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MANAGING INCAPACITY

MANAGING INCAPACITY. FOCUSING ON: Absenteeism survey 2009 Statistics Legislative requirements relating to absences on sick leave Case management Case studies. ABSENTEEISM SURVEY FEEDBACK MARCH 2009 (KWA ZULU NATAL). Absenteeism Survey Feedback. Responses Geographically: Pmb: 14.5%

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MANAGING INCAPACITY

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  1. MANAGING INCAPACITY FOCUSING ON: • Absenteeism survey 2009 • Statistics • Legislative requirements relating to absences on sick leave • Case management • Case studies

  2. ABSENTEEISM SURVEY FEEDBACKMARCH 2009(KWA ZULU NATAL)

  3. Absenteeism Survey Feedback Responses Geographically: Pmb: 14.5% Richards Bay: 5.3% Durban: 75% Other: 5.2%

  4. Absenteeism Survey Feedback Q: When you monitor unscheduled absenteeism do you distinguish among different reasons for unscheduled absence? Yes: 64% No: 36%

  5. Absenteeism Survey Feedback Types of unscheduled absences: • Personal Illness – 59.1% • Family Issues – 20.3% • Personal Needs – 8.2% • Stress – 3.8% • Entitlement Mentality – 3.8% • Other – 4.8%

  6. Absenteeism Survey Feedback Average number of days lost due to absenteeism per month – expressed as a percentage of employee days available: _ Absenteeism rate - employers with 200 or less employees in KZN - 3.28% • Absenteeism rate for employers with more than 201 employees in KZN - 4.5% • Statistics on sick leave only were not available. • Approx 3.98% represents sick leave allocations being taken • Sick leave is lost in Annual/Unpaid leave. Unable to effectively and fairly manage incapacity)

  7. Absenteeism Survey Feedback Q: Does your absenteeism rate show an increasing, declining or stable trend year on year from 1999? Increasing – 37% Declining – 14% Stable – 45% Don’t Know – 4%

  8. Absenteeism Survey Feedback Q :What approach does your organisation take to manage unscheduled absenteeism? • Discipline – 27% (This should not be used for sick leave) • Reward – 0% • Combination of 1 and 2 – 30% • Motivational – 36% • All of the above – 2% • No approach – 5%

  9. Absenteeism Survey Feedback Q: Do you monitor the direct cost of absenteeism at the workplace? Yes -figures submitted to illustrate the cost: 10.5% Yes –Figures not submitted to illustrate cost: 8% No:81.5%

  10. SOME REASONS FOR NON PERFORMANCE/SICK LEAVE STATISTICS FROM EAP ORGANISATION WITH +- 6000 EMPLOYEES

  11. STRESS STATISTICS2001 - 2008

  12. ALCOHOL STATISTICS2001 - 2008

  13. FINANCIAL STATISTICS2001 - 2008

  14. MEDICAL • HYPERTENSION • DIABETES • HIV/AIDS • TB • EPILEPSY etcetera

  15. ESTIMATED HIV PREVALENCE [%]ANTENATAL SURVEY 2005/2006/2007 The HIV sample was expanded in 2006 from16 000 to 36 000 women attending antenatal clinics across all nine provinces.

  16. ESTIMATED HIV PREVALENCE [%]ANTENATAL SURVEY 2005/2006/2007

  17. MANAGING INCAPACITY • HOLISTIC APPROACH • Health-HIV/AIDS,TB,Diabetes etcetera • Substance abuse • Poor Performance • Psycho-social problems

  18. THE PROCESS How companies traditionally manage incapacity Medically driven - HIV EAP - Prisoner’s friend Self-Referral No Formal Referrals No measurement - statistics No management (each entity has a vital role to play) Insisting onMedical Certs/Drs Discipline Not integrated approach –Line/Health/HR Results – case management -sick leave 40 % “Taking what is due!’ • Training – Line/HR/Health • Staff - Awareness of Legislations/procedures • Individual case Management/Person job spec/ • Formal Referral • Measurement of Costs • Identify trends • Early identification • Management Reports 30 % Psycho-Social Post Trauma stress Substance Abuse Social Problems (gender violence, gambling, drugs) 30 % Medical Back Pain HIV AIDS TB Epilepsy Diabetes Hypertension Non-Compliance with medication • RESULTS • Reduction in Costs of Absenteeism • Assistance with social problems • Increase in Productivity • Reduction in overtime • Terminations for Incapacity where necessary

  19. Reasons for organisations being unable to effectively manage/reduce their sick leave It starts with management identifying non performance, sick leave (intermittent/lengthy absences/behavioural problems (excluding self referrals) Managers lack expertise, knowledge of legislations,communication Educate employees on the various interventions through an effective communication process (including labour requirements and explaining incapacity/discipline eg: being sick/not phoning in) Engage with Unions – early identification of patterns of sick leave - rehabilitative vs big stick (nothing to do with entitlement) No Incapacity Strategy in place No effective information system to monitor/measure/manage Statistics do not include unpaid sick leave/annual Lack of management/HR process and participation (Key Performance area for Line/HR)

  20. Reasons for organisations being unable to effectively manage/reduce their sick leave • Lack of expertise – case management (Labour relations/process) • Integrated approach/Health/EAP/Line/HR expertise and advice – each entity working on its own will result in frustration and limited results • Cases/employees go backwards and forwards between line/EAP/ER – uncertainty on where and with who the process ends – (Rehabilitation/termination on the grounds of incapacity (no fault/fault) etcetera

  21. LABOUR LEGISLATION

  22. LRA Requirements Dealing with Incapacity/sick leave requires that you: If an employee is temporarily unable to work the act requires that the employer investigate the extent of the ill-health or injury via PERSON-JOB SPEC. (This can also be used to determine ‘graded return to work’, IOD’s, pre-employment medicals and ill health retirement) if the employee is likely to be off work for an unreasonably long period, you should investigate all possible alternatives short of dismissal consider whether the employee is capable of performing the work required and if the employee is not, then to what extent

  23. EMPLOYMENT EQUITY ACT It is not unfair discrimination - to distinguish, exclude or prefer any person on the basis of the inherent requirements of a job. Testing of an employee for any medical reason is prohibited, unless - It is justifiable to do so in the light of medical facts, employment conditions etcetera or the inherent requirements of the job.

  24. PERSON JOB SPECIFICATION

  25. ConfidentialityHuman Rights, Law & Ethics Unit - SAMA “ Where a medical practitioner in the employ of the employer contacts the medical practitioner of an employee, such medical practitioner is also bound to confidentiality and may not disclose without the employee’s consent. However such a medical practitioner may confirm the duration and extent of the illness/incapacity with the employee’s medical practitioner and relay that confirmation to the employer”.

  26. SICK LEAVEBCEAAct‘THE EMPLOYER DOES NOT HAVE TO WAIT UNTIL THE EMPLOYEE HAS EXHAUSTED HIS/HER SICK LEAVE BEFORE COMMENCING WITH COUNSELLING’

  27. BCOE - Section 23 (1) & (2) 1. 5 day worker 30 days per 3 years 2. 6 day worker 36 days per 3 years 3. During first six months 1 day per 26 worked Proof of incapacity An employer is not required to pay an employee if the employeehas been absent from work for more than two consecutive days or on more than two occasions during an 8 week period On request by the employer, must produce a medical certificate covering the duration of the employee’s absence

  28. MEASURING AND MONITORING INCAPACITY

  29. ABSENTEEISM RATES AND COSTS (DETAIL) For Employees Absent in the Month: 01/09/2001 – 01/10/2001 Company Name: HR TorQue Possible Cost Days Sick Paid Unpaid Cost Paid Unpaid Name Cycle Rate Sick Cycle Days Days Days Days Total John 784 1.02% 10/03/2001 – 2004 8.00 0.00 1,195.79 0.00 1,195.79 Dave 777 0.64% 21/09/2000 – 2003 5.00 0.00 290.02 0.00 290.02 Susan 777 0.19% 21/09/2000 – 2003 1.50 0.00 87.01 0.00 89.01 Sam 784 0.51% 06/09/2001 – 2004 1.00 3.00 65.78 197.35 263.13 James 784 0.38% 06/04/2001 – 2004 1.00 2.00 112.88 225.75 338.63 Cathy 784 0.13% 01/09/2001 – 2004 1.00 0.00 140.08 0.00 140.08 TOTAL: 17.50 5.00 1,891.56 423.10 2,405.68

  30. FORMAL REFERRAL

  31. Signatures: Manager/Supervisor ____________________ Representative ____________________ I irrevocably authorise and request any medical practitioner or other professional who now or hereafter may be in possession of any information concerning my health (physical or psychological) to disclose such information to the Representative who facilitated the formal referral to report on or investigate any aspect of my health (medical or psychological). Date: ____________________ Employee: _________________________ Witnessed by: Date: __________ Name: ______________ Signature: _______________ Date: __________ Name: ______________ Signature: _______________

  32. CASE STUDIESEFFECTIVE HOLISTIC MANAGEMENTLINE/EAP/HEALTH/ER

  33. DEFINITIONS – CLAIMS FOR MEDICAL BOARDING If the definition of OWN JOB is applied: The claim may be valid/invalid in terms of the claimant’s inability to perform his/her own job. 2. If the definition of OWN OCCUPATION is applied: Under this definition, the occupation of the employee is applied – for example you may be an existing financial planner but your occupation is as an accountant.

  34. DEFINITIONS – CLAIMS FOR MEDICAL BOARDING 3. If the definition of OWN AND ANY OCCUPATION is applied: Under this definition, it would be recommended that an occupational therapy report be requested to investigate residual skills. Although the indications may be that the person may be incapable of performing the position, he/she may be able to perform an alternative occupation

  35. Case Study (1) • Senior Management member presenting with Post Trauma Stress/Bi-Polar • 2 Psychiatrist reports recommending boarding • Member referred to Occupational Therapist who agreed with boarding under definitions ‘Occupation’ and ‘own job’ and recommended that definition ‘alternative position’ be pursued • Employee refused to look at ‘alternative position’ • Services terminated on the grounds on ‘incapacity’ - no benefits/boarding

  36. Case Study (2) • Employee booked off following a car accident during 2008. • Consultation held in August 2008, and a person job spec completed and sent to the specialist. • Assessment was done via an occupational therapist - report received Oct 2008. • General Practitioner continued to book the person off on sick leave, however, the occupational therapist advised that the employee was ‘fit for duty’. She returned to work.

  37. COST SAVINGS

  38. Costs and Savingsthrough effective monitoring, management, case management and integration of EAP/Line/ER • Large Motor Manufacturing Company - Sick Leave cost of R10 million per year (reduced by 63,7%) in one year • Bank - Sick Leave reduced by 55% in one year

  39. Incapacity policies-Human Rights, Law & Ethics Unit - SAMA SAMA urges employers to refine and re-define their sick leave/ absence policies. - when entering into the employment relationship, the employee should sign an employment contract that refers to all conditions of service that includes all policies; - reference should be made to relevant legislative provisions - nothing prevents an employer from determining in his/her sick leave policy that continued absences would prompt investigation; - the employee may be requested to provide written and informed consent so that the medical practitioner may be contacted to explain the impact of the illness/incapacity on the work of the employee

  40. Incapacity policies cont...Human Rights, Law & Ethics Unit - SAMA - the policy may also stipulate that the medical may confirm the duration and extent of the incapacity; - they urge employers to inform employees that they can be lawfully dismissed for incapacity for continued and/or prolonged absences from work.

  41. QUESTIONS

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