Scottish Conservatives push plans to save millions on absenteeism

Scottish Conservatives are calling on the Scottish Government to introduce our workable plan to reduce absenteeism in Scotland.

Derek Brownlee MSP, Shadow Cabinet Secretary for Finance & Sustainable Growth, said:

"Absenteeism costs us hundreds of millions of pounds a year and it is only right that we do everything within our power to manage the situation. That is why we have developed a plan which would make significant savings while helping to protect frontline services. Many people rightly question why absenteeism is so much lower in the private sector than in the public sector.

"Our plan would firstly involve the Scottish Government placing a new, statutory obligation on all devolved public bodies to provide comparable data on absences, updated quarterly and published online.

"Secondly, we have proposed a new target for sickness absence at the lower end of the private sector average and the best performing public sector equivalent.

"Finally, there must be a new system of absence management that helps people get back to work as quickly as possible. It works by asking employees to call a special helpline staffed by health workers, rather than calling their boss. Trials of this scheme have shown remarkable results.

"These plans would go a large way to reducing absenteeism, and when a reduction of just one day would save on average £69million a year, I can't see how any party could oppose these plans."

"Absence has an impact on an organisation's performance and productivity and comes at significant financial cost. Robust and rigorous absence management plays an important part in an organisation's ability to improve efficiency.... There is no comparator data held centrally across the public sector or across local authorities in Scotland.", The Independent Budget Review, July 2010 3.50-3.51

We propose a new statutory obligation on all devolved public bodies to provide comparable data on absences, updated at least quarterly and published online.

- "The Panel believes that ... all bodies subject to the Scottish Government's efficiency targets should identify clear targets for reducing absence, ultimately to a level equivalent to the private sector average." The Independent budget Review, July 2010, 3.56

We propose a new target for sickness absence for all devolved public bodies, the lower of the private sector average and the best performing public sector equivalent. This goes further than the recommendation from the Independent Budget Review.

We propose a new system of absence management, with central reporting and immediate clinical assessment of absentees to return them to work as quickly as possible. Where this model has been implemented by the NHS in England, reductions of 26% in sickness absence have been delivered. The model works in all areas of the public sector.

Public sector organisations with a poor record of absence management (i.e. their absence levels are higher than equivalent services in the private sector, or comparable public sector services elsewhere) would be required to adopt the new model or to agree specific alternative measures and agreed cost savings from reductions in absence levels.

A reduction of one day in sickness absence saves on average £69m per yea[1]r.The private sector equivalent absence rate is 6.4 days[2]. If across the board absenteeism could be reduced by 2 days, a saving of £138m per year would be delivered. This is in addition to the savings from a recruitment freeze, which we estimate at £450m per year[3].

[1] Based on 46 weeks working year and £15.9bn wages bill (source for wages bill – Independent Budget review)

[2] Independent budget Review, 3.53

[3] Based on a 3% rate of staff turnover after essential posts are filled

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