As professional and personal demands increasingly, and often
unpredictably, compete for workers´ time, more employers are finding that
flexibility offers a way to help their employees - and their businesses -
successfully manage the strain, according to the 2001 CCH Unscheduled
Absence Survey by CCH INCORPORATED (CCH), a leading provider of human resources
and employment law information (http://hr.cch.com).
With employers reporting that over two-thirds of unscheduled
absences are due to reasons other than personal illness, and with costs for
absences mounting, more organizations report they are turning to work-life
programs to help keep employees on the job, according to the most recent
survey, conducted for CCH by Harris Interactivesm.
For the 11th annual CCH Unscheduled Absence Survey,
human resource professionals from U.S. companies of all sizes and across major
industries were surveyed. Results of the survey appear in the October 24, 2001,
issue of CCH Human Resources Management Ideas & Trends, a newsletter
for HR professionals.
"Employees have readily accepted that today´s work
responsibilities go beyond what takes place between 9 and 5 at the office. No
one even thinks twice now when they log on from home on Saturday to check
e-mail messages or make business phone calls from the beach," said Nancy Kaylor,
a workplace analyst for CCH.
"But, there´s a trade-off, and it´s one employers
appear willing to make. Companies are helping employees achieve a better
balance in their professional and personal lives by introducing flexibility
into the workplace with a broad array work-life and absence control
programs," Kaylor added.
While it´s good news that employers are now recognizing the
importance of flexibility, the next challenge is making sure employers have the
right programs in place, according to CCH.
"How successful these initiatives are depends on the
employer´s ability to align programs with employees´ needs and provide the
required program support," said Kaylor.
"Employers can´t plan for every event that may affect
the workplace but they can increase their odds for success by making sure the
programs are flexible enough to address the real reasons why workers aren´t at
work," she noted.
For example, Kaylor asks employers, what if an employee´s
spouse is called up for military duty?
"This may create child care issues at home. Is your
company prepared for this kind of immediate, unpredictable event? Do you allow
flexible scheduling or provide child care referral services that can help the
employee - and your company´s productivity - stay on track during this
short-term need?"
The fact is, says Kaylor, while employers could not have
predicted this immediate need, they should be aware that for parents, any
additional demand on either personal or professional time can upset the
delicate work-life balance.
"Employers with programs in already in place that
acknowledge the realties working parents face today are able to deal with
situations such as this with far less disruption to the workplace and
productivity than those who cling to traditional work models and sick leave
policies," said Kaylor.
Continuing the trend the survey has observed in recent
years, calling in "sick" often has less to do with a worker´s own
physical health than other reasons, according to the 2001 CCH
Unscheduled Absence Survey.
Although Personal Illness was the single most common
reason cited for unscheduled absences, at 32 percent, reasons other than
illness accounted for 68 percent of the no-shows.
Among the other reasons for absences, Family Issues
tops the list at 21 percent, followed by Stress, which accounts for 19
percent. Respondents reported that 11 percent of unscheduled absences are a
result of employees´ Personal Needs, with Entitlement Mentality
accounting for an additional 9 percent of the absences. Eight percent of
employees were absent for Other reasons, according to the survey,
including such things as transportation problems and bad weather.
With the unscheduled absenteeism rate continuing to hover at
about
2 percent, and the number of no-shows for reasons other than
personal illness climbing, employers signaled that they are willing to try new
ways to address a problem that is becoming increasingly expensive.
The 2001 CCH Unscheduled Absence Survey found a
slight rise in unscheduled absences from a rate of 2.1 percent in 2000 to 2.2
percent in 2001, while the average per-employee cost for unscheduled absences
rose from $610 in 2000 to $755 in 2001. Despite the fact that this costly issue
continues to trouble employers, these results can actually provide some good
news for employers and HR professionals.
"Employers are keenly aware that the barriers to
attendance arise from multiple issues facing today´s workforce," Kaylor
said. "This year´s survey underscores the ability and willingness of
organizations to tackle the problem with new tools and innovative
programs."
The 2001 CCH Unscheduled Absence Survey found that
employers put an increased number of work-life and absence control programs in
place last year. And, nearly half of the employers who predict that absenteeism
will decline at their companies believe the decrease will be the result of new
policies and programs.
Employers reported using 6.7 work-life programs, up from an
average of 3.4 programs in the preceding year. The survey found that HR
professionals believe that employers can most successfully help employees
balance work-life demands by reconsidering when and where work is done.
On a scale of one to five (with five being most effective),
the work-life programs ranked highest by HR professionals for effectiveness in
reducing unplanned absences were Alternative Work Arrangements (also
known as Flexible Scheduling) (3.6), Telecommuting (3.6), Compressed
Work Week (3.5) and Leave for School Functions (3.4).
Other effective programs cited included Satellite
Workplaces and On-site Child Care tied at 3.2, and Employee
Assistance Programs and On-site Health Services tied at 3.1.
Rounding out the list of top-10 programs, employers gave Job Sharing and
Wellness Programs each an effectiveness rating of 3.0
As to what organizations actually put into practice, a
majority of the programs identified as most effective also had the highest
rates of use. Many of these programs experienced a notable increase in use in
the past year. Alternative Work Arrangements, one of the highest rated
programs, also was the most highly used, with 63 percent of companies reporting
they offer such a program.
A majority of employers (58 percent) also reported using Leave
for School Functions, representing a notable increase from 2000 when only
24 percent of respondents offered such a program. Employee Assistance
Programs were used by 57 percent of respondents and Wellness Programs
by 50 percent. Forty-two percent of the respondents reported offering Compressed
Work Week and Telecommuting programs, representing big increases
from 2000, when 28 percent and 20 percent of companies reported using these
programs, respectively. Job Sharing was offered by 33 percent of
respondents, up from 25 percent in 2000.
|
Work-life
Program |
Effectiveness Rating |
Percent Use |
|
Alternative
Work Arrangements |
3.6 |
63% |
|
Telecommuting |
3.6 |
42% |
|
Compressed
Work Week |
3.5 |
42% |
|
Leave for
School Functions |
3.4 |
58% |
|
Satellite
Workplaces |
3.2 |
31% |
|
On-site
Child Care |
3.2 |
26% |
|
Employee
Assistance |
3.1 |
57% |
|
On-site
Health Services |
3.1 |
31% |
|
Job
Sharing |
3.0 |
33% |
|
Wellness
Programs |
3.0 |
50% |
"The increased program menu signals a clear
understanding of the seriousness of this costly problem," said Kaylor.
"However, employers will find that launching new programs is a waste of
precious budget dollars if those programs fail to meet the special and specific
demands on their workers´ time."
To be effective in reducing employee no-shows, employers
need first to identify and understand both immediate and long-term
employee needs.
With this year´s survey indicating that employee stress accounts
for nearly one in five absences, employers may want to take a close look at the
underlying causes. HR can do something as formal as an employee survey or focus
groups, or hold informal drop-in sessions. If an organization offers an
Employee Assistance Program or other resources that workers can turn to, it is
important to provide frequent reminders that these services are available.
"Equally important," said Kaylor, "is to
consider the long-term and emerging needs of your workforce- such as those based
on changing demographics."
"Baby boomers have a significant influence on the
workplace and the median age of the labor force is rising. Smart employers will
recognize and address the different needs of this growing population of aging
workers," she said. "Childcare programs are likely to become less
attractive to this group, while elder care programs will take on new value as
these employees turn to take care of their parents. Other programs such as
wellness programs and alternative work arrangements also are likely to have
added appeal."
Organizations with "Very Good" morale were more
likely than those with "Poor" morale to use some of the more
effective work-life programs, including Alternative Work Arrangements, Telecommuting
and Compressed Work Week. Companies with "Very Good"
morale also reported lower absenteeism rates (2.0) than those with
"Poor" morale (2.4). Employers who experienced a decrease in
unscheduled absences in the past year cited improvements in the overall work environment
and employee morale as the most influential factors.
Employers also are increasingly looking to absence control
programs to help them reduce unscheduled absences. The 2001 CCH Unscheduled
Absence Survey found that all absence control programs reported by
employers experienced an increase in use during the study period. On average,
companies indicated using 5.3 absence control programs, up from the 2.7 average
reported last year.
The most effective absence control programs provide
employees more control over their time, according to the 2001 CCH
Unscheduled Absence Survey.
HR professionals continue to see Paid Leave Banks (also
known as Paid Time Off) as the most effective absence control program, with an effectiveness
rating of 3.6. Paid Leave Banks provide employees with a bank of hours
to be used for various purposes instead of traditional separate accounts for
sick, vacation and personal time.
Under such programs, employees have control over how they use
their days off and, working with their manager, can plan ahead to meet upcoming
personal obligations or needs.
"These programs are particularly effective because they
encourage employees to schedule all but the most unforeseeable absences.
Traditional sick-leave policies, on the other hand, can actually have the
unintended effect of encouraging no-shows, as employees may be tempted to call
in ´sick´ at the last minute for a personal appointment they knew about well in
advance," said Kaylor.
Employers found Disciplinary Action to be the next
most effective program, (3.4), with Buy Back and Bonus programs
close behind (both at 3.3). Under a Buy Back program employees are
compensated for the allotted time off that they do not use.
Employers gave the Yearly Review and Verification
of Illness processes effectiveness ratings of 3.0. No-fault Systems
received an effectiveness rating of 2.9, while Personal Recognition, at
2.5, was seen as the least effective absence control program. No-fault
Systems limit the number of unscheduled absences allowed, regardless of
circumstances, and take specific disciplinary actions if that number is
exceeded.
Although Paid Leave Banks are perceived by HR
professionals as the most effective absence control program, they are not the most
widely used. Fifty-eight percent of survey respondents reported having such a
program.
In terms of absence control, it appears that most employers
are still trying to combat the problem of unplanned absences using tools they
already have in place, such as a routine disciplinary action or the yearly
review process.
Disciplinary Action ranks as the most-used absence control program by
employers, with 93 percent of the survey respondents reporting use. Eighty-one
percent use the Yearly Review process to deal with absenteeism, with 71
percent looking to Verification of Illness to help curb the problem. Personal
Recognition programs were used by 62 percent of reporting companies. Other
programs in place include No Fault (58 percent), Bonus (56
percent) and Buy Back (52 percent).
|
Absence
Control Program |
Effectiveness Rating |
Percent Use |
|
Paid
Leave Bank |
3.6 |
58% |
|
Disciplinary
Action |
3.4 |
93% |
|
Buy Back |
3.3 |
52% |
|
Bonus |
3.3 |
56% |
|
Yearly
Review |
3.0 |
81% |
|
Verification
of Illness |
3.0 |
71% |
|
No Fault |
2.9 |
58% |
|
Personal
Recognition |
2.5 |
62% |
"While it´s encouraging to see that more employers are
looking to work-life and absence control programs to help employees deal with
work-life demands, it´s important to remember that more isn´t necessarily
better," cautioned Kaylor.
In addition to addressing employee and employer needs,
organizations also must be prepared to manage and maintain these programs. In
terms of support, employers must be sure that they have the information,
administration, management, communication tools and even technology
infrastructure in place to support programs.
"Sustaining a successful telecommuting program that
benefits both you and the employee, for example, means more than waving
good-bye to your employees as they go off to work at home," said Kaylor.
"There are important issues to examine, such as how
performance will be tracked and measured or how you can ensure that
telecommuting employees will not be disadvantaged in their career
progression," Kaylor noted.
An enclosed worksheet outlines steps companies can take to
reduce unscheduled absenteeism through effective work-life and absence control
programs.
The 2001 CCH Unscheduled Absence Survey, now in its
11th year, surveyed 234 HR executives in U.S. companies and organizations of
all sizes and across major industry segments in 42 states and the District of
Columbia. The 2001 survey reflects experiences of randomly polled organizations
with an estimated total of 1,371,261 employees. The CCH Human Resources
Management Ideas & Trends newsletter sponsored the survey, conducted by
Harris Interactivesm from May 31 through June 21, 2001.
Mean absence rates were calculated by dividing total
paid-unscheduled absence hours by total paid-productive hours. Scheduled
absences, such as vacation, legal holidays, jury duty, personal time and
bereavement leave were not included.
Copies of the CCH Human Resources Management Ideas &
Trends newsletter containing the complete 2001 CCH Unscheduled
Absence Survey are available by calling 800-449-9525, and asking for offer
number 06280001. Price is $29.95, plus tax, shipping and handling.
Harris Interactive (Nasdaq: HPOL) is a worldwide market
research and consulting firm, best known for The Harris Poll ´ and its
pioneering use of the Internet to conduct scientifically accurate market
research via its multimillion member online panel. The company has more than 45
years of experience in supplying clients with actionable knowledge across
multiple markets. Through its U.S. and Global Network offices, the company
conducts international research in multiple, localized languages. For more
information about Harris Interactive, visit www.harrisinteractive.com.
EOE M/F/D/V
CCH INCORPORATED, Riverwoods, Ill., is a leading provider of
employment law and human resource information, software and e-learning for HR
professionals. The CCH Human Resources Group is among the nation´s most
authoritative sources of employment law, including information on HR
management, benefits and compensation. Its services include Human Resources
Management, Employee Benefits Management and Shared LearningTM
interactive training. CCH is a wholly owned subsidiary of Wolters Kluwer North
America. The CCH Human Resources Group web site can be accessed at http://hr.cch.com.
2001 CCH
Unscheduled Absence Survey ©2001, CCH INCORPORATED. All Rights Reserved
Contact:
Leslie Bonacum -
847-267-7153, bonacuml[at]cch.com
Neil Allen - 847-267-2179, allenn[at]cch.com