A b sen teeism and the E ffectiveness o f A bsence M an ag em en t Strategies A study w ith in B au sch and L om b

By Theresa Farrell

A dissertation submitted in part fulfilment of the B.A. (Hons) in Human Resource Management National College of Ireland Mayor Street, IFSC, Dublin 1

July 2005

AUTHORSHIP DECLARATION

I hereby certify that this m aterial, w hich I now subm it for assessm ent o f the program m e o f study leading to the aw ard o f B.A . (H ons) in H um an R esource M anagem ent is entirely m y ow n w ork and has not been taken from the w ork o f others save and to the extent that such w ork has been cited and acknow ledged w ithin the text o f my w ork.

Signed:

C l

yLjA
H 3 -o o ^

Date:

S tudent N um ber:

TABLE OF CONTENTS INTRODUCTION.................................................................................................................... 1

C O N T E X T ......................................................................................................................................................... 3 L IT E R A T U R E R E V I E W ............................................................................................................................ 4 3.0. 3.1. 3.2. 3.3. 3.4. 3.5. In t r o d u c t io n ....................................................................................................................................... 4 A b se n t e e is m d e f in e d ........................................................................................................................ 4 C o sts of a b s e n t e e is m ........................................................................................................................5 A b se n t e e ism C a u s e s ........................................................................................................................ 6 A b s e n c e m a n a g e m e n t st r a t eg ie s a n d t h e ir e f f e c t iv e n e s s ........................................ 10 C o n c l u s io n s ........................................................................................................................................13

R E S E A R C H M E T H O D O L O G Y ............................................................................................................15 4.0. 4.1. 4.2. 4.4. In t r o d u c t io n ..................................................................................................................................... 15 O b je c t iv e s ........................................................................................................................................... 15 R e s e a r c h M e t h o d o l o g y .............................................................................................................. 16 C o n c l u s io n ........................................................................................................................................ 20

F IN D IN G S ........................................................................................................................................................ 21 5.0. 5.1. 5.2. 5.3. 5.4. In t r o d u c t io n ..................................................................................................................................... 21 S e c o n d a r y D a t a ..............................................................................................................................21 S e m i - st r u c t u r e d in t e r v ie w s ..................................................................................................... 26 E m pl o y e e S u r v e y ............................................................................................................................ 30 C o n c l u s io n ........................................................................................................................................ 40

A N A L Y S IS .......................................................................................................................................................41 6.0. In t r o d u c t io n .....................................................................................................................................41 6.1. R e v i e w .................................................................................................................................................. 41 C O N C L U S IO N S A N D R E C O M M E N D A T IO N S ...........................................................................48 7.0. C o n c l u s io n s ....................................................................................................................................... 48 7.1. R e c o m m e n d a t io n s ...........................................................................................................................49 R E F E R E N C E S .............................................................................................................................................. 52 A P P E N D IC E S .................................................................................................................................................56 A pp e n d ix A pp e n d ix A ppe n d ix A ppe n d ix A ppe n d ix A pp e n d ix A pp e n d ix A ppe n d ix 12345678A b s e n c e l e v e l s f o r 2004 in H W C M a n d R P 3 .................................................. 56 S c h e d u l e o f q u e st io n s f o r se m i - s t r u c t u r e d in t e r v ie w ............................57 O pe r a t o r Q u e s t io n n a ir e ......................................................................................... 59 C o v e r in g l e t t e r to o per a to r q u e s t io n n a ir e .................................................61 E m p l o y e e S u r v e y R esu l t s H W C M ......................................................................62 E m pl o y e e S u r v e y R e s u l t s R P 3 ............................................................................. 63 E m pl o y e e S u r v e y R esu lts O v e r a l l .................................................................64 L ist of A b b r e v ia t io n s ................................................................................................ 65

LIST OF FIGURES AND TABLES

Page
F igure 1- A D iagnostic M odel o f E m ployee A ttendance F igure 2 - F o rm u la fo r calculating sam ple size F igure 3 - M on th ly co m p ariso n o f absence levels in H W C M and RP3 F igure 4 - C o m p ariso n o f absence levels on th re e shift H W C M and R P3 F igure 5 - C om parison o f absence levels on w eekends H W C M and R P3 F igure 6 - C om parison o f absence levels three shift and w eekends in H W C M F igure 7 - C o m p ariso n o f absence levels three shift and w eekends in RP3 F igure 8 - B reak d o w n o f resp o n d en ts shift p attern F igure 9 - R esp o n d en ts shift p a tte rn H W C M F ig u re 10 - R espondents sh ift p a tte rn RP3 F igure 11 - L ength o f service o f all resp o n d en ts F ig u re 12 - L en g th o f service o f resp o n d en ts in H W C M F igure 13 - L ength o f service o f respondents in RP3 F ig u re 14 - A ges o f a ll resp o n d en ts F igure 15 - A ges o f survey resp o n d en ts H W C M F igure 16 - A ges o f su rv ey resp o n d en ts R P3 F igure 17 - R espondents reasons fo r absence fo r all shift pattern s H W C M F ig u re 18 - R easons fo r ab sen ce H W C M 3 sh ift F igure 19 - R easons fo r absence H W C M W eekend shift F ig u re 20 - E ffectiveness o f p o licies H W CM F igure 21 - R espondents reasons fo r absence fo r all shift patterns RP3 F ig u re 22 - R easons fo r ab sen ce th re e shift c y cle in R P3 F igure 23 - R easons fo r absence w eek en d shift cycle in R P3 F igure 24 - E ffectiveness o f p o lic ie s R P3 T able 1 - H W C M effectiveness o f absence control p o licies T ab le 2 - RP3 effectiveness o f ab sen ce control policies 9 19 22 23 24 25 25 31 31 31 32 32 32 33 33 33 34 35 35 36 37 38 38 39 36 39

ABSTRACT

In todays com petitive environm ent com panies are increasingly focusing on issues that affect cost and productivity. O ne o f those issues is w orkplace absence. It is estimated that over 12 m illion w orking days are lost every year because o f absence, this equates to 350 m illion euro per annum. A bsence m anagem ent is therefore becom ing a priority for organisations. The objectives o f this thesis w ere to exam ine how absenteeism is

defined, the costs and causes o f absenteeism , absence m easurem ent and m ore specifically exam ining the effectiveness o f various m anagem ent strategies em ployed to control or reduce absence. Presently absence levels in Bausch and Lomb, W aterford are in excess o f seven percent, w ith a resulting annual cost for the com pany sick pay schem e in excess o f 1.1 m illion euro. D ue to the high level o f absence and the

significant cost o f the sick pay scheme, research was conducted using two business units w ithin the Bausch and Lom b m anufacturing facility as a case study. The case study involved gathering and analysing statistical data pertaining to absence, conducting six sem i-structured interview s w ith m anagem ent in the business units and surveying 160 em ployees. The research has shown that m ost organisations do not m easure the indirect costs o f absenteeism and consequently do not have a true picture o f the costs o f absenteeism . It is recom m ended therefore that com panies should include both direct and indirect costs in respect o f absenteeism . The literary research is supported by the findings o f the secondary research in relation to causes. The m ain cause o f absenteeism is show n to be genuine illness, how ever, fam ily responsibilities, shift patterns and jo b m otivation also adversely affect absence. This was m ost apparent w hen comparing

absence levels betw een the tw o shift patterns, w here specifically in one business unit

the absence levels for the tw elve hour w eekend shift w as consistently higher than the eight hour three shift pattern.

The various strategies em ployed to address absenteeism included the use o f return to w ork interviews, disciplinary procedures and fam ily friendly initiatives. The findings o f the literature research highlighted the effectiveness o f each o f the aforem entioned, this was supported by the research findings, w here in one business unit, all o f the aforem entioned strategies w ere used, but not consistently. In contrast, the other

business unit exam ined as part o f the case study had low er absence levels, and these strategies w ere applied on a consistent basis. The prim ary research also highlighted the need to m easure absence, as again, absence w as low er in the business unit that m easured absence on a m onthly basis. A bsence m easurem ent and consistent use o f strategies

such as return to w ork interview s is recom m ended. The availability o f a sick pay schem e w as initially presented as a strategy for controlling absence, however, the research findings have shown that the availability o f a sick pay scheme can increase absenteeism rather than reduce it. A review o f sick pay schem e criteria is therefore recom m ended. The research findings support the case that variations in absence levels are indicative o f strategies that are em ployed to m anage absence.

ACKNOWLEDGEMENTS

Sincere gratitude to the H um an R esource D epartm ent o f B ausch and Lomb, W aterford, for their assistance in providing data for this thesis.

T hanks to the m anagem ent team in H igh W ater C ast M oulding and R everse Process 3, B ausch and Lom b, W aterford for th e ir tim e and co-operation throughout. T he inform ation provided during the sem i structured interview s w as essential to the research o f this w ork.

S pecific appreciation to the em ployees o f B ausch and Lom b w ho w illingly gave up their tim e to com plete questionnaires an d w ho, w ithout prejudice, provided valuable opinions in relation to absenteeism in B ausch and Lom b.

PREFACE

W orking in the H um an Resource D epartm ent o f Bausch and Lom b, I have both a professional and personal interest in absence m anagem ent, in fact, absence m anagem ent is increasingly becom ing an essential function w ithin H um an Resources. M y own

situation, w here 40% o f m y tim e is spent w orking w ith front line m anagem ent on absence, is indicative o f the present situation industry wide. M ore and m ore research is being conducted in this area, and according to statistics from the Irish Business and Em ployers C onfederation (IBEC) (2004) absenteeism costs Irish industry over 350 m illion euro per year - this is staggering. The IBEC findings are supported by the

present situation in Bausch and Lom b w here absence costs in excess o f 1 m illion euros p er annu m . O f even greater concern is the fact that according to recent research the levels o f absence are on the increase - according to a Chartered Institute o f Personnel D evelopm ent (CIPD) U K survey conducted in 2004, sickness absence averages over nine w orking days per year and costs 588 sterling per em ployee - an increase o f 3.7% on 2003 figures.

Chapter 1

INTRODUCTION

Given the pressures being placed upon organisations to achieve enhanced levels o f perform ance and reduced costs, it is essential that aspects o f organisational life that adversely affect these are minim ised. One such aspect, is absenteeism. In a cost conscious and

increasingly com petitive m arket place, absenteeism can have a significant im pact on the com pany perform ance. Com panies can no longer afford to carry unnecessary absence, and hence there is an increased focus on the issue o f eliminating, or at the very least reducing, unnecessary levels o f absenteeism.

A ccording to a Chartered Institute o f Personnel D evelopm ent (CIPD) UK survey conducted in 2004, sickness absence averages 9.1 w orking days per year and costs 588 sterling per em ployee. The situation in the U K is com parable to Ireland, w here absenteeism, which typically runs at 4% in Ireland, results in 12 m illion working days lost per year. A ccording to statistics from the Irish Business and Em ployers Confederation (IBEC) (2004) absenteeism costs Irish industry over 350 m illion euro per year. Subsequently absence or more

specifically, absence m anagem ent is increasingly becom ing an essential function w ithin H um an Resources. A review o f available literature has presented argum ents supporting the case for reducing absence by adopting various m anagem ent interventions such as absence m anagem ent policies, use o f disciplinaiy action and availability o f fam ily friendly initiatives. W orking in the field o f H um an Resources, the researcher w as keen to challenge this thinking in a practical situation.

This thesis contains a review o f the various theoretical approaches to absence m anagem ent and subsequently exam ines the effects o f the practical application o f these approaches on w orkplace absence. The objectives o f this thesis were to exam ine the various definitions o f absenteeism , to exam ine the costs and causes o f absenteeism and strategies used to manage absence and subsequently, to ascertain if any relationship exists between m anagement

strategies and levels o f absenteeism i.e. w h a t is th e effectiveness o f various strategies in m anaging absence.

R esearch w as co nducted u sin g tw o b u sin ess u n its o f a m ultinational healthcare com pany, based in Ireland, specifically B ausch and L om b W aterford. B ausch and L om b is a

technology-based h ealthcare co rporation em ploying 12000 w orldw ide. B ausch and L om b W aterford, w ho are p art o f this global netw ork, began m anufacture o f contact lenses in 1981, and currently em ployees in excess o f 1700 people. T he facility is a 24 hour, 7 day a w eek operation. H ow ever, ev en in a progressive organisation such as B ausch and L om b w ho continually strive to incorporate b e st p ractice initiatives, absence levels w ere significantly higher th an th e national average. In 2004 th e com pany w ide absence w as 7.8% , com pared to th e national average o f 4.65% fo r th eir industry sector. Furtherm ore, there w as a significant difference in absence levels w ithin tw o business u n its o f this organisation, nam ely H igh W ater C ast M oulding (H W C M ) an d R everse P rocess 3 (R P3). T his research uses these business

units as a case study to ex am ine i f a relationship exists betw een the absence control policies em ployed and th e levels o f absence.

T he c o n tex t o f th is research is p resen ted in chapter tw o. A review o f available literature in relatio n to defining absence, costs and causes o f absence and absence m anagem ent strategies is p resen ted in chapter three. C hapter four contains an outline o f how th e research w as

u n d ertak en and a ju stific a tio n fo r th e m eth o d o lo g y used. T he research findings are presented in chapter five. In ch ap ter six th e research findings are analysed and discussed in th e context o f th e findings o f th e literature review . C onclusions and recom m endations arising from the research o f th is d issertatio n are p resen ted in the final chapter.

Chapter 2

CONTEXT

Industrial D ev elo p m en t A uthority (ID A ) Ireland h as n am ed Ireland th e healthcare capital o f E u ro p e and states th at over the last 10 years, every U nited States (U S) m edical device com pany looking fo r a E u ro p ean base as selected Ireland as its preferred site. T his ID A statem ent is b acked up by th e fact th at 17 o f th e w o rld s top 20 healthcare com panies are represented in Ireland. T he healthcare/m edical secto r is one o f th e fastest grow ing em ploym ent sectors in Ireland, presently em ploying over 19,000. T he direct corporate tax

con trib u tio n from th is industry sector am ounted to over $250 m illio n in the last tw o years. T he im portance o f attracting and keeping h ealthcare based com panies in Ireland cannot be underestim ated. M u ltin atio n al health care com panies are attracted to Ireland because o f

favourable tax incentives and a readily available w ell educated w orkforce. In the context o f th is dissertation, absence c a n have a significant im p act o n the com petitive advantage fo r these m u ltinationals, as ab sen teeism costs em ployers financially and th ro u g h loss o f productivity. A ccording to th e 2004 Irish B usiness an d E m ployers C onfederation (IB E C ) w orkplace absence survey, the average absence rate fo r th e healthcare industry sector is 4.65% . The

subject o f th is d issertatio n is a h ealthcare com pany, nam ely B ausch and L om b, w ho are based in W aterford, Ireland. D irectly em ploying in excess o f 1700 p eo p le in the south east o f

Ireland, B ausch an d L om b are one o f the largest em ployers in th e region, an d th eir presence is significant in th e overall econom y o f the region. T he overall absence rate in B ausch and L om b is 7.8% , w h ich is alm o st 70% h ig h er than th e general industry rate. T his dissertation review s the absence m an ag em en t strategies em ployed w ith in tw o business units o f B ausch and Lom b an d ex am in es the relatio n sh ip b etw een absence m anagem ent strategies and the levels o f absence.

Chapter 3

LITERATURE REVIEW

3.0. I n tr o d u c tio n T he fo llow ing ch ap ter contains a rev ie w o f av ailable literature on th e m ain areas o f research th is includes a rev iew o f literature p ertaining to defining absenteeism , categorizising the causes and costs o f absenteeism , m easuring ab sen teeism a n d subsequently a review o f strategies available to m anage absenteeism .

3.1. A b s e n te e is m d e fin e d A cco rd in g to H o u rih an (1993) th e Irish M anagem ent Institute (IM1) define absenteeism as tim e lo st because o f sickness o r any o th er reaso n n o t excused th rough statutory entitlem ent or co n ditions o f em ploym ent. H ow ever, h e also highlights th at consideration m u st be given to the in clu sio n o f v arian ts such as v oluntary o r involuntary absence - involuntary being w hen th e em ployee is genuinely sick o r un ab le to attend w ork and voluntary being w h en the o p p o rtu n ity and m o tiv atio n to attend w o rk no lo n g er exists fo r w h atever reason.

In the definition p resen ted by P ilb eam and C orbridge (2002) absenteeism includes any o ccasio n w h en an em ployee fails to rep o rt fo r w o rk w h en contractually obliged to do so or w h e n they fail to co ntact th eir em ployer as o utlined in th eir sick absence procedure or san ctio n ed leave arrangem ents.

T he E uropean F ou n d atio n for the Im provem ent o f L iving and W orking C onditions (2001) define absenteeism as

the manifestation of a decision by an employee not to present themselves at their place of work at a time when it is planned by management that they should be in attendance .

T he d efinition o f absenteeism u se d by th e Irish B usiness and E m ployers C onfederation (IB EC ) (2004) includes a n unscheduled disru p tio n o f th e w ork process due to days lo st as a resu lt o f sickness or any o ther n o n -sta tu to ry leave. T his d efinition includes: Sick leave, excused tim e o ff (bereavem ent leave/exam and study leave/m arriage leave/paternity leave) and unexcused tim e off. T his d efinition w o u ld n o t include: A nnual leave; public holidays;

absence o n protective leave; days lo st due to strikes and lay-offs/redundancies.

T he im portance o f d efining absenteeism is h ig h lig h ted by IB E C in th eir W orkplace A bsence Survey (2004) w h ere it is o utlined th a t w h atev er d efinition is decided u p o n w ith in an organisation, it sh o u ld be u sed consistently so th at attendance can be com pared over tim e and fo r different parts o f th e organisation.

3.2. C o sts o f a b s e n te e is m In discussing absenteeism and th e costs on an organisation, T aylor (1998) is o f the opinion th a t co n sid eratio n m u st be given to b o th th e direct costs such as paym ent o f sick pay, and the indirect costs such as lo w e r quality products, re-organisation o f the w orkplace an d training.

R esearch conducted by th e D epartm ent o f T rade a n d Industry (D TI) (2001) in th e U nited K in g d o m concludes th a t absence im poses significant costs on em ployers, and w h ile som e costs w ere directly fin an cial (for exam ple, salaries p a id to absent em ployees w ho are not productive, or th e c o st o f em ploying tem porary w orkers) others w ere less easily quantifiable (for exam ple, the im p act on the m orale o f other em ployees, or additional m anagem ent tim e involved in m anaging absence). H ow ever, th e ir findings also indicate th a t com panies,

although they are aw are o f the financial im plications o f absence, do not m easure the financial costs o th er th an the sick p ay schem e paym ents. D espite th e fact th at the cost o f absence can be significant, th e finding o f the C hartered Institute o f P ersonnel D evelopm ent (CIPD ) E m ployee A bsence S urvey (2004), w as th at only 4 6% o f the respondents to th e survey m o nitored th e cost o f sickness absence. T he findings o f the survey also show s th at o f those w h o did m o n ito r th e cost, occupational sick pay w as m o st likely to be included in th e cost o f absence, fo llo w ed by statutory sick pay. L ess th an 50% o f em ployers in cluded the cost o f

rep lacem en t labour, ad d itio n al overtim e o r th e im p act o f red u ced perform ance.

D unn and W ilkinson (2002) refe r to th e costs o f absenteeism as being generated in a num ber o f w ays, one o f the m o st im m ediate and substantial b ein g the direct paym ent o f sick-pay to em ployees, and th e c o st o f paying replacem ent lab o u r - in effect the double paym ent in the event o f absence.

In order to m easure th e overall im pact o f absence on an organisation, E vans and W alters (2003) suggest th at u sin g a frequency index to m easure absence m ay give a better indication o f the overall im pact, p articu larly in respect o f cost.

In relation to m easuring absence, the C IPD E m ployee A bsence Survey (2004) found that com panies m easu rem en t system s included lost tim e m easu res and frequency m easures. The A dvisory, C o n ciliation and A rb itratio n Service (A C A S ) (2000) suggests the use o f frequency rate fo r m easuring ab sen ce - th is is b ased on m easuring th e average n um ber o f spells o f absence per em ployee and is useful in determ ining i f absence is due to a n u m b er o f short absences o r a few long absences. H ow ever, the D T I (2001) research highlights th at even in com panies w here m easu rem en t system s exist, there w as lack o f consistency w ith recording and h ence m easuring absence.

A cco rd in g to E vans and W alters (2003) the m ost com m on m ethod o f m easuring sickness absence is to calculate th e n u m b er o f lost days p e r sh ift as a p roportion o f th e po ten tial total n u m b er o f days p er shift w orked. This m eth o d w as u sed in a survey conducted by the Sm all F irm s A sso ciatio n (S F A ) in 2002, in w h ich they fo u n d th at the national average for absenteeism w as 3.4% o r 7.8 w orking days per em ployee, th is equated to a financial loss to Irish b usiness o f 112 m illio n p e r year.

3.3. A b se n te e ism C a u s e s T he D epartm ent o f T rade and Industry (D TI), (2001) sim plify th e causes o f absenteeism into p lan n ed and unplanned, short term and long term - short term unplanned absence, w as p rim arily related to sic k leav e due to genuine illness, how ever, o ther reasons in cluded illness o f fam ily m em bers, bereav em en t, childcare arrangem ents breaking dow n at short notice and high living at the w eekend. T he m ain type o f long term u n p lanned absence includes genuine

illness, negative feelings ab o u t th e jo b or o ther pro b lem s at w o rk resulting in stress related or sim ilar illness. In term s o f p lan n e d absence, D T I includes statutory leave, and other leave

u n d e r w h ich an em ployer has som e obligation, including m aternity, paternity, religious holidays, career breaks, study leave and trade union duties. P lanned absence according to the D T I can be categorised as lo n g term o r short term .

A ccording to M cH ugh (2001) th ere m ay be m any reasons w hy an em ployee m ay be absent from w o rk - they m ay b e experien cin g ill health, they m ay h av e fam ily com m itm ents, o r there m ay be an underlying issue or asp ect o f th e w ork env iro n m en t that causes an em ployee to absent them selves from th e w orkplace. T his is supported by B ennett (2002) w ho believes that alth o u g h the m o st c o m m o n type o f absence involves the em ployee being prevented from atten d in g w ork due to illn ess o r injury, th e root cause o f th e illness o r injury m ay be partly attributable to the w ay the org an isatio n is m anaged.

T he findings o f th e U n iv ersity o f S askatchew an (2001) w ere sim ilar as th ey state th at causes o f absence can be categorised as: P ersonal w h ich w o u ld include the caring for sick children, eldercare and life balance; Illness o r injury an d w o rk related w h ich w ould include jo b stress, nature o f w ork e.g. lack o f challenge, and w orking conditions e.g. uncom fortable

environm ent.

3 .3 .1 . Illn e s s o r in ju r y

A survey conducted by th e CEPD in 2004 show s th at th e m o st com m on reason given fo r tim e o f f w o rk due to sickness are m in o r illnesses such as colds and flu, stress is the m ain cause o f long term absence in n o n m an u al staff, and b a c k pain th e m ain cause in m anual staff. Sim ilarly, O R eilly (2000) states th a t the m ain cause o f absence is genuine illness. T his is su p ported b y the findings o f a 2004 absenteeism survey conducted by IB EC , th at identified m in o r illness as th e m ain reaso n fo r short term absence. P ilb eam and C orbridge (2002) state

The root cause of sickness absence is thefact that an employee is unwell, and where the employee is incapacitated there exists a state of being unfitfor work

T hey continue in th eir d iscu ssio n to argue th a t being un w ell and un fit fo r w ork are not necessarily synonym ous. Steers and P o rter (1991) identify the scope fo r th e exercise o f

em ployee ju d g em e n t in deciding the p o in t at w hich being unw ell corresponds w ith being unfit, thus indicating th at em ployee decision m aking and perceptions im pact on sick absence.

3 .3 .2 . P e r s o n a l/H o m e C ir c u m s ta n c e s

A cco rd in g to the results o f the C IPD Survey conducted in 2004, absence associated w ith h o m e/fam ily resp onsibilities w as ranked 6th o f 12 fo r m an u al w orkers and 6 th o f 12 fo r non m an u al w orkers. T aylor (1998) identifies ho m e circum stances as an im portant hidden factor cau sin g absence and h ig h lig h ts th at elderly relatives and the care for sick children m ay affect the ability to attend w ork. A ccording to E vans (1998) w o m e n s absence rates increase w ith fam ily size, b u t decline as th e age o f the dependent ch ild ren increases. In the Industrial

S o ciety s survey, 1997 m ore th an h a lf o f th e m anagers identified sickness in the fam ily, childcare and dom estic resp o n sib ilities as significant causes o f absence. T his is supported by R eisen w itz (1997) w ho is o f the o pinion th a t the leading cause o f absenteeism am ong em ployees w ith sm all ch ild ren is the difficulty in finding dependable and affordable childcare.

3 .3 .3 . N o n S ic k n e s s /W o r k R e la te d

In rela tio n to n on-sickness related absence, there are a n u m b er o f thoughts. Steers and R hodes (1990) suggest th at an em p lo y ees attendance is a function o f th eir m o tivation and their ability to attend. T his v iew is supported by S aratoga (1998) w ho no tes th at from a m anagem ent

perspective, h ig h em ployee absence is a very clear indicator o f som e form o f organisational m isbehaviour, often in d icatin g d issatisfaction w ith th e organisation th at requires analysis and action. B evan and H ayday (1998) also com m ent that career dissatisfaction is one o f the m ost p o w erfu l predictors o f absence. A rnold, C ooper an d R obertson (1995) state that factors in trin sic to the jo b such as w o rk patterns affected absenteeism . W arr and Y earta (1995) found th a t shift w orkers w ere m ore likely th an others to b e absent from w ork for sickness o r injuiy.

T he early research o f H uczynski an d F itzpatrick (1989) suggests th at high levels o f task rep etitiv en ess w ith lo w jo b satisfaction because o f general b oredom w ith th e jo b , lack o f resp o n sib ility and challenge, p o o r w o rk in g conditions and form s o f w ork related stress, can be

p o sitively correlated w ith absence. T hese findings co n cu r w ith th e research o f T aylor (1998) w ho exam ines the link b etw een jo b satisfaction and em ployees propensity to be absent. B e v a n an d H ayday (1998) also n o ted th at th ere is a relationship b etw een the prolonged w orking o f excessive hours and absence am ong non-m anual w orkers. T hey argued th at career d issatisfactio n is one o f the m o st pow erful predictors o f absence. In ord er to help m anagers un d erstan d absence, R hodes and Steers (1990) developed a diagnostic m odel o f em ployee atten d an ce .

F ig u re 1 - A D ia g n o s tic M o d e l o f E m p lo y e e A tte n d a n c e , 1990

Source: Evans and Walters, 2003.

A cco rd in g to E vans and W alters (2003) th e diagnostic m o d el incorporates factors w h ich act as b arriers to attendance such as illness and fam ily responsibilities, w hich m ay be influenced by o rganisational policies. R eisen w itz (1997) reports th at personal illness accounts fo r o nly 28%

o f unscheduled tim e off, h e further concludes th a t this figure indicates th at 72% o f th e tim e, w orkers are o ut o f w o rk fo r a v ariety o f o th er causes.

3.4. A b se n c e m a n a g e m e n t s tra te g ie s a n d t h e ir effectiv en ess D u n n (2001) asserts th at failing to understand th e cause o f h ig h absenteeism m ay result in the developm ent o f insufficient courses o f actio n fo r dealing w ith the problem . Evans and P alm er (1999) argue th at th e existence o f genuine illness as a cause o f absence seem s obvious, yet w ritings on th e subject ten d to im ply th at th e problem o f absenteeism can be solved totally th ro u g h the application o f appropriate policies. They are o f th e o pinion that encouraging

peo p le to com e to w ork w h en th ey w ould rath er be at hom e is th e m ain objective o f absence policies.

A ccording to B ennett (2002) em ployee absence can be show n to be rooted in various sources and b eliev ed th a t h ig h levels o f absence can b e m itig ated by th e u se o f stringent absence m anagem ent policies. D u n n and W ilk in so n (2002) argue th a t an attendance control policy,

established by a legitim ate source authority and im p lem ented w ith clear-cut progressively enforced legal sanctions, should lead to significant im provem ents in em ployee attendance.

D alto n and T o d o r (1993) argue th at organisations can drastically reduce th e extent o f em ployee absenteeism by adopting policies w h ich deter, not encourage absenteeism . Sim ilarly, E vans an d P a lm e r (1999) conclude th at the available literature on absence m anagem ent presented o rganisational policies and pro ced u res as being part o f th e cure for absenteeism , n o t th e cause o f it. H ow ever, they also b eliev ed th a t there is evidence to suggest

th at policies aim ed purely a t controlling absenteeism can actually lead to higher levels o f absence, and therefore m anagers sh o u ld increasingly look to m anage attendance. A ccording to Jones (1998) em ployers w ho introduce strict procedures for recording, m onitoring and rev iew in g sickness ab sen ce obtain b e tte r attendance levels. O R eilly (2000) supports this,

w ith h er findings in relatio n to th e V oluntary H ealth Insurance (V H I) w ho have seen a 30% 40% im provem ent in ab sen teeism rates follow ing th e in tro d u ctio n o f a strict absence m o n itoring and track in g system .

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3 .4 .1 . S tr a te g ie s f o r m a n a g in g a b s e n c e -

d is c o u r a g in g a b s e n c e

A ccording to the C IPD (2004) an d B evan and H ayday (1998) absence surveys have consistently show n th at retu rn to w o rk interview s are am ongst th e m o st w idely applied tools o f absence m anagem ent. T he finding o f the C IPD 2004 survey w as th at there had b een a 2.5% increase in the n u m b er o f em ployers rating retu rn to w o rk in terv iew as effective. IB E C (2004) concur w ith this v iew and go on to say th at h av in g such an established procedure in place to investigate and discuss ab sen ce w ith a n em ployee m ay act as a d eterrent to non-attendance. Sim ilarly, F ow ler (1998) b elieves th at retu rn to w ork interview s are probably the m ost influential elem en t in ensuring th at absences are n o t treated casually.

R espondents to th e C onfederation o f B ritish Industry (CBI) 1997 and C IPD (2004) absence surveys v iew ed the effectiveness o f retu rn to w ork interview s to be generally positive and believed them to be the m o st effective tool in absence m anagem ent. 81% o f the respondents to th e survey b y C IPD (2004) u se retu rn to w ork interview s follow ing sickness absence. A ccording to A rm strong (1998) retu rn to w o rk interview s can b e used to discuss th e situation in relatio n to th e em p lo y ees absence levels.

H uczynski and F itzpatrick (1989) deduced th a t em ployees in organisations not covered by sick p ay schem es ten d to h av e lo w e r levels o f absence th an th o se covered by such schem es. T his th in k in g w as fu rth er supported by D alton and T odor (1993) w hose findings led to the conclusion that organisational absence rates m ay be highly related to control policies, such as sick p ay and furtherm ore absence rates are m u ch h igher for the m o re lenient policies. G riffith (2004) highlights th at org an isatio n s are becom ing less to le ran t o f th e sm all n um ber o f em ployees w ho are abusing th eir sick pay policies. A ccording to Jones (1998) som e

com panies are restricting o r rem o v in g sick pay as p art o f th eir efforts to reduce absenteeism . A ccording to IB E C (2002) sick pay schem es m ust be balanced betw een the p rovision o f financial assistance allo tted to th o se w ho are genuinely ill, w h ile m aintaining the m o tivation o f o thers th at rem ain at w ork.

A cco rd in g to D u n n and W ilk in so n (2002) disciplinary action rem ain s the usual sanction against p ersisten t absentees and th is is recognised by m o st as an organisational control

11

technique.

83% o f organisations particip atin g in th e 2004 C IPD survey im plem ented

disciplinary procedures fo r u n acceptable absence, and they rated disciplinary action as being one o f th e m o st effective strategies in the control o f short term absence, alm ost a 4% increase on 2003 figures. T his is supported by th e findings o f IB E C (2004) w here 56% o f respondents to th eir survey im plem ented disciplinary procedures fo r unacceptable attendance, and 35% o f com panies indicated th at th ey had d ism issed an em ployee for absence. A ccording to G riffiths (2004) th ree quarters o f em ployers h av e introduced changes to th eir policies on absence m an ag em en t in the past tw o years, m oving tow ard s a m ore punitive approach to m anaging absence, particularly in m an u factu rin g an d production. T hese findings w ere supported by the m ore recen t C IPD (2004) survey, w here th e 1,110 responding com panies identified the three m o st effectiv e m ethods in dealing w ith short term absence as retu rn to w ork interview s, use o f d iscip lin e and line m anagem ent involvem ent. T his is supported by F ow ler (1998) w ho concludes th at no effective absence m anagem ent program m e can avoid the issue o f d iscip lin ary action.

3 .4 .2 . S tr a te g ie s to a b s e n c e m a n a g e m e n t -

e n c o u r a g in g a tte n d a n c e

IB E C (1997) states th at th e attention o f m anagem ent should be focussed on activities that p o sitiv ely influence attendance. A s d iscu ssed in th e ir absence m anagem ent rep o rt IB EC

(2002), com panies can adopt a n u m b er o f m easures in order to create a positive attitude to w ard s attendance in th e w orkplace, th is can include flexible w orking arrangem ents, jo b red esig n and team w orking, through to rew arding good attendance and prom oting em ployee health. T his is supported by E vans a n d P alm er (1999) w ho n o ted th at m anagem ent strategy m ay h av e to change to consider re-o rg an isin g th e w orkplace to allow jo b s to be undertaken by flex ib le s e lf m anaging tea m s, as th ese ten d to red u ce absence levels. Sinclair, (2001) CIPD a d v iso r in em ployee relatio n s is o f th e o p inion th a t effective strategies for tackling the p ro b le m include red esig n in g jo b s, in troducing m ore flexible w orking hours, return to w ork in terview s a n d the inv o lv em en t o f line m anagers in dealing w ith absence. A ccording to B evan (1998) IE S associate d irecto r th e b e st em ployers try to m otivate attendance am ong em ployees b y a d o p tin g fam ily-friendly policies.

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IB E C (2002) state th a t a n advantage o f th e incentives such as good attendance aw ards is th at th e com pany is pro v id ed w ith an opportunity to h ighlight attendance and to introduce an elem en t o f aw ard w ith o u t incorporating it into regular pay. H ow ever, respondents to a C B I S urvey (1997) w ho operated bon u s schem es did n ot b elieve they w ere particularly effective. F o w ler (1998) notes th at m an y firm s th at give attendance bonuses b elieve they reduce absence rates, how ever, he highlights the danger o f good attendance being rew arded financially as p o ssib ly creating an understanding th a t attendance is m ore th an a norm al w ork requirem ent.

3.5. C o n c lu s io n s A b sence is a significant cost fo r em ployers, an d although com panies generally collect data regarding direct costs, prim arily by m eans o f sick pay schem e contributions, there is lim ited d a ta co llectio n in relatio n to other costs. In o rd er to m easure costs an d to m anage absenteeism it is essential to ensure th at th e d efinition o f absence u sed in an organisation is applied consistently, and th a t the m ethod o f m easu rin g absence is applied consistently. Subsequently, in order to m anage absenteeism it is essential th at a com pany gathers data o n the specific causes o f a bsenteeism , as th ey can be fo r reasons o f genuine illness o r fo r other reasons th at can be indicative o f a deep rooted p roblem w ith in the organisation. T he strategies used to

m anage ab sen teeism can also contribute to levels o f absenteeism , the literature review ed has in d icated th at th e strategy used has a co rrelation to the level o f absence. Theorists such as D a lto n an d T o d o r (1993) argue th a t absen teeism can be reduced by adopting policies that encourage attendance rather th an encourage absenteeism . This w as supported by the earlier findings o f H uczynski an d F itzp atrick (1989) w h o have found th at absenteeism levels w ere h ig h er in com panies w ith liberal sick pay schem es. G riffiths (2004) h ighlighted th at three

quarters o f em ployers have introduced changes to th eir policies o n absence m anagem ent in the p a st tw o years, m oving tow ards a m o re p u n itiv e approach to m anaging absence. These

findings w e re supported by th e m o re recen t C IPD (2004) survey, w here respondents identified th at three m o st effective m ethods in dealing w ith short term absence as return to w ork interview s, u se o f d iscipline and line m anagem ent involvem ent. R esearch by individuals such as B evan an d H ayday (1998) has show n that absence levels can be positively affected by jo b redesign, intro d u ctio n o f flexible w orking hours, training line m anagers o n dealing w ith

13

absence and u se o f retu rn to w o rk interview s.

T his w as supported by findings o f research

conducted by b o th IB E C (2002) and C IPD (2001).

1 4

Chapter 4

RESEARCH METHODOLOGY

4.0. I n tr o d u c tio n A ccording to S ekaran (1992) research is a system atic and organised effort to investigate a specific p roblem th at needs a solution. T his research w as carried out b etw een M arch and M ay 2005 u sin g tw o b u sin ess units o f B au sch and L om b, W aterford. Q uantitative data w as

co llated from questionnaires com pleted during a survey o f 160 em ployees, and available data on absence levels in each b usiness u n it w as review ed. Sem i structured interview s w ith the W ithin each business unit,

m an ag em en t in each u nit p rovided supporting qualitative data.

m anagem ent account fo r only 13 o f th e 400 em ployees and presently h a v e an absence rate o f less th an one percent. A num ber o f p olicies th at w o u ld be considered in the context o f

absence m an ag em en t strategies, such as retu rn to w o rk interview s and jo b sharing are not ap p lied or available to m anagem ent in th ese b usiness units. T herefore, m anagem ent w ere

ex clu d ed and th is research w as lim ited to ex am in in g th e absence related to operators only.

4.1. O b je c tiv e s T h e o b jective o f th e research w as to: Identify h o w absence is defined in each b usiness unit; A nalyse em ployee absence in each business unit, and subsequently each shift pattern during 2004; H ig h lig h t sim ilarities an d differences in absence levels across each business unit; A scertain th e causes o f th e absence in each p ro cessin g u n it as p erceived by business unit m anagers an d id en tified by em ployees; Identify current absence m anagem ent strategies ad o p ted w ithin each processing unit; E stab lish i f any relationship exists betw een th e m ethod o f m an ag em en t and the levels o f ab sen teeism i.e. is there a correlation b etw een th e absence levels and th e m an ag em en t strategy to control or reduce absence.

15

4.2. Research Methodology

T he study w as co nducted over a th ree-m onth perio d , com m encing M arch 2005. T he approach included: U sin g a case study o f tw o b usiness u n its o f B au sch and L om b W aterford; analysis o f secondary data p ertaining to each business unit, sem i-structured interview s w ith relevant personnel in each b usiness unit, an d a survey o f a representative sam ple o f operators from each business unit, u sin g a questionnaire.

B o th q u alitativ e an d quantitative research w as conducted.

G um m eson (1991) argues that

q ualitative research provides th e b est w ay to analyse opinions th at are b ased on everyday reality and n o t o n num erical figures associated w ith quantitative research. H ow ever, W eiers (1998) lists the advantages o f quantitative research as being the freedom from bias and low cost. W alters (1 9 9 6 ) sum s up the research ap proach as quantitative research providing a

m eth o d th at p ro d u ces clear, u n equ ivocal v iew s and qualitative research providing the back g ro u n d detail. C onsequently, th e com b in atio n o f both research m ethods can provide

sufficient reliab le in form ation to draw accurate conclusions from th e data analysis.

4 .2 .1 . C a s e S tu d y S e le c tio n

A ccording to F eagin et al (1991) a case study is an ideal m ethodology w hen a holistic and indep th in v estig atio n is needed. T w o business u n its w ithin B ausch and L om b (B & L) W aterford w ere selected as a case study. T he facility has four business u n its tw o o f w h ich are H igh W ater C ast M o u lding (H W C M ) and R ev erse P rocess 3 (R P3). H W C M and RP3 each have 400 em ployees, they are in existence for a sim ilar p eriod o f tim e, operate the sam e shift p atterns, h av e a 24 hour, sev en day w eek o peration and h av e sim ilar organisational structures. H ow ever, th e m anagem ent style and culture w ith in each business u nit differs significantly, an d m ore im portantly, the levels o f absence in each u n it also differ. It w as therefore decided to lim it th e case study to th ese tw o b usiness units. T he rem aining tw o business u n its w ithin B & L W aterford are o f v ery lim ited size, one bein g relatively new , and th e other being in existence since th e start up o f the com pany, w ith no sim ilarities in structure consequently they w ere not considered fo r in clu sio n in th e case study.

16

T his case study approach concurs w ith th e research o f Stake (1995) w h o states th at case studies tend to be selective, focusing on one or tw o issues th at are fundam ental to un d erstanding th e system b ein g exam ined.

4 .2 .2 . A n a ly s is o f s e c o n d a r y d a ta

A ccording to C u ff e t al (1990) quantitative data g enerates know ledge th at is reliable, can be generalised and u n b iased and objectivity is ensured by developing research m ethods w hich m in im ise any influence th a t th e researcher m ight h a v e on th e collection o f data. It w as decided to rev iew th e data regarding levels o f absenteeism over a 12 m onth period, from January 2004 to D ecem b er 2004, in ord er to establish i f th e individual approach o f m anagem ent, the enforcem ent o f p o licies and the application o f procedures h ad any affect on absence levels during th is period. T he follow ing sources w ere used fo r secondary data collation:

A bsenteeism ex p ressed as a percentage o f scheduled tim e w orked w as sourced from the H u m an R esource dep artm en t o f each b usiness unit. T he Finance D ep artm en t provided the financial in form ation regarding h o w the cost o f absence is m easured, specifically the cost o f th e B ausch and L o m b sick p ay schem e.

4 .2 .3 . S e m i- s t r u c t u r e d in te r v ie w s

Sem i-structured in terview s w ere u sed to pro v id e a com prehensive rev iew o f core issues associated w ith absence, w h ich allow ed a personal valid atio n o f the data, w hereby, the secondary d ata co u ld be fu rth er explained by qualitative data gathered during the sem i structured interview s. D e n z in and L incoln (1994) advocate th at qualitative research provides th e b e st o p p ortunity to study responses and o p inions o f th e respondents. T his th inking is

supported by C rim p a n d W right (1995) w ho ou tlin e th e benefits o f using sem i-structured interview s in th a t th ey enable th e researcher to stage m anage th e research b y m aking sure th a t all questions are covered w ith room for th e respondent to add com m ents to specific questions. T he aim o f th e interview s w a s to ascertain th e view s o f tw o personnel m anagers and four p ro d u ctio n m anagers on a variety o f issues associated w ith em ployee absence, this included: C u rren t levels o f a bsenteeism w ith in each o f their business units; perceived causes o f absence and effectiveness o f m anagem ent strategies in the control o f absenteeism . The

schedule o f in te rv ie w qu estio n s w as subsequently d esigned to first v alid ate th e secondary data

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obtained, and then to fu rth er extrapolate info rm atio n regarding opinions o n causes an d costs o f current absence m an ag em en t policies. Som e questions used w ere open-ended w hich

allow ed th e resp o n d en ts to pro v id e th eir ow n answ ers, o thers w ere m ultiple choice. K innear and T aylor (1996) suggest th at o p en questions can allo w respondents to freely express view s divergent from th e research ers expectations and m u ltip le choice questions reduce researcher bias and the tim e and c o st associated w ith data processing. A n outline o f questions u sed in the sem i-structured in terv iew is detailed in A pp en d ix 2. P articipants w ere selected o n th e basis o f their know ledge o f th e b usiness u n it and th eir specific in v olvem ent in absence m anagem ent.

D uring a face-to-face in terv iew clarification w as requested by the researcher o n answ ers given and m ore in-depth p robing w as conducted in ord er to extrapolate as m uch inform ation as p o ssib le from each interview . T his is in keep in g w ith th e findings o f T orrington (1991) w ho states that w h en open questions fail to get a relev an t response, a supplem entary question can be asked to get the req u ired inform ation.

4 .3 .4 . O p e r a to r s u rv e y

A ccording to B ell (1999) th e aim o f a survey is to obtain inform ation w h ich can be analysed and patterns extracted and com parisons m ade. In m o st cases a survey w ill aim to obtain info rm atio n from a sam ple o f a population, w hose answ ers can th e n be tak e n as representative o f th e pop u latio n as a w hole. T he p o pulation being surveyed fo r this research, consisted o f 400 operators from R P 3 an d 400 operators from H W C M . In order for the sam ple to be

representative o f the p o p u lation, a rev iew o f th e b reakdow n in respect o f shift p attern and business u n it w as conducted. In e ach o f th e b usiness u n its, there w as a 50:50 split betw een shifts, i.e. h a lf th e operators w o rk ed three-sh ift cycle and h a lf w orked w eekend shift, subsequently th e qu estio n n aires w ere d istributed to evenly betw een each shift pattern. In

relation to gender, b o th p o p u latio n s w ere 70% fem ale and 30% m ale, how ever, due to the n u m b er o f v ariables b e in g co m p ared fro m d a ta gathered fro m a lim ited population, th e data w as too lim ited to ascertain any degree o f correlation b etw een gender and absence levels, and subsequently there w as no referen ce to gender in th e questionnaire.

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T h e pop u latio n w as assum ed to h a v e a norm al distribution, and therefore sam ple size w as calculated o n the basis o f a 95% confidence level, w ith a confidence interval o f 10%. The sam ple size u sed w as 80 from th e p o p u latio n o f 400 in each processing unit. S am ple size:
Z2
x

(p )

(1-p)

SS=
Where

c2

Z = Z value (e.g. 1.96 for a 95% confidence level) p = percentage choosing, expressed as a decimal (0.5 used for sample size needed c = confidence interval expressed as a decimal (e.g. 0.1 used for +/- 10%

F ig u re 2 - F o r m u la f o r c a lc u la tin g s a m p le size

P rio r to questionnaires being distributed, a p re-test w as conducted w ith 10 volunteers to assess usability, a n d the qu estio n n aires w e re am ended o n th e basis o f feedback. T he d esig n and

w o rd in g o f th e questionnaire w as o f param o u n t im portance. A ccording to O ppenheim (1966)

The world is full of well meaning people who believe that anyone who can write plain English and has a modicum of common sense can produce a good questionnaire
H e subsequently clarified th at although this w ill help, it w ill not b e sufficient.

T o ensure m ax im u m co m p letio n an d the h ighest p o ssib le retu rn rate, the one page q uestionnaire w as designed to k eep questions short and concise, w ith w ording th at w ould be easily understood an d n o t m isin terp reted by th o se being surveyed. T he questions w ere w orded to m inim ise bias an d p ro v id e d a ta th a t could be statistically analysed. Q uestionnaires w ere given to 80 em ployees in each p ro cessin g unit, 40 to em ployees o n the three-shift cycle and 40 to em ployees on th e w eek en d shift. T he em ployees to com plete the questionnaires w ere selected at random fro m th e co m puterised tim e an d attendance system w h ich h as a com puter generated random selection tool. A copy o f th e questionnaire used is in A ppendix 3. The

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q uestionnaires (160 in to ta l) w ere distributed, v ia internal m ail, w ith a covering letter to all p articipants. A co p y o f th e covering lette r is in A p p en d ix 4.

In o rd er to extrapolate h o n e st accurate responses in resp ect o f absenteeism , anonym ity w as considered to b e a k e y aspect o f th e survey. resp o n ses w ith individuals. T here w as subsequently n o w ay o f linking

4.4. C o n c lu s io n T he u se o f quantitative d a ta su pplied by th e support departm ents w ith in B au sch a n d L om b, c o u p le d w ith th e q u alitativ e d a ta sourced b y th e u se o f sem i-structured interview s an d questionnaires, p ro v id ed sufficien t in fo rm atio n fo r th e research er to achieve research objectives.

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Chapter 5 FINDINGS

5.0. I n tr o d u c tio n T he findings from th e research are p resen ted in th is chapter. G raphs show ing the analysis o f th e secondary data findings are presented w ith a relev an t com m entary. The key findings from th e sem i-structured in terview s and th e questionnaires are also detailed and presented in sections relating to th e literature rev iew and the corresponding research objectives.

5.1. S e c o n d a ry D a ta T he inform ation pro v id ed by the Finance D epartm ent o f B ausch and L om b regarding costs o f a b sen teeism show ed th a t only th e direct cost o f the sick p a y schem e is included in th e cost o f absence. F or 2004 th is fig u re w as 1.1 m illion euro.

T he H W C M and R P 3 b u sin ess u n its operate tw o shift patterns. T he first shift pattern, know n as th ree shift is M onday to Friday, for 8 hours, ro tatin g w eekly from nights to evenings to days. T he second shift p attern, k n o w n as w eekends, w o rk S aturday and Sunday, w orking 12 ho u rs, alternating w eekly fro m days to nights.

A bsence is recorded as a p ercen tag e o f scheduled tim e w orked v ia a com puterised tim e and attendance system , fo r exam ple, an em ployee scheduled to w ork 400 hours, and has unap p ro v ed absence o f 40 ho u rs, therefore has a reco rd ed absence level o f 10%. T he data av ailable w as a % ab sen ce level fo r each shift p attern for each business u n it calculated m onthly. T his data w as subsequently tabulated to enable com parisons to be m ade betw een

shift patterns and b usiness units and also to enable trend analysis to be conducted. The tab u lated data is co n tained in A p p en d ix 1. N o detail regarding cause o f absence is recorded on th e tim e and attendance system .

21

5.1.1. Comparison o f overall absence levels

In relatio n to overall absence levels in 2004, R P3 h ad an average absence level o f 7.61% in com parison to 5.72% in H W C M , a difference o f alm ost 2% . T he above graph show s th at the ab sen ce level in H W C M w as lo w er th an RP3 fo r all b u t three m onths, nam ely February, July and Septem ber. It is ev id en t fro m th e graph th a t absence levels in RP3 show ed a significant lev el o f absence during M ay, O ctober and D ecem ber in com parison to o ther m o n th s reaching a m ax im u m level o f 8.84% in O ctober. In H W C M the m ax im u m level w as 7.85% . T he low est absence level fo r b o th areas occu rred in A ugust, how ever, H W C M had a level o f 4.15% com pared w ith 4.98% in R P 3 fo r th e equivalent period. H ow ever, it can be seen th a t the

ab sen ce levels in H W C M h a d a dow nw ard tren d tow ard s th e end o f the year, reducing from 7.56% in Septem ber to 4.5 8 % in N o v em b er - a drop o f alm o st 3% , during the equivalent p e rio d R P3 show ed an in crease in absence from 7.33% in S eptem ber to 8.24% in N ovem ber, an increase o f alm ost 1%. O f n o te also, is th at in D ecem ber b o th areas experienced an increase in absence o n th e p rev io u s m onth.

22

5.1.2. Comparison o f absence levels on three shift

Comparison of absence levels for three shift between HWCM and RP3
9 .0 0 %

8.00% 01 7.00% o 6.00% c a> 5 .0 0 % V ) n 4.00% (0 3.00% 2.00% 1.00% 0.00%

H W C M T h re e S h ift IR P 3 T h re e S h ift

Month

F ig u re 4 - C o m p a ris o n o f a b s e n c e levels o n th r e e s h if t b e tw e e n H W C M a n d R P 3

A s can be seen from F igure 4, w h en com paring the reco rd ed absence levels o f operators on th re e shift cycle b etw een H W C M and R P 3, alth o u g h the absence levels in H W C M are low er th an th o se in RP3 fo r n in e m o n th s o f th e year, th ere is not a significant difference overall (0.68% ). R P3 has an average absence level o f 6.47% fo r th ree shift, com pared to 5.79% in H W C M . H ow ever, it is n o tew o rth y th at the trend o f absence differs significantly betw een the tw o b usiness u n its H W C M h av e th e lo w est levels o f absenteeism in January and N ovem ber, and have h ighest in A pril, July and Septem ber. O n th e other hand, RP3 h av e th e highest

levels o f absence in M arch , Ju ly a n d D ecem ber, an d th e low est in A ugust.

5 .1 .3 . C o m p a r is o n o f a b s e n c e le v e ls o n w e e k e n d s

W h en com paring b u sin e ss u n its in relation to operators w ho w o rk th e w eekend shift pattern, it is obvious fro m F igure 5, th a t th e absence levels in H W C M are m u ch low er than in R P 3, a d ifference o f 3.1% in 2004. T h e absence levels in R P3 are h ig h er th an th o se o f H W C M fo r all b u t th e three m onths, specifically February, A pril an d July. T he absence levels in RP3

increased dram atically in M ay and June, and again tow ard s th e end o f the year, (O ctober to D ecem ber inclusive) w h ich h a d th e sam e trend for th e three sh ift pattern in R P3. T he highest

23

absence level recorded fo r R P 3, occurred in M ay 2004, w h e n there w as 12.06% absence on the w eekend shifts, h o w ev er there w as a subsequent dow nw ard trend for th e follow ing three m onths, w ith a fall in absence levels from 12.06% to 4.3 3 % in A ugust. In H W C M , the

absence trend on th e w eekend shift w as very sim ilar to that on the three shift cycle, specifically th e absence levels decreased fro m Septem ber (7.55% ) to N o vem ber (3.39% ), w ith a n increase in D ecem ber to 6.15% .

Comparison of absence levels for weekend shift between HWCM and RP3
14.00% 12.00% g 10.00% | | gS 8.00% 6.00% 4.00% 2.00% 0.00% 'f o ^ 1 o J .1 G 1 = k 0 J2 Q U2 <o

HWCM W eekends IRP3 W eekends

5 o 1 > * to 5 Month

F ig u re 5 - C o m p a ris o n o f a b s e n c e levels o n w e e k e n d s b e tw e e n H W C M a n d R P 3

5 .1 .4 . C o m p a r is o n o f a b s e n c e le v e ls b e tw e e n t h r e e s h i f t p a t t e r n s

F ig u res 6 and 7 show a co m parison betw een absence levels on three shift w orkers versus w eek en d w orkers in H W C M and R P 3 . In H W C M , th e absence levels o n three shift range

fro m a lo w o f 3.34% in January to 8.48% in July. T he absence levels on w eekends range from a lo w o f 3.49% also in January to 8.36% in A pril. T h e absence levels on b o th shift patterns fo llo w ed a sim ilar trend.

24

Comparison of absence levels between three shift and weekends - HWCM

10.00% < D 10 2? 8.00% 6.00% 4.00% 2.00% 0.00% ra -i " u. 5 Month
I H W C M T h r e e S h if t IH W C M W e e k e n d s

F ig u re 6 - C o m p a ris o n o f a b s e n c e levels b e tw e e n th r e e s h ift a n d w e e k e n d s in H W C M

A s can b e seen in F igure 7 in R P3 th e difference b etw een shift pattern s is m o st apparent - on average th e d ifferen ce b etw een th e shift patterns is o v e r 2% . H ow ever, in M ay, th e difference b e tw e en th e shift p a tte rn s w a s as h ig h as 5% . O n th e th ree shift cycle, th e low est absence lev el w as 5.8% , and the h ighest w as 7.42% , co m p ared to th e w eekend shift cycle w here th en lo w est level o f absence w as 4 .3 3 % , h o w ev er th e h ig h est w as 12.06% .

Comparison of absence levels between three shift and weekends RP3

14.00%

12.00% g 10.00% 0) g
S?

8.00% 6.00%
4.00%

2.00% 0.00%

Month

F ig u re 7 - C o m p a ris o n o f a b s e n c e levels b e tw e e n th re e s h ift a n d w e e k e n d s in R P 3

25

T he data collected in d icated th at the levels o f absence w ith in both business units varied b etw een b o th shift patterns and area.

5.2. S e m i- s tr u c tu r e d in te rv ie w s
5 .2 .1 . B a c k g r o u n d

In each business unit a shift is m anaged by a P roduction M an ag er and a Supervisor, and each shift has 100 em ployees. H W C M com m enced p ro d u ctio n in 1994, RP3 com m enced

pro d u ctio n in 1992.

In rela tio n to defining absence, both b usiness units define absenteeism as absence from the w orkplace as a resu lt o f inability to attend, h o w ev er th is is fu rth er categorised as approved and unapproved. A ll legislative leave is considered as approved absence and is not included in O nly u n ap proved absence such as sick leave (both

figures pertaining to levels o f absence.

certified and uncertified) is reco rd ed in th e absence levels fo r each business unit. H W C M and RP3 close fo r a n an n u al sh u t d o w n p e rio d fo r the first tw o w eek s in A ugust.

B o th b usiness units m easure absence levels and track in dividual em ployee absence. A bsence is m easu red by shift and is reco rd ed as percentage o f scheduled tim e w orked. H ow ever, the m anagem ent o f absence differs significantly in each area, th is is explored in m ore detail under the to p ic o f sem i-structured interview s. In relatio n to co sts o f absenteeism , only th e direct

costs associated w ith sick pay schem es are considered in the context o f costs o f absenteeism .

F am ily friendly in itiatives are available in b o th areas, and include: Job Sharing; P art-tim e w orking; Flexitim e; P arental L eave (an additional w eek in excess o f legal requirem ents is available); Force M ajeu re an d L eave o f A bsence. H ow ever, during the sem i-structured

interview s it becam e ap p aren t th at th e application o f th ese po licies in relation to each business u n it differs significantly - th is is discussed in m o re detail u n d e r the topic o f sem i-structured interview s. B o th business u n its offer an annual attendance bonus th at is paid to all em ployees w ith 100% attendance.

26

Six sem i-structured interview s w ere conducted. Q uestions w ere asked in relation to each o f the specific research objectives, and w here necessary supplem entary probing questions w ere introduced to clarify answ ers given, o r to extrapolate inform ation b eh in d data contained in the secondary data. F or the purp o se o f this rep o rt the participants in the sem i-structured interview are id entified by m eans o f a letter: A to F. R esp o n d en t A is P ersonnel M anager o f R P 3, B and C are both P roduction M anagers o f R P 3, D is Personnel M anager o f H W C M and E and F are both P roduction M anagers o f H W C M .

5 .2 .2 . A b s e n te e is m d e fin e d

A ll six respondents defined absenteeism as an em ployees unapproved absence from the w orkplace, and all included certified and u ncertified sickness in th is definition. In relation to ap p ro v ed absence, all co n sid ered legislative leave to be approved, and m aternity leave, ju ry duty and parental leave w ere cited as exam ples by respondents A ,B and D. R espondent D also hig h lig h ted th a t leave o f absence, although n o t a statutory entitlem ent, w as considered approved absence u n d er th e relev an t com pany policy.

5 .2 .3 . C o s ts a n d m e a s u r e m e n t o f a b s e n te e is m

W hen asked about th e cost o f absenteeism in each o f th eir areas, none o f the respondents w ere aw are o f th e actual cost o f absenteeism fo r th eir b u sin ess area, either direct o r indirect. H ow ever, all w ere aw are th a t th e d irect cost o f the sick pay schem e w as the only m easured cost associated w ith absence in th e com pany and all six w e re aw are o f the overall com pany cost o f th is schem e, being in excess o f 1.1 m illio n euro. R espondent D w as o f the o pinion that u sin g th e sick pay schem e as th e only m easurem ent o f co st w as inaccurate and did n ot rep resen t the true cost o f absenteeism in B ausch and L om b. T his sentim ent w as supported by resp o n d en t A w h o suggested th a t indirect costs should also b e m easured.

In relatio n to m easurem ent, th e th ree participants from R P3 (A , B and C) had ceased to m easu re absence levels in July 2003. W hen asked to ex p lain th e reason fo r th is respondents B an d C had n o t tak en notice o f th e d a ta on absence p rovided p rio r to July 2003, and therefore stated they had n o reason to req u e st th e inform ation w h en it h ad not been m ade available to them . T he th ird resp o n d en t (A ) fro m RP3 stated that

27

recording absence levels was a non value adding activity.

In contrast, the three respondents from H W C M (D , E and F ) could p resent exact absence levels fo r th eir respective areas fo r th e p receeding m onth. Tw o respondents (E and F) a ssociated this w ith both the availability o f m onthly d ata from the H um an R esource D epartm ent and the req u irem en t to p ro v id e this info rm atio n to th eir m anager. A ll three

p articipants (D, E and F) from H W C M w ere o f the opinion th at having absence level figures a v ailable w as a key factor in absence m anagem ent, a n d according to respondent F

the monthly data provided by HR acts as a trigger for action to be taken with poor attendees
5 .2 .4 . A b s e n te e is m causes

P resen tly B & L do n o t reco rd causes o f unapproved absence, therefore a q u estion w as p o sed to ascertain th e perceived reasons fo r absence from th e respondents. T he initial question posed in relatio n to th e causes o f absen teeism req u ired the respondent to select from a prepared list o f po ten tial causes, and the o p p o rtunity w as also p rovided to p resent opinions on other reasons fo r absence th at m ay h av e b een om itted from the initial selection.

A ll six respondents rated th e fo llo w in g as their top three p erceived causes w ithin their areas: h o m e circum stances (including ch ild care, care o f elderly), genuine illness, particularly m inor illnesses such as colds and flu and finally th e existing sick p ay schem e. R espondents A and B b o th b eliev ed th at w hilst th e v ast m ajority o f th e absences w ere genuine, there is a percentage o f em ployees th at are only skivingfrom work\ in the b e lie f th at n othing w ill h appen to th em w h e n th ey do return to w ork. R e sp o n d en t F com m ented th a t another cause o f absenteeism is the long hours and th e lack o f jo b m o tiv atio n during the w eekend shift. co n cu rred w ith th is th in k in g an d w e n t o n to say R espondent E

"

Working for 12 hours during the weekend is hard enough, but it is made more

difficult by thefact that thejob is very routine and boring and wouldn t encouragejob satisfaction

28

5 .2 .5 . A b s e n c e m a n a g e m e n t s t r a t e g ie s a n d t h e i r e f fe c tiv e n e s s

A ll respondents u sed return to w o rk interview s as a strategy for controlling absence, how ever o f the th ree respondents (A , B and C ) in R P3, no one carried out these consistently.

It is

difficult to get the time tofollow up all absences com m ented

respondent C. R espondents D,

E and F from H W C M confirm ed th a t they u se d return to w ork interview s regularly.

In relatio n to the use o f the disciplinary procedure, respondent F stated that

to be seen using disciplinary actionfor repeat offendersfor absence is the only real deterrent there is
F ive o f th e six respondents agreed th a t u se o f disciplinary actio n w as an effective tool for reducing absence, respondent E disagreed. R esp o n d en t A stated th at use o f disciplinary action should o n ly b e

used as a last resort and in exceptional circumstances

In relatio n to the availability o f a sick p ay schem e, all respondents believed that the availability o f a sick pay schem e h a d a negative effect o n levels o f absence, and in th e case o f resp o n d en ts B and C, b o th com m ented that th e availability o f sick pay actually provided an incentive to em ployees to

ring in sick for a day or two

T he participants w ere asked to

pro v id e detail o f the fam ily friendly initiatives th at are available in th eir respective areas. In relatio n to jo b sharing, resp o n d en t D w as o f th e o p in io n th at H W C M are m ore likely th an RP3 to refuse applications for jo b sharing on th e basis o f business needs, this w as clarified by req u estin g d etails o f n um bers involved in jo b sharing in each b usiness unit. H W C M presently h av e 30 em ployees jo b sharing, and R P3 have 50. In the case o f Force M ajeure, all

resp o n d en ts agreed th at th is w a s av ailable in th eir respective areas, how ever, all six respondents suggested that H W C M apply th e policy m ore rigidly than R P3. R espondents A and F w ere o f th e o p in io n th a t H W C M q uery th e em p lo y ees ap p lication and check i f the em p lo y ees absence does in fact fall into th e category o f Force M ajeure leave, w hile in RP3 Force M ajeure applications are n o t queried. A lso, the m anagem ent o f Leave o f A bsence in b o th areas differ, to the p o in t th a t m ore em ployees w ould be granted this unpaid leave in RP3 w hereas H W C M refuse m ore applications b ased o n business needs, th is w as confirm ed by

29

b oth resp o n d en ts A a n d D . F inally, acco rd in g to p articipants A , B, C, and D, m ore flexitim e w ould take place in R P3 th an in H W C M . It w as the o p inion o f respondent D that

''''generally the contracted hours should be adhered to unless an employee has extreme
personal circumstances and even then this arrangement would be fo r a fix e d period o f

time only.
N one o f the participants used o r w ere aw are o f using team w o rk o f jo b redesign as a m anagem ent strategy fo r absence control. W h en ask ed ab o u t th e benefits o f having an annual attendance bonus and the p erceived ben efit o f this, all respondents w ere o f the opinion that th is b o n u s did n o t contribute to increased attendance. In fact, respondents A and B w ere o f the opinion that paym ent o f an attendance bon u s should not be necessary as

people are paid a good salary to attend work in thefirst place

5.3. E m p lo y e e S u rv e y T h e to ta l n u m b er o f questionnaires retu rn ed w as 83, giving a n overall response rate o f 52% . F rom th e 80 questionnaires distrib u ted in each o f th e business units, 38 w ere returned from R P3 (a resp o n se rate o f 48% ) and 45 w ere returned fro m H W C M (a response rate o f 56% ). D ue to th e level o f resp o n se th e d a ta o b tain ed cannot be p resen ted w ith an acceptable degree o f statistical significance how ever, th e data gathered is accepted as being indicative o f the population.

5 .3 .1 . S u r v e y r e s u lts r e s p o n d e n t d e ta ils

F igure 8 show s th e overall retu rn rate fro m each shift p attern - 58% fro m three shift and 42% from w eekends.

30

Breakdown of shift pattern of survey respondents overall

W e e k e n d s

3 shift

F ig u re 8 - B r e a k d o w n o f re s p o n d e n ts s h ift p a tte r n

Co-incidentally, the return rate from H W C M and RP3 was the same, as shown in Figures 9 and 10.
Breakdown of shift pattern of survey respondents HWCM Breakdown of shift pattern of survey respondents RP3

,42%

68%

Weekends 13 shift

42% 58%

I Weekends 13 shift

F ig u re 9

F ig u re 10

R e s p o n d e n ts s h ift p a tt e r n - H W C M a n d R P 3

The length o f service o f all respondents w as w ell distributed across all brackets, as can be seen in Figure 11.

3 1

Length of service of survey respondents overall

^AL
< 1 yr 1 - 5 yrs 6 -1 2 yrs > 12

F ig u re 11 - L e n g th o f se rv ic e o f a ll re s p o n d e n ts

In relatio n to length o f service in each b u sin ess unit, it is apparent th a t in R P 3, 69% o f resp o n d en ts h av e been w ith the com p any fo r 6 or m ore years. T his is in contrast to H W C M w h ere only 4 4% h a v e b een w ith th e co m pany fo r m ore th an 6 years.

Length of service of survey respondents HWCM

Length of service of survey respondents RP3

< 1 yr
1 -5 yrs 6 -12 yrs

5% -(/ 40%^ < 1 yr 1 -5 yrs 6 -12 yrs >12 yrs

> 12

29%

F ig u re 12

F ig u re 13

L e n g th o f se rv ic e o f r e s p o n d e n ts in H W C M a n d R P 3

T he age brackets for all respondents can be seen in Figure 14. 40% o f all respondents being in th e 2 6 to 35 years age bracket.

32

Ages of survey respondents overall

19%

15%
18-25 26-35 36 - 45 46 or over

F ig u re 14 - A ges o f a ll re s p o n d e n ts

In H W C M th e m ajo rity (65% ) o f respondents are u n d e r 35, com pared to R P 3, w here the m ajority o f respondents are over 36, w ith 33% being 46 or over. O nly 5% o f respondents in H W C M w ere o v er 46.

Ages of survey respondents HWCM

Ages of survey respondents RP3

18-25 30% 26-35 36-45 47% 46 or over

11%
33% 32% 24%

18 -25 26 -35 36 -45 or over

CD

s j

F ig u re 15

F ig u re 16

A ges o f s u rv e y re s p o n d e n ts in e a c h b u sin e ss u n it

5 .3 .2 . H W C M A b s e n c e d a ta

F rom the total o f the 45 questionnaires returned from H W C M , 29 questionnaires from the w eek en d shift an d 26 fro m th e th ree shift cycle. 3 o f th e 19 respondents o n th e w eekend shift and 3 o f the 26 respondents on the three shift cycle w ere absent during 2004. In total there

33

w ere 13 occasions o f absence, 7 o n w eekends (attributable to 3 em ployees) and 6 on three shift (attributable to 3 em ployees). O f th e 13 absences in total, the reasons for the absences as identified b y th e resp o n d en ts can b e seen in F ig u re 17.

Reasons for absence for all shift patterns in HWCM

Illness - self Illness - family member A ccident in work A ccident outside of work Berea\ment

161%

IS Home circumstances Work circumstances Other

F ig u re 17 - R e s p o n d e n ts re a s o n s f o r a b s e n c e f o r a ll s h if t p a tte r n s H W C M

T he h ighest percentage o f absence is attributed to illness o f the em ployee, w ith 15% associated w ith h o m e circum stances, and 8% associated w ith each o f bereavem ent, accidents outside o f w ork, and th e illness o f a fam ily m em ber. W hen analysing the data from each shift pattern, it is ap p aren t th at th e reasons for absence differ b etw een each shift pattern. A lthough s e lf illness is the m o st significant reason for absence in b o th shift patterns, 66% for th o se on th ree shift and 57% on w eek en d shift, as can b e seen from F igure 18, th e rem ain d er o f absence is attributed to accidents outside o f w ork (17% ) and bereavem ent (17% ). In respect o f

w eek en d shift, th e reaso n s o ther th an s e lf illness causing absence are recorded as 29% associated w ith h o m e circum stances, and 14% w ith illness o f a fam ily m em ber - refer to Figure 19.

34

Reasons for absence on 3 shift in HWCM

r 0% o%
Illness - self Illness - family member A ccident in work Accident outside of work Bereavement Home circumstances W o rk circumstances Other

F ig u r e 18 - R e a s o n s f o r a b s e n c e H W C M th r e e s h ift

Reasons for absence on weekend shift in HWCM

Illness - self Illness - family member A ccident in work A ccident outside of work / 5 7 % Bereavement Home circumstances Work circumstances Other

F ig u re 19 - R e a s o n s f o r a b s e n c e H W C M W e e k e n d s h ift

In relatio n to the effectiveness o f absence control policies, the H W C M respondents rated disciplinary action a n d atten d an ce bon u s as the m o st effective po licies in relation to reducing levels o f absence. A s can b e seen from F igure 20, th e policies deem ed as not effective by

35

54% o f respondents w as jo b redesign and team w ork, fo llo w ed by 20% w ho d id n o t believe retu rn to w ork interview s w ere effective.

Percieved effectiveness of policies in reducing absence in HWCM

F ig u re 20 - E ffe c tiv e n e ss o f p o licies H W C M

T he p olicies th a t w ere p erceived in H W C M to b e som ew hat effective o r better are sum m arised in T able 1.

P o lic y

Disciplinary action Attendance bonus Employee assistance programmes Employee health promotions Family friendly initiatives Return to work interviews Job redesign and teamwork

94% 93% 79% 73% 67% 48% 25%

T a b le 1 H W C M e ffectiv en ess o f a b s e n c e c o n tro l p o licies

A full sum m ary o f th e q uestionnaire results fo r H W C M is contained in A p p endix 5.

36

5 .3 .3 . R P 3 A b s e n c e d a ta

F rom the total o f 38 questionnaires returned from H W C M , 16 w ere fro m the w eekend shift and 22 from th e th ree shift cycle. 5 o f th e 16 resp o n d en ts o n th e w eekend shift and 6 o f the 22 respondents on the three shift cycle w ere absent during 2004. In total there w ere 20 occasions o f absence, 9 o n w eekends (attributable to 5 em ployees) an d 11 on three shift (attributable to 6 em ployees). O f the 20 absences in total, the reasons for the absences as identified by the 65% o f absences are attributable to illness o f the

resp o n d en ts can be seen in F igure 21.

em ployee, how ever, 10% is attributable to hom e circum stances and 10% to bereavem ent. A ccidents a t w ork, illness o f a fam ily m em b er an d m issin g a flight (other) each represent 5% o f absence causes.

Reasons for absence for all shift patterns in RP3

5%

0% -v I
Illness - self Illness - family member A ccident in work Accident outside of work Berea\ement E Home circumstances Work circumstances Other

F ig u re 21 - R e s p o n d e n ts re a s o n s f o r a b s e n c e f o r a ll s h if t p a tte r n s R P 3

W hen com paring reaso n s fo r absence across shift patterns, as can be seen in Figure 22 and F igure 23, 82% o f ab sen ce is attributed to em ployee illness fo r those on three shift, w ith the rem aining 18% attributable to accidents at w ork and bereavem ents. In contrast, only 45% o f w eek en d shift absence is attrib u ted to em ployee illness, w ith h o m e circum stances contributing to 22% o f absence.

37

Reasons for absence on three shift in RP3

i o% 9% I 0%
Illness - self Illness - family member Accident in work Accident outside of work Bereavement B Home circumstances Work circumstances Other

F ig u re 22 - R e a s o n s f o r a b s e n c e th r e e s h if t cycle in R P 3

Reasons for absence on weekend shift in RP3

1 1 %-,
Illness - self Illness - family member A ccident in work Accident outside of work Bereavement Home circumstances Work circumstances Other

0% 1 1 % 0% F ig u re 23 - R e a s o n s f o r a b s e n c e w e e k e n d s h if t cycle in R P 3

In relatio n to effectiveness o f absence control p o licies in R P 3, Figure 24 show s that discip lin ary action a n d em ployee assistance pro g ram m es w ere considered very effective in red u cin g th e levels o f absence, 19 % and 18% respectively rating these p o licies as very effective. 4 5% rate d jo b red esig n a n d 31% rated retu rn to w ork interview s as n o t having an effect in respect o f ab sen ce reduction.

38

Percieved effectiveness of policies in reducing absence in RP3

J3 c < D ~o c o
CL

5 -Very effective 4 - Effective 3 -Somew hat effective 2 - Less effective 1 -Not effective

(0 a>

B
< # >
**>

J*

P o lic y F ig u r e 24 - E ffe c tiv e n e ss o f p o licies R P 3

T he policies th at w ere perceiv ed in RP3 to be som ew hat effective or better are sum m arised in T able 2.

P o lic y

Attendance bonus Disciplinary action Employee health promotions Employee assistance programmes Family friendly initiatives Job redesign and teamwork Return to work interviews

95% 84% 76% 70% 55% 26% 24%

T a b le 2 - R P 3 e ffectiv en ess o f a b s e n c e c o n tro l policies

A full sum m ary o f the qu estio n n aire results for RP3 is contained in A ppendix 6.

39

5.4. Conclusion
H W C M and R P3 p rovided a case study due to th eir sim ilar size, structure and shift patterns. M an ag em en t o f absence in H W C M differs significantly fro m R P3, particularly in relatio n to m easu rin g absence, use o f disciplinary and h o w p olicies such as force m ajeure and leave o f absence are applied. T he ab sen ce levels in H W C M are lo w er fo r b o th shift patterns th an those in R P3. T he absence level during w eekend shift exceeds three shift in both business units,

how ever, th is difference is m o st significant in R P 3. T he m ain reasons recorded fo r absence is em ployee illness, how ever, o ther reasons recorded include, illness o f fam ily m em ber, accidents in and o u t o f w ork, b ereavem ent, ho m e circum stances and o ther (w hich w as recorded on th e questionnaire as b e in g a m issed flight). D isciplinary action w as considered to be the m o st effective absence control policy, follow ed by attendance bonus and em ployee assistance program m e. T he least effective absence m anagem ent policy w as considered to be jo b red esig n and team w ork, fo llo w ed b y retu rn to w ork interview s.

40

C h a p te r 6

ANALYSIS

6.0. Introduction
Available literature on absence was reviewed, with specific focus on the main areas o f research, namely definitions o f absenteeism, measurement and costs, causes and strategies used by management to control or reduce absence. Using two business units o f Bausch and Lomb as a case study, quantitative data was obtained in respect o f levels o f absence in each unit, causes o f absence and management strategies used to reduce absence. Information was also sourced in respect o f the cost o f absenteeism. This data was analysed across two shift patterns in each business unit. Using information from this quantitative data and the findings o f the literature review, semi-structured interviews were conducted with management in each business unit on perceived causes, measurement and cost o f absence and the strategies employed in each business unit to manage absence. The information gathered during the

literature review, secondary data review, semi-structured interviews, and employee survey is discussed in this chapter. The findings o f the research will be discussed in the context o f the literature review.

6.1. Review 6.1.1. Absenteeism defined

From the findings o f the primary research it was apparent that in Bausch and Lomb absenteeism was defined as failure to attend for work when obliged to do so and this was further classified as approved and unapproved absence (unapproved included certified and uncertified absence). This was consistent with the findings o f the literature review and the definitions o f absence presented by the Hourihan (1993) and the European Foundation for the Improvement o f Living and Working Conditions (2001). The definition o f absenteeism in Bausch and Lomb is in keeping with the recommendation o f IBEC in their Workplace Absence Survey (2004) in that the definition is used consistently which enables attendance to

41

be compared over time and for different parts o f the organisation. Having this consistency meant that comparisons used between HWCM and RP3 in the case study were true.

6.1.2. Cost and measurement o f absenteeism

The importance o f including direct and indirect costs when considering the cost o f absence was highlighted by the findings o f Taylor (1998) and DTI (2001). However, B&L only

consider direct costs associated with absenteeism, specifically the cost o f the sick pay scheme, which is consistent with the findings o f the CIPD Employee Absence Report 2004, who found that o f those employers monitoring the cost o f absence, occupational sick pay was most likely to be included. Although B&L do not include indirect costs, the impact o f indirect costs was recognised by two respondents in the semi-structured interviews who were o f the opinion that the cost o f the sick pay scheme was inaccurate and did not represent the true cost of absenteeism. The B&L approach to measuring costs is consistent with the findings o f the literature review - indirect costs such as reorganisation o f the workplace and training are not considered. Not having an overall cost o f absenteeism can lead to a lack o f appreciation o f the effects o f absence - this thinking is apparent when, during the semi-structured interviews, the personnel manager in RP3 considered recording absence to be a non value adding activity. Measuring the cost o f absence is important because it can provide senior management with evidence o f how absence impacts the bottom line and why it is worth investing in reducing absence. B&L should consider including both direct and indirect costs when counting the cost of absenteeism in order to get a true account o f how much absence is costing B&L.

In relation to measurement, from the semi-structured interview it was highlighted that the three participants from RP3 had ceased to track absence levels since July 2003. In contrast, HWCM could all present their previous months absence figures and believed that having absence figures available to them was a key factor in controlling absence. RP3 no longer track absence, RP3 have on average a higher level o f absence than HWCM who measure and track absence consistently. As highlighted by respondent E from HWCM, in the semi

structured interviews, measuring absence is a key factor in controlling absence as it acts as a trigger for action to be taken against poor attendees. Analysis o f the secondary data shows that the absence levels in RP3 were 7.61% in 2004, in comparison to 5.72% in HWCM for the

42

same period. This is consistent with the findings in HWCM where measuring absence is key in controlling absence.

The contrast between the two business units in their approach to absence measurement is consistent with the view o f the DTIs research (2001), where it is highlighted that even in companies where measurement systems exist, there was a lack o f consistency with recording and measurement o f absence.

6.1.3. Absenteeism causes

As Bausch & Lomb does not record causes o f absence, the research findings highlight the perceived causes o f absence as presented by management during the semi structured interviews, and operators during the employee survey. All six respondents in the semi

structured interviews rated the following as their top three perceived causes within their areas: Home circumstances (including childcare, care o f elderly); genuine illness (particularly minor illnesses such as colds and flu) and finally the existence o f a sick pay scheme. The findings from the employee surveyed were consistent with the semi structured interview findings, however, the highest proportion o f absence was attributed to employee illness, followed by home circumstances. This was consistent with the findings o f Industrial Societys survey

(1997) and Reisenwitz (1997) who highlighted sickness in the family, childcare and domestic responsibilities as significant causes o f absence. The research findings in relation to genuine illness is supported by the literature review findings o f the DTI (2001), O Reilly (2000) and the CIPD (2004) who highlight that the main cause o f unplanned absence was genuine illness due to minor ailments such as colds and flus.

Reference to the sick pay scheme in B&L was specifically not included in the design o f the semi structured interview or the employee questionnaire, as during the research period the continuance o f the sick pay scheme was under negotiation with employee unions, with the involvement o f third parties, and the inclusion o f reference to the sick pay scheme was considered to potentially introduce bias to the research findings. From the semi structured interviews, the finding in respect o f the sick pay scheme was considered to be significant in that, participants were given a list o f multiple choice answers, which did not include any

43

reference to the sick pay scheme, all six respondents answered home circumstances and genuine illness and then independently added the availability o f the sick pay scheme to their list o f perceived causes. The availability o f the existing sick pay scheme as a perceived cause o f absence also concurred with the early research o f Huczynski and Fitzpatrick (1989) and more recently Dalton and Todor (1993) who associated levels o f absence with the availability o f sick pay schemes, specifically, employees in organisations not covered by sick pay schemes tended to have lower levels o f absence than those covered by such schemes.

In HWCM there was no significant difference between absence levels and shift patterns, with 5.79% in the HWCM three shift cycle and 5.65% in the weekend cycle. However, the results in RP3, where absence levels on weekend shift averaged 8.75% compared to 6.47% on the three shift cycle, support the findings o f Arnold et al (1995) and Warr and Yearta (1995) who suggest that factors intrinsic to the job such as work patterns affect absenteeism and specifically shift workers are more likely to be absent from work for sickness.

In the semi structured interviews, only two respondents commented that another cause of absenteeism is the long hours and lack o f job motivation particularly during the weekend shift, and survey results showed that job redesign was not perceived effective in reducing absence, although the findings o f the literature review indicated that job satisfaction and motivation can be significant contributors to absence, this was not supported by the research in B&L.

6.1.4. Absence management strategies and their effectiveness

Consistent with Bevan and Hayday (1998), who believe that return to work interviews are amongst the most widely applied tools o f absence management, and the 81% o f respondents to the CIPD (2004) absence survey, who use return to work interviews following sickness absence, both business units in Bausch and Lomb use return to work interviews as a strategy for controlling absence. However, in RP3, return to work interviews are not conducted

consistently because o f time constraints.

In contrast, HWCMs return to work interviews are carried out consistently, and according to the respondents in the semi-structured interviews, are seen as an effective absence control

44

strategy. Of interest however is the fact that the according to the employee survey, only 24% o f respondents in RP3 perceived return to work interviews as effective, compared to 48% in HWCM. Analysis o f the secondary data shows that on average absence levels in HWCM are lower than RP3, and this is the case for both shift patterns. This supports the findings of Fowler (1998) who believes that return to work interviews are probably the most influential element in ensuring that absences are not treated casually. Whilst the research findings are consistent with the literature review, Bausch & Lomb needs to ensure that both RP3 and HWCM are carrying out the return to work interview on a consistent and regular basis with every employee.

Five o f the six respondents to the semi structured interview agreed that the use o f disciplinary action was an effective tool for reducing absence. This is supported by the findings o f Dunn and Wilkinson (2002) and Fowler (1998) who highlight that disciplinary action remains the usual sanction against persistent absentees and that no effective absence management programme can avoid the use o f disciplinary action. This is supported by the findings o f CIPD (2004) where 83% o f respondents to their survey implemented disciplinary procedures for unacceptable attendance. The respondents to the employee questionnaire further concur with the suggestion that disciplinary action is effective in absence control, 84% in RP3 and 94% in HWCM rank this as effective. Disciplinary action is used in B&L, however, the absence levels in B&L still exceed the national average, therefore, use o f disciplinary action alone will not control absence, moreover it is one element that must form part of the overall absence management strategy.

From the research findings, family friendly initiatives were available in both business units, however it was noted by the respondents in the semi structured interviews, that HWCM offered less job sharing, the force majeure policy was applied more rigidly, more leave of absence applications were refused and less flexitime offered within the HWCM area. Bevan (1998) believes that the best employers try to motivate attendance by adopting family friendly policies. This is supported by Sinclair (2001) who is o f the opinion that introducing more flexible working hours is one of the effective strategies for dealing with the problem of absence. These findings are not supported by the case study as the business unit, namely

45

HWCM that provided fewer opportunities for flexible working, experienced lower levels o f absence than RP3 who were more accommodating in respect o f flexible working. This supported by the results o f the employee survey, where the availability o f family friendly initiatives was ranked 5th o f 7, in respect o f effective absence control policies in both business units.

In relation to the availability of a sick pay scheme, the findings o f the literature research indicated that use o f a sick pay scheme was considered as a strategy for managing absence, however, as discussed in the section on absenteeism causes, the primary research findings were that availability o f a sick pay scheme was in fact a cause o f absence. Jones (1998) stated that some companies are restricting or even removing sick pay schemes in an effort to reduce absenteeism. As recent as 2004, Griffith highlights that organisations are becoming less

tolerant of employees who abuse their sick pay policies. The findings o f the literature review are consistent with the findings o f the primary research in this regard, where all six respondents in the semi-structured interviews placed availability o f a sick pay scheme as one o f the top three causes o f absence.

A key issue in respect o f management strategies was highlighted by Evans and Palmer (1999), IBEC (2002) and Sinclair (2001) who comment that job redesign and team working are strategies that can be effective in creating a positive attitude towards attendance in the workplace. There was no support for these findings in the research, as no respondents in the semi-structured interviews considered job redesign or teamwork as an absence management strategy, and this was supported by the findings o f the employee survey.

The availability o f an attendance bonus was identified as an absence management strategy in the literature review, and Fowler (1998) for example noted that many firms that give attendance bonuses believe they reduce absence rates. However, the findings o f the research are not consistent with the ideas o f Fowler, as the semi-structured interviews highlighted that the use of an attendance bonus was not thought to be effective in reducing absence and two respondents noted that employees are already paid a good salary to attend work in the first place without offering an attendance bonus. In stark contrast however, respondents to the

46

employee survey believed the availability o f an attendance bonus to be an effective policy in reducing absence - in RP3, the attendance bonus was ranked as the most effective strategy, and in HWCM, it was ranked second.

47

C h a p te r 7

C O N C L U S IO N S A N D R E C O M M E N D A T IO N S

7.0. Conclusions The researcher found both similarities and inconsistencies between the literature review and the primary research. In terms o f defining absence, the literature reviewed concurred with the findings o f the primary research. The cost o f absence in B&L included direct cost o f the sick pay scheme only, which is consistent with the findings in the literature review, in relation to how respondents to a CIPD survey measure cost o f absence, however, the importance o f including indirect costs when looking at absenteeism cannot be ignored. The findings o f the primary research in respect o f measurement were consistent with the literature review in that the absence levels in RP3, who do not track absence were higher on average than HWCM who measure absence. The main perceived causes o f absence according to the respondents in the semi-structured interview were home circumstances, genuine illness and the sick pay scheme - these findings were consistent with the findings o f the employee survey and the literature.

The most effective management strategies in controlling absence were highlighted as being the use o f disciplinary procedures, however in relation to the use o f return to work interviews, and the availability o f an attendance bonus, opinions differed between management and employees. Both the findings o f the literature review and the primary research concurred in relation to these strategies - this was supported by the analysis o f secondary data where it was shown in HWCM that absence levels were lower than RP3, HWCM consistently use return to work interviews - this is not the case in RP3. Family friendly initiatives, according to the literature research, were considered as effective absence management strategies, the findings in B&L however, were contradictory to this. RP3 who are more flexible than HWCM in relation to family friendly initiatives have higher absence levels than HWCM.

48

The consistent approach to absence management in HWCM would appear to have had a positive effect on absence levels in comparison to RP3. Both business units are similar in size, age and shift patterns, however absence levels differ. Such variations are indicative of internal systems and strategies that exist to manage absence, and the existing culture o f each business unit.

7.1. Recommendations 7.1.1. - Defining absence

Although the findings o f this research are restricted to the limited research conducted within two similar business units o f a manufacturing facility, the findings o f the primary and secondary research are generally supportive o f the findings o f the literature review. In the case o f defining absenteeism, it is imperative that B&L ensure that the definition o f absence used is applied consistently throughout the organisation.

7.1.2. Costs
In relation to costs, only the cost o f the sick pay scheme was considered when counting the cost of absence - the hidden and indirect costs o f absence were not considered. Although this is the case in most companies, as highlighted in the literature review, the actual costs associated with absence far exceeds the direct costs o f sick pay schemes. B&L must consider including indirect costs when measuring the cost o f absenteeism to ensure an accurate picture o f how much absenteeism is costing the company - having this total cost available will ensure an increased awareness amongst all in B&L, and consequently will lead to an increased management focus on reducing absence levels.

7.1.3. Measurement
In relation to measurement o f absenteeism, the importance o f having data available and reviewing this data is paramount - when comparing two business units, the one where absence was measured consistently and absence levels reviewed regularly had a lower level o f absence than the business unit where measurement was inconsistent or not happening at all. B&L must enforce a consistent approach to absence measurement, with regular reviews o f absence levels in all business units and across all shifts. In conjunction, in keeping with researched

49

best practice, B&L would benefit from a review o f their method o f measurement, specifically, consideration should be given to differentiating between long and short term absence, as the management strategy adopted will be dependent on the length o f absence.

7.1.4. Sick pay scheme

This research has also highlighted the negative effect o f the availability o f a sick pay scheme on absence levels - at a direct cost o f 1.1 million euro per annum, consideration should be given by B&L to the removal o f this scheme, or at a minimum review the payment criteria in respect of the scheme.

In relation to direct costs, without any amendment to the existing scheme, reducing absence levels by 2%, which has been achieved in HWCM by application o f absence management policies, would result in a bottom line saving o f 20,000.

7.1.5. Attendance bonus

The availability o f an attendance bonus was perceived by employees to be an effective absence management strategy, therefore consideration should be given to maximising the benefit o f the existing annual attendance bonus scheme. Presently, an annual bonus, will not provide any incentive to an employee who is absent in the earlier part o f the year. However, if the bonus was to be paid on a quarterly basis, even if an employee is absent in the first three months of the year, they will still have an incentive to attend work in the second three months as they will still be entitled to a attendance bonus for that quarter. This will have a minimal cost impact on the company, specifically administrative costs and could be introduced immediately.

7.1.6. Absence Management Policy

The effectiveness o f return to work interviews cannot be contended, this is supported by the findings o f both the literature review and the primary and secondary research. B&L should develop an absence management policy based on best practice. The policy should include detailed guidelines on absence measurement, use o f return to work interviews and disciplinary procedure - the application o f this policy should be a management responsibility and should be applied consistently. The policy should also address the issue o f measuring the cost of

50

absence as outlined above. The effectiveness o f family friendly initiatives was not supported by the findings o f the primary research, however, the literature review highlights the importance o f family friendly initiatives in managing absence. Guidelines for ensuring consistent application of family friendly initiatives should also be included in the absence management policy.

The aforementioned conclusions and recommendations are based on research conducted in B&L, however, the literature review was not restricted. The effect o f the specific culture within B&L cannot be ignored, however, it is thought that due to the overall consistency between primary and secondary research findings and literature review, that recommendations made could be considered by all organisations managing absence.

51

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Arnold, J., Cooper, C., Robertson, I. 1995. Work Psychology: Understanding human behaviour in the workplace. 2nd Edition. London: Pitman Publishing Bell, J. 1999. Doing your Research Project. 3rd Edition. Bucks: Open University Press Bennet, H. 2002. Employee Commitment: the key to absence management in local government?. Leadership and Organisational Development Journal, Vol 23, Issue 8. Bevan, S. and Hayday, S. 1998 . Attendance management: A review o f good practice. Journal o f Managerial Psychology, Report 353 (December 1998). Chartered Institute o f Personnel and Development. Employee Absence 2001. Chartered Institute of Personnel and Development. Employee Absence 2003. Chartered Institute o f Personnel and Development. Employee Absence 2004. Confederation o f British Industry. 1997. Managing Absence in Sickness and in Health. London: CBI Crimp, M. and Wright, L.T. 1995. The Market Research Process. 4th Edition. Cambridge: Prentice Hall. Cuff, E.C., Sharock, W.W. and Francis, D.W. 1990. Perspectives in Sociology. 3rd Edition. Cambridge: Prentice Hall. Dalton, D. R. and Todor, W. D. 1993. Turnover, transfer, absenteeism: an interdependent perspective, Journal o f Management 19 (no. 2 February). Department o f Trade and Industry. How Employers Manage Absence 2001. Denzin, K. M. and Lincoln, Y. S. 1994. Handbook of Qualitative Research. London: Sage Dunn, D. 2001. Establishing a satisfying sick leave policy. Association Management Washington, Vol 53, No. 6, June.

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Dunn, C. and Wilkinson, A. 2002. Wish you were here: managing absence. Personnel Review, Vol 31, No. 2. European Foundation for the improvement o f Living and Working Conditions, Eurofound, 2001. Absenteeism: Definition. Available from: http://www.eurofound.ie/emire/ireland/absenteeism-ir.html. [Accessed 20 October, 2003], Evans, A. and Palmer, S. 1999. From Absence to Attendance. London: Institute o f Personnel Development. Evans, A. and Walters, M. 2003. From Absence to Attendance. 2nd edition. London: Institute o f Personnel Develeopment. Evans, A. 1998. Family Friendly Policies, Special Leave and the Parental Leave Directive. Bicester: CCH Feagin, J., Orum, A. and Sjoberg, G. 1991. A Case fo r Case Study. Chapel Hill: University o f North Carolina Press. Fowler, A. 1998. How to cut absenteeism. People Management, Vol 4, Issue 1. Gummeson, E. 1991. Qualitative M ethods in Management Research. London: Sage Griffith, J. 2004. Bosses take a stricter line. People Management, Vol 10, Issue 14. Hourihan, F. 1993. Absenteeism: Major Survey Shows Absenteeism is Down to 4.5%. Industrial Relations News 21 (June 1993). Huczynski, A and Fitzpatrick, M. J. 1989. Managing Employee Absence for a Competitive Edge. London: Pitman Industrial Society. 1997. Maximising Attendance. London: Industrial Society. Irish Business and Employers Confederation. National Survey 1997. Irish Business and Employers Confederation. Absence Management Report 2002. Irish Business and Employers Confederation. Workplace Absence Survey 2004 Jones, L. 1998. Sick o f the Sight o f You. The European, Sept 14,1998. Kinnear, T. C. and Taylor, J. R. 1996. Marketing Research - An A pplied Approach. 5th Edition. USA: McGraw Hill Inc. McHugh, M. 2001. Employee absence: an impediment to organisational health in local government. The International Journal o f Public Sector Management, Vol 14, N o .l.

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Saratoga. 1998. The European/United Kingdom Human A sset Effectiveness Report. 5th Edition, Saratoga Europe: Oxford. Taylor, S. 1998. People and Organisations: Employee Resourcing. Personnel Development. London: Institute o f

Torrington, D. and Hall, L. 1991. Personnel Management. 2Q dEdition. London: Prentice Hall. University o f Saskatchewan, 2001. Effective Absence Management: A Handbook fo r Managers. Available from: http://www.adminsrv.usask.ca/hrdivision/employee_services [Accessed 20 October 2003]

Walters, M.1996. Employee Attitude Development: London.

and

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Weiers, R.M. 1998. Study Guide for Weiers Introduction to Business. New York: Brooks Cole.

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A P P E N D IC E S

Appendix 1 - Absence levels for 2004 in H W C M and RP3

| j]0 eB *H e win s e r tF g r n M t I* 6*) S W wB * j

r ia ! 4 * i u ? A ^ -j G A E F 8 C I 0 1 2004 HWCM ABSENCE a y -0 4 Jun-M JaiH W FeMM M er44 A prA W M 2 HW CMTliree Shift 334% 5 29% 642% 7 04% 560% 604% 3 i1 * HW CM Shift A 200% 4.14% 796% 507% 443% 6.50% 5 4 40% 5 60% 510% 639% 682% 574% HW CM Shift B B 7 3 63% 413% 6.19% 967% 554% 509% HW CM Shift C ft a HW CM Weekends 349% 4.71% 6.30% 0.36% 557% 5.97% 9 1 0 1 1 HW CM Shift D 667% 471% 564% 5.50% 047% 7.56% 397% 1129% 1 2 HW CM Shift E 598% 7.87% 863% 624% 1 1 3 U HWCM Overall absence 4.45% 529% 670% 657% 7 85% 7.40% 1 5 1 6 2004 RP3 ABSENCE 1 7 F et> 4 4 AfeHW ApHW May# Jun44 5 80% 5 60% 7.42% 592% 665% 636% RP3 Three Shift 1 8 1 9 2 RP3 Shift A 071% 4 93% 7.22% 650% 6.30% 572% RP3 Shift B 2 1 767% 791% 770% 585% 641% 6,55% 2 2 RP3 Shift C 1.01% 397% 726% 541% 7,24% 602% 2 3 2 4 206% 1 RP3 Weekends 057% 4 54% 789% 789% 1 1 11% 3 2 8 932% 4 08% 606% 709% 1 009% 935% RP3 Shift D 2 7 RP3 Shift E 773% 5.04% 990% 078% 14.10% 1292% 2 8 669% 519% 764% 6.73% 884% 8 27% 2 9 RP3 Overall absence 3 0 3 1 HW CM Overall absence 572% RP3 Overall absence 3 2 HW CM Tliree shift overall 5 79% RP3 Three shift overall CM Weekends overall RP3 Weekends overall 3 3 HW 565% 3 1 3 5 J39 1 0 * O / n H 1 J K L 3 ' % M

w -04 D ec-0 4 JuW Aog44 S ep-0 4 Ocm N

0 40% 577% 663% 5.55% 3.35% 5.44% 400% 5.33% 7.05% 293% 763% 535% 6 08% 453% 368% 837% 397% 0 47% 507% 3 43% 7 40% 3.70% 755% 5.31% 339% 700% 399% 9.25% 4.19% 380% 7 80% 342% 865% 9.17% 908% 725% 4.15% 756% 600% 458% 607% 620% 579% 623% 615% 877% 613% 662%

orQ 4 D ec-0 4 JuW Au$44 Sep-M O cH 3 4 H

7.15% 5,42% 690% 701% 6.12% 632% 5.14% 4.64% 7.14% 636% 766% 555% 982% 834% 5 93% 7.48% 557% 622% 5.55% 617% 733% 527% 802% 871%

6 1B% 4.33% 7.99% 1196% 1149% 1103% 536% 461% 726% 1308% 1 480% 1333% 000% 0.04% 057% 7.01% 404% 071% 1 677% 4 98% 7.33% 898% 761% 647% 8 75% 8.24% 876%

56

Appendix 2 - Schedule of questions for semi-structured interview

Section 1: Absenteeism defined How is absence defined in Bausch & Lomb?

Section 2: Cost and Measurement of absence What is the overall cost of absenteeism in Bausch & Lomb?

What is the cost of absenteeism in your area only?

What is the level of absence in your area?

How does your area measure absenteeism and what categories of absence are included for measurement purposes?

If you do monitor it, what do you do with the information?

Section 3: Absenteeism Causes Please rank what you consider to be the top three causes of absence - one being the highest reason and three being the lowest reason:

Genuine Illness -self Illness of family member Accident - work Accident - outside of work Bereavement Home circumstances (incl. Childcare, care of elderly) Work circumstances (bullying, harassment, job motivation) Other - explain

Section 4: Absence management strategies and their effectiveness

57

W hat strategies do you employ in relation to attendance in your area?

Do you use any of the following: Return to work interviews EAP referrals Disciplinary action Job redesign and team work Employee health promotions Attendance bonus Family friendly initiatives (if so, please name them)

What strategies do you think are most effective and why?

If you were to introduce additional strategies, what would you choose and why?

What do you consider to be the main differences between HWCM and RP3 in respect of absence management?

58

Appendix 3 - Operator Questionnaire

EMPLOYEE ABSENCE QUESTIONNAIRE

This questionnaire contains 3 sections - please read the instructions for each section carefully.

Section 1 - G eneral Instructions: Please indicate your answer by placing a / in the appropriate box.
1. Where do you work? HWCM

RP3

2.What is your shift pattern?

Weekends

3-shift

5. How long are you working in B&L?

Less than 1 year 1 - 5 years 6 - 12 years More than 12 years

4. In what age group are you?

1 8 -2 5 3 6 -4 5

2 6 -3 5 46 or over

Section 2 - Reasons fo r absenteeism Instructions: I f you have been absentfrom work in 2004, please indicate the number o f times you have been out and the reasons why e.g. if you have been absent 3 times, once because o f a sick parent and twice because of flu, put 1 in the box opposite Home Circumstances and 2 in the box opposite Illness .If you have not been absent in 2004please place a T in the box opposite the comment I was not absentfrom work in 2004. Note: Do not include the following approved leave as absence - Maternity Leave, Annual Leave add Public Holidays, Parental Leave, Force Majeure, Carers Leave, Leave of Absence, Examine/Study Leave, Marriage and Paternity Leave.

I was not absent from work in 2004 Illness - self Accident in work Bereavement Illness - family member Accident outside o f work

Home circumstances (incl. Childcare, care of elderly)

Work circumstances (bullying, harassment, job motivation) EH Other - explain _______________________________________________________________ _

Section 3 - Reducing absence Instructions: From thefollowing list indicate how effective you believe each is in reducing absence in your workplace, Le. by either motivating employees to come to work, or by deterring employees from being absent For each, circle the number that represents how effective you believe each is - 5 being very effective, and 1 being not effective.

Not effective
Return to work interviews Disciplinary action Employee health promotions Attendance Bonus Family friendly initiatives (e.g. flexible working/Job sharing) Employee Assistance Programme Referrals Job redesign and team work

Som ewhateffective

Veryeffective
5 5 5 5 5 5 5

Thankyoufor taking the time to complete this questionnaire - Please return to Theresa Farrell, HR Dept beforeMay fl.

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Appendix 4 - Covering letter to operator questionnaire

May 1,2005

Dear employee, I am presently conducting research in to absenteeism in Bausch and Lomb Waterford as part o f my studies for a B.A. (Hons) in Human Resource Management. As part of my research I am conducting a survey o f employees in RP3 and HWCM. I would be very appreciative if you could complete the following questionnaire, which should take no more than 15 minutes, and return it to me before May 15th, 2005. The completed questionnaires are being returned to me, and will be treated with the strictest confidentiality. There is no requirement to provide personal details such as your name or employee number. The results o f the questionnaire may be used as a basis for review o f the absence control policies and procedures used in Bausch and Lomb. Thank you for your co-operation

Theresa Farrell Process Personnel Manager HWCM

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Appendix 5 - Employee Survey Results H W C M

Response level
Number of questionnaires distributed Number of questionnaires returned: % return rate 80 45 56% 19 26

Shift pattern
W eekends 3 shift < 1 yr 1 - 5 yrs 6 - 1 2 yrs > 12 yrs

Length of Service_______________
10 16 14 5 Total Absent in 2004 Not absent in 2004 Weekends 7 from 3 employees - 2 out 2 occasions, 1 out on 3 occasions 3 Shift 6 from 3 employees - 3 out on 2 occasion Total 13 from 6 employees 6 39 Weekend 3 16

Age Group
1 8 -2 5 2 6 -3 5 3 6 -4 5 46 or over 3 Shift 3 23 8 21 13 2

Employee absence

Number of occasions of absence:

Reasons for absence

Total Illness - self Illness - family member Accident in work Accident outside of work Bereavement Home circumstances Work circum stances Other a 1 0 1 1 2 0 0 3 shift 4 0 0 Weekend 4 1 0 0 0 2 0 0 Perceived effectiveness Policy Return to work interviews Disciplinary action Employee health promotions Attendance bonus Family friendly initiatives Employee assistance programmes Job redesign and team work 1 - Not effective 20 0 12 1 18 4 54 2 - Less effective 32 6 15 6 15 17 21 3 - Somewhat effective 27 35 42 13 47 22 14 4 - Effective 17 31 29 52 13 41 8 5 - Very effective 4 28 2 28 7 16 3

1
1 0 0 0

Effectiveness of absence control policies__________________

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Appendix 6 - Employee Survey Results RP3

Response level
N u m b e r o f q u e s tio n n a ire s d is trib u te d : N u m b e r o f q u e s tio n n a ire s re tu rn e d : % re tu rn rate 80 38 48 %

Shift pattern
W eekends 3 s h ift 16 22

Length of Service
< 1 yr 1 - 5 y rs 5 - 1 2 y rs S 12 yrs

Age Group
2
10 11 15 1 8 -2 5 2 6 -3 5 3 6 -4 5 46 o r o v e r 4 12 9 13

Employee absence
Total
A b s e n t in 2 0 0 4 N o t a b s e n t in 2 0 0 4 11 27

Weekend
5 11

3 Shift
6 16

Number of occasions of absence:______ ______ ________

Weekends
9 fro m 5 e m p lo y e e s - 3 o u t on 1 o c c a s io n , 1 o u t 4 o c c a s io n s , 1 o u t 2 o c c a s io n s 3

Shift

11 fro m 6 e m p lo y e e s - 2 o u t on 1 o c c a s io n , 3 o u t on 3 o c c a s io n s

Total
2 0 fro m 11 e m p lo y e e s

Reasons for absence

Total
Illn e s s - s e lf Illn e s s - fa m ily m e m b e r A c c id e n t in w o rk A c c id e n t o u ts id e o f w o rk B e re a v e m e n t H o m e c irc u m s ta n c e s W o rk c irc u m s ta n c e s O th e r 13 3

shift
9 0 1 0 1 0 0 0

Weekend
4 1 0 0 1 2 0 1

1
1 0 2 2 0 1

Effectiveness of absence control policies

Perceived effectiveness Policy
R e tu rn to w o rk in te rv ie w s D is c ip lin a ry actio n E m p lo y e e he alth p ro m o tio n s A tte n d a n c e b o n u s F a m ily frie n d ly in itia tiv e s E m p lo y e e a s s is ta n c e p ro g ra m m e s J o b re d e s ig n an d te a m w o rk

1 - Not effective
31 2 14 0 29 7 45

2 - Less effective
45 14 10 5 16 23 29

3 - Somewhat effective
5 23 55 5 34 18 14

Effective
14 42 21 79 14 34 7

5 - Very effective 5 19 0 11 7 18 5

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Appendix 7 - Employee Survey Results Overall

Response Level
N u m b e r o f q u e s tio n n a ire s d is trib u te d : N u m b e r o f q u e s tio n n a ire s re tu rn e d : % re tu rn rate 160 83 52 %

Shift pattern
W eekends 3 s h ift 35 48

Length of Service
< 1 yr 1 - 5 yrs S - 12 yrs > 12 12 26 25 20

Age Group
1 8 -2 5 2 6 -3 5 3 6 -4 5 46 o r o v e r 12 33 21 15

Employee absence
Total
A b s e n t in 20 04 N o t a b s e n t in 20 04

W eekend 8 27

3 Shift 9 39

17 66

Number of occasions of absence:

W eekends
16 fro m 8 e m p lo y e e s 3 S h ift 17 fro m 9 e m p lo y e e s

Total
3 3 fro m 17 e m p lo y e e s

Reasons for absence

Total
Illn e s s - s e lf Illn e s s - fa m ily m e m b e r A c c id e n t in w o rk A c c id e n t o u ts id e o f w o rk B e re a v e m e n t H o m e c irc u m s ta n c e s W o rk c irc u m s ta n c e s O th e r 21 2 1 1 3 4 0 1 3 shift 13 0 1 1 2 0 0 0

W eekend
8 2 0 0 1 4 0 1

Effectiveness of absence control policies

P erceived effectiveness Policy 1 - Not effective 2 - Less effective
3 - Somewhat

4 - Effective

effective

5 - Very effective

R e tu rn to w o rk in te rv ie w s D is c ip lin a ry actio n E m p lo y e e he alth p ro m o tio n s A tte n d a n c e b o n u s F a m ily frie n d ly in itia tiv e s E m p lo y e e a s s is ta n c e p ro g ra m m e s J o b re d e s ig n a n d te a m w o rk

25 1 13 0 24 5 50

39 10 12 5 16 20 25

16 29 49 9 40 20 14

15 36 25 66 13 38 8

5 24 1 20 7 17 3

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Appendix 8 - L is t o f Abbreviations

A C A S - Advisory, Conciliation and Arbitration Service

B&L - Bausch and Lomb

DTI - Department o f Trade and Industry

CIPD - Chartered Institute o f Personnel Development

CBI - Confederation o f British Industry

EAP - Employee Assistance Programme

H R - Human Resources

HW CM - High Water Cast Moulding

IBEC - Irish Business and Employers Confederation

IDA Industrial Development Authority

IMI - Irish Management Institute

RP3 Reverse Process 3

SFA - Small Firms Association

VHI - Voluntary Health Insurance