This month we review research suggesting that South West sickness rates were higher than the national average in 2007, and we explore the benefits of Performance Appraisals.
Annual absence survey
A recent survey indicates absence rates in private sector firms showed marginal improvements in 2007, but firms still believe ‘sickies’ are an ongoing problem in the workplace. High rates of long-term sickness also pose distinct challenges for businesses.
The annual CBI/AXA Absence Survey showed modest improvements in private sector absence rates in 2007 - falling to an average 5.8 days from 6.6 days in the previous year.
However, the South West made the top five worst performing regions, coming in fifth place out of twelve with an average of 7.2 days - 1.4 days above the national average.
Survey respondents claim around one in ten sick days are suspected sickies, used by staff to extend weekends, holidays, or to take time off for “special events”. Long term absence of 20 days or more account for approximately 31 per cent of total time lost in the private sector.
That paints a contrasting picture that poses distinct challenges for HR professionals. On one hand businesses need to put in place firm policies to ward off the casual sickie. On the other, they need to carefully handle the issues surrounding long-term sickness.
Susan Anderson, CBI Director of HR Policy, called for “a fresh, proactive approach” to managing long-term sickness. “Those with long-term illnesses need time to recover… But in many cases, like those involving stress or back pain, firms that keep in touch with employees and offer flexible working have been successful at reducing long-term absence levels.”. Susan also points out that a flexible, proactive outlook can genuinely aid an employee’s well-being and general outlook. A long-term illness can be an isolating experience, so an understanding, proactive and flexible approach is likely to help employees feel valued.
Arguably the first and foremost way to manage long-term care - and minimise sickies - is providing employees with transparent, fair but firm sickness policies. Setting out the rights and obligations of workers, and conducting consistent monitoring of sickness to measure the root causes, are effective methods of both deterring sickies and ensures genuinely unwell employees are given the time and support they need to get better and back to work.
More info - Managing absence and sickness
Duvet days
An increasingly popular trend of offering ‘duvet days’ has emerged in some companies as an attempt to ward off unplanned sickies, when people simply can’t face getting out of bed.
This approach is a novel idea which gives employees anything from 1 to a few days where they can call into work and request a last-minute leave of absence.
It may work for some organisations, but the approach has to be managed so that duvet days don’t place undue pressure on employees left to pick up the extra work such unplanned absence creates.
In addition, only anecdotal evidence exists to suggest duvet days have any positive effect on sickness rates. For now, they should be considered a novel staff benefit, more than a proven way of tackling sickies.
Performance appraisals
Performance appraisals are widely accepted as beneficial to the HR process. They provide employees with an opportunity to receive structured and periodic feedback on past performance, and provide a sense of ownership over future personal development. Appraisals also allow a company to steer employees in a direction that contributes to wider organisational objectives. Mutual benefit for the firm and the employee.
But that picture portrays an ideal. Sometimes, performance appraisals do more harm than good. So much so that some HR professionals might argue they are counter-productive and a costly waste of time. Handled incorrectly, appraisals could have a negative impact on productivity and performance, causing emotional responses in employees ranging from temporary knocks to morale to long-term stress or depression.
Those two opposing views are of course two extremes. And they do not consider the cost of not performing appraisals at all. Without periodic, structured communication between employer and employee, both parties might feel wholly disconnected.
Recent YouGov research for Investors in People suggests that four in ten UK employees are considering quitting their jobs in the next year. Investors in People chief executive Simon Jones emphasised the need for “effective” feedback on performance; without it, employees are likely to “drift and depart rather than stay engaged with their organisation’s objectives”.
The case for performance appraisals is stronger than the case against. But only when it’s an “effective” process. So how can you focus on delivering effective appraisals?
The late author Kenneth Berrien wrote that management might control the lower limits of productivity, but employees are in control of the upper limits. That doesn’t mean to say employees are always going to work to a minimum standard, it just means they might do - if not motivated to raise the bar for themselves. That means effective performance appraisals are not just about arbitrarily setting targets and objectives, but about fostering strong relationships between manager and employee, founded upon effective feedback and dialogue - which fulfils both the organisation’s and the individual’s needs. As a result employees feel empowered and thus more motivated to exceed the minimum standards required of them.
Last month we discussed the competency framework - a method of mapping behaviours that a business sees as most important to individual and organisational performance. CIPD research suggests that competency frameworks are primarily used for underpinning appraisal discussions. They provide the foundation upon which to evaluate past performance, and define core competencies that are important for an organisation’s future, and thus for an employee’s future development. But, it’s important to remember that performance appraisals are not just about organisational objectives. They are also a personal process, in which an employee must feel connected not just to organisational objectives, but to their own personal needs.
Remember: an employer can set minimum standards, but it’s the employee that chooses to exceed them. In this sense, establishing constructive, open, positive and two-way dialogue between employer and employee could be the most vital facet of the appraisal process. It’s not just about what you talk about, it’s about how you talk about it. It’s about how you have the discussion, and what impact that discussion has on motivation and productivity.
Next month we expand on these issues to explore the challenge of handling performance discussions.
More info - A basic overview of Performance Appraisals on the CIPD website.