Introduction. Absenteeism management

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1 Introduction Absenteeism management Presented ented at the 15 th UPDEA Congress, Ghana, Accra By: Mme Liz Thebe, Generation Human Resources UPDEA S mandate, which is to be the primary catalyst in the realization of access to electricity for all people s of Africa, Human Resources Capabilities, commitment to deliver The theme of this paper is therefore a a choice between HR strategies, appropriate cultural, structural and behavioural strategies to address direct labour costs and improve efficiency- as a means to reducing cost of production, transportation and delivery of electricity

2 Contents Human Resources contributions to wider goals Human Resources contributions to wider organizational goals Managing HR to deliver strategic goals Absenteeism management as a typical example of reducing HR cost of producing electricity Tools to manage absenteeism. Management of Human Resources to reduce direct labour costs or improve efficiency Consequently leading to reduced operational costs Which leads to low cost electricity production, transportation and delivery.

3 Managing HR to deliver strategic goals Critical HR activities at different organizational stages include mainly: Recruitment, selection and staffing Compensation and benefits and COS. Performance management ABSENTEEISM MANAGEMENT Employee training and benefits Employee Relations.

4 What is absenteeism Absenteeism is whenever an employee does not attend work and non attendance is neither scheduled nor prearranged. Consequently time away from work as a result of any form of leave, prolonged sickness, a formal suspension, etc., (all of which is planned in advance)is not classified as absenteeism. If absenteeism is regarded as any failure to report to work or remain at work as scheduled, it is obvious what a disruptive effect such unplanned absenteeism can have on the functioning of organizations. Excessive absenteeism can significantly reduce the productivity of an organization and in the long term also affect its profitability and threaten its survival.

5 Studies on absenteeism According to a Unscheduled Absence Survey conducted by CCH Inc. (1988). Unscheduled absenteeism by US workers reached the highest level in seven years, The overall rate of unscheduled absenteeism increased by 25% and average cost increased by 32% from $572 per employee in 1997 to $757 in 1998 (HR Focus, 1999). United Kingdom: cost of unscheduled absenteeism to the economy is put at 11 billion. In France 4.5% of the total available working days were lost in 1996 as a result of absence (Industrial & Labor Relations Review, 1999). Eskom Situation Mar 2005 GSAR = 2.54% AFR = 0.17 Days lost over 12 month period = Cost of sick leave over 12 month period = R52.4m

6 A South African Study A study was conducted in South Africa to investigate, examine and understand factors that contribute to and ensure wellness at work for continuous effectiveness and growth. Exhaustion was positively related to cynicism. Only active coping was positively related to professional efficacy Electricians showed a higher level of cynicism than engineers and technicians Demographic factors Model of attendance ATTENDANCE Organisational factors Employees working in field services experienced higher levels of cynicism compared to the electricity delivery and network services Attitude to to leave/ sick sick leave Personal factors

7 DEMOGRAPHIC FACTORS: Grade/band Race Gender Age Length of service Number medical dependants Marital status Shift work First language Highest educational qualification Union membership Place of work Travel mode to work Time to get to work Type of accommodation Travel for work purposes Victim of crime/ violence Number of times a doctor/traditional healer was consulted Chronic disease Model of factors and sub-factors that could possibly influence attendance ATTITUDE TO LEAVE/SICK LEAVE: Leave benefits sufficiency Sick leave policy abuse Excessiveness of sick leave Sick leave is a right Sick leave not used forfeited Sick leave is a privilege Sick leave when not really ill Reward those with limited sick leave Support reducing sick leave ATTENDANCE PERSONAL FACTORS: Lead a healthy, balanced lifestyle Family responsibilities Stress symptoms Unexplained aches/pains Abuse Chronic disease/strong medication Smoke/alcohol ORGANISATIONAL FACTORS: Positive about own future in Eskom Satisfaction with immediate superior Satisfaction with work group Job challenge/meaningfulness Satisfaction with equipment/ resources Feelings of uncertainty and pressure to be more productive Not thinking of resigning Have skills/knowledge/ experience to work well Satisfaction with salary/ fringe benefits Satisfaction with working environment Knowing what to do in my job Clarity of Eskom s vision of the future Working conditions Commitment to Eskom Overtime Job fit and importance Autocratic management Organisational Culture Permissive culture in organisation. Entitlement mentality. If management frowned upon unnecessary absence the employee will think twice before abusing sick-leave.

8 Job Satisfaction Factors that can influence Job Satisfaction are Organisational Factors Remuneration Promotion The job itself Group Factors Co-workers Supervisors Personal Factors Needs Aspirations Productivity Motivation Commitment Lack of Supervision / Management of Sick Leave Managers should set good example. Quality of supervision. Keep accurate attendance records. Communication is vital. Managers not trained. Management Style, Policies and Attitudes

9 Impact of HIV/AIDS Absenteeism Management Breakdown Employees - absent to take care of sick family member or attend funerals. Infected employees at work are less productive and ultimately they will not be able to carry out their duties. Man-days lost due to sick leave will increase. Supervisors need to know how to deal with this reality. Absence without permission Incapacity Management Counseling Misconduct Absence from workplace Report late for work Directives Procedures COS Leave & Sick Leave

10 Managing Absenteeism Focus on people BIOKINETICS Physical Rehabilitation Physical Assessments and Profiling Preventative Medicine OCCUPATIONAL HEALTH Physical Wellness Curative and preventative services SPORT AND RECREATION Social Wellness Sports Interventions Stress Management WELLNESS Programmes for Spiritual Wellness Values Ethics at work Wellness Training and Education Staff Skills Systems Super vision Style Strategy Shared Values EAP Counselling Training and Education HIV/ AIDS Training and Education Preventative and awareness programmes Treatment

11 Creating An Environment For People To Have Passion For Work Establish a vision Identify your values Communicate Demonstrate your commitment Empower Provide support Understand the context in which our people work Task Demands ` Work Environment Task Demands ` Work Environment Human Nature Individual Capabilities Human Nature Individual Capabilities Is the context conducive to someone giving of his/her Best??

12 GENERATION PICTURE OVER A PERIOD OF 3 YEARS AFR Target (Mar)

13 A healthy and productive workforce produces healthy financial results I am an AfriCAN working for Eskom s strategic intent an energy and related services AfriCAN company with a Global stature. Thank You.