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Absenteeism and the Australian Public Service

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Absenteeism and the Australian Public Service , Parliament of Australia Research Service Background Paper Absenteeism and the Australian Public Service Constance Larmour Director Education and Welfare Research Group 19 April 1990 This paper has been prepared for general distribution to Members of the Australian Parliament. The views expressed in the paper do not necessarily reflect those of the Research Service or of any part of the Parliament. • The content of the paper may be attributed to the aiithor. .' ISSN 1034-8107 © Commonwealth oi Australia 1990 Except to the extent ot the uses permitted under the Copyright Act 1968, no part of this publication may be reproduced or transmittea in any form or by any means, inclUding inlormalion storage and retrieval system, Without the prior written consent ot the Department of the Parliamentary library. Reproduction is permined by Members of the Parliament ot the Commonwealth in the course ot their official duties. Published by the Department of the Parliamentary library, February 1990. This paper was undertaken as an Executive Development Scheme project with the co-operation and backing of the Department of Finance and the Department of the Parliamentary Library. My thanks to Sue Fergusson, Nick Mersiades, Tim Burke, Gary Hodgson, Julie Pettit, Jamie Pryor, Chris McLennnan and Fiona Duncanson of the Department of Finance; Geoff Winter, Dom Garreffa, Mark Peters, Carole Wiggan, Carol Kempner, Jane Chapman, Diane Hynes, Sandra Bailey, Linda Calis, Paula O'Brien, Mary Lindsay, Bob Stewart and Dennis Argall of the Parliamentary Library; Helen Bladen and Greg Bunnett of the Public Service Commission; Grant Doxey and Dave Roberts of the Department of Industrial Relations; Jordan Serena and Personnel Officers of the Personnel Practices Contact Group, and Mark Wooden of the National Institute of Labour Studies. '. CONTENTS EXECUTIVE SUMMARY CONCLUSIONS AND RECOMMENDATIONS INTRODUCTION 1 Objectives 1 The Need for Action? 1 The Structural Efficiency Principle 2 Review of Absenteeism 2 PROBLEMS OF DEFINITION 4 EXTENT OF ABSENTEEISM: RESEARCH AND SPECULATION 6 (a) Australia 6 (b) The Australian Public Service 8 Survey of Sick leave 1972-73 8 Is Absenteeism a Problem in the APS? 8 (c) Overseas la AUSTRALIAN PUBLIC SERVICE CONDITIONS 13 Sick Leave Entitlement in the APS 13 Special Leave Entitlement in the APS 14 Effect of Flextime 14 PROFILES OF ABSENTEES AND ABSENTEEISM 17 CAUSES OF ABSENCE: FACTORS AFFECTING ABILITY TO ATTEND 19 (a) Occupational health and safety 19 (b) Off-the-job accidents 20 (c) Alcohol and drug related problems 20 (d) Family responsibilities 21 , CAUSES OF ABSENCE; FACTORS AFFECTING MOTIVATION TO ATTEND 24 (a) Economic 24 (b) Job satisfaction 25 (c) work norms/personal work ethic 27 (d) Industrial disputes 28 AGE VARIABLES 29 INCENTIVE SCHEMES/ABSENCE CONTROLS 31 Carrots, Sticks or Good Management? 31 OTC 33 Case Studies of Incentive/Absence Control Schemes 34 Overseas 34 Australia 35 Effectiveness of Absence Control Programs 37 Awards with Provisions for Payment of Unused Sick Leave 39 APPENDIX 1 Structural Efficiency Principle - Excerpt from National Wage Case Decision 1989. 43 APPENDIX 2 North American Survey and Anecdotal Evidence on the Benefits of Employer Provided Child Care. 45 APPENDIX 3 Age Retirement - Use of Sick Leave Survey Results. 47 APPENDIX 4 Case Studies. 48 (a) Absences of Teachers in State High School Australia. 48 (b) Incentive Scheme for Teachers - U.S. 48 APPENDIX 5 Sources of Information - Departments, Associations and Companies. 50 ENDNOTES 51 REFERENCES 56 EXECUTIVE SUMMARY This paper looks at the findings of different research studies on absenteeism with the aim of identifying options and needs which relate to absenteeism in the Australian Public Service (APS). Differences of definition and measurement are apparent in these studies. Some perspective is given by studies of absenteeism in other countries. In attempts to gauge the extent of labour absence, and of voluntary absenteeism in Australia, researchers have based their conclusions or estimates on a 1977 study by Harkness and Krupinski, the 1983 Australian Bureau of Statistics Health Survey and the 1972-73 Survey of the Incidence of Sick Leave in the Australian Public Service. Harkness and Krupinski found an overall absence rate of 4% for the Australian workforce in a survey which covered absences attributed to sickness and industrial or other accidents, but excluded other forms of leave and industrial dispute absences. The Australian Bureau of Statistics found in 1983 that 2.6% of the workforce was absent on anyone day as a result of illness. Estimates of the amount of voluntary and avoidable absence - the 'sickie' - vary but range up to one day in every five of all work absence. Public servants are perceived to have generous sick leave entitlements and to take advantage of these. In 1972-73 the average number of absences on sick leave in the APS was 3.7% or 8 days. No current service-wide figures exist. Despite the apparent comparative safety of the work undertaken, and the wide availability of flextime provisions, it seems likely that sick leave absence figures may be higher than in 1972-73. The 1988 and 1989 decisions of the Industrial Relations Commission listed measures to be considered to effect award restructuring and to increase productivity by enhancing flexibility and efficiency in the work place. One such measure was a suggested review of sick leave, to be undertaken initially in the Department of Social Security, to identify the incidence of and reasons for absenteeism, and to consider what action could be taken to reduce this. This Review will provide more information on current use of sick leave, but a service-wide survey, which can provide a comparison with the 1972-73 survey, is also needed. Because of the difficulty in differentiating between genuine and non-genuine sickness, it is not possible to pinpoint accurately the percentage of working time lost through non-genuine leave or 'sickie' taking. It is possible to predict higher absence rates on particular days of the week and at different times of the year, and to identify some characteristics of employees which are often associated with higher rates of labour absence. Ability to attend is affected by work related and non-work related illnesses and accidents, other occupational health and safety factors, transport problems, alcohol and drug related problems and family responsibilities. Some of these factors are outside of the control of management, but other factors have scope for management intervention and a resulting positive response. Examples are the industrial programs to cope with alcohol and drug related problems, workplace safety and the provision of flexible working hours and permanent part-time work. Motivation to attend work involves factors such as job satisfaction, personal work ethic, work group norms, co-worker relationships, organisational commitment, incentives and absence controls. These factors are also greatly affected by management policies and styles of supervision. Case studies are reported to highlight successful practices, and recognition given to the need to support and encourage the majority of public servants and workers who do not abuse sick leave entitlements. The practice of using up sick leave credits before retirement is examined and the results of a survey undertaken with the co-operation of the Personnel Practices Contact Group is reported. Payment or part-payment of unused sick leave is considered and recommended as an option to reduce this practice. It is noted that many or most of the factors which tend to increase absenteeism can be addressed by good management practices. Incentive schemes and absence controls are discussed, and the following conclusions are presented for consideration. CONCLUSIONS AND RECOMMENDATIONS 1. That Personnel Sections in all APS departments should be required to set up systems to record and facilitate access to data on use of sick leave, special leave and other types of leave. 2. That from the above data, regular surveys of the incidence of sick leave in the APS should be made to monitor the progress of productivity proposals under the Structural Efficiency Principle (SEP). 3. That a survey of the incidence of sick leave in the APS for the period May 1990 to April 1991 be undertaken using the same terms of reference as the 1972-73 survey, and that comparative findings should be reported. 4. That the role of immediate supervisors in monitoring and counselling in matters of attendance should be strengthened and that supervisors should receive training for this role. 5. That managers and supervisors should ensure that flextime and other conditions of service be administered with the aim of increasing morale and productivity. 6 . That employees should be consulted and involved in developing programs and strategies to provide greater job satisfaction, improved productivity and reduced absenteeism. 7 . That care should be taken in the development of these programs to ensure that the majority of employees who do not abuse sick leave entitlements do not become disaffected or feel threatened with the removal of the existing 'safety net' of sick leave provisions. 8. That use of leave, including sick leave and special leave, should form a part of performance appraisal and individual development programs, and that individual records on performance should include a more detailed section on attendance, including number of days and type of leave, and use of flextime. 9. That departments should extend provision for permanent part-time work and flexible 'standard days' and have regard to their obligations to workers with family responsibilities. Progress in the ACTU test case on parental leave and special family leave should be monitored closely and costs and feasibility of increased access to unpaid leave should be investigated. 10. That occupational health and safety concerns of employees should continue to be investigated and addressed. 11. That supervisors, and employees with attendance problems, should be encouraged to make use of programs such as those provided by the Industrial Program Service.
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