MANAGING EMPLOYEE DRIVEN LOSS IN MEDICAL PRACTICES

Tuesday 8th June 2010

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.

CLB Employment Solutionswww.clbemployment.com

Tuesday 8th June 2010

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