There is no doubt that the public sector will have to do a lot more with a lot less going forward. Employees in this sector understand that significant changes are required and there is going to be a period of transformation - and many are trying to offer suggestions and identify areas where cuts can be made in an effort to keep any possible redundancies to a minimum. This was highlighted in a recent Government campaign which invited the public to make suggestions where cuts could be made across Whitehall. Chancellor George Osborne announced this week that over 100,000 ideas have been provided, many of which have come from public sector workers identifying efficiency savings in their own day to day jobs.
Whilst the overall arching theme of ‘cuts’ rings in the ears of the public sector, decisions are yet to be made for definite - reviews are still underway and consultations are in process. Although there is pressure for decisions to be made, it is imperative that the public sector does not start to action quick wins in order to make savings, and is certain that anything they alter or implement will be the best for the long term future of the sector rather than a short-term solution.
Public sector sickness absence features regularly in the media spotlight, with statistics showing that public sector absence is significantly higher than that of its private sector counterparts. It would be foolish for the public sector to ignore this area when making decisions on areas for improvement to make savings. However, short-term gains such as reducing the sick leave entitlement or cutting back on services which support employee health are not necessarily the answer and could in fact do more harm than good.
When it comes to reducing sick pay, this is a no win situation and there is evidence of just this in the private sector. There are many private sector organisations who, similar to some public sector organisations, offer generous sick leave entitlement, and there are some who do not. Generous sick pay entitlements can often be exploited by employees, on the flip side, those who offer minimal pay policies can find that employees do not feel like they should attend. If you review the absence rates of both types of policy they are not dissimilar, which signals that it is not the amount of sick pay an individual receives which dictates absence, but in fact how absence is managed within that organisation.
In the public sector, absence is often poorly recorded, reported and managed. Half days are frequently unrecorded, special leave entitlement is detailed separately and management information is sometimes out of date. In addition, absence policies are often lengthy and difficult to apply. In order for managers to proactively manage attendance and absence, they need to access to real-time data which details both medical and non-medical absence. To support this absence policies also need to be robust, clear and easy to follow and administer. Companies that apply these methods will find that their absence rates are significantly lower than those who don't. In turn, this delivers considerable cost savings and a clearer understanding of the absence situation across the organisation. At a time when reduced headcount is likely, be it through redundancies or natural attrition, the public sector cannot afford to have high levels of absence which would increase pressure on those employees who are in the workplace. Having real time knowledge of the absence situation can help ensure vital services are still delivered.
Another danger area is cutting back on services which support employee health. These types are services are not only valuable when managing organisational absence and supporting employees to return to productive work sooner but they also help improve employee engagement. By investing in health and wellbeing at a time when many HR professionals will have to deliver bad news, showing that the health of the workforce is still a priority can generate a positive news story amongst employees and offer a balance against the bad. If however cutting back is a possibility, then be aware of the short term problems that could be created as a result -union involvement and disputes may occur but more importantly it could actually ending up costing the sector more in the long-term. With changes to public sector pensions, pay freezes and potential redundancies likely, removing useful and well thought of services could add fuel to an already simmering fire.
Aaron Ross is chief executive of absence management provider, FirstCare.
