Canada’s absentee workforce

The Conference Board of Canada’s Beyond Benefits II: Disability Plans and Absence Management in Canadian Workplaces is based on a survey of 255 organizations. It found that Canadian organizations generally do not track employee absenteeism well, even though rates—already high by international standards—are on the rise.

“Absenteeism rates reached their highest point in several years in 2008/09,” says Karla Thorpe, associate director, compensation and industrial relations, with the Conference Board. “The implications of absenteeism for organizations are significant—both in terms of lost wages and productivity, and in the potential to substantially reduce costs through better management of their programs.”

The programs offered to Canadian employees with regard to absence are fairly standard, including sick leave, short-term disability (STD) and long-term disability (LTD). However, less than half of surveyed organizations track absenteeism rates, and only a fraction of respondents track costs. The result is a “see no evil, hear no evil” situation.

The report recommends that the first step in controlling absenteeism is to measure rates and direct costs across the board. Many organizations focus on their LTD programs over their sick leave or STD programs, yet an average of 9% of full-time employees were on STD in 2008, according to the survey.

Only 40% of respondents indicated that they track absenteeism rates, reporting a loss of 6.6 days per full-time equivalent position, an increase from previous Conference Board surveys. The direct cost of absenteeism averaged 2.6% of payroll in these organizations in 2008. Education and health (8.9 days) and government (7.9 days) reported the highest absenteeism rates.

Canada suffers a higher absenteeism rate than both the U.S. and the U.K. According to data from Mercer and SimplyHealth, U.S. organizations had an absenteeism rate of 5.3 days per year (in mid-2008), while U.K. organizations had an absenteeism rate of “less than five days per year” (in early 2009).

The Conference Board report outlines steps that organizations can take to better manage their programs. These include:

• identifying the root causes of absenteeism;
• taking proactive steps to improve the health and well-being of employees;
• having a return-to-work program in place;
• focusing on communication and education;
• getting involved early when employees are absent; and
• keeping in constant contact with employees on leave.

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