Annual survey report in partnership with ABSENCE MANAGEMENT

Transcription

1 Annual survey report 2012 in partnership with ABSENCE MANAGEMENT 2012

2 2012 CONTENTS FOREWORD 2 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 CONCLUSIONS 48 BACKGROUND TO THE SURVEY 51 FURTHER SOURCES OF INFORMATION 54 ACKNOWLEDGEMENTS 55 ABSENCE MANAGEMENT

3 ABSENCE MANAGEMENT FOREWORD cipd.co.uk/absencemanagementsurvey Welcome to the thirteenth edition of our Absence Management survey report in partnership with Simplyhealth. As in previous years, we provide useful benchmarking data for organisations on absence levels and the cost and causes of absence as well as a focus on employee well-being. In addition, we report on the questions we asked about the impact of government initiatives on absence management, and we continue to track the effect of the economic climate on employee absence. This survey report highlights some of the challenges organisations are both currently facing and are anticipating over the coming 12 months. With the economic challenges facing the UK, fragile labour markets and ongoing budget cuts, 2012 remains an uncertain time. For example, we find that a significant number of organisations (two-fifths of public sector and one-fifth of private sector organisations) are planning redundancies, which puts a further strain on the workforce. This year we see noticeable decreases in public and private sector absence levels. But we must air caution before celebrating lower absence levels because this year also sees a continued increase in presenteeism people continuing to attend work when they are not well which can have negative effects for both the individual and the organisation. We also find increases in stress and mental health problems. Despite decreasing absence levels, it is imperative to continue to manage absence effectively, focusing on employee well-being and being proactive to address any early warning signs. What is encouraging, however, is that organisations are becoming more mindful of the issue of presenteeism, with almost two-thirds taking steps to discourage it. In addition, twothirds of those employers who have identified stress as one of the top five causes of absence are likely to be taking steps to address it. However, there is still further progress needed and, with noted increases in presenteeism and stress remaining the most common cause of long-term absence for the second year running, there is an even stronger case for action. Overall, a proactive approach to managing absence, which includes effective training, involvement and support for line managers remains critical for success. Furthermore, regularly reviewing the current and future suitability of absence and well-being approaches is particularly vital, as well as creative thinking around how to maintain a focus on key issues when budgets are cut or frozen. A good example of an organisation taking such an approach, the Northern Ireland Police Service, is featured as a case study in the report. In particular, we look at how they have actively increased staff engagement and well-being, enabling individuals to better manage their personal well-being needs. Sickness absence is also a significant focus for policy-makers. November 2011 saw the publication of the recommendations from the 2011 government-commissioned sickness absence review (jointly chaired by David Frost and Dame Carol Black). In addition, in this report we examine organisations views on the review s recommendation for an Independent Assessment Service to manage long-term sickness absence more effectively, as well as on some of the other government initiatives introduced over the last few years. Dr Jill Miller Research Adviser, CIPD 2

4 2012 Simplyhealth is delighted to be partnering with the CIPD for a third year to bring you the Absence Management survey report. We believe that health is the most important thing of all and that employer health and well-being strategies play a fundamental role in the management of absence and presenteeism. The survey offers us, as people managers, insights to inform our own approaches as well as shows us how we can encourage employees to take more responsibility for their own health and well-being. It s fair to say that the double-dip recession is impacting business health as well as employee well-being, with presenteeism on the rise. The link between presenteeism and mental health problems is unsurprising, especially with continued job insecurity and rising workloads. People are also still facing financial challenges with pay rises few and far between. Last year saw stress become the number one cause of workplace absence for the first time, and this year it persists. In contrast, it s good to see well-being strategies increasing amongst businesses year on year. This means that there is focus on doing what s best for employees and improving business health. The vital role of line managers cannot be disputed. Early detection of health issues and ensuring the correct support is in place helps people with health problems stay in or return to work. With well-being strategies and absence management being high on the agenda for government, there is still more to do; over a quarter of businesses still do not have a wellbeing strategy in place. It s our mission to help individuals, families, employers and the wider community manage their health. Helen Dickinson People Director, Simplyhealth ABSENCE MANAGEMENT

5 ABSENCE MANAGEMENT ABOUT US CIPD The CIPD is the world s largest chartered HR and development professional body. We re a globally recognised body with more than 135,000 members across 120 countries including 84,000 professional members. Our members include the next generation of HR professionals and many of the world s most influential senior HR leaders from world-class organisations. We set global standards for best practice in HR and its specialisms. It s our aim to support and develop professional capability: shaping thinking, leading best practice and building HR s profile in business. cipd.co.uk Simplyhealth At Simplyhealth we focus on healthcare so individuals and businesses can rely on us for our specialist knowledge. We ve been helping people access affordable healthcare for nearly 140 years. We now cover almost 4 million people with health plans and more than 20,000 companies choose us as their healthcare provider. Our corporate clients include Astra-Zeneca, British Airways, the Co-operative, John Lewis Partnership, Royal Mail, Tesco, Yorkshire Building Society and William Hill. We are the experts choice too; we provide cover for all the major hospital groups in the UK. We offer private medical insurance, health cash plans, dental plans and self-funded health plans to help people with their everyday health and get cover 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. cipd.co.uk/absencemanagementsurvey We also care about our communities and last year donated 1.6 million to local causes and national charities. simplyhealth.co.uk 4

6 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 Most organisations, particularly in the public sector, record their annual employee absence rate. The average level of employee absence has fallen compared with last year from 7.7 days to 6.8 per employee per year. The private services and public sector report the largest reductions. There is, however, high variation across organisations, with some reporting extremely high levels of absence. Public sector absence has fallen to the lowest level recorded for this sector since we recorded absence levels by sector in 2002, with a figure of 7.9 days per employee per year. On average, public and non-profit employees have approximately two days more absence per year than their private sector counterparts. Manual workers have one more day absence, on average, than non-manual workers. Absence levels also tend to increase with organisation size. Overall, more organisations report that their absence levels have decreased (41%) compared with the previous year than say it has increased (27%). One-third report it has remained the same. The majority of respondents, particularly in organisations with high levels of absence, believe it is possible to reduce absence. Length of absence Two-thirds of working time lost to absence is accounted for by short-term absences of up to seven days. A fifth is attributed to long-term absences (four weeks or more). Length of absence varies across sectors. A higher proportion of absence in the public sector is due to long-term absences of four weeks or longer. Smaller organisations are more likely to attribute a higher proportion of their absence to short-term leave compared with larger organisations. Cost of absence Less than half of employers monitor the cost of absence. The public sector and larger organisations are most likely to do so. The average annual cost of employee absence per employee varies considerably across organisations, partly because they include different costs in their calculations. On average, the reported cost of absence per employee is less than last year and back to levels reported in 2010 (2012 median: 600; 2011 median: 673; 2010 median: 600). The public and non-profit sectors report higher costs of absence per employee than the private sector. There is, however, a clear drop in the median cost of absence per employee this year in the public sector, which is not observed in the other sectors. ABSENCE MANAGEMENT

7 ABSENCE MANAGEMENT Occupational sick pay Most employers surveyed (81%) provide occupational sick pay to all employees. A further 10% provide it to some employees depending on their level in the organisation or the nature of their role. There is considerable variation in how long organisations provide occupational sick pay to an employee (with at least one year s service) who is on long-term sick leave. Public sector employers provide full pay and then reduced pay for significantly longer than employers from other sectors. One in ten organisations have increased or extended their occupational sick pay over the past 12 months and a similar proportion have decreased or restricted it. Causes of absence Minor illnesses (such as colds, flu, stomach upsets, headaches and migraines) are by far the most common cause of short-term absence. Musculoskeletal injuries, back pain and stress are the next most common causes of short-term absence. Stress is more common for non-manual workers, while musculoskeletal injuries and back pain are more common for manual workers. likely to rank mental ill health and musculoskeletal injuries among its top five causes of long-term absence. Work-related stress Two-fifths of employers overall (52% in the public sector) report that stress-related absence has increased over the past year. The most common cause of stress, as in previous years, is workload. This year, however, it appears to be even more of an issue. Other top causes of stress at work include management style, non-work factors such as relationships and family, relationships at work and considerable organisational change/restructuring. Considerable organisational change/restructuring and job insecurity are more commonly ranked in the top causes of stress in the public sector than in the private. Three-fifths of organisations are taking steps to identify and reduce stress in the workplace. Nevertheless, more than a quarter (27%) of organisations that report stress is one of the top five causes of absence are not taking any steps to address it. cipd.co.uk/absencemanagementsurvey Fewer employers rank absences not due to genuine ill health among their top five most common causes of short-term absence compared with last year. Non-genuine absence is reportedly most common in private services organisations. The most common causes of long-term absence are stress, acute medical conditions (for example stroke, heart attack and cancer), mental ill health, musculoskeletal injuries and back pain. Musculoskeletal injuries and back pain are particularly common for manual workers while stress is more common for non-manual workers. Stress is particularly common in the public and non-profit sectors. The public sector is also more Just over a quarter of employers report they have increased their focus on stress management over the past 12 months. As in previous years, public services employers are most likely to be proactively managing stress; however, the proportion doing so has fallen in comparison with previous years. Popular methods to identify and reduce workplace stress include staff surveys, training for managers/ staff and flexible working options/improved work life balance. Managing absence Almost all organisations surveyed have a written absence/attendance management policy. 6

8 2012 Half have introduced changes to some aspect of their approach in the last year, with public sector organisations most likely to have made changes. it has helped to reduce absence levels, possibly because only one in ten think it is being used effectively by GPs. Overall, just under half of employers have a target in place for reducing employee absence, although this rises to 69% in the public sector. 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. These are also seen to be the most effective methods. The most common methods used to manage long-term absence, return-to-work interviews and occupational health involvement, are also reported to be the most effective, as was the case last year. Line managers take primary responsibility for managing short-term absence in 70% of organisations overall, rising to 87% in the public sector. They take responsibility for managing long-term absence in 53% of organisations overall (74% of the public sector). Not all organisations, however, train managers in absence-handling and fewer provide them with tailored support. Private sector employers are much more likely to restrict sick pay than the public sector. They are also more likely to offer private medical insurance and attendance bonuses or incentives. Public sector employers are more likely to use a range of methods aimed at promoting good health and flexibility. They are also more likely to report that attendance is driven by the board, although this is only the case for 28% of the public sector (10% of the private). 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 Half of employers report that the fit note prompts conversations about absence/health between staff and line managers and just under a third that it helps line managers to manage absence. Impact of the abolition of the Default Retirement Age (DRA) on absence Very few organisations report that the abolition of the DRA has had an impact on absence levels. A quarter of organisations have, however, increased their use of flexible working practices as a result of the abolition. 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. More than half of organisations now have one in place. The most commonly provided well-being benefits are access to counselling services and employee assistance programmes, but the benefits provided vary considerably across sectors. As in previous years, the public sector is most likely to promote well-being through benefits to facilitate healthy lifestyles. The private sector is more likely to provide insurance for employees. Nearly half of organisations report their wellbeing spend has not changed compared with the last financial year. Just under a fifth of organisations report their well-being spend has increased. Similar changes are anticipated in In little change from last year, less than a quarter of respondents report their organisations evaluate the impact of their well-being spend. ABSENCE MANAGEMENT

9 ABSENCE MANAGEMENT Employee absence and the recession Two-fifths of public sector organisations and at least a fifth of organisations from other sectors report they will be making redundancies over the next six months. Overall, just a third of the organisations surveyed report they won t be making any redundancies. 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. Nearly two-thirds of employers who have noticed an increase in presenteeism in the last 12 months are taking steps to discourage it. Less than a third of organisations (30%) report they have increased their focus on employee well-being and health promotion as a result of the economic context. cipd.co.uk/absencemanagementsurvey 8

10 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 employee absence rate, recognising its impact on business success (2011: 81%). In line with previous years findings, public sector organisations are most likely to record this information and private services the least (public sector: 94%; private services: 73%; manufacturing and production and non-profits: 86%). 1 Sector variations This year absence levels have dropped considerably in the public sector, continuing the downward trend observed last year (2012: 7.9 days per employee; 2011: 9.1 days; 2010: 9.6 days; 2009: 9.7 days). In fact, this year public sector absence has fallen to the lowest level since we recorded absence levels by sector in There is considerable variation in reported levels of absence, with a few organisations reporting very high absence levels, as was the case last year. 2 In order to avoid a few extreme cases skewing the results, we report the 5% trimmed mean (Table 1). 3 The figures suggest that, on average, absence has declined compared with last year by one day per employee. This reduction has brought public sector absence levels just below that of the non-profit sector, although they remain considerably higher than in the private sector (Table 2). The private services sector also reports a considerable decrease in average absence levels this year to 5.7 days per employee, reversing Table 1: Average level of employee absence, all employees Average working time lost per year (%) 5% trimmed mean 4 Standard deviation Mean Average number of days lost per employee per year 5% trimmed mean Standard deviation 2012: all employees : all employees : all employees Base: 498 (2012); 403 (2011); 429 (2010) Mean ABSENCE MANAGEMENT

11 ABSENCE MANAGEMENT the trend which saw it rise from 6.4 days per employee in 2009 to 6.6 days in 2010, to 7.1 days last year. It is now at a similarly low level to the manufacturing and production sector, which reports little change compared with last year. Table 3 shows that there is also considerable variation within sectors, although the small number of respondents in each industry means differences should be treated with caution. Nonprofit care services and public sector education and health organisations reported particularly high average absence levels (although there is considerable variation in absence levels for the education sector). This suggests that it is frontline public and non-profit organisations that have the highest levels of absence. In the private services sector, call centres have a high average level of absence, as we ve found in previous years. Manual and non-manual absence levels Average absence levels suggest that while absence has fallen for non-manual workers (2012: 4.7 days per employee per year; 2011: 5.5. days) there has been no change compared with last year for manual workers. Manual employees had one more day of absence on average than nonmanual employees. 5 Table 2: Average level of employee absence, by sector for all, manual and non-manual employees All employees Manufacturing and production Number of respondents Average working time lost per year (%) 5% trimmed mean Standard deviation Mean Average number of days lost per employee per year 5% trimmed mean Standard deviation Mean Private sector services Public services Non-profit organisations Total cipd.co.uk/absencemanagementsurvey Manual employees Manufacturing and production Private sector services Public services Non-profit organisations Total Non-manual employees Manufacturing and production Private sector services Public services Non-profit organisations Total

12 2012 Table 3: Average level of employee absence, all employees by sector breakdowns Average working time lost per year (%) Average working time lost per year (%) Average days lost per year Average days lost per year Manufacturing and production Private sector services Number of respondents 5% trimmed mean Mean 5% trimmed mean Agriculture and forestry 1 n/a* 1.7 n/a* 3.8 Chemicals, oils and pharmaceuticals Mean Construction Electricity, gas and water 1 n/a* 3.8 n/a* 8.7 Engineering, electronics and metals Food, drink and tobacco General manufacturing Mining and quarrying 1 n/a* 3.2 n/a* 7.3 Paper and printing Textiles Other manufacturing/ production Professional services (accountancy, advertising, consultancy, legal, etc) Finance, insurance and real estate Hotels, catering and leisure IT services Call centres Media (broadcasting and publishing, etc) 3 n/a* 1.6 n/a* 3.7 Retail and wholesale Transport, distribution and storage Communications Other private services Public services Central government Non-profit organisations Education Health Local government Other public services Care services Charity services Housing association Other voluntary * It is not meaningful to calculate the 5% trimmed mean with a low number of respondents. ABSENCE MANAGEMENT

13 ABSENCE MANAGEMENT The effect of workforce size Larger organisations tend to have higher levels of absence than smaller ones (Table 4). 6 People may be deterred from taking absence in smaller organisations because they tend to work in smaller teams and consequently absence is more disruptive and noticeable. It is unlikely, however, that this is the only explanation. Larger organisations (and the public sector) tend to offer more generous sick pay schemes (see Occupational sick pay), without which employees may have a greater incentive to return to work. Differences in sick pay schemes, together with organisational culture and absence policies, may help explain why absence tends to be higher in the public sector than the private, regardless of size (Table 5). 7 Regional breakdown There are regional differences in absence levels (Table 6). 8 Some of these differences are likely to be due to sampling differences between regions; for example, organisations reporting for the whole of the UK have a lower than average absence level, but these organisations are mostly from the private services sector (which has the lowest absence levels) and very few are from the public sector (where absence tends to be higher). The small sample sizes do not allow us to separate out whether differences are due to region, sector or size. Changes in levels of absence within organisations The above findings suggest that overall absence has reduced compared with last year, particularly in the private services and public sector. Respondents were also asked about changes within their own organisations compared with the previous year. Overall two-fifths report a decrease in their levels of absence, while just over a quarter report an increase (Table 7), suggesting considerable variation in organisations experiences. Table 4: The effect of workforce size No. of UK employees Number of respondents Average working time lost per year (%) 5% trimmed mean Standard deviation Average number of days lost per employee per year (days) 5% trimmed mean Standard deviation ,000 4, , cipd.co.uk/absencemanagementsurvey Table 5: The effect of workforce size on absence levels, by sector No. of UK employees Average number of days lost per employee per year (5% trimmed mean) Manufacturing and production Private sector services Public services Non-profit organisations 1 49 n/a*(3) 5.1 (16) 5.1 (5) 12.3 (5) (35) 4.6 (78) 6.2 (16) 7.8 (29) (38) 6.5 (49) 8.2 (46) 7.9 (28) 1,000 4, (7) 7.8 (29) 8.1 (44) 12.1 (10) 5,000+ (0) 7.7 (17) 8.6 (34) (0) Number of respondents shown in brackets 12

14 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 East Midlands West Midlands North-east of England North-west of England South-west of England Yorkshire and Humberside South-east of England (excluding London) London Scotland Wales Northern Ireland 1 n/a Whole of UK This variation is noted within all sectors (Table 7), although private services are least likely to report changes in levels of absence. 9 It is encouraging that in the non-profit sector, where average absence levels are highest (Table 2), more than twice as many organisations report a decrease in absence than report an increase. Nevertheless, absence clearly remains a challenging issue for many organisations. Three-quarters of employers believe it is possible to further reduce employee absence (76%). Only 12% do not think it is possible (11% report they don t know). The sectors with highest absence levels, the public and voluntary sectors, are most likely to believe they can reduce absence levels further (public: 85%; non-profit: 78%; private sector: 72%). 10 Larger organisations are also more likely to believe they can reduce absence. 11 Nevertheless, while organisations with higher absence levels are more likely to believe they can reduce absence levels, the majority (61%) of those with very low absence levels (fewer than three days on average per employee per year) also believe they can further reduce absence. Table 7: Changes in levels of absence within organisations compared with the previous year (%) Increased Decreased Stayed the same All Manufacturing and production Private sector services Public services Non-profit organisations Base: 631 ABSENCE MANAGEMENT

15 ABSENCE MANAGEMENT Lengthy absence There has been very little change in the length of employee absences over the past few years. Overall, nearly two-thirds of working time lost to absence is accounted for by short-term absences of up to seven days. A fifth of absence is attributed to longterm absence (four weeks or more), while 16% is attributed to absences of between eight days and four weeks (Table 8). Our findings also show, as in previous years, that there are significant sector differences. Just over half of absence in the public sector is short term, compared with nearly three-quarters in the private services sector. 12 A higher proportion of absence in the public sector is due to long-term absences of four weeks or longer (Table 8). Length of absence is also related to workforce size in the private services and public sectors, with smaller organisations attributing more of their absence to short-term leave than larger organisations. 13 This relationship is not significant in manufacturing and production or the non-profit sector, where the size range of organisations that responded to the 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 (%) All employees Manual employees Non-manual employees Industry sector Manufacturing and production Private sector services Public services Non-profit organisations cipd.co.uk/absencemanagementsurvey Number of UK employees ,000 4, ,

16 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 help organisations identify the cost-benefits of investing in better absence management practices. Less than half of organisations surveyed report they do this, showing little change from previous years (2012: 40%; 2011: 42%; 2010: 45%; 2009: 41%). Larger organisations, and those in the public sector, are significantly more likely to monitor the cost (Table 9). 14 A total of 124 respondents reported their average annual cost of absence per employee per year. There is considerable variation in the figures reported (Table 10). This is at least partly due to our findings that organisations include different costs in their calculations (see Table 11). The prevalence of some extremely high figures also raises the possibility that some respondents misread the question and report absence costs for the whole organisation rather than per employee. The median figures are therefore considered to be most valid and are reported on. On average, the reported cost of absence per employee is less than last year and back to levels reported in 2010 (2012 median: 600; 2011 median: 673; 2010 median: 600). As we have found in previous years, this overall figure masks considerable differences across sectors. As usual the public and non-profit sectors report higher costs of absence 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 All organisations Industry sector Manufacturing and production Private sector services Public services Non-profit organisations Number of UK employees ,000 4, , Base: 667 ABSENCE MANAGEMENT

17 ABSENCE MANAGEMENT to reflect their more generous sick pay schemes (see Table 12) and also our findings that in these sectors a higher proportion of absence is long term (Table 8) and consequently more costly to the business. There is, however, a clear drop in the median cost of absence per employee this year in the public sector (Figure 1). The reduction in absence levels in this sector reported above (Absence levels) may help explain the reduction in costs. Table 10: Average annual cost of absence per employee per year Number of respondents Cost ( ) per employee per year Median 5% trimmed mean Minimum Maximum All , ,389,173 Manufacturing and production ,000 Private sector services ,000 Public services ,000 Non-profit organisations , ,389,173 All employees Figure 1: Median cost ( ) of 2012 absence per employee per year, by sector Manufacturing and production Private sector services Public services Non-profit organisations cipd.co.uk/absencemanagementsurvey 16 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 Statutory sick pay Temporary cover Additional overtime costs Lost production or service provision Other Base: 114 ( ) ,000

18 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 schemes appears to have changed little since we last asked these questions in Most employers surveyed (81%) provide occupational sick pay to all employees. A further 10% provide it to some employees depending on their level in the organisation or the nature of their role. Only a minority (3%) do not provide occupational sick pay to any employees. Regardless of size, public sector employers are most likely to provide occupational sick pay to all employees (92%) and private sector employers the least (74%, non-profits: 89%). 15 Where occupational sick pay is provided, it usually covers the first three days of absence (90%), particularly in public sector and non-profit organisations (public sector: 96%; non-profit sector: 91%; private sector: 86%). 16 The majority of sick pay schemes across all sectors provide payment at the same level as employees full wage or salary (96% overall). There is considerable variation in how long organisations provide occupational sick pay to an employee (with at least one year s service) who is on long-term sick leave (Table 12). There is also a significant relationship between the number of weeks organisations pay at the full rate and how long they pay at a reduced rate, such that the more generous they are with one, the more generous they are with the other. 17 At the lower end, 8% pay the full rate for one to three weeks and most of these do not continue to pay at a reduced rate (Table 13). At the more generous end of the scale, two-fifths provide full pay to employees on long-term sick leave for between 21 and 30 weeks and over three-quarters of these then continue to pay a reduced rate for a further weeks. Only a small proportion of organisations (3%) provide full pay for absences of more than 30 weeks. Public sector employers are by far the most generous when it comes to how long they will provide absent employees with full and reduced pay (Table 12). The median number of weeks that public sector organisations provide full and reduced pay is at least double that of the other sectors. 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. About a third of manufacturing and production organisations and non-profit organisations and two-fifths of private sector services provide full pay for fewer than eight weeks compared with just 15% of public sector organisations. There is also a relationship between size of organisation and the number of weeks that occupational sick pay is provided, with larger organisations being more generous. ABSENCE MANAGEMENT

19 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 Full rate Number of weeks (%) Mean Standard deviation Median All respondents Manufacturing and production Private sector services Public services Non-profit organisations Reduced rate All respondents Manufacturing and production Private sector services Public services Non-profit organisations Base: cipd.co.uk/absencemanagementsurvey 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 full rate (%) Number of weeks paid at reduced rate (%) (9) weeks (45) weeks (124) weeks (86) weeks (63) weeks (217) weeks (17) Number of respondents shown in brackets. 18

20 2012 Changes to occupational sick pay arrangements Most organisations, regardless of size or sector, report that their occupational sick pay schemes have not changed over the past 12 months (79%). One in ten report they have increased (7%) or extended their schemes to more employees (2%) over the last year and a similar proportion report their occupational sick pay has decreased (9%) or been restricted to certain categories of employees (3%). While twice as many anticipate decreases over the next 12 months (12%) than increases (6%), the proportions are small and most expect no change (77%), a similar outlook to the last 12 months. A minority anticipate their schemes will be extended to more employees (2%) or restricted to certain categories of employees (3%). There are no significant differences across sectors. ABSENCE MANAGEMENT

21 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, collect information on the causes of employee absence (2012: 88%; 2011: 84%; 2010: 86%). Respondents were asked to rank the five most common causes of short- and long-term absence, for both manual and non-manual workers. Short-term absence The main causes of short-term absence (four weeks or less) are very similar to previous years findings for both manual and non-manual workers. By far the most common cause is minor illness, including colds, flu, stomach upsets, headaches and migraines (Table 14). Musculoskeletal injuries, back pain and stress are also common causes of short-term absence, although, as in previous years, musculoskeletal injuries and back pain are more common causes of absence for manual workers, while stress is more common for non-manual workers. A third of organisations report that home/family responsibilities are in the top five most common causes of absence. Demographic changes to the population mean that an increasing proportion of the workforce have responsibilities as carers and cipd.co.uk/absencemanagementsurvey Table 14: Common causes of short-term absence (%) Minor illness (for example colds/flu, stomach upsets, headaches and migraines) Musculoskeletal injuries (for example neck strains and repetitive strain injury, but excluding back pain) Most common cause In top 5 most common causes Manual Non-manual Manual Non-manual Back pain Stress Recurring medical conditions (for example asthma, angina and allergies) Home/family responsibilities Mental ill health (for example clinical depression and anxiety) Injuries/accidents not related to work Acute medical conditions (for example stroke, heart attack and cancer) Pregnancy-related absence (not maternity leave) Work-related injuries/accidents Drink- or drug-related conditions Other absences not due to genuine ill health Base: Manual: 370; Non-manual:

22 2012 organisations will need to address this through appropriate, and flexible, working arrangements. Despite health and safety legislation, a fifth of organisations report that work-related injuries and accidents are a common cause of absence for manual workers. This clearly demonstrates the need for organisations to monitor the causes of absence in order to identify and address potential issues. particularly for non-manual workers (Tables 15 and 16). The public sector is also more likely than the private to report that musculoskeletal injuries are a common cause of absence, as we found last year. Moreover, the proportion of the public sector that reports musculoskeletal injuries are a common cause of short-term absence has increased for both manual (2012: 85%; 2011: 72%) and non-manual workers (2012: 77%; 2011: 65%). On a more positive note, the findings indicate a slight decline in the proportion of respondents ranking absences not due to genuine ill health among their most common causes of short-term absence, at least for manual workers (manual workers 2012: 17%; 2011: 21%; 2010: 23%; nonmanual workers 2012: 16%; 2011: 21%; 2010: 17%). Sector differences In line with findings from previous years, stress and mental ill health are more common causes of absence in the public sector than the private, In contrast, the public sector is less likely than the private to rank home/family responsibilities and illegitimate absences not due to genuine ill health among their top causes of absence. Moreover, fewer public sector organisations report that home/family responsibilities are a common cause of absence this year compared with last (manual: 2012: 10%; 2011: 27%; non-manual: 2012: 13%; 2011: 24%). This may be attributed to an increased predominance of musculoskeletal injuries as a cause of absence but it may partly reflect the typically better flexible working practices offered Table 15: Top five most common causes of short-term absence for manual workers, by sector (%) Minor illness (for example colds/ flu, stomach upsets, headaches and migraines) Musculoskeletal injuries (for example neck strains and repetitive strain injury, but excluding back pain) All organisations Manufacturing Private sector and production services Public services Non-profit organisations Back pain Stress Recurring medical conditions (for example asthma, angina and allergies) Home/family responsibilities Mental ill health (for example clinical depression and anxiety) Work-related injuries/accidents Injuries/accidents not related to work Acute medical conditions (for example stroke, heart attack and cancer) Pregnancy-related absence (not maternity leave) Drink- or drug-related conditions Other absences not due to genuine ill health Base: ABSENCE MANAGEMENT

23 ABSENCE MANAGEMENT by public sector employers (see Tables 25 and 27) or be a consequence of employees being more reluctant to take illegitimate absence in light of all the cuts and redundancies in this sector. While illegitimate absence and that due to home/ family responsibilities remains most common in the private sector, both have reduced in the private services sector compared with last year. Two-fifths of private services organisations report that home/family responsibilities are a common cause of absence for non-manual workers this year compared with over half last year. A third report this is a common cause for manual workers compared with nearly half last year. Similarly, less than a fifth of private services employers report that illegitimate absence is common for manual or non-manual workers this year compared with three in ten last year. Long-term absence The most common causes of long-term absence (four weeks or more) among manual and non-manual workers are stress, acute medical conditions (for example stroke, heart attack and cancer), mental ill health, musculoskeletal injuries (for example neck strains and repetitive strain injury) and back pain (Table 17). Back pain is particularly common for manual workers while stress is somewhat more common for non-manual workers. These findings show very little change from last year. Sector differences Sector differences are similar to last year. The public (and, with regards to manual workers, non-profit) sector is most likely to report stress is a common cause of long-term absence (as well as 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 (%) cipd.co.uk/absencemanagementsurvey Minor illness (for example colds/ flu, stomach upsets, headaches and migraines) All organisations Manufacturing Private sector and production services Public services Non-profit organisations Stress Musculoskeletal injuries (for example neck strains and repetitive strain injury, but excluding back pain) Back pain Recurring medical conditions (for example asthma, angina and allergies) Home/family responsibilities Mental ill health (for example clinical depression and anxiety) Injuries/accidents not related to work Acute medical conditions (for example stroke, heart attack and cancer) Other absences not due to genuine ill health Pregnancy-related absence (not maternity leave) Work-related injuries/accidents Drink- or drug-related conditions Base:

24 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 Acute medical conditions (for example stroke, heart attack and cancer) Mental ill health (for example clinical depression and anxiety) Musculoskeletal injuries (for example neck strains and repetitive strain injury, but excluding back pain) Back pain Recurring medical conditions (for example asthma, angina and allergies) Injuries/accidents not related to work Minor illness (for example colds/flu, stomach upsets, headaches and migraines) Pregnancy-related absence (not maternity leave) Other absences not due to genuine ill health Home/family responsibilities Work-related injuries/accidents Drink- or drug-related conditions Base: manual: 366; non-manual: 399 Table 18: Top five most common causes of long-term absence for manual workers, by sector (%) Acute medical conditions (for example stroke, heart attack and cancer) All organisations Manufacturing Private sector and production services Public services Non-profit organisations Stress Musculoskeletal injuries (for example neck strains and repetitive strain injury, but excluding back pain) Back pain Mental ill health (for example clinical depression and anxiety) Recurring medical conditions (for example asthma, angina and allergies) Injuries/accidents not related to work Work-related injuries/accidents Minor illness (for example colds/ flu, stomach upsets, headaches and migraines) Home/family responsibilities Other absences not due to genuine ill health Pregnancy-related absence (not maternity leave) Drink- or drug-related conditions Base: 366 ABSENCE MANAGEMENT

25 ABSENCE MANAGEMENT Table 19: Top five most common causes of long-term absence for non-manual workers, by sector (%) All organisations Manufacturing Private sector and production services Public services Non-profit organisations Stress Acute medical conditions (for example stroke, heart attack and cancer) Mental ill health (for example clinical depression and anxiety) Musculoskeletal injuries (for example neck strains and repetitive strain injury, but excluding back pain) Back pain Recurring medical conditions (for example asthma, angina and allergies) Injuries/accidents not related to work Minor illness (for example colds/ flu, stomach upsets, headaches and migraines) Pregnancy-related absence (not maternity leave) Other absences not due to genuine ill health Home/family responsibilities Work-related injuries/accidents Drink- or drug-related conditions Base: 399 cipd.co.uk/absencemanagementsurvey 24