Absenteeism costs in most organizations are greater than short term disability or long term disability costs, yet Morneau Shepell’s 2014 Compensations & Trends study shows that 64% of employers don’t monitor incidental absences and therefore have no clear understanding of these costs.

Paula Allen, VP of Research and Integrative Solutions, Morneau Shepell, also said “absenteeism goes up exponentially based on the size of the organization because at larger organizations it is easier to hide.” Of those organizations that more closely manage absences, many require doctors notes after a specified number of days absent. However, Allen says that in a recent Morneau study, 52% of employees say illness was not the main reason for their last absence. Reasons for absence included dealing with family issues, looking for another job, issues with co-workers, etc. Organizations with higher levels of workplace stress and lower support for mental illness are more likely to see higher incidents of employees taking time off for non-medical reasons. And, requiring a doctor’s note to manage absences does not seem to be the answer. Only 5% of physicians surveyed indicated that medical notes have a value in reducing unnecessary absences. Physicians commented that “We can’t even vouch for their illness since we often see them once they’ve recovered,” and “Truancy control is not a medical service.”

In addition to absenteeism, Allen cited presenteeism as an equally serious issue. Employees actually see this as a bigger issue than employers with 53% rating presenteeism as a serious issue compared to 32% of employers. She said that 8 out of 10 employees report experience with presenteeisim and the most common reasons noted were physical sickness (47%), stress (40%), issues with work/co-workers/managers (22%) and depression (5%).

Despite these grim statistics, Allen said that organizations who implement effective integrated disability management and Employee & Family Assistance Programs (EFAP) can expect to see a 15% – 40% reduction in disability benefits costs, and an average reduction in duration of disability days of 31%. Integration with EFAP is a key component as one of the biggest issues is fear of return to work so counselling can help employees deal with those fears.

Paula helped set the stage for Jaimie Farrell, Director Benefits and Wealth Plans, Rogers Communications, who showcased his company’s award winning strategies for absence and disability management. Rogers won the work place award for absence management from Benefits Canada magazine in 2014.

Farrell said the company’s top priority is to have its 27,000 employees focused on their jobs, which means ensuring all programs including benefits programs are easy to use, functioning and not distracting employees from their jobs. When Rogers started on this journey, the company had inconsistent adjudication of employee absence, little or no case management, and no cost control or metrics. The solution included structured third party management through Morneau Shepell commencing on the 4th day of absence and a consistent approach to case management. The results were an increase in triage style interventions and stability in days absent per case despite an increase in mental health claims.

While Rogers saw improvements with these changes, they began to notice what they call the “Day 3 frequent absence problem.” These were employees who attempted to fly under the radar by never being absent for more than three days in a row but were frequently absent. One employee was off 82 days in one year but never more than three days in a row. So, Rodgers implemented an Incidental Absence Program to help combat these frequent abusers.

Rogers also implemented more rigorous occupational case management, also through Morneau Shepell resulting in a significant reduction in the duration of claims and a near maximum board rebate. A few of the other initiatives Rogers undertook were integration of short and long term disability management, implementing Mental Health Standards, and engaging Medaca, a third party mental health care provider, which resulted in a 118% return on investment.

Some of the challenges Rogers faced were slow speed of change, its corporate structure and analysis paralysis. Successes were more support for employees and the business, and celebrating wins. So, what does the future hold for Rogers? Farrell says plans include a shift from engagement to enablement, focus on integration and optimization, metric driven initiatives and culture change. Farrell indicated they are happy with the progress they have made but they are far from done.

– Kenneth MacDonald