The Presence Of Absence – East Midlands Attendance Management Summit 2008 Paul Southby, Regional Director, CBI East Midlands

About the CBI Lobbying on behalf of UK business Lobbying on behalf of UK business Work with government and others to help UK business compete more effectively Work with government and others to help UK business compete more effectively Aim to help create and sustain conditions in which UK business can prosper for the benefit of all Aim to help create and sustain conditions in which UK business can prosper for the benefit of all UK’s official business representative in the EU UK’s official business representative in the EU National international and regional offices National international and regional offices

Who does the CBI represent? Mainly represent private sector business Mainly represent private sector business 80 of the FTSE 100 in membership 80 of the FTSE 100 in membership Speak for 240,000 businesses nationally, some via trade associations Speak for 240,000 businesses nationally, some via trade associations Regional representative of large business in the East Midlands in new Regional Economic Cabinet chaired by regional minister Regional representative of large business in the East Midlands in new Regional Economic Cabinet chaired by regional minister

CBI/AXA Absence And Labour Turnover Survey is 21 st year of publication 2008 is 21 st year of publication Definitive source of long-term trend data on the extent costs causes and solutions to workplace absence Definitive source of long-term trend data on the extent costs causes and solutions to workplace absence Based on representative sample covering all industry sectors (70% private/30% public) save agriculture Based on representative sample covering all industry sectors (70% private/30% public) save agriculture All sizes of organisation represented, and all UK regions All sizes of organisation represented, and all UK regions

Extent of absence Absence stands at an average of 6.7 days per employee Absence stands at an average of 6.7 days per employee 9.3 days difference between best and worst performers 9.3 days difference between best and worst performers Absence is higher among manual employees Absence is higher among manual employees Smaller organisations fare better than large ones Smaller organisations fare better than large ones Absence rates are significantly higher in the public sector Absence rates are significantly higher in the public sector

Regional variations in absence In the East Midlands the average days lost is 6.6 – slightly lower than average In the East Midlands the average days lost is 6.6 – slightly lower than average Absence levels are lowest in the South (5.6), Northern Ireland (5.7) and Greater London (5.9) Absence levels are lowest in the South (5.6), Northern Ireland (5.7) and Greater London (5.9) Absence levels are highest in Yorkshire and Humberside (8.9), the North West (8.9) Wales (7.6) the West Midlands (7.5) and the South East (7.4) Absence levels are highest in Yorkshire and Humberside (8.9), the North West (8.9) Wales (7.6) the West Midlands (7.5) and the South East (7.4)

Why have absence rates declined? Good management policies and closer monitoring Good management policies and closer monitoring Changes in workforce culture Changes in workforce culture Also, external factors such as medical advances and healthier lifestyles Also, external factors such as medical advances and healthier lifestyles Surprisingly few believe improvements in the NHS have helped – only 8% identified them as a key factor Surprisingly few believe improvements in the NHS have helped – only 8% identified them as a key factor

Costs of absence Direct cost of absence is £517 per employee – 3.1% of payroll/£13.2bn to the UK economy Direct cost of absence is £517 per employee – 3.1% of payroll/£13.2bn to the UK economy Indirect costs add a further £263 per employee Indirect costs add a further £263 per employee Larger employers report higher absence costs Larger employers report higher absence costs Absence costs vary considerably by sector Absence costs vary considerably by sector Cost of absence higher in the public sector - £692 per employee -v- £459 in private sector Cost of absence higher in the public sector - £692 per employee -v- £459 in private sector

Causes of absence Mainly illness but also home and family responsibilities and medical appointments Mainly illness but also home and family responsibilities and medical appointments Long term absence accounted for 40% of working time lost Long term absence accounted for 40% of working time lost Minor illness caused most short term absence Minor illness caused most short term absence Non-work related stress anxiety and depression is the most common cause of long term absence for non-manual workers, for manual workers back pain Non-work related stress anxiety and depression is the most common cause of long term absence for non-manual workers, for manual workers back pain

However... Employers estimate that 12% of sickness absence is not genuine... Employers estimate that 12% of sickness absence is not genuine and 65% believe some absence is an unauthorised extension of weekends and 60% believe of holidays and 65% believe some absence is an unauthorised extension of weekends and 60% believe of holidays and more than half had to discipline, and more than a third to dismiss someone for persistent absence... and more than half had to discipline, and more than a third to dismiss someone for persistent absence

Attendance management policies Management action typically triggered by three spells or ten days of absence Management action typically triggered by three spells or ten days of absence Most employers operate rehabilitation policies Most employers operate rehabilitation policies Employers take stress seriously Employers take stress seriously Government could do more (e.g. capability-focused medical certificates) to help employers address sickness absence Government could do more (e.g. capability-focused medical certificates) to help employers address sickness absence

Employee health and well-being More than two thirds of employers have a well-being policy More than two thirds of employers have a well-being policy Employers believe well-being policies can improve staff morale and cut absence Employers believe well-being policies can improve staff morale and cut absence Praise for a job well done is felt to be the most important contributor to staff morale Praise for a job well done is felt to be the most important contributor to staff morale Most organisations are satisfied with levels of morale Most organisations are satisfied with levels of morale

Labour turnover Labour turnover increased slightly to 14.9% over the survey year Labour turnover increased slightly to 14.9% over the survey year Some regional companies have reported a dramatic reduction in turnover in the last 6 months Some regional companies have reported a dramatic reduction in turnover in the last 6 months Turnover varies by sector, and by region (East Midlands is about average) Turnover varies by sector, and by region (East Midlands is about average) Job security – constant for the survey, but regional companies report a recent reduction (for obvious reasons) Job security – constant for the survey, but regional companies report a recent reduction (for obvious reasons)