subject: Occupational health management is paramount to managing costs [print this page] Occupational health management is paramount to managing costs
A recent survey produced by the Chartered Institute of Personnel and Development (CIPD) makes it is clear that occupational health managementwill have a vital part to play in helping public bodies to reduce their spending and manage the impact of these changes on the wellbeing of the workforce.
The report cites that occupational health management is the most effective system for managing long term absence. It also comes in the top three methods for managing short term sickness absence.
For employers based in the public sector where they have heightened pressure of managing dramatically reduced organisational costs it could be an essential tool in their armoury.
In line with the previous years research findings, the average level of absence remains highest in the public sector at 9.6 days per employee per year. The average cost of absence is 239 higher in the public sector and more than double the manufacturing sector average.
It would be easy to attribute these costs to more generous occupational sick pay schemes in the public sector. For instance, over two-thirds of public sector employers provide full pay for more than 20 weeks compared with just over a fifth in private sector services. The report also says that the public sector is less likely to use disciplinary procedures for unacceptable short-term absence than in the manufacturing sector.
But this would not be the full picture as the proportion of public sector employers using these procedures has increased compared with last year. This may be a reflection of reduced budgets and the pressure now being applied to the public sector to reduce costs.
Traditionally the public sector is far less likely to restrict sick pay than the private sector. They also adopt procedures designed to reduce sickness absence through promoting good health and flexibility.
The managers contributing to the report predict that the public sector is the most likely sector to reduce spending on occupational health. Lesley Tomlinson, Connaught Compliance's, Director of Occupational Health comments:
"This could have fundamental problems as the role of occupational health during the restructuring process plays a valuable part in ensuring a more positive outcome for both employee and employer."
The research showed that about half of organisations use employee absence records as part of the redundancy selection process. This has to be done appropriately and within the legal framework. According to nearly a quarter of employers the threat of redundancy has led to an increase in people coming to work ill in the last 12 months. Where organisations had made, or were intending to make redundancies, they were more likely to report an increase in mental health problems.
Ms Tomlinson continued:
"With all of the above problems being heightened when an organisation embarks on a change management process it would be unwise to neglect on investment in occupational health management by helping employees through the process you assist with maintaining employee engagement and productivity and also limit your exposure to potential risks."
There is considerable evidence to demonstrate that a proactive, business-focussed occupational health service can have a considerable impact on employee productivity and sickness absence management. This can lead to significant cost savings, with improvements to productivity and reduced absenteeism. Our sickness absence management reports are clear and unambiguous and provide an opinion on fitness to work, we do not sit on the fence'.
