Total Attendance Management: Minimize Your Costs and Maximize Health and Productivity

Transcription

1 Total Attendance Management: Minimize Your Costs and Maximize Health and Productivity Presented by Kerri Harrison Business Development Specialist Shepellfgi

2 Objectives Gain insight into the cost of absenteeism and disability in the Canadian workplace Learn how Total Attendance Management can help your organization minimize its costs and maximize health and productivity

3 Cost of Absence and Disability in the Canadian Workplace: Absenteeism 6.6: Annual absenteeism rate of days lost per full-time employee 2.6%: Percentage of payroll lost as a result of the direct cost of absenteeism defined as employee absences due to illness, disability, or personal or family responsibility Beyond Benefits II: Disability Plans and Absence Management in Canadian Workplaces, The Conference Board of Canada, June 2010

4 Cost of Absence and Disability in the Canadian Workplace: STD 9%: Average percentage of full-time employees on STD during days and 34 days: Average length of claim for non-unionized and unionized employees respectively $4,528 and $4,336: Average cost per claim for non-unionized and unionized employees Beyond Benefits II: Disability Plans and Absence Management in Canadian Workplaces, The Conference Board of Canada, June 2010

5 Cost of Absence and Disability in the Canadian Workplace: LTD 2.5%: Average percentage of full-time employees on LTD during weeks: Average length of claim for both non-unionized and unionized employees $5,716 and $5,472: Average cost per claim for non-unionized and unionized employees Beyond Benefits II: Disability Plans and Absence Management in Canadian Workplaces, The Conference Board of Canada, June 2010

6 Absenteeism On the Rise 32%: Percentage of respondents tracking absenteeism costs that indicated an increase in the total direct cost of absenteeism over the past 12 to 18 months 9.3%: Average increase in the total direct cost of absenteeism they reported Statistics Canada has suggested that a variety of factors account for the increase, including: a) An aging demographic b) Rising levels of work-related stress c) Ever-increasing proportion of women in the workforce with multiple responsibilities a) Increasing prevalence of liberal leave policies Beyond Benefits II: Disability Plans and Absence Management in Canadian Workplaces, The Conference Board of Canada, June 2010

7 Cost of Absence and Disability in the Canadian Workplace: Implications The implications of absenteeism and disability for employers is significant in terms of both lost productivity and wages, and in the potential to significantly reduce costs through Total Attendance Management.

8 Factors Contributing to High Costs and Low Health and Productivity Administrative/transactional approach Focus on reactive risk management Lack of sponsorship from senior leaders and decision makers because absence management not tied to organizational goals/business strategy Disjointed absence management programs with shared ownership across multiple departments Only 40% of Canadian organizations track absenteeism rates, and 15% track the direct cost of absenteeism Beyond Benefits II: Disability Plans and Absence Management in Canadian Workplaces, The Conference Board of Canada, June 2010

9 What is Total Attendance Management? A shift away from stand-alone absence administration programs to a strategic and integrated approach. Strategies are aligned with the company s business objectives, cost management goals and employee engagement and retention strategies Programs work holistically to address pre-absence, incidental absences, and occupational and non-occupational disability

10 Total Attendance Management: Objective Setting The ability to leverage absence management as a business strategy is dependent upon the capability to: Clearly identify attendance objectives

11 Objective Setting: Examples Identify and manage top 3 health risks before they result in absence Reduce absenteeism rates by 10% Reduce short-term disability claim duration by 10% and LTD entry by 7% Reduce lost time claim duration by 5% and workplace injuries by 10% Provide tools and resources to managers to make them account for managing employee absenteeism Ensure employees receive effective support to keep them engaged and motivated to return to/stay at work

12 Total Attendance Management: Integrated Approach The ability to leverage absence management as a business strategy is dependent upon the capability to: Take a fully integrated approach based on objectives 1. Prevention 2. Casual absence 3. STD/LTD 4. Workers Compensation

13 Integrated Approach: 1. Prevention Objective: Proactively identify your most common health risks and manage top 3 What are your most common health risks: physical, mental, social and organizational? How do you identify and manage risks before absenteeism occurs?

14 Integrated Approach: Prevention Identify risks Mining claim data and or workplace health assessment Manage risks with preventative interventions EAP Alternate dispute resolution Disease prevention/screening Health and safety training Wellness initiatives and education

15 Integrated Approach: 2. Casual Absences Objective: Reduce absenteeism rates by 10% Do you know what your current absenteeism rates are? Do you currently track/enforce policy consistently and fairly? Do people leaders understand what to do? Do you help employees access support for the absence driver before it worsens?

16 Integrated Approach: Casual Absences Reactive minimum requirement Create and enforce an attendance policy Track absence data Proactive strategic Provides opportunities to identify and address absence drivers before they become costly Ability to assess root cause, identify patterned absence and provide support for health issue(s)

17 Integrated Approach: 3. STD/LTD Objective: Reduce costs associated with STD by 15% and reduce risk of entry to LTD What are your top STD and LTD claims? What is the average claim duration of STD claims and how does this compare year over year? How do you address mental health and non-medical issues? How quickly is an injured or ill employee connected to support and return to work planning?

18 Integrated Approach: STD/LTD The most effective method of reducing claim duration/ltd entry/employee retention is early and comprehensive return to work support in STD Managing timelines and reducing delays Focus on abilities: modified or progressive return to work planning Engaging employees: immediate outreach, frequent communication, people leader responsiveness Mental health and non-medical: recognition of complicating factors, specialized support

19 Integrated Approach: 4. Workers Compensation Objective: Reduce lost time claim duration by 5% and workplace injuries by 10% What are your top STD and LTD claims? What are your most common reportable workplace injuries? What hazard identification and prevention interventions do you have in place? How often do you review historical active claims and project claim costs? How quickly do you offer modified work?

20 Integrated Approach: Workers Compensation Most effective method of reducing claim incidence/ duration is focusing on prevention, strategic claims management and modified RTW programs Identifying high-risk areas, reviewing and improving practices and providing training Managing timelines and reducing delays Strategic claims management = active Board management + financial oversight Mental health and non-medical

21 Total Attendance Management: Integrated Approach Looking across your programs: Do any of your programs talk to each other? How are programs governed/measured in relation to each other (e.g. trending/forecasting)? Is everyone clear on roles and responsibilities? Do people leaders know what to do in each program area?

22 Total Attendance Management: Leverage a Business Strategy The ability to leverage absence management as a business strategy is dependent upon the capability to: Establish clear policies, procedures, roles and responsibilities Ensure effective governance and measurement Engage people leaders to participate effectively in attendance management

23 Establish Clear Policies, Procedures, Roles and Responsibilities Clarity is directly linked to compliance Well-designed programs can fail if they are inconsistently understood and applied. Clearly communicate policies, purpose, roles, responsibilities, and protocols to gain efficiencies Demonstrate transparency/accountability Policies and procedures must ensure that medical confidentiality is emphasized

24 Engage People Leaders to Participate Effectively in Attendance Management Supervisor responsiveness is one of the most influential factors in return to work success, but most lack the tools they need to be effective Do you provide comprehensive training on policies, procedures and practices? Do you offer coaching on behaviours and skills to manage absence fairly, consistently and with sensitivity? Do you provide education about issues related to absence, disability and other signs and symptoms of health or productivity issues?

25 Total Attendance Management How can YOU as an HR professional move your organization into taking a strategic approach that supports the attainment of business goals and objectives?

26 A Health Management Program Model

27 A Health Management Program Model Assess Needs Assessment Design Design & Oversight Manage Health & Productivity Administration System Benefit Solutions EAP Attendance Support Occ. Claims Management Disability Management Occ. Health Health Screening Health Training External Data Interfaces Client-Side HRIS (e.g., payroll) Insurance Carrier LTD

28 Summary Many organizations employ attendance management programs that undermine health, increase costs, and miss opportunities to provide employees with support before the underlying issue becomes complex and results in further absence or disability. Total Attendance Management is proactive, integrated and strategic to promote sustained attendance at work, minimize and control costs, and strengthen employee and organizational health and productivity.

29 Thank You To download a copy of Shepell fgi s white paper, Workforce Management: Achieving Business Objectives Through Absence Management, visit Phone: Kharrison@shepellfgi.com Website: