0 17 16 Minor illness (for example colds/flu, stomach upsets, headaches and migraines) cipd.co.uk/absencemanagementsurvey Base: Manual: 370; Non-manual: 429 20 In top 5 most common causes 2012 organisations will need to address this through particularly for non-manual workers (Tables 15 appropriate, and flexible, working arrangements. and 16). The public sector is also more likely than the private to report that musculoskeletal Despite health and safety legislation, a fifth of injuries are a common cause of absence, as we organisations report that work-related injuries found last year. Moreover, the proportion of the and accidents are a common cause of absence for public sector that reports musculoskeletal injuries manual workers. This clearly demonstrates the need are a common cause of short-term absence has for organisations to monitor the causes of absence in increased for both manual (2012: 85%; 2011: 72%) order to identify and address potential issues. and non-manual workers (2012: 77%; 2011: 65%). On a more positive note, the findings indicate a In contrast, the public sector is less likely than the slight decline in the proportion of respondents private to rank home/family responsibilities and ranking absences not due to genuine ill health illegitimate absences not due to genuine ill health among their most common causes of short-term among their top causes of absence. Moreover, absence, at least for manual workers (manual fewer public sector organisations report that workers 2012: 17%; 2011: 21%; 2010: 23%; non- home/family responsibilities are a common cause manual workers 2012: 16%; 2011: 21%; 2010: 17%). of absence this year compared with last (manual: 2012: 10%; 2011: 27%; non-manual: 2012: 13%; Sector differences 2011: 24%). This may be attributed to an increased In line with findings from previous years, stress predominance of musculoskeletal injuries as a and mental ill health are more common causes cause of absence but it may partly reflect the of absence in the public sector than the private, typically better flexible working practices offered Table 15: Top five most common causes of short-term absence for manual workers, by sector (%) All Manufacturing Private sector Non-profit organisations and production services Public services organisations 98 98 98 95 100 Musculoskeletal injuries (for example neck strains and repetitive strain injury, but excluding back pain) 63 60 55 85 57 Back pain 56 55 55 63 51 Stress 48 37 47 59 55 Recurring medical conditions (for example asthma, angina and allergies) 37 41 36 39 27 Home/family responsibilities 33 42 36 10 39 Mental ill health (for example clinical depression and anxiety) 29 24 28 33 39 Work-related injuries/accidents 21 25 20 18 18 Injuries/accidents not related to work 19 25 22 9 14 Acute medical conditions (for example stroke, heart attack and cancer) 19 23 18 18 16 Pregnancy-related absence (not maternity leave) 9 2 11 8 16 Drink- or drug-related conditions 2 2 4 0 2 17 22 19 10 16 Other absences not due to genuine ill health Base: 372 ABSENCE MANAGEMENT 2012 Minor illness (for example colds/ flu, stomach upsets, headaches and migraines) 21 ABSENCE MANAGEMENT by public sector employers (see Tables 25 and 27) Long-term absence or be a consequence of employees being more The most common causes of long-term absence reluctant to take illegitimate absence in light of all (four weeks or more) among manual and the cuts and redundancies in this sector. non-manual workers are stress, acute medical conditions (for example stroke, heart attack While illegitimate absence and that due to home/ and cancer), mental ill health, musculoskeletal family responsibilities remains most common injuries (for example neck strains and repetitive in the private sector, both have reduced in the strain injury) and back pain (Table 17). Back pain private services sector compared with last year. is particularly common for manual workers while Two-fifths of private services organisations report stress is somewhat more common for non-manual that home/family responsibilities are a common workers. These findings show very little change cause of absence for non-manual workers this from last year. year compared with over half last year. A third report this is a common cause for manual workers Sector differences compared with nearly half last year. Similarly, less Sector differences are similar to last year. The than a fifth of private services employers report public (and, with regards to manual workers, that illegitimate absence is common for manual non-profit) sector is most likely to report stress is or non-manual workers this year compared with a common cause of long-term absence (as well as three in ten last year. short-term absence) compared with organisations in the private sector (Tables 18 and 19). The public sector is also most likely to report mental ill health is a common cause of long-term absence. Table 16: Top five most common causes of short-term absence for non-manual workers, by sector (%) All Manufacturing Private sector Non-profit organisations and production services Public services organisations cipd.co.uk/absencemanagementsurvey Minor illness (for example colds/ flu, stomach upsets, headaches and migraines) 99 100 99 96 100 Stress 56 44 54 71 53 Musculoskeletal injuries (for example neck strains and repetitive strain injury, but excluding back pain) 52 31 46 77 58 Back pain 46 36 46 53 50 Recurring medical conditions (for example asthma, angina and allergies) 42 49 38 45 40 Home/family responsibilities 32 43 39 13 29 Mental ill health (for example clinical depression and anxiety) 30 23 27 41 31 Injuries/accidents not related to work 22 25 28 13 16 Acute medical conditions (for example stroke, heart attack and cancer) 18 21 16 15 23 Other absences not due to genuine ill health 16 23 17 10 13 Pregnancy-related absence (not maternity leave) 15 11 20 11 11 Work-related injuries/accidents 6 14 4 3 5 Drink- or drug-related conditions 1 1 1 0 5 Base: 430 22 2012 Table 17: Common causes of long-term absence (%) Most common cause In top 5 most common causes Manual Non-manual Manual Non-manual Stress 21 30 60 66 Acute medical conditions (for example stroke, heart attack and cancer) 21 28 62 66 Mental ill health (for example clinical depression and anxiety) 16 14 50 51 Musculoskeletal injuries (for example neck strains and repetitive strain injury, but excluding back pain) 17 9 53 48 Back pain 9 5 50 39 Recurring medical conditions (for example asthma, angina and allergies) 4 5 29 30 Injuries/accidents not related to work 5 5 25 26 Minor illness (for example colds/flu, stomach upsets, headaches and migraines) 4 3 12 14 Pregnancy-related absence (not maternity leave) 1 0 7 12 Other absences not due to genuine ill health 1 1 7 10 Home/family responsibilities 1 1 9 9 Work-related injuries/accidents 2 0 21 5 Drink- or drug-related conditions 0 0 2 2 Base: manual: 366; non-manual: 399 Table 18: Top five most common causes of long-term absence for manual workers, by sector (%) All Manufacturing Private sector Non-profit organisations and production services Public services organisations 62 67 61 62 54 Stress 60 41 60 74 75 Musculoskeletal injuries (for example neck strains and repetitive strain injury, but excluding back pain) 53 51 42 75 54 Back pain 50 52 45 55 50 Mental ill health (for example clinical depression and anxiety) 50 38 51 58 56 Recurring medical conditions (for example asthma, angina and allergies) 29 33 30 26 23 Injuries/accidents not related to work 25 32 23 18 31 Work-related injuries/accidents 21 27 21 12 23 Minor illness (for example colds/ flu, stomach upsets, headaches and migraines) 12 12 9 17 17 Home/family responsibilities 9 7 13 4 8 Other absences not due to genuine ill health 7 4 8 7 13 Pregnancy-related absence (not maternity leave) 7 3 9 11 2 Drink- or drug-related conditions 2 2 2 1 6 Base: 366 ABSENCE MANAGEMENT 2012 Acute medical conditions (for example stroke, heart attack and cancer) 23 ABSENCE MANAGEMENT Table 19: Top five most common causes of long-term absence for non-manual workers, by sector (%) All Manufacturing Private sector Non-profit organisations and production services Public services organisations Stress 66 51 64 79 65 Acute medical conditions (for example stroke, heart attack and cancer) 66 67 66 69 58 Mental ill health (for example clinical depression and anxiety) 51 33 52 61 53 Musculoskeletal injuries (for example neck strains and repetitive strain injury, but excluding back pain) 48 46 38 70 43 Back pain 39 42 33 48 37 Recurring medical conditions (for example asthma, angina and allergies) 30 29 32 29 30 Injuries/accidents not related to work 26 30 23 20 37 Minor illness (for example colds/ flu, stomach upsets, headaches and migraines) 14 12 11 18 22 Pregnancy-related absence (not maternity leave) 12 13 14 9 12 Other absences not due to genuine ill health 10 4 8 8 22 Home/family responsibilities 9 12 10 5 8 Work-related injuries/accidents 5 9 4 5 7 Drink- or drug-related conditions 2 0 2 1 5 Base: 399 cipd.co.uk/absencemanagementsurvey 24 2012 WORK-RELATED STRESS Two-fifths of organisations report an increase in stress-related absence over the past year, rising to half of the public sector. The top causes of stress at work are workloads, management styles and relationships (both at and outside work). Three-fifths of organisations are taking steps to identify and reduce workplace stress. Two-fifths of respondents report that stress- taken into account. Larger organisations (public related absence has increased over the past and private) are more likely to report stress- year for all employees generally, while one-fifth related absence has increased for both employees report it has increased for senior management generally and for senior management.21 (Tables 20A and 20B). The real figures could be higher, particularly for senior managers, as some Causes of stress at work respondents report they do not know. Only a Identifying the main causes of stress is the first step minority of organisations report that stress- to addressing the issues. Respondents were asked related absence has decreased. to rank the top three causes of at-work stress. Workload is ranked the most common cause, as in Public sector organisations are most likely to previous years. This year, however, it appears to be report that stress-related absence has increased for even more of an issue (Table 21), with 57% ranking all employees generally.20 Sector differences for it in the top three causes of stress compared with senior management are not significant once the 48% in 2011 and 51% in 2010. The increase is different proportions of ‘don’t know’ responses are noted in all sectors except non-profits. Table 20A: Proportion of respondents reporting increases or decreases in stress-related absence for all employees generally over the past year (%) Increased Stayed the same Decreased Don't know 40 39 10 11 Manufacturing and production 32 49 11 7 Private sector services 38 42 8 12 Public services 52 24 11 13 Non-profit organisations 30 44 16 10 1–49 23 49 9 20 50–249 28 47 14 11 250–999 39 42 11 8 1,000–4,999 55 25 5 15 5,000+ 65 20 5 11 All employees generally Sector Base: 638 ABSENCE MANAGEMENT 2012 Workforce size 25 ABSENCE MANAGEMENT Table 20B: Proportion of respondents reporting increases or decreases in stress-related absence for senior management over the past year (%) Increased Stayed the same Decreased Don't know 18 56 6 20 Manufacturing and production 13 70 6 12 Private sector services 19 56 5 20 Public services 21 49 4 26 Non-profit organisations 17 53 12 18 1–49 14 57 9 20 50–249 12 64 8 17 250–999 14 68 6 12 1,000–4,999 25 37 4 34 5,000+ 39 28 2 31 Senior management (including the executive team or equivalent) Sector Workforce size Base: 638 Table 21: The causes of stress at work (top three causes, % of respondents) cipd.co.uk/absencemanagementsurvey 26 All Manufacturing Private sector Public Non-profit respondents and production services services organisations Workloads/volume of work 57 51 60 60 49 Management style 36 31 40 30 41 Non-work factors – relationships/family 32 44 31 27 29 Relationships at work 32 33 26 36 42 Considerable organisational change/ restructuring 31 20 23 50 28 Non-work factors – personal illness/health issues 18 20 20 17 15 Pressure to meet targets 18 20 23 14 8 Lack of employee support from line managers 14 10 16 12 16 Job insecurity 14 8 11 22 15 Poorly managed organisational change/ restructuring 13 9 9 18 15 Non-work factors – financial concerns 11 19 11 7 7 Long hours 10 12 13 4 11 Lack of control over how work is carried out 7 9 7 6 7 Lack of consultation 3 7 3 3 1 Lack of training 3 1 4 3 0 Poorly designed jobs/poorly designed roles 3 1 3 3 4 Other 2 0 2 3 5 Base: 624 2012 As last year, management style, non-work factors Nevertheless, over a quarter (27%) of organisations such as relationships and family, relationships at that report stress is one of the top five causes of work and considerable organisational change/ absence are not taking any steps to address it. restructuring are also frequently ranked among the Furthermore, there is no relationship between top causes (Table 21). whether organisations have noted an increase in stress-related absence and whether they are taking Non-work relationships and family is less frequently steps to identify and reduce stress, raising concerns reported to be a top cause of stress in the private that many organisations are failing to respond to services sector compared with previous years (2012: information about the causes of absence. 31%; 2011: 41%; 2010: 55%) although it remains a top cause of stress for 44% of manufacturing and Public sector employers are more likely to be production organisations. proactively managing stress (public: 71%; private: 51%)24 and more likely than the private sector to Considerable organisational change/restructuring report they have increased their focus on stress and job insecurity are more commonly ranked management for the workforce as a whole over among the top causes of stress in the public sector the last 12 months (public: 36%; private: 23%).25 than in the private. This is likely to reflect the Nevertheless, the proportion of public sector ongoing, widespread changes and budget cuts in this organisations that are taking steps to identify and sector. One-fifth of the public sector also reports that reduce stress fell considerably last year and remains poorly managed organisational change/restructuring at a similarly low level this year (2012: 71%; is a top cause of stress. This suggests that change 2011: 69%; 2010: 81%; 2009: 85%; 2008: 84%). and restructuring could be better managed in a The widespread public sector reforms and budget significant proportion of public sector organisations. cuts may have resulted in changed priorities and focus for some organisations in this sector. Managing stress Nevertheless, ensuring the well-being of employees In findings very similar to last year, three out of five is particularly paramount at times of significant respondents (58%) report that their organisations change if talent is to be retained and short- and are taking steps to identify and reduce stress in long-term productivity protected. the workplace. Just under a third (31%) are not Organisations use a range of methods to identify know if their organisations are taking specific and reduce stress in the workplace (Table 22). The steps or not. Just over a quarter (27%) report they most popular approaches include staff surveys, have increased their focus on stress management risk assessments/stress audits and flexible working over the past 12 months for the workforce as a options/improved work–life balance. As we’ve whole, while 18% report they have increased their found in previous years, the public sector is most focus for those in senior management positions. proactive in its efforts to manage stress and it is Only a very small minority (2%) report they have more likely than other sectors to use the majority of decreased their focus on stress. the methods we listed (see Table 22). Organisations that identify stress as one of the In previous years nearly two-thirds of organisations top five causes of long- or short-term absence are that attempt to identify and reduce stress have more likely to be taking steps to address it than used training for managers/staff to do so. This year organisations in which stress is less of an issue for we attempted to clarify the type of training, and absence (65% compared with 45%). They are the employees targeted, through the inclusion also twice as likely to have increased their focus on of more-specific options. Overall, a third report stress over the past 12 months. using stress management training for employees, 22 23 ABSENCE MANAGEMENT 2012 doing anything to reduce stress, while 10% don’t 27 ABSENCE MANAGEMENT Table 22: Methods used to identify and reduce stress in the workplace (% of employers) All Manufacturing Private sector respondents and production services Public services Non-profit organisations Staff surveys 70 57 62 84 73 Risk assessments/stress audits 65 56 56 81 63 Flexible working options/improved work–life balance 65 41 57 81 71 Employee assistance programme 53 46 53 54 54 Greater involvement of occupational health specialists 49 48 35 64 54 Written stress policy/guidance 48 31 42 62 47 Stress management training for employees, regardless of their level 32 20 23 47 31 Health and Safety Executive's stress management standards 30 19 19 47 34 Changes in work organisation 22 19 22 23 20 Focus groups 19 17 19 22 12 Training aimed at building personal resilience (such as coping techniques, cognitive behaviour therapy, positive psychology courses) for employees regardless of their level 18 7 14 26 20 Specific programmes to help those in senior management positions (including the executive team or equivalent) manage stress 17 17 13 21 20 Specific programmes to help those in senior management positions (including the executive team or equivalent) build resilience 7 11 4 9 7 Other 3 6 2 2 5 Base: 379 cipd.co.uk/absencemanagementsurvey 28 regardless of their level (although this is most Overall there is little change compared with popular in the public sector), while one in six previous years, although the non-profit sector use specific programmes to help those in senior reports greater involvement of occupational health positions manage stress. A quarter of the public specialists (2012: 54%; 2011: 38%; 2010: 37%). sector uses training aimed at building personal resilience (such as coping techniques, cognitive behaviour therapy, positive psychology courses) for employees regardless of their level, although this is less popular in the private sector. Only a few organisations report they use this sort of training specifically for senior managers (Table 22). 2012 MANAGING ABSENCE The most common methods used to manage short-term absence are return-to-work interviews, trigger mechanisms to review attendance, giving sickness absence information to line managers and disciplinary procedures for unacceptable absence. The most common methods used to manage long-term absence are return-to-work interviews, occupational health involvement, giving sickness absence information to line managers and risk assessments to aid return to work. Absence management policy The most common change is the introduction of a Almost all organisations surveyed (95%), regardless new or revised absence management policy (Table of sector, have a written absence/attendance 23). Introducing or revising monitoring procedures management policy. Half have introduced changes is the second most common change, although this to some aspect of their approach to absence is less common than last year in the private sector management in the last year, with public sector (2012: 35%; 2011: 51%), perhaps because some organisations somewhat more likely to have made organisations adjusted monitoring procedures to changes (56% compared with 45% of private and their satisfaction then. non-profit sector organisations).26 Table 23: Changes made to employee absence management in the last year (% of employers who have made changes) All respondents Manufacturing and Private sector production services Public services Non-profit organisations 51 47 47 54 63 Introduced or revised monitoring procedures 42 32 36 52 48 Reinforced existing employee absence policy 37 28 33 48 38 Absence rate has become a key performance indicator 23 30 21 23 25 Involved occupational health professionals 21 26 22 13 30 Introduced Bradford points or another trigger system 21 21 22 18 25 Introduced or revised attendance strategy 20 13 20 25 18 Introduced return-to-work interviews 19 13 26 10 23 Introduced or revised well-being benefits 17 4 18 20 23 3 9 1 5 3 11 6 12 13 13 Introduced an attendance incentive scheme Other (please specify) Base: 315 ABSENCE MANAGEMENT 2012 Introduced a new or revised absence management policy 29 ABSENCE MANAGEMENT Table 24: Organisations that have a target for reducing absence, by sector (%) Does your organisation have a target for reducing employee absence? Yes No Don't know All 44 51 5 Manufacturing and production 47 51 2 Private sector services 29 67 5 Public services 69 24 7 Non-profit sector 40 56 5 Base: 663 As last year, just over two-fifths of employers have and flexibility: providing leave for family a target in place for reducing employee absence. circumstances, flexible working, stress counselling, Public services organisations are more likely than health promotion, occupational health employers from other sectors, and private services involvement and, moreover, they are more likely less likely, to have an absence target (Table 24). to report that attendance is driven by the board. Larger organisations are also more likely to have a Last year we reported a drop in stress counselling target for reducing absence. in the public sector. This year the level is back up 27 28 to that of 2010 (2012: 70%; 2011: 60%; 2010: 72%) Managing short-term absence despite our findings above (Work-related stress) The most popular approaches used to manage that fewer public sector organisations are taking short-term absence have changed little over steps to identify and reduce stress. the past few years. Most commonly used by the majority of organisations are return-to- As we’ve found in previous years, private sector work interviews, trigger mechanisms to review employers are more likely to offer private attendance, giving sickness absence information medical insurance and attendance bonuses or to line managers and disciplinary procedures for incentives than the public sector. They are also unacceptable absence (Table 25). much more likely to restrict sick pay. The same sector differences were observed in approaches to Line managers take primary responsibility managing long-term absence (Table 27). for managing short-term absence in 70% of cipd.co.uk/absencemanagementsurvey 30 public sector. Three-fifths of employers report Most effective approaches for managing short-term absence that managers are trained in absence-handling Employers were asked to rank the top three most (81% of the public sector), although less than a effective approaches for managing short-term quarter of the private sector and just under half absence from the list in Table 25. The findings are of the public sector provide them with continued very similar to last year. Return-to-work interviews tailored support (for example online support, care and trigger mechanisms to review attendance conference with HR). are most commonly cited among the top three organisations overall, rising to 87% in the most effective methods by employers from all On the whole the public sector takes a more sectors, followed by disciplinary procedures proactive approach to managing short-term for unacceptable absence (particularly in the absence. They are more likely to use a range manufacturing and production sector) (Table 26). of methods aimed at promoting good health 2012 Giving sickness absence information to line particularly effective in the private sector, where it is managers and training managers in absence- most commonly used. handling are also commonly ranked among organisations’ most effective methods, the latter Methods to promote well-being, flexible working particularly in the public sector, where this is and aid return to work/rehabilitation are less most common. Restricting sick pay is seen to be commonly ranked among organisations’ most Table 25: Approaches used to manage short-term absence (% of respondents) All Manufacturing Private sector respondents and production services Public services Non-profit organisations 90 91 85 97 93 Trigger mechanisms to review attendance 84 86 78 93 78 Sickness absence information given to line managers 83 87 75 91 86 Disciplinary procedures for unacceptable absence 77 87 75 74 74 Line managers take primary responsibility for managing absence 70 56 64 87 70 Leave for family circumstances 69 57 63 82 76 Managers are trained in absence-handling 62 61 49 81 65 Occupational health involvement 56 61 41 75 58 Flexible working 53 29 47 71 60 Employee assistance programmes 50 45 49 53 51 Changes to working patterns or environment 50 37 40 68 59 Capability procedure 48 32 42 66 53 Absence rate is a key performance indicator 44 57 32 58 41 Stress counselling 43 31 31 70 44 Restricting sick pay 43 58 53 23 34 Health promotion 41 31 32 62 38 Well-being benefits 36 28 36 43 34 Tailored support for line managers (for example online support, care conference with HR) 30 24 21 48 26 Offering private medical insurance 26 32 42 6 11 Risk assessment to aid return to work after long-term absence 26 26 21 35 26 Employees’ absence records taken into account when considering promotion 21 25 21 21 16 Rehabilitation programme 18 28 11 28 10 Attendance record is a recruitment criterion 14 12 12 21 14 Nominated absence case manager/ management team 14 6 10 28 11 Attendance driven by board 14 8 10 28 8 Attendance bonuses or incentives 13 20 17 5 7 Base: 650 ABSENCE MANAGEMENT 2012 Return-to-work interviews 31 ABSENCE MANAGEMENT effective methods. Clearly these can play an interviews, occupational health involvement important role in avoiding and reducing absence but, and giving sickness absence information to line when it comes to short-term absence, organisations managers are the most commonly used approaches clearly attach most importance to reviewing and for managing long-term absence, followed by monitoring and disciplining where appropriate. risk assessments to aid return to work and trigger mechanisms to review attendance (Table 27). Managing long-term absence The methods used to manage long-term absence As might be expected, occupational health are very similar to last year. Return-to-work involvement, risk assessments to aid return to work, Table 26: Most effective approaches for managing short-term absence (% of respondents citing as one of top three most effective methods) All Manufacturing Private sector respondents and production services Non-profit organisations Return-to-work interviews 65 72 66 58 68 Trigger mechanisms to review attendance 58 60 53 66 59 Disciplinary procedures for unacceptable absence 27 44 26 24 15 Sickness absence information given to line managers 20 8 19 26 28 Managers are trained in absencehandling 20 17 17 28 17 Restricting sick pay 17 29 25 2 5 Line managers take primary responsibility for managing absence 16 9 15 21 20 Occupational health involvement cipd.co.uk/absencemanagementsurvey 13 13 9 20 12 Leave for family circumstances 6 5 5 3 11 Capability procedure 5 1 6 7 6 Flexible working 4 2 3 5 9 Absence rate is a key performance indicator 4 2 5 4 2 Attendance bonuses or incentives 4 9 4 1 0 Employee assistance programmes 3 2 4 2 4 Tailored support for line managers (for example online support, care conference with HR) 3 1 2 6 2 Changes to working patterns or environment 3 3 2 3 5 Nominated absence case manager/ management team 3 0 2 5 5 Stress counselling 2 1 2 1 1 Well-being benefits 2 2 1 1 2 Offering private medical insurance 2 3 2 1 0 Attendance driven by board 1 0 1 3 1 Rehabilitation programme 1 1 – 0 4 Employees’ absence records taken into account when considering promotion 1 0 2 0 0 Base: 579 32 Public services 2012 rehabilitation programmes and changes to working In line with findings on managing short-term patterns or environment are more commonly absence, the public sector are more likely than used for long-term absence than for short term, their private sector counterparts to use most as are capability procedures and flexible working. of the methods listed for managing long-term In contrast, disciplinary procedures and leave for absence. They are less likely, however, to restrict family circumstances are more commonly used to sick pay or offer private medical insurance than manage short-term absence. the private sector (Table 27). Table 27: Approaches used to manage long-term absence (% of respondents) All Manufacturing Private sector respondents and production services Public services Non-profit organisations 85 90 79 92 88 Occupational health involvement 80 80 69 93 85 Sickness absence information given to line managers 76 80 65 89 78 Risk assessment to aid return to work after long-term absence 75 79 68 83 73 Trigger mechanisms to review attendance 69 69 57 87 67 Changes to working patterns or environment 65 55 59 78 73 Flexible working 65 46 59 80 76 Capability procedure 60 53 51 74 68 Managers are trained in absence-handling 58 53 44 81 59 Disciplinary procedures for unacceptable absence 56 64 50 63 53 Line managers take primary responsibility for managing absence 53 34 44 74 58 Employee assistance programmes 50 46 49 55 51 Stress counselling 48 34 36 75 50 Restricting sick pay 44 51 50 34 39 Leave for family circumstances 43 33 37 52 53 Rehabilitation programme 42 59 35 50 26 Absence rate is a key performance indicator 41 50 27 58 40 Health promotion 39 32 29 61 38 Tailored support for line managers (for example online support, care conference with HR) 38 36 29 54 35 Well-being benefits 35 29 35 42 33 Offering private medical insurance 28 34 45 5 13 Nominated absence case manager/ management team 24 16 19 41 17 Employees’ absence records taken into account when considering promotion 18 22 14 22 16 Attendance driven by board 14 8 9 28 9 Attendance record is a recruitment criterion 12 9 7 20 14 9 17 9 5 7 Attendance bonuses or incentives Base: 632 ABSENCE MANAGEMENT 2012 Return-to-work interviews 33 ABSENCE MANAGEMENT Most effective approaches for managing longterm absence Despite the high prevalence of stress-related absence, The two most commonly used methods for of organisations use stress counselling to manage managing long-term absence – the involvement long-term absence, only 5% consider this is one of of occupational health professionals and return- their top three approaches for managing long-term to-work interviews – are also considered to be absence. Other approaches, including occupational among the most effective approaches (Table 28). health involvement, return-to-work interviews, Trigger mechanisms to review attendance are also trigger mechanisms and changes to working patterns commonly considered to be effective for managing or environment, may be seen to be more effective long-term, as well as short-term, absence. at combating stress and aiding appropriate return to reported above, and the findings in Table 27 that half work compared with counselling. Table 28: Most effective approaches for managing long-term absence (% of respondents citing as one of top three most effective methods) All Manufacturing Private sector organisations and production services Non-profit organisations cipd.co.uk/absencemanagementsurvey Occupational health involvement 56 63 46 66 63 Return-to-work interviews 24 31 24 19 23 Trigger mechanisms to review attendance 24 21 20 30 25 Changes to working patterns or environment 17 13 20 17 17 Capability procedure 17 19 16 17 20 Managers are trained in absence-handling 16 14 13 23 15 Rehabilitation programme 15 26 16 10 5 Restricting sick pay 13 16 18 6 7 Risk assessment to aid return to work after long-term absence 12 15 11 11 15 Line managers take primary responsibility for managing absence 11 4 9 16 12 Flexible working 11 7 12 7 17 Nominated absence case manager/ management team 9 5 8 15 7 Employee assistance programmes 9 7 11 7 9 Sickness absence information given to line managers 8 4 9 8 14 Tailored support for line managers (for example online support, care conference with HR) 8 6 7 13 7 Disciplinary procedures for unacceptable absence 8 12 5 12 7 Offering private medical insurance 6 6 11 0 1 Stress counselling 5 1 5 7 5 Well-being benefits 2 4 3 1 0 Absence rate is a key performance indicator 2 3 2 2 1 Attendance bonuses or incentives 2 2 2 1 1 Attendance driven by board 1 0 – 3 1 Base: 565 34 Public services 2012 THE IMPACT OF GOVERNMENT INITIATIVES ON ABSENCE MANAGEMENT The Statement of Fitness to Work use has increased compared with last year (2011: The Statement of Fitness to Work, or ‘fit note’, 54%). replaced the ‘sick note’ in April 2010. The new fit note allows GPs to categorise employees as ‘may be Two years after its introduction, most employers, fit for work’, as well as ‘unfit for work’, and its aim is regardless of sector or organisational size, remain to encourage more employees with health problems unconvinced regarding the impact of the fit note to agree with their employer a phased return to on absence levels. In very little change from last work (such as reduced hours or the use of varied year, just one in ten report it has helped to reduce duties) as part of their rehabilitation and recovery. absence levels, possibly because only one in ten The vast majority of organisations across all sectors believe it is being used effectively by GPs (Figure 2). (2012: 93%; 2011: 87%) have used the fit note in Nevertheless, half of employers report that the fit their organisations. Smaller organisations of fewer note prompts conversations about absence/health than 50 employees are least likely to have used the between staff and line managers and just under a fit note (68%), but even amongst this category its third that it helps line managers to manage absence. Figure 2: Perceived benefits of the fit note 10 The fit note has helped to reduce absence levels in my organisation. 74 16 10 The fit note is being used effectively by GPs. 75 15 29 60 12 Disagree 53 The fit note prompts conversations about absence/health between staff and line managers. Don’t know 38 8 0 Base: 616 Agree 20 40 60 Percentage 80 100 ABSENCE MANAGEMENT 2012 The fit note helps line managers to manage absence. 35 ABSENCE MANAGEMENT Impact of the abolition of the Default Retirement Age (DRA) on absence management The establishment of an Independent Assessment Service From April 2011 employers were no longer able to government-commissioned sickness absence review serve employees with a notice of retirement. Last (jointly chaired by David Frost and Dame Carol Black) year we asked employers whether they believe is for a new Independent Assessment Service that this would have an impact on their absence levels. employers and GPs can refer long-term sickness While the majority (76%) thought it would have absence cases to for bespoke advice. One of the recommendations from the 2011 no impact, a quarter (23%) expected it would result in higher absence levels, perhaps associating Two-fifths of organisations believe such a service an older workforce with increased health issues. would be beneficial in helping them manage long- This year, now that the act is under way, we asked term sickness absence more effectively. A quarter what impact has actually resulted. Only a very do not believe it will help while a further quarter small minority (4%) report that absence levels have are undecided and 9% report it is not applicable to increased as a result of the abolition of the DRA, them as they do not have an issue with long-term while 95% report that it has had no impact. absence. Smaller organisations are more likely to report it is not applicable as they have no long-term The abolition of the DRA has also had little impact absence issues. Once this factor is accounted for, in terms of increasing organisations’ focus on well- there are no significant sector or size differences in being. Only 9% report that they have increased their organisations’ responses. focus on well-being provision as a result of the Act (82% hadn’t, 9% didn’t know). A higher proportion (24%) have increased their use of flexible working practices as a result of the abolition. cipd.co.uk/absencemanagementsurvey 36 2012 EMPLOYEE WELL-BEING There has been a gradual increase over the past few years in the proportion of organisations with an employee well-being strategy in place. The most common benefits provided are access to counselling services and employee assistance programmes, but the benefits provided vary considerably across sectors. The proportion of organisations with an employee walking/pedometer initiatives. The private sector well-being strategy (or similar) has increased are more likely to provide insurance for employees, gradually over the last few years (2012: 55%; including healthcare cash plans, private medical 2011: 46%; 2010: 46%; 2009: 33%; 2008: 30%). insurance, long-term disability/permanent health The increase has been observed across all sectors, insurance/income protection, critical illness although the public sector is most likely to have a insurance, dental insurance, personal accident strategy in place (public sector: 73%; private sector: insurance and group income protection. 47%; non-profits: 50%). Larger organisations are 30 also more likely to have a strategy.31 Most benefits on offer are available to all employees, particularly in the public sector. There Well-being benefits are, however, a few notable exceptions in the Most organisations surveyed provide one or private sector. For example, 81% of manufacturing more well-being benefit to all employees, even and production organisations offer private medical if they don’t have a specific well-being strategy insurance to employees, but more than two- (Table 29). Access to counselling services (65%) thirds of these offer it only to certain employees and employee assistance programmes (56%) are depending on grade or seniority. Health screening, most common. Stop smoking support, subsidised critical illness insurance and long-term disability/ gym membership, health screening and advice on permanent health insurance/income protection healthy eating are also offered to all employees benefits are also dependent on grade or seniority by about a third of organisations. in nearly one-fifth of private sector organisations (Table 29). The benefits on offer, however, vary considerably across sectors. The public sector are more likely to promote well-being through benefits such as access advice on healthy eating, access to physiotherapy, subsidised gym membership, in-house gyms and ABSENCE MANAGEMENT 2012 to counselling services, stop smoking support, 37 ABSENCE MANAGEMENT Table 29: Employee well-being benefits provided by employers (% of respondents) All organisations Manufacturing and production Private sector services Public services Non-profit organisations Access to counselling service All employees 65 55 53 83 79 2 2 2 2 0 56 52 58 54 58 2 3 2 1 2 36 31 24 58 37 1 1 0 1 0 35 28 34 45 30 3 4 3 1 1 All employees 32 37 27 39 26 Depends on grade/seniority 11 17 14 3 7 31 26 24 47 26 0 0 0 0 0 28 44 27 17 37 3 0 5 2 0 28 37 22 38 19 0 0 0 0 0 26 24 17 44 19 2 2 2 1 0 All employees 25 24 41 5 12 Depends on grade/seniority 29 57 39 6 11 All employees 22 28 31 8 12 Depends on grade/seniority 11 18 16 2 2 16 9 10 34 11 0 0 1 0 0 All employees 16 19 26 4 6 Depends on grade/seniority 12 18 19 3 5 Depends on grade/seniority Employee assistance programme All employees Depends on grade/seniority Stop smoking support All employees Depends on grade/seniority Subsidised gym membership All employees Depends on grade/seniority Health screening Advice on healthy eating All employees Depends on grade/seniority Healthcare cash plans All employees Depends on grade/seniority Healthy canteen options All employees Depends on grade/seniority Access to physiotherapy All employees Depends on grade/seniority Private medical insurance cipd.co.uk/absencemanagementsurvey 38 Long-term disability/permanent health insurance/income protection Walking/pedometer initiatives All employees Depends on grade/seniority Critical illness insurance continued 2012 Table 29 (continued): Employee well-being benefits provided by employers (% of respondents) All organisations Manufacturing and production Private sector services Public services Non-profit organisations 16 20 22 4 14 5 8 7 3 0 15 17 14 14 16 1 3 1 1 0 13 5 10 24 11 1 2 1 0 0 13 16 23 1 4 5 5 8 1 1 12 10 10 13 16 0 1 0 0 0 12 13 16 4 14 1 2 2 0 0 All employees 8 10 14 2 4 Depends on grade/seniority 2 5 2 0 0 All employees 7 9 5 11 2 Depends on grade/seniority 0 0 0 0 0 Dental insurance All employees Depends on grade/seniority Self-funded health plans All employees Depends on grade/seniority In-house gym All employees Depends on grade/seniority Group income protection All employees Depends on grade/seniority On-site massages All employees Depends on grade/seniority Free fresh fruit All employees Depends on grade/seniority Personal accident insurance Personalised healthy living programmes for employees Base: 595 Predictions for 2013 are strongly related to well- Nearly half of organisations report that their being spend this year such that organisations that well-being spend has not changed compared have seen increases expect further increases and with the last financial year. Just under a fifth those that have seen decreases anticipate more of of organisations (18%) report it has increased the same (Table 30). and, while only a small proportion report it has decreased, over a quarter don’t know (Table 30). In little change from last year, less than a quarter of organisations evaluate the impact of their well- Small organisations with fewer than 50 employees being spend (23%). Half report they don’t (52%), are most likely to report an increase in well-being while a further quarter (24%) don’t know. spend (31% compared with 18% overall). Public 32 sector organisations are least likely to report increases in well-being spend.33 ABSENCE MANAGEMENT 2012 Well-being spend 39 ABSENCE MANAGEMENT Table 30: Changes to well-being spend this year and next (% of respondents) All organisations Manufacturing and production Private sector services Public services Non-profit organisations Compared with the last financial year, did your organisation’s well-being spend this year…? Increase 18 20 22 11 14 Decrease 8 59 44 39 58 In 2013, do you predict that your organisation’s wellbeing spend will…? Stay the same 47 3 8 12 7 Don't know 27 19 25 38 21 Increase 20 33 23 11 12 Decrease 7 45 51 39 68 Stay the same 49 5 5 17 1 Don't know 24 17 22 34 19 Base: 641 Organisations that evaluate their well-being spend generally conclude that investing in well-being are significantly more likely to have increased is worthwhile. Further evidence to support this their spend this year (44% compared with 16%). comes from our findings that organisations with They are also more likely to predict it will increase a well-being strategy are more likely to report in 2013 (35% compared with 22%). This confirms absence has reduced over the past year (47%) our findings from previous years and appears compared with those who don’t have a well-being to imply that evaluations of well-being spend strategy (35%).37 35 36 cipd.co.uk/absencemanagementsurvey 40 2012 Case study: Engaging staff with employee well-being at the Police Service of Northern Ireland The Police Service is one of Northern Ireland’s largest employers, with 7,156 police officers and 2,512 police staff. PSNI Deputy Chief Constable Judith Gillespie, PSNI’s Well-being Champion, outlines: ‘The Chief Constable’s vision of personal, professional and protective policing needs to be reflected in how we lead and manage our officers and staff. Employee well-being and engagement must not only be a priority in supporting this vision but are essential components of the quality of the service we deliver. By investing in health and well-being we are investing in the creation of the finest personal, professional and protective police service in the world – delivered by officers and staff who are fully engaged with our values and also happy, healthy and here.’ A strategic well-being group was established in 2007 to lead on a programme of work focused on embedding a culture of well-being into the organisation and truly engaging staff with it. The primary objectives of this project were to: • reduce levels of sickness absence and organisational stress • increase staff engagement and well-being • enable individuals to better manage their personal well-being needs. Top-level sponsorship of the project One of the key success factors for PSNI was having commitment at the highest level to eliminate barriers to change. In 2007 the deputy chief constable established a strategic wellbeing working group with strategic leads from HR, well-being, health and safety, learning and development, people development, diversity, media and PR and representation from the Police Federation of Northern Ireland and police staff unions. The group is highly committed and makes sure that all officers and staff have a voice at strategic level. The group’s role is to: • • • • provide strategic direction by establishing objectives and timescales create a well-being brand covering all aspects of CIPD-identified well-being domains develop the well-being hub (a website to host all well-being information) plan a programme of PSNI-wide well-being initiatives and activities through the introduction of local well-being teams • review project effectiveness. Developing effective partnerships internally and externally The local well-being teams are encouraged to develop a good understanding of the needs of employees in their locality to then be able to identify gaps within current support services. For example, do employees have to: commute long distances; work unsociable hours; deal with conflict or emotionally intense work? Are employees typically on their feet most of the day, sitting at a desk, mobile and in the field, or a combination of the above? Local teams are given access to the absence statistics for their area as well as staff survey results to help them to identify key health-related indicators to target (for example musculoskeletal conditions, heart disease, stress/depression, cancers). Partnerships have been established with a number of external organisations. Representatives from the University of Ulster provide expertise at different stages of the project through their ABSENCE MANAGEMENT 2012 Local teams have been established, led by district/departmental commanders/heads, their HR team and local occupational health staff. Each local team consists of volunteers from throughout the area, both police officers and staff, who are supported by the strategic group to organise and run events which are tailored to the specific needs of their locality. As well as planning their own activity for their area, they share plans across PSNI, working together on common areas to increase impact and efficiency. 41 ABSENCE MANAGEMENT formal research and also assist with conducting research and analysing information for local teams. They were responsible for developing a well-being toolkit and a well-being hub as part of the overall programme of work. The well-being hub is the central communication channel and backbone to the well-being strategy. It is an interactive online tool providing health and well-being information to employees. For example, there is a section about common illness and health complaints, directing employees to useful resources. There is also a finance health check and links to other information to encourage people to manage their own health and well-being. Individual wellbeing teams have a dedicated section of the well-being hub, where they can advertise activities and events they are running. They can download photographs onto this section of the site as well, making it an effective PR tool. Employees can access the well-being hub by logging onto a computer at work or at home. The project team has also formed links with Business in the Community’s well-being area and has established the PSNI Cancer Support Association from working closely with ‘critical friends’ in Macmillan Cancer Support (NI) and the Northern Ireland Cancer Network (NICaN). The well-being programme itself The first steps of the programme included identifying key health and well-being issues that needed to be addressed. A well-being survey was issued to all employees and the findings used to inform and prioritise initiatives in the programme. The well-being group consulted government policy on well-being, including Dame Carol Black’s report and the HSE Standards in Work-related Stress to devise policy and guide planned activity. In addition, the PSNI media and PR team developed a media plan to encourage employee participation in initiatives and to communicate the programme of work both internally and externally. The programme of work is extensive; here are just a few examples of the initiatives under way at PSNI. Health patrol lifestyle and active The in-house nursing team and physical training instructors deliver lifestyle guidance to individuals at the request of their department manager. For example, they measure body mass, cholesterol and blood pressure and then provide some lifestyle guidance about what an individual can do to improve their health. In addition, staff are able to have a one-to-one with a physical training instructor who can put together a 12-week training programme, specific to their needs. Half-way through the 12-week programme, the instructor provides feedback and further motivation if needed. At the end of the 12 weeks, the progress is evaluated and health and fitness measurements compared against those taken at the start of the 12 weeks. cipd.co.uk/absencemanagementsurvey 42 Cycle-to-work scheme This scheme has been very successful, with uptake being markedly greater than predicted. Since the scheme was launched in 2009, more than 2,300 bicycles have been issued. This government initiative means employers can supply bikes to employees completely tax free. The employee registers for the scheme, signs a contract, and selects a bike through the approved supplier. The bike is supplied VAT free, and is paid for in 12 monthly deductions from gross salary. Therefore the employee does not pay tax or National Insurance on the amount deducted. This means that a bike retailing at £1,000 would cost the employee around £550 (for a basic rate taxpayer), payable over 12 months. The IT and supporting systems for the scheme were developed inhouse at no extra cost to the organisation. 2012 Line management training The project encourages cultural change by enabling and empowering line managers to manage their own well-being and that of their team. Line managers were given time, support and training to eliminate barriers, such as in taking on new responsibilities. The project delivered face-to-face training to 1,200 line managers over 18 months, ensuring they were able to: • directly refer members of their team to occupational health professionals, rather than going through HR • provide appropriate support for people to be able to stay in work if they have health issues, such as through making adjustments to the work environment or job role. Training focuses on the purpose of, and the core services provided by, occupational health, to ensure line managers have a good working knowledge of what the occupational health team does. They also need to understand their role in the process as a line manager, and the key pieces of information they need to collate at the referral stage about the employee, the role and the work environment. It is also important for managers to understand the organisation’s attendance management policies and the levels of personal responsibilty required by all parties in the management of attendance. The training programme examines how management style, team culture, communication and building a level of trust impacts on absence and return to work. Line managers are encouraged to have good-quality conversations with employees as soon as they notice early warning signs of issues, before they become a real problem. Identifying potential issues at an early stage is preferable to waiting for something to become a problem and then having a lengthy referral process via HR. Line managers are trained on how to have these difficult and often sensitive conversations. It is therefore important to ensure that line managers understand what they can and can’t do in managing absence and promoting well-being. This training has been carried out internally by the occupational health team in partnership with district trainers. Critical incident stress management It is essential that provision is in place for employees who experience psychological trauma as a result of dealing with critical incidents, for example cases involving multiple loss of life or a threat to their own life. An extra support network of peer support officers has been put in place, in addition to the services provided by occupational health. These peer support officers are police officers and police staff members who are trained to hold group debriefs with the people who have been involved with such critical incidents. Having this network gives individuals the opportunity to speak to other people who were involved in the incident and to have a chat about ‘how you are feeling’, rather than medicalising issues that don’t have to be medicalised. Research has demonstrated the benefits of the peer support route before an occupational health intervention and this approach means people can still go to occupational health if they need to. If people have an accident or onset of a musculoskeletal condition which leads to difficulty functioning in the workplace, they can have rapid access to a course of physiotherapy. There is often a few weeks’ wait for physiotherapy treatment through the primary care route, but through this scheme employees can make an appointment within three days of applying. Research into the cost-benefits of this approach has demonstrated a 7:1 return on investment. ABSENCE MANAGEMENT 2012 Physiotherapy provision 43 ABSENCE MANAGEMENT Evaluating the impact of the well-being programme Evaluation of impact is considered a priority area at PSNI. The well-being group has worked with the Northern Ireland Policing Board to include well-being as a key performance indicator in the annual policing plans, against which success can be measured. In addition, a number of other indicators have been identified to evaluate the impact of the project, including sickness absence figures, employee surveys (including a cultural audit and the Health and Safety Executive’s stress audit), programme and event take-up rates and exercise participation levels. Since 2009, more than 17 multifaceted well-being initiatives have been introduced at strategic, management and individual level throughout PSNI, resulting in the reduction in sickness absence in the 2009–10 financial year to the lowest levels of any Northern Ireland public sector organisation. The data collected is mainly quantitative, such as from employee surveys and the calculation of take-up rates of specific initiatives. However, qualitative information is also used, such as in the form of nurses’ and the OH team’s anecdotal evidence gathered out in the field. Data collection has focused on: • The scale of initiatives: 27 bespoke well-being seminars have been delivered, 1,316 health patrol lifestyle assessments, almost 800 circuit, weight management and back care classes, 3 ‘Action Cancer’ big bus visits, 1,200 first line managers trained to manage their own wellbeing and that of their team. • Take-up of initiatives: there have been 12,771 user hits to date on the well-being hub. More than 2,000 bicycles have been issued as part of the cycle-to-work scheme and 95% of available health patrol lifestyle appointments are being used. • The effectiveness of initiatives: 90% of those who used rapid access physiotherapy found it effective, with a cost–benefit analysis revealing a £7 return for every £1 spent on providing this service. Seventy-six per cent of those absent from work who used the employee support facilities found it effective in helping them get back to work and, similarly, 80% of those who used phased return-to-work provisions found the process helpful in returning to work from absence. In the employee survey, 81% of respondents said they found the domestic leave policy effective and 61% said they found the maternity/paternity policy effective. cipd.co.uk/absencemanagementsurvey 44 Evaluating the impact of initiatives has helped to identify further action needed as well as make the case for expansion in some areas. For example, the success of the existing Cancer Support Association has prompted development of the project to include training a peer support network of ‘cancer support volunteers’. Cancer support volunteers are individuals who themselves have had a diagnosis of cancer and are now in recovery and will provide practical and emotional support to people who have had a cancer diagnosis. They will also raise awareness of the activities of the Cancer Support Association and other external services as appropriate. An induction and training is being developed for the cancer support volunteers which will include cancer support workshops provided by Macmillan Cancer Support. Cancer support volunteers will receive ongoing support from the group’s lead volunteer and participate in peer volunteer support sessions. In addition, the Health Patrol Specialist Unit programme is being implemented. Previously restricted to the Tactical Support Group, it is now being extended to other specialist units. The overarching aim is to adopt a multi-disciplinary approach to maintain the well-being of specialist unit officers and staff by monitoring the job-related medical, musculoskeletal, psychological and physical competence risk factors associated with the posts and, where necessary, introduce support programmes for those with health-related issues. It will also contribute to placing the right person, from a health and physical competence perspective, in the right post. 2012 Future plans Carol Mounce, PSNI’s Occupational Health and Well-being Manager, outlines that, ‘this programme has received such positive feedback both internally and externally. The impact of the programme is far-reaching with well-being embedded in PSNI. We must maintain the momentum and develop new initiatives as appropriate. We strive to introduce mandatory fitness tests for all officers in PSNI – these are already in place for police officers entering the force, but PSNI would like to roll these out across the whole organisation. In a time where budgets are being reduced and restricted, one of our most important challenges is being innovative about how we secure and use funds for this programme. We must encourage wellbeing teams to be creative in their approach and help them to see that much can be achieved with limited funds.’ ABSENCE MANAGEMENT 2012 45 ABSENCE MANAGEMENT EMPLOYEE ABSENCE AND THE ECONOMIC CLIMATE The threat of redundancies hangs over a significant proportion of organisations. Nearly a third of employers have noticed an increase in the number of people coming to work ill in the last 12 months and 44% report an increase in mental health problems, such as anxiety and depression, among employees. Redundancies and absence employees who struggle into work when unwell. Two-fifths (40%) of public sector organisations Nearly a third of employers report an increase in the and at least a fifth of private and non-profit number of people coming to work ill in the last 12 organisations report they will be making months, a slight increase on previous years (2012: redundancies over the next six months (private 30%; 2011: 28%; 2010: 23%). Organisations that are services: 23%; manufacturing and production: expecting redundancies in the coming six months 20%; non-profits: 20%).38 Larger private sector are more likely to report an increase (35% compared organisations are more likely to anticipate with 26% of those who are not expecting to make redundancies than smaller ones, although size has further redundancies), are less likely to report they less effect on expected redundancies in the public have not noticed an increase (55% compared with and non-profit sectors.39 69%) and are also less certain (11% report they don’t know if there has been an increase compared The uncertainty of the economic climate is also with 5% of those not making redundancies).41 apparent in the additional high proportions cipd.co.uk/absencemanagementsurvey 46 reporting they will possibly be making redundancies Such ‘presenteeism’ can have a damaging effect (public sector: 36%; private services: 36%; on organisations’ productivity, not only if illness is manufacturing and production: 22%; non-profits: transmitted to other colleagues, but also because 45%). Overall, just a third of the organisations ill employees are likely to work less effectively than surveyed report they won’t be making any usual, may be more prone to costly mistakes and redundancies, while 8% report they don’t know. take longer to recover from their illness. Nearly half of organisations (47%) report they use Presenteeism is also a sign of anxiety. Failure by employee absence records as part of their criteria organisations to address employees’ concerns is for selecting for redundancy (2011: 43%). As in likely to impact on morale and commitment and previous years, this is most common in the private may lead to stress or mental health problems, with sector, particularly manufacturing and production costly longer-term consequences. As in previous organisations (70%; private services: 51%; public years we found that, regardless of whether or not sector: 35%; non-profits: 33%). they are anticipating redundancies, organisations 40 who have noted an increase in presenteeism Presenteeism over the past year are more likely to report an The threat of redundancies and concerns over job increase in stress-related absence over the same security can lead to an increase in the proportion of period (52% compared with 38% of those who 2012 did not report an increase in people coming to As with the findings on presenteeism reported work ill). Similarly, they are more likely to report above, organisations that are planning to make an increase in mental health problems, such as redundancies in the next six months are more likely anxiety and depression (62% compared with 35% to report an increase in mental health problems of those who did not report an increase in people (55% compared with 48% who are possibly coming to work ill). These associations cannot planning redundancies and 37% who are not confirm causation; however, they are in line with planning redundancies).46 42 43 other research findings that link presenteeism to mental health problems and underline the need Focus on employee well-being for organisations to take pre-emptive action to Less than a third of organisations (30%) report they address employees’ concerns in times of challenge, have increased their focus on employee well-being uncertainty and change. and health promotion as a result of the economic context. This is a slight increase since 2010 This year we asked a new question to find out if (2011: 29%; 2010: 22%), mainly due to a higher organisations are taking steps to discourage people proportion of public sector organisations reporting from coming to work ill. Two-fifths report they that they have increased their focus on well-being. are, with no significant sector or size differences. Nearly two-fifths of the public sector (38%) are Employers who have noticed an increase in focusing more on well-being compared with a third presenteeism in the last 12 months are particularly of the non-profit sector (33%) and about a quarter likely to be taking steps (63% compared with 36% of the private sector (26%).47 who haven’t noticed an increase). This suggests 44 Whether or not organisations are planning issue with presenteeism are attempting to address it. redundancies does not bear any relationship to Of more concern is the third of employers who have their focus on well-being, despite the stress and noticed an increase in people coming to work ill but anxiety redundancies can cause, including for those are not taking any steps to discourage it. who are retained. Mental health More positively, we found that organisations Over the last few years our survey has revealed who have noticed an increase in people coming an increase in reported mental health problems, to work ill are more likely to have increased their such as anxiety and depression, among employees focus on employee well-being (37% compared (2012: 44%; 2011: 39%; 2010: 38%; 2009: 21%). with 26% of those who have not noticed an The issue appears to be related to organisation increase in people coming to work ill).48 Similarly, size (but not sector once size differences are those that have noticed an increase in mental accounted for), with larger organisations most health problems are also more likely to report they likely to report an increase in reported mental have increased their focus on well-being (41% health problems (61% of organisations with compared with 22% of those with no increase).49 5,000+ employees report an increase compared An increased focus on well-being is not, however, with 47% of those with 250–999 employees and related to increases in employee absence or stress- 22% of those with fewer than 50 employees). related absence. 45 ABSENCE MANAGEMENT 2012 that most organisations who are aware they have an 47 ABSENCE MANAGEMENT CONCLUSIONS On the face of it, the findings from this year’s The ongoing turmoil in the eurozone is putting survey present some positive news. While there further pressure on global growth and investment. is considerable variation across organisations, This, together with the recent reductions in growth overall absence rates have fallen by an average forecasts for the UK economy, means that the harsh of one day per employee per year; two-fifths of reality is that organisations are unlikely to escape organisations report their absence levels have soon from this tough period of ‘belt tightening’. decreased compared with the previous year. In fact, Organisations need to ensure that employees are in the public sector the 2012 absence figure is at its not facing unsustainable levels of strain which could lowest level for the past ten years of the survey. increase both absenteeism and presenteeism. Yet, the extent to which this reduction in More employers this year report an increase in absence is advantageous is not clear-cut. There stress-related absence and reported mental health is some indication of a slight decline in the problems. As in previous years, the volume of work proportion of employers ranking non-genuine that employees face is the most common cause of absences among their top causes of short-term stress, and appears to be even more of an issue this absence. At the same time, however, nearly a year. And similar to last year, the survey found an third of organisations (an increase on previous association between presenteeism and both stress- years) report an increase in ‘presenteeism’ – related absence and mental health issues. Employers people coming to work ill. The presence of ill taking pre-emptive action to address employees’ people at work can be more detrimental to the concerns is essential for employee well-being. business than their absence, not only if illness is transmitted to other colleagues, but also because What are organisations doing? ill employees are likely to work less effectively Monitoring and understanding the causes of than usual, may be more prone to costly mistakes absence are clearly the first steps to addressing and take longer to recover from their illness. If issues. Most organisations surveyed record their absence is simply replaced with ‘presenteeism’, annual employee absence rate, although a absence rates will improve but not productivity. quarter of private services organisations do not cipd.co.uk/absencemanagementsurvey do this (regardless of their size). Just under half of ‘Presenteeism’ is associated with challenging organisations have a target in place for reducing economic circumstances and anxiety. Employees employee absence and most collect information on struggle to work while ill to demonstrate the causes of employee absence. their commitment, particularly when their job security is threatened. For the last three years Almost all employers have a written absence/ organisations have been ‘tightening their belts’, attendance management policy and half have restricting spending, reducing recruitment introduced changes to some aspect of their approach and making redundancies. Organisations have in the last year, suggesting that they are proactive been ‘doing more with less’ while undergoing in attempting to improve their absence approach. significant changes and it appears to be taking a There has also been a gradual increase over the past toll on employees. few years in the proportion of organisations with an employee well-being strategy. More than half of organisations now have one in place. 48 2012 steps to identify and reduce stress in the Evaluate the benefits of existing and potential measures workplace. Nevertheless, more than a quarter of In times of limited resources, it is essential to organisations that report stress is one of the top understand the causes of absence and target five causes of absence are not taking any steps initiatives appropriately. Organisations need to to address it. Results are also mixed with regards ensure that investments in measures to reduce to presenteeism. Nearly two-thirds of those who absence and promote employee well-being are have identified an increase in people coming having the desired effect. For example, do you to work ill are taking steps to discourage this. examine the impact of your well-being spend? Three-fifths of organisations are taking Conversely, more than one-third of those with an identified presenteeism issue are not attempting to address it. Establish a culture where the well-being and contributions of employees are valued The current economic climate has placed many Less than half of employers monitor the cost of organisations and their employees under absence, although the public sector and larger considerable stress. Many have experienced organisations are most likely to do so. Furthermore, several rounds of redundancies, the loss of less than a quarter of respondents report their colleagues, increased workloads, stress and organisations evaluate the impact of their well- uncertainty, along with a reduction in benefits being spend. and real pay increases. Organisations need to review workloads regularly, manage and monitor What more can be achieved? all absences consistently, consider developing As in previous years, most organisations believe a stress management policy and engage the they can reduce absence levels. So how can this workforce in developing and celebrating a be achieved? culture of well-being. Evaluate the costs of absence Promote flexible working opportunities In the current economic climate organisations A third of organisations report that home/family may be reluctant to invest in new measures to responsibilities are in the top five most common address absence, which is why it is particularly causes of absence. Demographic changes to the paramount that organisations understand the population mean that an increasing proportion costs of absence in order to evaluate the potential of the workforce have responsibilities as carers savings they might achieve. The costs of absence and organisations will need to address their go beyond the monetary value of replacing an needs through appropriate, and flexible, working absentee or the reduction in business sales and arrangements. ‘Illegitimate absence’ and stress can services or efficiency that result. Absence can have also be reduced through serious commitment to a significant impact on the morale, workloads and flexible working. have a malignant effect on other employees who Train and support line managers see themselves as rewarded no better for their hard Line managers take primary responsibility for work. If absence is not managed appropriately, managing absence in the majority of organisations. cultures can develop where absence is seen as part Not all organisations, however, train managers of an employee’s entitlement. in absence-handling and fewer provide them with tailored support. This clearly needs to be addressed if absence is to be managed effectively ABSENCE MANAGEMENT 2012 stress levels of colleagues. Moreover, absence can 49 ABSENCE MANAGEMENT and consistently across the organisation and And finally, as the survey results suggest, employers ‘presenteeism’ discouraged. Providing adequate need to be mindful about apparent changes in training and ongoing support also sends a clear absence figures, looking deeper at the causes of message regarding the significance of absence to such changes before conclusions are drawn. For the organisation. example, if absence levels have decreased, a more in-depth analysis of figures is needed to ascertain Overall, there is more that can be done to reduce whether this is due to a better organisational absence and promote well-being across the board. approach rather than reflecting the negative The prevailing uncertain economic context makes effects of presenteeism. it even more important that employers regularly review their approach to absence management, and tailor well-being offerings to employee needs. A clear and consistent approach is essential, which both supports employees with health problems to stay in or return to work and takes action against those who try to take advantage of their organisation’s sick pay scheme. cipd.co.uk/absencemanagementsurvey 50 2012 BACKGROUND TO THE SURVEY This is the thirteenth annual CIPD Absence Management survey. It explores absence management trends, policy and practice. The survey was conducted in June 2012 and we received 667 valid responses to an online survey questionnaire. The survey consists of 44 questions completed through an online self-completion questionnaire. Table A1: Distribution of responses, by region The majority of questions remain the same as in Number of respondents % 2012 % 2011 % 2010 previous years, to provide useful benchmarking data East Anglia 26 4 3 4 on topics including absence levels, causes and costs East Midlands 30 5 4 6 as well as how organisations attempt to manage West Midlands 34 5 5 7 absence and promote health and well-being at work. North-east of England 20 3 3 4 North-west of England 52 8 9 7 South-west of England 56 8 9 7 Yorkshire and Humberside 36 5 6 5 Sample profile South-east of England (excluding London) 77 12 12 13 As in previous years, most respondents (82%) London 75 11 11 10 Scotland 59 9 7 7 Wales 23 3 3 3 Northern Ireland 2 0 3 4 Ireland 1 0 1 0 172 26 24 26 We also continue to explore the influence of external factors on absence rates and policy, including the impact of the economic climate and the effect of government initiatives, such as the fit note and the abolition of the Default Retirement Age. Following last year’s findings that stress is on the increase, we also explore this topic in further detail this year. answered the questions in relation to their whole company/organisation, while 12% answered in relation to a single site and 5% in relation to a single division. Respondents come from across the UK, in a similar spread to last year. A quarter responded in relation Whole of UK Base: 663 (2012); 582 (2011); 564 (2010) to employees across the UK, while others replied Table A1). Table A2: Number of UK employees in respondents’ organisations (% of respondents reporting for whole organisation) Two-fifths of respondents work in small to medium2012 sized organisations, in terms of the number of UKbased employees, but larger organisations are also Fewer than 50 represented (Table A2). Fewer respondents come 2011 2010 6 12 6 50–249 34 30 28 from very small organisations (fewer than 250–999 31 28 35 50 employees) compared with last year, while there 1,000–4,999 19 18 16 is a slight increase in the proportion working for More than 5,000 10 11 15 organisations with 50–250 employees. Base: 592 (2012); 579 (2011); 429 (2010) ABSENCE MANAGEMENT 2012 in relation to employees in specific UK regions (see 51 ABSENCE MANAGEMENT Figure A1: Size of organisation, by sector 1 Manufacturing and production 9 5,000+ 22 Private sector services 1 Public services 10 16 No. of UK employees 1,000−4,999 Non-profit organisations 30 13 41 26 250−999 32 36 45 41 50−249 11 43 3 7 1−49 5 7 0 10 20 Base: 653 Percentage 30 40 50 The sector spread of respondents is similar to median is used in cases where the distribution is previous years. Two-fifths work for private services significantly skewed and the 5% trimmed mean organisations and more than a quarter in the public where there are some extreme outliers. The 5% sector. A smaller proportion work in manufacturing trimmed mean is the arithmetic mean calculated and production and voluntary, community and not- when the largest 5% and the smallest 5% of the for-profit organisations (referred to in the report as cases have been eliminated. Eliminating extreme ‘non-profit organisations’) (Table A3). Public sector cases from the computation of the mean results in a organisations are more likely to be larger in size than better estimate of central tendency when extreme those in the private or non-profit sectors (Figure A1). outliers exist. When the median or 5% trimmed mean is used, it is noted. cipd.co.uk/absencemanagementsurvey 52 Note on abbreviations, statistics and figures used With the exception of average working time and Voluntary, community and not-for-profit days lost, all figures in tables have been rounded organisations are referred to throughout the report to the nearest percentage point. Due to rounding, as ‘non-profits’ or ‘non-profit organisations’. percentages may not always total 100. ‘The private sector’ is used to describe organisations Different statistical tests have been used, from manufacturing and production and private depending on the type of analysis and the sector services. These two groups are combined measures used in the questionnaire, to examine where there are no significant differences between whether differences between groups are their responses. significantly different than could be expected by chance and to examine associations between Some respondents did not answer all questions, so measures. Non-parametric tests are used where where percentages are reported in tables or figures, the data did not meet the requirements of the respondent ‘base’ for that question is given. parametric equivalents. Tests used include ChiSquare, Spearman’s rho, Tau-b, Wilcoxon Signed ‘Average’ in the report is used to refer to the Rank test and Kruskal-Wallis H. We report on arithmetic mean and the standard deviation from statistics at the generally accepted level of the mean is reported where appropriate. The significance, p<0.05. 2012 Table A3: Distribution of responses, by sector Manufacturing and production Agriculture and forestry Number of responses % 109 16 1 0 15 2 Construction 9 1 Electricity, gas and water 3 0 Engineering, electronics and metals 27 4 Food, drink and tobacco 17 3 General manufacturing 9 1 Mining and quarrying 1 0 Paper and printing 4 1 Textiles 4 1 19 3 289 43 Professional services (accountancy, advertising, consultancy, legal, etc) 50 7 Finance, insurance and real estate 41 6 Hotels, catering and leisure 10 1 IT services 20 3 Call centres 9 1 Media (broadcasting and publishing, etc) 7 1 Retail and wholesale 29 4 Transport, distribution and storage 27 4 Communications 10 1 Other private services 86 13 Chemicals, oils and pharmaceuticals Other manufacturing/production Private sector services Public services 27 14 2 Education 35 5 Health 36 5 Local government 56 8 Other public services 39 6 Voluntary, community and not-for-profit (‘non-profit organisations’) 89 13 Care services 17 3 Charity services 21 3 Housing association 27 4 Other voluntary 24 4 Base: 667 ABSENCE MANAGEMENT 2012 180 Central government 53 ABSENCE MANAGEMENT FURTHER SOURCES OF INFORMATION Visit cipd.co.uk/2012absencemanagementsurvey CIPD, Investors in People and the Health and to access related products and services and to view Safety Executive on research into management previous Absence Management survey reports. competencies for preventing and reducing stress at work. Case studies are included of organisations that Absence measurement and management have implemented the findings from previous stages Read our factsheet, which provides guidance on of the research. absence policies, measuring absence levels and cipd.co.uk/atozresources managing short- and long-term absence. cipd.co.uk/atozresources Mental health A guide, Managing and Supporting Mental Health Acas have published an advisory booklet on how at Work: Disclosure tools for managers, produced by to manage attendance and employee turnover. the CIPD and Mind, contains information, practical Available at: www.acas.org.uk/ advice and templates to help managers facilitate conversations about stress and mental health Download the guidance produced jointly by the problems, and put in place support so employees can National Institute for Health and Clinical Excellence stay well and in work. (NICE) and the CIPD, which offers advice to cipd.co.uk/atozresources employers: Managing Long-term Sickness Absence and Incapacity for Work. Health and safety cipd.co.uk/atozresources The CIPD factsheet Health and Well-being at Work gives introductory guidance on employers’ duties to Well-being provide a safe and healthy working environment. It Read our change agenda What’s Happening with introduces the law on health and safety at work and Well-being at Work? which provides case study outlines employers’ obligations. examples of how employers are introducing cipd.co.uk/atozresources the concepts of employee well-being into their cipd.co.uk/absencemanagementsurvey 54 organisations and identifies the impact of well-being Occupational health on individuals and organisations. Take a look at our factsheet Occupational Health. cipd.co.uk/atozresources cipd.co.uk/atozresources Stress The CIPD factsheet Stress and Mental Health at Work provides advice on identifying the key indicators of employees’ stress and outlines steps that people To stay up to date with the latest thinking management specialists can take to manage from the CIPD, visit cipd.co.uk/research organisational stress. Sign up to receive our weekly e-newsletter cipd.co.uk/atozresources and get the latest news and updates on Read our research insight Preventing Stress: Promoting positive manager behaviour. This report is the result of collaboration between the CIPD research straight into your inbox. Sign up by visiting cipd.co.uk/cipdupdate 2012 ACKNOWLEDGEMENTS The CIPD is very grateful to those organisations and We hope that you find the research useful when individuals who gave their time to take part in this considering your own absence management practices. research. They include: Please contact us if you have any questions or ideas • Annette Sinclair, Research Consultant, for based on our findings [email protected] analysing the findings and writing this comprehensive report • all those who shared examples of their organisation’s practices • Simplyhealth for their support and commitment at every stage of the research. ABSENCE MANAGEMENT 2012 55 ABSENCE MANAGEMENT ENDNOTES 1 Chi Square=35.7, df=3, p<0.001, n=650. 17 Rho=0.51, p<0.001, n=560. 2 Ten organisations (across private, public and 18 Full pay: Kruskal-Wallis H=60.3, df=3, p<0.001, the non-profit sectors) report that 10% or more n=563; Reduced pay; Kruskal-Wallis H=168.4, of working time is lost to absence. One public 3 df=3, p<0.001, n=563. sector educational organisation reported an 19 absence rate of 43%. 20 Chi Square=31.6, df=9, p<0.001, n=651. 21 All employees: Rho=–0.28, p<0.001, n=566; The 5% trimmed mean is the arithmetic mean calculated when the largest 5% and the 4 senior management: Rho=–0.23, p<0.001, n=493. smallest 5% of the cases have been eliminated. 22 Chi Square=16.1, df=2, p<0.001, n=584. Eliminating extreme cases from the computation 23 Of those who identify stress as one of the top of the mean results in a better estimate of five causes of absence, 32% have increased their central tendency when extreme outliers exist. focus on stress management for the workforce In 2010 we reported the arithmetic mean as the as a whole and 21% for those in senior standard deviation was within acceptable limits, management compared with 15% and 12% showing less variation in the level of absence. respectively of those who do not report stress in We have included both the mean and 5% trimmed mean in Table 1 for reference. 5 Wilcoxon Signed Rank test, p<0.01, n=82. cipd.co.uk/absencemanagementsurvey 56 their top five causes of absence. 24 Chi Square=38.1, df=4, p<0.001, n=667. 25 Chi Square=13.3, df=6, p<0.05, n=661. 26 Chi Square=6.3, df=2, p<0.05, n=662. The absence rates for very small and very large 27 Chi Square=85.4, df=6, p<0.001, n=663. organisations in the non-profit sector are also 28 Chi Square=66.6, df=8, p<0.001, n=649. particularly large, but the small number of 29 Chi Square=38.9, df=4, p<0.001, n=653. respondents in this category means we should 30 Chi Square=33.6, df=2, p<0.001, n=620. treat these figures with caution. 31 Chi Square=30.2, df=4, p<0.001, n=607. Chi Square=29.0, df=12, p<0.01, n=628. Chi Square=34.2, df=9, p<0.001, n=639. 6 7 Rho=0.26, p<0.001, n=552. Rho=0.35, p<0.001, n=489. 8 Kruskal-Wallis H=31.35, df=12, p<0.01, n=494. 32 9 Chi Square=37.6, df=6, p<0.001, n=631. 33 10 Chi Square=14.6, df=4, p<0.01, n=662. 34 11 Chi Square=29.2, df=4, p<0.001, n=580 (‘Don’t 35 Chi Square=43.7, df=4, p<0.001, n=462. know’ responses were excluded from this 36 Chi Square=18.0, df=4, p<0.01, n=482. analysis due to small n’s in each category). 37 Chi Square=11.9, df=4, p<0.05, n=606. F=10.6, df=3, p<0.001, n=372. 38 Chi Square=41.1, df=6, p<0.001, n=610. Percentage of absence in the private services 39 Chi Square=51.0, df=8, p<0.001, n=598. sector accounted for by short-term leave by 40 Chi Square=45.2, df=6, p<0.001, n=659. UK workforce size: rho=–0.37, p<0.001, n=167; 41 Chi Square=21.6, df=4, p<0.001, n=606. percentage of absence in the public sector 42 Chi Square=14.6, df=4, p<0.01, n=574. accounted for by short-term leave by UK 43 Chi Square=91.9, df=4, p<0.001, n=652. workforce size: rho=–0.23, p<0.05, n=85. 44 Chi Square=39.6, df=2, p<0.001, n=596. Size of organisation: Chi Square=38.4, df=8, 45 Chi Square=79.3, df=8, p<0.001, n=642. The 12 13 14 p<0.001, n=653; Public sector: Chi Square=22.2, relationship is observed regardless of whether df=6, p<0.01, n=667. 15 16 Kendal’s tau-b=0.59, p<0.001, n=638. organisations are making redundancies or not. Chi Square=32.5, df=6, p<0.001, n=660 (1 cell has 46 Chi Square=31.3, df=4, p<0.001, n=604. expected count less than 5, reducing robustness. 47 Chi Square=14.9, df=4, p<0.01, n=661. The minimum expected count is 3.1). Chi Square=33.7, df=4, p<0.001, n=658. Chi Square=11.0, df=2, p<0.01, n=589. 48 49 Chi Square=63.9, df=4, p<0.001, n=654. 2012 OTHER TITLES IN THIS SERIES LEARNING AND TALENT DEVELOPMENT The annual Learning and Talent Development survey provides valuable commentary on current and future issues and trends. It explores employer support for learning, talent management, employee skills, managing and evaluating coaching and training spend. The latest report is brought to you in partnership with Cornerstone OnDemand. RESOURCING AND TALENT PLANNING The annual Resourcing and Talent Planning survey contains valuable information on current and emerging trends in people resourcing practice. The report provides benchmarking information to support employers on resourcing strategies, attracting and selecting candidates, labour turnover and employee retention. This report is brought to you in partnership with Hays. REWARD MANAGEMENT The annual Reward Management survey provides practical insights into current trends, practices and issues affecting reward management in the UK. It examines strategic reward, base and variable pay, bonuses, incentives, pensions, reward measurement and total reward issues. This report is brought to you in partnership with Benefex. ABSENCE MANAGEMENT 2012 EMPLOYEE ATTITUDES TO PAY The annual Employee Attitudes to Pay survey investigates employee attitudes and expectations towards pay and bonuses. This survey is carried out by YouGov and focuses on employees in the UK. Issued: October 2012 Reference: 5982 © Chartered Institute of Personnel and Development 2012 Chartered Institute of Personnel and Development 151 The Broadway London SW19 1JQ UK Tel: +44 (0)20 8612 6200 Fax: +44 (0)20 8612 6201 Email: [email protected] Website: cipd.co.uk Incorporated by Royal Charter Registered charity no.1079797
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