managing employee driven loss in medical practices tuesday 8 th june 2010
TRANSCRIPT
INTRODUCTION• What is employee driven loss?
– Sickness– Wasted time in work– Overtime– Implementation
INTRODUCTION• Margins are to tighten in the next 5 years.
• Efficiency efforts will be increased at Government levels but less change management will mean resources stretched at ground level.
• Funding will most likely be cut but front line services are expected to be maintained.
• You manage a business!
• Now is the time to closely examine employee driven loss and minimise the impact on the profitability of the business.
• You will be best placed to tackle the challenges that the future presents if your staff costs v output ratio is efficient.
WHAT IS EMPLOYEE DRIVEN COST?• Loss caused by an employee either through absence, inefficiency,
negligence or theft.
• Employee driven loss accounts for £27.1billion of annual loss across North America, Europe and the Asia-Pacific region (Bamfield 2009).
• Loss flowing from absence or reduced productivity could amount to billions more.
• Sickness absence alone costs UK business £476 per employee per year on average (ONS 2009).
• Inefficiency and wasted time costs millions a year and has a direct effect on your bottom line.
SICKNESS MANAGEMENT• More than half of businesses do not have sickness targets (CIPD 2010).
• Practice Managers should know the rates of absence and seek to reduce if too high.
• 6.4 days per year in the private sector and 9.7 in the public sector (CIPD 2009).
• What are yours?
• You should aim to reduce year on year until a realistic level is attained.
REDUCING SICKNESS ABSENCE• Introduce a full and comprehensive sickness policy.
• Record absences centrally.
• Institute a solid notification and recording procedure.
• Return to work interviews for all absences.
• Examination of sick pay policies – is company sick pay being exploited?
• Be inventive – use incentives.
• Know your rights and your legal position at every stage.
• Disciplinary policy for absences with trigger points – implement it!
WASTED TIME IN WORK• Need comprehensive policies covering internet, mobile phone use,
telephone use, email use, monitoring etc.
• Policies need to be drafted to fit your business needs and then implemented.
• Employees wasting time on personal tasks massively reduces efficiency.
• Monitoring provides you with the data.
• Don’t have a toothless policy gathering dust and be afraid to use it, have a lawyer draft a bespoke policy and then work with them to enforce it.
OVERTIME• Necessary evil on occasion but businesses should avoid regular overtime
in the current environment.
• Management of shift patterns can all but eliminate the need.
• May involve structural changes that result in contractual variations – properly drafted contracts and handbooks will have a variation clause to allow such changes with proper notice.
• There are pitfalls (breach of contract and constructive dismissal) but very little is sacrosanct.
• When varying, remember the key points, justification, consultation and variation.
OVERTIME• See a lawyer to guide you through the process.
• Flexible working – make it work for you but avoid the pitfalls (tribunal claims for indirect discrimination are difficult to defend).
• Look at reducing overtime rates to standard hourly rates.
IMPLEMENTATION• Don’t be afraid to implement changes.
• Know the law and be decisive.
• Be prepared for employee reactions and manage them effectively.
• Your chances of being successfully sued if you take legal advice are very small.
• Your ability to manage employee loss has a direct effect on the profitability of the business and should be a top priority.
CANTER LEVIN & BERG• We were established in 1947 in Liverpool city centre and now have
regional offices throughout the North West
• We have 15 partners and 200 staff
• We specialise in employment law, with our team comprising both solicitors and barristers all of whom have vast experience in contentious and none contentious practise
• We are one of only 5% of law firms in England to have achieved Lexcel Accreditation from the Law Society for excellence in practice management
• In 2009 our client satisfaction scores for Employment Solutions were 100% positive
CANTER LEVIN & BERG• Client retention is at 96%
• We are ISO 9001 and Investors in People accredited
• We represent hundreds of businesses ranging from SMEs with 20 staff to multi nationals and local authorities with over 8,000 staff
• We have clients throughout the UK from Brighton to Inverness!
WHY US?• One-to-one contact with named employment solicitor or barrister
• Personal e-mail and freephone telephone number
• Emphasis on quality of service
• Unlimited advice from your employment solicitor with no additional charges for drafting of documentation
• Insurance built in to provide extra protection from ET claims
• TUPE and Redundancy - no extra.
• Litigation and counsel assistance at tribunal
• Market leading fixed fee and payable monthly
SERVICE FEATURES
• Dedicated employment lawyer during business hours
• On call employment lawyer outside of business hours
• Preparation of contracts of employment and related documentation
• Employment handbook written for your business and updated periodically in line with changes to Employment Law
• Monthly e-newsletter & online blog keeping you up to date with all the latest changes and news relating to Employment Law
• Full access to online subscription zone – comprehensive library of letters, policies, clauses, agreements and other contracts free to download!
SERVICE FEATURES
• Thorough onsite audit and preparation of a written report
• Emergency call out for any client requirement
• Redundancy exercises: selection, consultation, calculations, and compromise agreements
• TUPE: due diligence, liability calculations, consultation and ETO
• Bespoke employment law training sessions with partner or equivalent
• Full insurance cover for legal costs and awards of compensation in the event of an Employment Tribunal claim
• Regular service review meetings with Client Services Manager
PACKAGES
Prices from Monthly Fees
Budget £99.00
Basic £150.00
Standard £250.00
Premium £500.00
NOTE: ALL COSTS EXCLUDE VAT
Q&A
• Question & Answer session?
• CLB Employment Solutions, 1 Temple Square, 24 Dale Street, Liverpool L2 5RL
• 08000 320 974• www.clbemployment.com• Contact Laura McDonald: 07794 552896