Proactive earlier intervention challenges the traditional occupational health approach to unplanned workplace absenteeism

There are many reasons for unplanned workplace absence, and we know that there is a crisis with mental health in the Australian workplace.

• In 2022, 62% of Australian workers reported being burnt out, compared to 48% globally, a figure that has continued to rise.

• Australia has seen a significant increase in mental health-related sickness leave, with 33% of employers reporting a rise in the past year. Mental health conditions also account for 9% of serious workers’ compensation claims, a 36.9% increase since 2017-18.

• Poor workplace mental health costs Australia between $12.2 and $39.9 billion annually due to lost productivity, absenteeism, and presenteeism.

Embracing a more proactive and modern approach to tackling this conundrum head on, is often seen as a major initiative that needs a big budget allocation and a plethora of senior leader approvals. In reality, it doesn’t need to be that way! Once we identify who owns the decision, it should be an easy one to make, because the ROI and business benefits quickly become obvious.

So, who owns the corporate responsibility to evaluate options and is there an efficient and effective approach available to employers?

Every senior leader in an organisation has a laser focus on their respective divisional outputs and performance, against expected success measures. Right?

But, ultimately  whose responsibility is the P & L? Is it the CFO’s, who is accountable for prudential money management and reporting, or is it EVERY corporate leader, supported by line managers?

Unplanned absenteeism is often seen as a People and Culture / HR issue, and to the extent that it encompasses policy, guidance, communication and driving HR initiatives, it is! Truth be known though, there are many accountable stakeholders that need to step up, if an organisation wants to genuinely improve absence levels and control and reduce the direct and indirect costs associated with unplanned absenteeism.

Costs aside, a business can’t operate efficiently without the appropriate resources and headcount in place. Just ask any customer of a business that is insufficiently resourced about how the business’s customer service is perceived.

However, once the CFO gets their head around the fact that they are in a position to make a tangible saving on the bottom line through proactive absentee management and are ultimately the guardian of the P &L, then it becomes a sensible conversation between the CFO and senior people leaders in a business, to have.

The health and protection sector knows that services aimed at preventing health conditions from deteriorating are no longer a nice to have for employees and individuals, as early intervention can cut the severity of conditions, avert absence and typically drive down unplanned absence and claims costs. Preventative healthcare is a strategic imperative.

If early employee engagement is humanised, easy and outcomes focused, the value of earlier intervention becomes obvious. The missing puzzle piece that closes the loop and optimises on most preventative health care initiatives. The result is lower unplanned absence and less lower severity income protections claims. All stakeholders experience a tangible benefit.

The traditional Occupational Health, albeit reactive and post “injury”, most definitely helps when it comes to employer duty of care and helping employees back to work. There is little doubt of the importance of Rehab in a RTW strategy.

The Million Dollar question has to be; does the reactive traditional approach to Occupational Health reduce absenteeism? It’s fair to say that most business and people leaders will agree that it doesn’t!

So, what can and will make a difference?

Outsourcing to the the experts and Implementing an HCB Group EarlIER   Intervention arrangement, means engagement with employees pre absence! Often this means the employee, when contacted by an HCB Group Clinical Case Manager, has not even decided to take leave of absence.

Why is that?

We know that 70% of workplace absence has a social determinant and there is no a medical issue at play. THIS supports the HCB Group’s proposition differentiator; a proactive employee engagement model that is in every way, the missing piece of the puzzle.

The HCB Group model has its foundation built on the research of one of the industry’s most well-respected thought leaders. Professor Sir Mansell Aylward CB, Aylward contributed to a policy-position document titled “Realising the Health Benefits of Work” by the Australasian Faculty of Occupational & Environmental Medicine.

“Work is generally good for health, and absence is often not purely medical”. Aylward argued that many absences are not caused solely by a clear-cut medical pathology, but by psychosocial, social, and workplace factors.

Whilst he promoted the view that work is therapeutic or health-promoting in many cases, that being in work (or returning to work) helps people’s health and wellbeing more than staying off, Sir Mansell promoted the view that work is therapeutic or health-promoting in many cases, that staying at work (or returning to work, helps people’s health and wellbeing more than staying off.

Pre absence employee engagement is the HCB Group sweet spot, and so by reducing absenteeism, aside from containing and averting many of the direct and indirect costs associated with absenteeism, we simply make life easier for business operations to do what they need to do to run the business in a safe and sustainable way.

The business benefit?

Workplace absence is significantly reduced; as much as 30% of the time.

There are many psychosocial issues where absence is averted, and there are those post absence earLIER interventions by an HCB group Clinical Case Manager, that never become a longer-term absence or an Income Protection claim, that under the traditional approach, often do.

EarlIER intervention mitigates absenteeism, long termer absence, Work Cover Claims, and Income Protection claims.

Employment Benefit Consultants and Brokers see the value in having the right, targeted but collaborative services in the right place and are acutely aware of the implications for Income Protection premiums, They are invariably integral to the Insurers and Corporate client decision to partner with a provider of genuine earlier intervention

WPH&S legislation has changed in both VIC, NSW and QLD, requiring a business to demonstrate management, control, mitigation and even removal of psychosocial Hazards in the workplace. The unique HCB Group proposition is perfectly positioned and timed, to support an organisation to demonstrate compliance.

If you would like to explore the benefits and value to your business of pre absence and early post absence employee engagement in reducing unplanned workplace absenteeism, click HERE and an HCB Group expert will contact you.