BASIC Workplace Absences PPT 9.25.14

Managing Workplace Absences
Presented by: Joe Aitchison, SPHR
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Joe Aitchison, SPHR, BASIC Vice President.

Joe provides Business & HR client advisory
services and HR out-source services nationally. He
is a Human Resource professional with over twenty
five years business management and HR consulting
experience. He has worked with multi plant
International Tier I Automotive Manufacturing, retail,
food processing, health care, legal administration
and professional services.
Mr. Aitchison is recognized as a leader in human

resources and has obtained a lifetime certification
as a senior professional in human resource
management and has helped develop and oversees
BASICs FMLA outsource services.
Managing Workplace Absences
Absenteeismisanemployeesintentionalorhabitual
absencefromwork.Itcananddoescreateproblemsfor
manyemployers.Employersdoexpectworkersto
occasionallymisseachyear;however,whenitbecomes
habitualandthefrequencyofoccurrencesincrease,
absenteeismequatestodecreasedproductivityaffectingthe
companysfinances,moraleandotherfactors.Thisprogram
providessomeinsightfulinformationandbestpracticesto
helpemployersidentifyabsencereasonsandbestpractices
toreduceoccurrencesaffectingthebottomline.
Agenda
CausesofAbsenteeism
UnderstandtheTotalCostofAbsenteeism(Directand
Indirect)
HowtoCalculateAbsenteeismRates
AbsenceandtheLaw;RiskAwarenessintheDesignand
ImplementationofAbsenceControlStrategies
BestPracticeStrategiesforManagingAbsenteeism
The Executive View The Facts:
2013Statistics AllEmployers
Seniormanagementisconcernedabouttheindirectcostofabsence.
Thedirectcostforincidentalabsenceanddisability benefitsisequivalent
to4.9%ofpayroll.
Unplannedabsencesalsoresultinindirectcostsforreplacementlabor
andlostproductivity. Estimatedat4%ofPayroll roughlyequivalentto
thedirectcostsofincidentalabsenceanddisabilityprograms.
Thecostofreplacementlaborandlostproductivityisestimatedat4%
ofPayroll roughlyequivalenttothedirectcostsofincidental
absenceanddisabilityprograms.
Fortheaverageemployercombinedcostofabsenteeismis8.9%ofpayroll
Thetopprioritiesinabsencemanagementare:
reducingtheimpactofabsenceonoperationsand;
improvingFamilyMedicalLeaveAdministration.
OutsourcingofFMLAadministrationhasincreased significantlyoverthepastthree
years,from25percentin2010to38percentin2013.
Aboutathirdlargemidsizeemployershaveformalnonoccupational returntowork
programs.
Morethanhalfofemployerswithemployeeassistanceprogramsroutinelyrefer
employeestotheEAPwhentheygooutonaleaveofabsence,mostcommonlyfor
psychiatricleaves(48percent),butalsoformedicaldisabilities(31percent)andfor
FMLA.
90%ofemployersmanageandtracktheADAAAinteractiveaccommodation
processinhouse, thismaychangeasrequestsforADAAAleaveshowsignsof
followingthesametrendasrequestsforFMLA.Nearlyathirdoflargermidsize
employersand72%ofthoseinthewholesale/retailindustry areexperiencing
anincreaseinADAAArequests.
ScheduledPTO&VacationProgramcosts:
Vacationonlyplansaveraged6.2%ofPayroll
EmployerswithPTObanksreportedanaveragecostof7.5%
Payroll.
Whilehealthcareplansreceivemoreattention.costsassociated
withscheduledandunscheduledtimeoffcanequalorsurpassthe
totalmedicalspendanemployerfaces.
Management Priorities
Quantifyingthedirect&indirectcostsof
absence indirectcostsinclude:
Hiringtemporaryworkers
Overtimeforcurrentworkforce
Quality&performancestandardsnot
met
Payingovertime,
Costsofbusinessdisruption
replacementscheduling/losttime/
customerdissatisfaction delayed
customerresponseorcustomerdelivery
Revenueloss
Absenteeism
Whenanemployeeisscheduledtoworkfailstoreportondutyit
iscalledabsenteeism.
Itisdefinedasunscheduled/unauthorizedabsencefrom
work.
Meansabsenceofregularworkwithoutprior
permission,noticeorsanction
AveragenumbertakenbyUSWorkers=8.5
Absenteeism (Causes)
Natureofwork Underlyingmedicalcondition
Poorworkingconditions Managementstyle
Attitudeormotivationalproblem Poormanagementcontrols
Workenvironment Problemswithsupervisor
Poorhealth Problemswithcoworkers
Accidents Family,personalordomestic
Lackofjobsatisfaction problems
Poorworkingconditions Responsetorefusalfortime
Lackofclearstandards&policies
Outsideinterests offforsocial,domesticor
Transportationproblems familycrisis
Stress Absenceofregularleave
Ergonomicissues arrangements
Absenteeism
NationalDrug&AlcoholUseStatistics
1in3men&1in5womendrinkovertherecommendedlimit.
Nearlyonethirdofworkersundertheageof30havetakendrugsinthe
past12months.
Onethirdofworkershaveadmittedtogoingtoworkwithahangover,and
15%admittedtobeingdrunkatworkatleastonce.
Almost7millionAmericansabuseprescriptiondrugs.
DOLreports:
Druguseintheworkplacecostsemployers75100billiondollarsannually
inlosttime,accidents,healthcareandworkercompensationexpenses.
65%ofallaccidentsonthejobaredirectlyrelatedtoalcoholordruguse.
Substanceabusersareabsentfromwork3timesmoreoftenthantheirco
workersanduse16timesasmanyhealthcarebenefits.
Absenteeism
3thingsareneededforpeopletobehappyintheirwork
Theymustbefitforit,
Notdotoomuchofit;and
Musthaveasenseofsuccessinit
Impactofunhealthyworkplace
Trends in Absenteeism
Higherpay=lessabsenteeism
Longerservice=lessabsenteeism
Menlessabsentthanwomen
Singlesmoreabsentthanmarriedemployees
Absence Management Strategies
TopObjectives
1. Redesigningplanstoreducecost/absenceandmoreeffectivetrackingand
reportingforunscheduledandscheduled(uncontrollable)timeawayformwork
(continuousFMLALeave/STD&LTD/StateFamilyLeavePrograms/UnionLeave
allotments.
Employersarewantingtobecomemorevigilantintrackingabsence
Forcompliancereasons,
Becomemoreawareofthedirectandindirectcostsofabsenceandimpact
onbusinessoperations,
Desiretocapturebaselinedatatounderstandreasonsforabsences:
BettermetricssonemployeelostworkdaysandintermittentFML
absencesIfemployerscanunderstandproblemareas,theycan
buildthebusinesscaseforinterventionsandcreatesolutions.
GeneralNote: Impactisgreaterinsomeindustriesincluding24/7businessoperations,heavilyunionized
organizations,transportation,communications,utilityindustries,andlowwageearningretailindustries.
Absence Management Strategies
TopObjectives:
2.Measuring/reducingtheimpactofabsenceonbusinessoperationsandimproving
FMLAadministration
Establishauniformedabsencecalloffsystem
Uniformlytrackallabsenteeismcalloffs
Datacollectionby:
Department
Reason
Otherdemographicinformation
Federallawchangesin2008forFMLAandin2009forADAmadetrackingand
managingleavesmorecomplex.
Increasedthevisibilityoftheneedforcompliance.
Employersmustnowcomplywithmorethan300leavelawsforfederal,
stateandlocalgovernment.
Employersunderstandtheyarenotincomplianceinthemanagementof
FMLAinternallyandhaveorarelookingtooutsourcetothirdparty
administrators.
Absence Administration
Objective:Reportingandtrackingarecriticalfirststepsformanaging
absences,andemployersareincreasinglymovingtomorecentralizedand
consolidatedsystems.
Multicategoryreportingandtrackingismoreefficientandconsistent.
Helpsemployerstobettercapturedataandstatistic.
Absence Administration
ManagementAbsenceProgramPriorities
TheStatistics
Return to Work
IncreaseinEAPservicestoactivelyassistemployeessuffering
fromworkrelatedandnonworkrelatedinjuriesreturntowork.
Part-Time Employees, the ACA &
Absences
ACA willeffecthowemployersviewPart
TimeEmployers(thoseworkinglessthan
30hoursweekly).
Employerswillincreasetheuseof
parttimeemployeesasawayof
managingtheimpactoftheACA:
managingabsencesamongthis
growingpartoftheworkforcewill
becomeincreasingmore
important.
timeoffbenefitswillbeusedas
anattractionandretentiontool,
willincreasecost.
Note: Benefit offerings vary
depending on geographic regions
Vacation or PTO
EmployerscontinuetoreplacevacationonlybenefitswithPaidTimeOff(PTO)
planstoprovidemoreflexibilityforemployeesfortimeoffandtocontrol
unscheduledincidentalabsences.Combiningvacation,sickandpersonaltime
intoasinglePTOallowance.
Paidvacationisanessentialpartoftheformulaforemployeestoachievea
worklifebalance.
Vacationconsistentlyranksamongthemosthighlyvaluedbenefits,
especiallyforyoungeremployees.
Studiesshow:
USemployeesreceivefewerpaidvacationdaysthanemployeesinmost
otheradvancedeconomies.
OnaverageUSemployeesdonttakeallthevacationtowhichtheyare
entitled.
Vacation or PTO
PartTimeEmployees
EmployersareofferingproratedVacation/PTOaccrualsforparttimeemployeesworkingaset
scheduleofhours.
Full&PartTimeEmployees
Averagewaitingperiodforparttimeemployeesforvacation/PTOallowanceis4months.
Numberofdaysvariesbaseonyearsofservice.
Mostoftenwaitingperiodis4monthsonaverage.
PTO Allowance
Includes:
Vacation Allowance
Incidental Sick Days
Personal Days
Floating Holiday
Fixed Holidays (25%
of the time)
FMLA Administration
AnemployeeeligibleforFMLAleavecantaketheequivalentofupto12weeksofunpaidleave
duringa12monthperiod(26weeksformilitarycaregiverleave).
FMLALeaveisafederallyguaranteedbenefits.
Severalstatehaveexpandedthefederalrequirements,enrichingthebenefitsprovidedin
thosestates.
FMLALeaveisawellutilizedbenefit.AccordingtoDepartmentofLaborstatistics,
approximately16percentofeligibleemployeesusedFMLAin2011.
ADAAAAccommodations&ADAAA/FMLALeaveIncreasing.
CallCentersandSimilarServiceProviders/Department(claimintake,creditcardservices,
travelreservations).Absencesresultinanimmediatelossofproductivityandserious
consequencesforbusiness workcannotwaituntiltheemployeereturns.Thisleadstotight
attendanceandtardypoliciestokeepthecallqueueundercontrolwhichcancontributeto
FMLabuse.
Callcenters
Reportahigherfrequencyofabsences/leaves:
Higherfrequencyofintermittentleaves
Longerdurationofleave
Reasons:
Prolongedsitting,speaking,typingandpeopleinteractioncreatesapotentialfor
physicalandmentalstress
Employer Absence
Management Programs
TopPriority
ImprovingtheprocessforFMLAadministration
Administrativeandcompliancechallengesinclude:
trainingmanagersandHRstaffonhowtobettermanageemployeeabsencesand
leaves
managingandtrackingintermittentleaves andADAAAaccommodations,
evaluatingclinicalreasonsforleaves
questioningmedicalcertificationsandsecondorthirdopinions
OutsourcingSolution
ThenumberofemployerschoosingtooutsourceAbsenceTracking&FMLAadministration
increasedto38percentin2013,upfrom25percentin2010and14percentin2007.
Thelargeremployershavemovedthefastest;employerswith5,000ormoreemployees
57percentnowoutsourceFMLAadministration.
Addedbenefittooutsourcing employerleavemanagementculturechangesfromanin
houseFMLAtrackingculturetoaFMLAmanagementculturebyactivelyapplyingkey
policyprovisionsincludingeligibilityandrecertifications.
ThemajorityofFMLleavesarefortheemployeesownhealthcondition,whichwouldhave
aconcurrentshorttermdisabilityabsence. BASICONLINE.COM |(800)4441922 24
FMLA Administration
Lookinginto2014
OverthenextfewyearswillseeagreaterfocusonFMLAandADAAAprocess,
policydesignandclaimactivity.
Biggestchallengesforemployerswillcontinuetobecomplianceandimprovement
ofthedaytodayprocessingofFMLAleavesandtheADAAAinteractiveprocess.
Outcome moreemployerswillcentralizeadministrationofthesefunctionsand
consideroutsourcingsolutions.
FMLA Administration
TheStatistics
Trends in Absenteeism
Unionemployeesmoreabsent
Growthinorganizationincreasesabsenteeism
AbsenceFrequency
Monday>40%
Tuesday 20%
Friday 12%
Cost of Absenteeism
DecreasedProductivity
Extraworkload
Support,train&orientationofreplacementstaff
Increasedsupervision
AdministrativeCosts
Securingreplacements
Reassignremainingstaff
Controllingabsenteeism
FinancialCosts(contd.)
Thecostofabsenteeismisnotonlylimitedtotheemployeessalary
forthedayheisnotworking itisactuallythreetimesthatdays
salarytakingintoaccounthiddencostssuchasatemporary
replacementfortheabsentemployee
BusinessTimes
Cost of Absenteeism
Dealing With Absenteeism
Abroadrangingstrategyinvolving:
Correctidentificationoftheproblem
Applyingtherightprocesstoeachsituation
Problemsolving&elementsofperformancemanagement
Combinescorrectivemeasureswithavailabilityofassistanceto
remedyunderlyingcauses
Implementation&Prevention
Consultation
Auditcurrentsituation
Designstrategy
Developrecordkeeping/monitoringsystem
Feedbacktoemployees
Trainmanagers&employees
Developinformationsharingstrategy
Implement
Regularreview
CriticalSuccessFactors CriticalSuccessFactors
Topmanagementcommitment Clearabsenceprocedures
Earlydetection&intervention Rigorousmonitoring
bylinemanagers Usingtriggerpointsfor
Goodcommunication& action
problemsolvingskills Definedroles&
Reliabledata accountabilities
Creatingahealthyworking Effectiveprocesses
environment Optionsforincentives
Withlongtermabsences: Preventativemeasures
ensuringearlyreturn
Step1:Collectaccuratedata
Rate&formsofabsenteeism
Reason(s)forCalloff typesofillnesses&frequency
Ergonomicsassessment
Direct&indirectcosts managersrole
Factorsaffectingjobsatisfaction
Identify&eliminatestressors
Step2: Instituteamonitoringsystem
Supervisordiscussionwithemployeesuponreturntowork
Whocompletedworkassignment duringabsences
Discussworkissues&concernsuponreturn
SupervisortoconductSympatheticAbsenceManagement
Interviewswithemployees
Step3:Developclearandappropriatepolicies&procedures
Absenteeism&leavepolicy
DistinguishAWOL,genuineillness,disability&voluntary
absenteeism
Attendanceimprovementprocedure
Step4:Awareness
Publicizecompanypolicy&procedures
Informemployeesofleaverights&responsibilities
Step5:Reviewabsentcalloffdepartmentreportsand
AbsenteeismLogs
Uppermanagementtoreviewabsenteeism
Establishtargetrate
MonitorDepartments manager/supervisorto
absenteeismgoal
Absenteeism Improvement
Strategy
ManagementResponsibility
Auditcurrentsituation
Designstrategy
Developrecordkeeping/monitoringsystem
Feedbacktoemployees
Establishtrainingprogramformanagers,supervisors&
employees
Developinformationsharingstrategy
Implement
Regularreview
Strategy
Criticalsuccessfactors
Absencealways takenasgenuine
Earlydetection&interventionbylinemanagers
Manager/Supervisor goodcommunication&problem
solvingskills
Reliabledata
Creatingahealthyworkingenvironment
Withexcessiveabsences disciplinaryaction(including
termination)
Zerotoleranceforabusers
Strategy
EmployeesshouldKnow
Numbertoreportunscheduledabsence/tardy/leaveearly
Whomaintainsabsencerecords records,keepsstatistics?
Whendoesdisciplinarystart?
Haveaclearunderstandingofcalloff&absencepolicy
Consistencyinpracticeinallareasofthecompany
EmployeesResponsibility InformallEmployees
Regularattendanceexpected
Reportingunscheduledsickorothertimeawayfromworkasperprocedure
Ensuringaspeedyreturntowork
NottoreporttoworkwhencertifiedsickbyHCP
Informingmanagerofanyworkrestrictionsimpactinguponperformanceon
returntowork provideworkrestrictionspreparedbyHCP
Employers Outsourcing
Absenteeism Employee Call Offs
ManagementOutsourceOutcomes
Uniformsystemforallemployeestocallofworkunscheduled
EstablishesAccurateAbsenteeismData
Directcaptureofallplannedandunplannedabsences
RealtimeAbsenceNotification
FullAbsenceCapture
ComprehensiveReportbyBusinessUnit
CreatesEEabsencerecordsfordisciplinaryaction&UIadjudication
ImpactonEmployees
Asingle24/7callinsystemforallemployeeabsences
Immediatenotificationtoallwhoneedtoknowaboutanabsence
CreatesSentinelEffectforallemployeesonemployersbehalf
AutomatedCallOffSystems
EmployeeCallOffProcessFlow
Employeehasanunscheduledabsence
EmployeecallsoffbytelephoneIVRattendancemanagement
number
EmployeeisidentifiedthrutheirPersonalIDCode(badge
number,etc.)
Followthecustomizedscriptansweringwithtouchtone
telephoneprompts
Providedconfirmationnumberforproofofcall
Absencenotificationpostedonemployerdashboard
Emailnoticesenttosupervisor
AutomatedCallOffSystems
Full INTEGRATION with Health, Safety &
Productivity Management Services
Wellness
STD Plans
Call
Center ADA
FMLA
Workers LTD Group

Comp. Health EAP
Questions
WereproudtoofferafullcirclesolutiontoyourHRneeds.BASICoffers
collaboration,flexibility,stability,security,qualityserviceandanexperienced
stafftomeetyourintegratedHR,FMLAandPayrollneeds.
ContactUs
HRsolutionsshouldbesimple.
KeepitBASIC.
800.444.1922
sales@basiconline.com
www.basiconline.com
BASICs Award Winning Services
Request a price quote or Learn more about

proposal for one or more BASICs Employer
of BASICs services. Compliance Services
FMLA ACA & ERISA Notices
FSA / HRA / HAS
Wrap SPDs and Plan
COBRA
Documents
Payroll
Absence Management HIPAA Privacy and Security
Labor Law Posters
Contact the Presenter
Joe Aitchison Vice President
Email: jaitchison@basiconline.com
Office: (269) 488- 6236
Cell: (616) 366-8789
Disclaimer
Thispresentationisdesignedtoprovideaccurateinformationin
regardtothesubjectmattercovered.Itisprovidedwiththe
understandingthatBASICisnotengagedinrenderinglegalor
otherprofessionalservices.Iflegaladviceorotherexpert
assistanceisrequired,theservicesofacompetentattorneyor
otherprofessionalpersonshouldbesought.Duetothenumerous
factualissueswhichariseinanyhumanresourceoremployment
question,eachspecificmattershouldbediscussedwithyour
attorney.

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BASIC Workplace Absences PPT 9.25.14

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Managing Workplace Absences

Presented by: Joe Aitchison, SPHR

Joe Aitchison, SPHR, BASIC Vice President.

Mr. Aitchison is recognized as a leader in human

Workers LTD Group

Request a price quote or Learn more about

Labor Law Posters

Joe Aitchison Vice President

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