Proactive Health &Absence Management

Northwest Contact Centres Project

19 October 2004

Agenda

The Issue of Absence

Current Practise

A New Paradigm

Case Study

Media Views

The Issue of Absence

It has a direct cost. The CBI estimate this at £1,3 million for every 1,000 employees.

It has a direct effect on customer service and productivity.

It affects the morale and general well being of employees ‘taking up the slack’.

Absence wastes valuable management time.

The Problem - Important Considerations

Percentile of Work Force

0%

25%

50%

75%

100%

20% 40% 60% 80% 100%

Cumulative Ill Health Cost

Source: David Cochrane 2001, Aon Public Sector, 2002

20% of Employees Drive 80% of Cost

Source: Mercer Human Resources, HSE, various studies

Two Key Diagnosis Groups

25%

50%

75%

100%

1 2 3 4 5 6 7 8 9 10 11 12

Time of Intervention in Weeks

Probability of Return to Work

Source: Dr Paul Roberts, MFOM

Early Intervention is Essential

01,0002,0003,0004,0005,0006,0007,000

2001 2002

Average Payout of £51,000

Companies Paid Damages

12x

Source: Occupational Health 1/2003

Increasing Litigation Risk

“Back”

“Stress”

Absence

Short term: Repeated genuine spells or malingering

Long term: Over 10 - 14 days

Methods of managing absence include:

– Ignoring it ‘The nature of the industry’– Overstaffing – Occupational Health (Case Management)– Management intervention

Common factor: absence rate remain high!

Current Process Flaws

Managers are not able to challenge ‘medical reasons’ for absence with credibility.

Managers can not provide medical assistance.

Insufficient tracking means that many patterns are not identified.

Most referrals to Occupational Health are too late or non-relevant.

6. Online Reports

Active Health Partners

Line Manager & HR

1. Report Absence

2. Medical Advice

3. Immediate Notification

Nurse Contact Centre

4. Follow up

Employee

5. Auto Trigger

Absence Management from ‘Day 1’

Mindful of occupational Mindful of occupational issuesissues

Is absence work related..?Is absence work related..?

Accident at work..?Accident at work..?

Trigger reports:•Consecutive days•Frequent Spells•Accident at Work•Litigation Risk

Active Health Partners

Line Manager & HR

Nurse Contact Centre

Employee

1.Referral OH/Case Mgt

Case Management

2. Client Notified

3. Employee Consent

4. GP Research

6.Rehab Report/Prog.

5. Further Information

Case Study – Logistics and Distribution company

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Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2003 2004

AHP Launch

2003: client SAP data 2004: client and Active Health Partners reconciled data

Absence rate 2003/2004

•Trail of 1,300 employees in 5 locations•Reduction in absence of 32% in 5 months•HR Director determined service is self-funding• Retrospective IT system shows manual error rate

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1 .0

2 .0

3 .0

4 .0

5 .0

6 .0

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Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2003 2004

AHP Launch

2003: client SAP data 2004: client and Active Health Partners reconciled data

Absence rate 2003/2004

Selected Media Coverage

Thank you……..