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Sick leave costs companies and the economy. The Holiday's Act highlights sick leave and Kathy Hughes takes a look at the current situation and promotes some ideas to overcome the burden.
In the UK research found that sick leave cost industry around $33 billion dollars a year with some 176 million days lost in workplace absence, about 15% of this being down to "Mondayitis". The average worker took 7.2days off last year according to employers polled by the CBI and insurance giant AXA. This was an increase on half a day on the previous year.
In New Zealand, workplace absence costs more than $3 billion a year, a staggering $1693 per employee per year. With numbers like these, it's hard to criticise companies like Northland Health who recently came under fire for providing incentives to staff who took less sick leave. They implemented a bonus scheme after finding that sick leave taken had doubled between the months February and March.
The District Health Board offers any employee who takes no more than two days sick leave this winter a chance to win free trips to Fiji or Queenstown.
Alone, an incentive like this is not a long term solution but combined with initiatives that encourage health management and maintenance, such as regular medical checks, gym memberships, sensible hours and education on managing stress, absenteeism can be greatly reduced.
In 2002, one client found that absenteeism due to sick leave had increased by 0.94%, representing an increased cost to the business of $200,000 over the previous year. The cost of absenteeism was estimated on the basis of actual staff time, administration costs, lost opportunity costs and the cost of hiring temporary staff. Short term and unnotified absence accounted for two thirds of sick leave taken, mirroring the figures for New Zealand in general.
This company conducted a staff survey and as a result implemented a number of company-wide initiatives providing additional support to staff such as the ability to work from home if needed, health assessments and education and social events. The following year, absenteeism was reduced and in particular short term absence went down by 45%.
Rather than encourage increased sick leave, the recent changes to sick leave provisions may actually encourage staff to take less sick leave. In some companies a culture previously existed where employees ensured that they had taken the full annual sick leave entitlement before it ran out. Many workers believed sick leave was a right and not a benefit, which indeed it was.
There was no legal obligation to provide a medical certificate as proof of actual sickness. Today a company can require medical proof of sickness after a three day absence and sick leave can be carried over to the following year.
In organisations that offer employees unlimited paid sick leave the concern that the lack of restrictions will lead to increased leave and abuse of trust have proved unfounded with benefits of reduced administration, increased trust and loyalty far outweighing the potential risks.
If unlimited sick leave is too big a step for you, simple morale-boosters like staff breakfasts at which the boss cooks, social days involving staff and families, days out, gym memberships, work from home days can also be effective ways of increasing loyalty and opening up lines of communication between the employee and employer.
The result can be a relaxed, supportive working environment where employees are able to cope with the stress and demands of their jobs.
Many companies who have championed this "work life balance" find that levels of absence reduce as a result. Productivity increases, stress levels decline and recruitment and training costs reduce as retention rates increase.
Surveys have shown that companies with good morale and strong culture have 20% less absenteeism.
Companies may claim that sick leave has increased as a result of the new Holidays legislation, but have they asked their employees why they have taken sick leave. The answer could be illuminating. Rather than complaining about sick leave, initiatives to increase loyalty, motivation and work life balance may be more productive and rewarding
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