Sickness Absence in the Northern Ireland Public Sector

Committee Business – in the Northern Ireland Assembly at 10:30 am on 21 April 2015.

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Photo of Mitchel McLaughlin Mitchel McLaughlin Speaker 10:30, 21 April 2015

The Business Committee has agreed to allow up to one hour and 30 minutes for the debate. The proposer of the motion will have 10 minutes in which to propose and 10 minutes in which to make a winding-up speech. All other Members who are called to speak will have five minutes.

Photo of Daithí McKay Daithí McKay Sinn Féin

Go raibh maith agat, a Cheann Comhairle. I beg to move

That this Assembly approves the report of the Committee for Finance and Personnel on its review of sickness absence in the Northern Ireland public sector; and calls on the Minister of Finance and Personnel, in conjunction with Executive colleagues, to implement, as applicable, the recommendations contained therein.

I find myself once again speaking about a report by the Committee for Finance and Personnel that identifies huge potential savings for the public purse at a time when we as a government face significant budgetary pressures and the restructuring of our public sector. The Committee's cross-cutting review of sickness absence in the local public sector has identified potential savings of approximately £37 million a year for the public purse if average sickness absence rates in our Civil Service, health trusts and the education sector are brought into line with those of their equivalents in England, Scotland and Wales.

Before I outline the Committee's key findings and recommendations, let me explain the background to the work. The review arose from a referral by the Public Accounts Committee of the Comptroller and Auditor General's report in 2013 on sickness absence in the local public sector.

The 2013 report provided an initial evidence base on performance against targets for reducing sickness absence in the Civil Service, health trusts and the education sector here, compared with equivalent bodies in Britain. The Finance Committee built upon this through coordinated scrutiny of existing policy implementation to identify good practice and procedures as well as potential areas for improvement. Evidence was received from the Audit Office, DFP and the Institute of Public Health in Ireland, as well as from the other Assembly Statutory Committees in relation to their respective Departments. The Committee also received evidence directly from the health sector, commissioned research on various issues and took account of up-to-date statistical data.

In contextualising the findings, we first have to recognise and accept that people do and will get sick. I also wish to highlight that the Committee's work identified a lot of positives, including the fact that there has been progress in developing and introducing good practice policies and monitoring systems. Some individual business areas have been very successful in reducing absence rates. The statistics show that a majority of civil servants have no recorded sickness absence throughout the year and also that senior managers now appear to be giving greater priority to compliance monitoring. However, whilst the total cost of sickness absence in these areas of the local public sector amounts to around £150 million per year, it has to be stressed that the potential savings of £37 million per year are on the basis of simply matching the performance of comparable bodies across the water. The figures that were provided by the Audit Office are stark, and the conclusion cannot be ignored. More needs to be done, and the Committee's recommendations will assist in this regard.

On the key statistics, while there seemed to be a downward trend in absence figures in the Civil Service up until 2012, when they levelled out, there has been a consistent failure to meet the overall targets. For example, in 2013-14, the actual average number of days per staff lost due to sickness absence in the Civil Service was 10·1 set against a target of nine.

The sense that emerges from the Committee's investigations is that the key reason for the failure to achieve overall targets is because good practice policies have not been applied robustly and consistently enough within and across all Departments, health trusts and the education sector. However, some hopeful signs appear to be emerging in this regard.

I take the Department of Finance and Personnel as a case in point. While the Department as a whole has been unable to meet targets set for absence levels, we have noted some potential success stories from the Committee's scrutiny of performance at a business area level. For example, the corporate services division indicated that the departmental target may soon be met, thanks to a new partnership approach to absence management between HR partner teams and line managers, and an e-learning training programme. The Committee looks forward to seeing the fruits of this very soon and for lessons learned to be applied across the entire Civil Service should it prove successful.

Similarly, in the health sector, in noting the previous limitations of the monitoring systems, members were encouraged to learn that the new HR payroll, travel and subsistence reporting system was being rolled out in an effort to address the poor monitoring and reporting of sick absence, as well as a mixed performance by health trusts in meeting targets. The new system, once fully established, will also assist with target setting.

The Committee would also like to see further benchmarking with comparator health bodies in other jurisdictions where possible, taking into account the different job profiles and health-care structures across different organisations. In catching up with other parts of the public sector, the Committee would also like to see health trusts publishing details of their performance against sickness absence targets going forward.

In respect of the education sector and the other Civil Service Departments, I am sure that the various Committee representatives will wish to outline their respective findings during this debate. Suffice it to say at this point that a number of similar issues and themes emerged across the Departments, although it is important to note that different staffing profiles and job roles can impact on general comparisons being made across those different sectors.

I now turn briefly to what is, undoubtedly, the nub issue — the impact of long-term absence, especially due to mental ill health. That has been identified as an area for particular attention, with nearly 30% of working days lost due to sickness absence being attributed to anxiety, stress, depression and other such conditions. While we might expect that some public-sector roles, such as paramedics, firefighters and social security advisers, are more stressful than others, the reasons why mental ill health is such a significant cause of absence needs to be thoroughly researched to identify and tailor solutions at a local level. For its part, the Committee has highlighted preventative measures, early intervention and health and well-being programmes that have rolled out across the public sector and which could assist in driving down absence in that regard.

The Committee has noted how certain health and well-being initiatives, including the WELL programme, Carecall and welfare support, are having an effect. Members also look forward to seeing the results of the sickness absence recording tool, which could accelerate support to those experiencing work-related stress, which surely will be a focus, given the forthcoming voluntary exit scheme and public-sector restructuring. Indeed, the Committee has identified a risk that sickness absence could rise without sufficient support for staff who remain in post after significant numbers leave through the forthcoming voluntary exit schemes.

In terms of further areas for progress, there is a need for increased focus on preventative and early intervention measures. That includes a roll-out in the consistent application of innovative and proven initiatives such as the mental health first aid programme and cognitive behavioural therapy. Clearly, mental ill health is the area that efforts should be focused on, as previous programmes in that regard do not seem to have had the desired impact on the figures. I, therefore, look forward to hearing the Minister respond on that point, including his comments on any additional or new approaches.

Another preventative area that I am keen to see advanced relates to health and well-being initiatives, such as the Cycle to Work and Caloriewise schemes. I firmly believe that those will yield benefits in the longer term, but only if a strategic and joined-up approach is taken.

Similarly, the Committee highlighted evidence on how flexible working can improve work/life balance, generally, and, in particular, on how flexible location working, utilising technology, can assist in enabling the earlier return to work for some people who are on long-term sick leave.

I conclude by pointing out that the Committee has recommended a number of practical actions that need to be taken to restore the downward trend in sickness absence rates in the local public sector. They include the roll-out of pilot health and well-being programmes, which have demonstrated the potential to contribute to reducing absence rates; proactive employee engagement on further measures in that regard; the systematic adoption of early intervention measures; more use of flexible location working; continued focus on compliance with procedures and monitoring performance; the application of lessons from the public and private sectors across all Departments; and the regular evaluation of sickness absence policies and programmes against developing good practice.

I look forward to hearing the contributions of Members and commend the report to the House.

Photo of Mitchel McLaughlin Mitchel McLaughlin Speaker

I call Mr Paul Givan.

Photo of Paul Girvan Paul Girvan DUP

The sickness absence report very much came on the back of an Audit Office report, which highlighted the matter. Suffice it to say that there has been a general reduction in the number of days lost since 2006. It has gradually been going down. Unfortunately, it has not quite reached its target. I appreciate that the target set for last year was just 9·7, and it failed to hit that. It reached an average of 10·1 across the Civil Service as a body. I appreciate that there would be £37 million of identified savings if we were to achieve the same figure of 7·6 average days in GB, but I do not see it as just £37 million savings. I see it as a productivity saving as opposed to actual money saving, because I appreciate that the pay will still go on. So, I see it as a productivity saving.

We need to work on that to ensure that we get it delivered.

It is good to recognise the good work that has been done and the programmes that have been put in place such as Carecall and the WELL programme. Those ensure that, when people come back to work after having been off, there is an opportunity to address some of the reasons for their being off. One of the worrying things is that 30% of days lost were associated with stress. It did not necessarily come out in the report whether that was work-related stress or whether other issues caused the stress, but suffice to say that 30% of absences were associated with stress or anxiety. We need to address that.

Some areas and Departments performed better than others. Some areas need to be focused on, and certain Departments should take this on board, the Department of Health being one. We hear all sorts of stories as to why there is such a high sickness level in that Department. The Department of Education also has high levels of sickness. We need to ensure that we try to address some of the reasons why individuals are telling us that they are off. Long-term sickness is another area. I have to recognise those members of the Civil Service who do not take any sick days. That is a large and growing percentage, which is good to see. In 2012-13, 55% took no sick days whatsoever. That has to be recognised, and those people need to be congratulated. Measures need to be looked at.

As a whole, the report is helpful. I had concerns about areas of the report, flexible working being one. I had a slightly different view on flexible working than some individuals. I believe that hanging your coat over the back of a chair while you are somewhere else could indicate that work is still going on even though the individual is missing in action: "inaction" might be the word. That needs to be looked at to ensure that we have measures in place so that people can work flexibly, but supervision is also needed to ensure that the work is being done. It is about getting the balance correct. As a whole, it is a good report. I welcome the downward trend in sickness days. If all the measures and recommendations that should be implemented by DFP are put in place, that would help to reduce the number of days lost to the Civil Service. I support the motion.

Photo of Mike Nesbitt Mike Nesbitt UUP 10:45, 21 April 2015

I will speak primarily as Chair of the Committee for the Office of the First Minister and deputy First Minister. At the outset, I apologise as I will not be able to stay for the whole debate and also because I will bombard Members with statistics.

I will begin with a review of the years 2010-11 to 2013-14. On the upside, sickness absence rates in OFMDFM have been consistently below the average for the wider Northern Ireland Civil Service. Against the individual target for the Department, the performance has, however, been somewhat more mixed. In 2010-11, the Department greatly exceeded its target, which was 8·2 days lost per staff member; the actual absence rate was 5·4 days. The following year, however, the rate was 8·7 days against a target of 8·0 days. In 2012-13, the target of 7·8 days was met, and, indeed, OFMDFM was one of only two Departments to meet their target that year. That was followed by an increase in 2013-14: the target was 7·7 days, and the actual figure was 8·9 days lost.

In noting the increase in sickness absence for 2013-14, the Committee wrote to the Department for comment. The response was that both long-term absence — 20 days or more — and short-term absence had increased in 2013-14. It pointed out, however, that over 60% of staff in OFMDFM had no sickness absence for that year. That compares to 55% across the rest of the Northern Ireland Civil Service.

The largest proportion of working days lost in the Department was due to anxiety, stress, depression and other psychiatric disorders. That accounted for 16·8% of absences. The Department noted that this is significantly lower than the rest of the Northern Ireland Civil Service where the category accounts for 31·3% of working days lost.

As well as managing cases proactively in consultation with the Occupational Health Service, the Department is focused on mental health in its workplace health programme over the last year. With respect to long-term absence, pregnancy-related disorders account for 21% of working days lost. That compares to 7·3% for the Civil Service as a whole.

The sickness absence rates in OFMDFM over the last number of years have been such that it has not been necessary for my Committee to undertake a detailed examination. That said, the Committee for Finance and Personnel's report notes that sickness absences cost the Civil Service £30 million a year, with costs to the wider public sector of £150 million a year. The Committee estimates potential savings to the public sector of £37 million a year. Given the financial pressures facing the Executive, it will be important that Departments do as much as they can to reduce the cost of sickness absence. Therefore, I will be asking the OFMDFM Committee to closely monitor the Department's performance in sickness absence levels.

If I may, I will say a few words in a more personal capacity. I was struck by the Chair of the Committee mentioning mental health and well-being. Of all those statistics, the 16·8% and 31·3% relating to stress, anxiety and depression are key. I am glad that we got a paragraph about mental health in the Stormont House Agreement, but that is specific to a medical solution. I think that capacity building and resilience is key not just for the Civil Service but for our people so that they have a feeling of empowerment when things are starting to go wrong, and they know that there are routes to be followed to put that right. I also notice what Mr Girvan said about productivity — by the way, your impression of Mr Givan is really not good enough.

Deloitte, in its 'State of the State 2014-15' report, recently highlighted that a 1% increase in productivity in the public sector would be worth £64 million to the public purse just here in Northern Ireland. The amount of savings that we can bring forward to the public purse from simply a 1% increase in productivity across the public sector is an absolutely key point for us to focus on.

I will finish by saying that you can read more about that in Deloitte's 'State of the State 2014-15' report or, indeed, in the Ulster Unionist Party Westminster 2015 manifesto. I commend it and the report to the House.

Photo of Mitchel McLaughlin Mitchel McLaughlin Speaker

We will take your response to the debate as being the priority contribution.

Photo of Peter Weir Peter Weir DUP

I will try and be a little less partisan than the previous Member was in his closing comments. As highlighted by all Members so far, there is a wealth of statistics in this, which shows the significance of the problem. It has been highlighted and already mentioned by others that, in the Civil Service as a whole, you are talking about £30 million of a direct cost. There are very significant indications, particularly in health and education, of £73 million in health and £46 million in education. As regards those two specific areas, it is not surprising that the figures are high, given the size of those sections of the public sector, but the depth of them should concern us.

Very specifically as regards health and education, there are a number of recommendations in the report. I think that it is important to draw the attention of the Health Department and the Education Department — and the respective Committees — to those aspects of the report because this is not something for DFP or even the Executive as a whole; it burrows into a number of Departments. Beyond the sheer statistics, mention has been made of the direct potential savings if we simply move to a situation in which we are brought into line with the rest of the United Kingdom.

As I think has been mentioned by a number of Members, there are intangible benefits to reducing the level of sickness and, indeed, intangible problems are created. It is not simply the cost and the lack of productivity. The danger with high levels of sickness absence is that it becomes a vicious circle. Indeed, it places an additional strain on those workers who are left to cover the work of absent colleagues in whatever Department or section, and that, in turn, can lead to sickness absences from them.

Mr Nesbitt and others were correct to focus on mental health, as, for many years, it has been the Cinderella service. We have all seen that, and not just through sickness absences. Any of us who are involved in tribunals can see the doctor's report of someone who has massive difficulty with movement in their back or can see someone sitting with a broken leg covered in plaster, and that is all very visible. However, mental health is a lot more intangible and the symptoms are a lot less obvious, but they are altogether very real.

It is important to acknowledge that, while there is a problem, the report highlights the good work that has been done on this, particularly by the Minister and his predecessor. We have seen the intervention in the creation of the WELL programme, which, while still in its infancy, has led to 170 trained champions throughout the Civil Service. We have seen other interventions, particularly through face-to-face contacts, interviews and wider events such as No Smoking Day, which can all have an impact on health. As a result, we have seen a decline in sickness absence. That has helped to focus on short-term illness. However, that may have a long-term impact because there is a danger that, if you create a culture where there are short-term absences, it can lead to that.

There is no doubt that the thrust of the report looks at long-term illnesses, and that has a major impact on the Civil Service and on the public service as a whole. A wise person learns from their mistakes; an even wiser person learns from someone else's mistakes. The report highlighted the studies done by the City of London Corporation and HMRC, which has been able to reduce its sickness absence considerably. At times, some of us may not necessarily see a reduction in sickness absences in HMRC as the best thing. Nevertheless, it has been very successful in reducing absences, and there are clear lessons to be learned.

Good work has been done in DFP, and the report highlights the need to ensure that what is happening in DFP, and some of the pilot programmes that have begun there, is rolled out across the Civil Service. It is important to have a joined-up approach. The Chair of the OFMDFM Committee indicated that they had been successful in OFMDFM. Success has been somewhat patchy across Departments, and it is important to get joined-up thinking and success.

The report contains recommendations that need to be adopted and carefully studied. For all our sakes, particularly as we move into an era in which the size of the public sector is likely to be smaller — the number of staff is likely to be smaller — that will become a necessity rather than an advantage.

Photo of Michaela Boyle Michaela Boyle Sinn Féin

Go raibh maith agat, a Cheann Comhairle. Speaking today as Chair of the Public Accounts Committee, I welcome this coordinated report by the Committee for Finance and Personnel on sickness absence in the public sector here. The review arose from a referral by the PAC of the Comptroller and Auditor General's report on sickness absence in the public sector. PAC reported on sickness absence in the previous mandates, and it welcomes the Committee for Finance and Personnel's report, which provides a renewed and timely focus on such an important issue in the public sector.

The health and well-being of the NI Civil Service workforce is crucial to the effective delivery of our public services, and staff sickness absence considerably reduces Departments' productivity, affects services right across and carries a significant financial cost. Therefore, it is important that Departments and the wider public sector protect the health of our workforce and manage sickness absence effectively.

Some degree of absence is inevitable, and that is accepted when employees are sick and should not come to work. Effective management can, however, help to minimise absence by ensuring that any causes of work-related ill health are addressed and staff helped back to work as soon as possible.

I welcome the fact that, overall, the report shows a declining trend. However, I am concerned that we are still not meeting our targets. The Audit Office estimates that sickness absence costs the public purse £150 million a year across the Civil Service, health trusts and the education sector at a time of ever-increasing pressure on essential public services. It is unacceptable that the cost of sick absence was £73 million to our health trusts, £46 million to the education sector and £30 million to the Civil Service.

While targets have been set in all three sectors, it is disappointing that achievement of them has not been consistent. The Civil Service, for example, had a five-year target to reduce overall absence to 9·5 days a year but did not manage to achieve that. Three of the six trusts did not manage to achieve their targets during the period, and the education authorities did not manage to achieve their targets for teacher absence in 2010-11 and 2011-12.

In 2010, the Public Accounts Committee published a follow-up report on the management of substitution cover for teachers, in which it recommended measures relating to sick absence among teachers. Clearly, more work needs to be done to address sick absence, which cost £12 million in teacher substitute cover in 2011-12.

I welcome the Committee's finding that good practice policies exist in the Civil Service. However, they need to be applied more rigorously and consistently within and across Departments. Long-term sickness absence remains a significant issue and accounts for 70% of days lost in the Civil Service, 66% in health and social care trusts and 60% among teachers. In view of the impact of long-term sickness, I support the Committee's call for the Minister of Finance and Personnel and the wider Executive to place a higher priority on reducing long-term sickness absence rates in the NI Civil Service, especially through measures to address mental health issues, which are a significant cause of long-term sick absence in the public sector.

The Committee for Education undertook separate scrutiny of sickness absence in the Department of Education and wider education sector. Today's report echoes support for measures recommended in the Education Committee's report. I strongly urge that the measures recommended in all those reports are taken forward so that realistic targets can be set that will drive forward improvement in reducing sickness absence across the education sector.

Photo of Michaela Boyle Michaela Boyle Sinn Féin

Savings of £37 million a year could be realised if average sick absence rates in the NI Civil Service, health trusts and education sector were brought into line with those in Britain.

Photo of Leslie Cree Leslie Cree UUP

The Committee for Finance and Personnel agreed in February last year to undertake a review of sickness absence in the Northern Ireland public sector. This followed a report by the Northern Ireland Audit Office that showed a clear downward trend in sickness absence until 2012-13.

From the beginning, it was apparent that the Committee was looking at long-term sickness absence as a major concern. The Northern Ireland Civil Service failed to meet its long-term sickness absence target for 2011-12. The Audit Office report cautioned that the lack of progress in reducing the long-term absence rate posed a great risk to achieving the Programme for Government target of 8·5 days for 2014-15.

The Committee also noted that the most recent NISRA report stated that, while the 2013-14 figure of 10·1 average days lost per staff year was down from 10·6 in the previous year, it was short of the annual target of nine days. In 2012-13, the average for all Departments was 10·6 days against the target of 9·5 days. In 2013-14, the Department's average was 10·1 days against the target of nine days. It was, however, good to note that there is a growing percentage of staff in the Northern Ireland Civil Service who took no sick leave during the entire year: 55·3% in 2013-14, up from 52·3% in 2012-13. The Department of Finance and Personnel's own performance against targets for sickness absence was not met in 2013-14. The actual figure was 9·4 days against a target of 8·1 days. A concern for the Committee is that DFP and other Departments will have lower targets for future years, despite the fact that targets for previous years were not met.

On a happier note, which the Chair referred to, DFP officials from its corporate services division briefed the Finance and Personnel Committee on the Department's performance against business plan targets. This will help to support DFP business areas to achieve the Department's overall sickness absence target of an average of 7·6 days lost per staff year. A partnership approach to absence management will be used. HR business partner teams will monitor alongside managers, supporting them in taking on a larger role. This is important in the early stages of sickness absence, and the concerted effort should help to get people back to work more quickly. Compliance levels for sickness absence procedures have increased as a result of this action, and it is hoped that DFP will share its success with other Departments in an effort to replicate this success.

The Committee found that there were good practice policies in place for addressing sickness absence, and welcomed the introduction of health and well-being initiatives, such as the WELL programme, across Departments, and the trialing of new approaches as part of the sickness absence recovery strategy. The Finance Committee remains concerned that the sickness levels in the Northern Ireland Civil Service continue to be higher than in the Great Britain Civil Service. This fact gives great concern, especially when one considers that the voluntary exit scheme will have an effect on the overall figures. There is a record of failure to achieve targets here, and it is my opinion that more effort is required to improve the situation.

With respect to the Department of Health, Social Services and Public Safety and the health trusts, the Committee recommends that sickness absence targets be set to cover all trusts, including the Northern Ireland Ambulance Service, which sets its own targets. The Finance and Personnel Committee also noted the Committee for Education's separate scrutiny of sickness absence in the Department of Education and supported the various measures recommended. There are potential savings of approximately £37 million a year to be made to the public purse if the local public-sector sickness absences are brought into line with those of their equivalents in Great Britain. On behalf of the Ulster Unionist Party, I am pleased to support the Committee's recommendations and the motion before us today.

Photo of Judith Cochrane Judith Cochrane Alliance

As a member of the Finance and Personnel Committee, I rise to comment on our report into sickness absence in the Northern Ireland public sector. I apologise for being late to the debate. It is perhaps somewhat ironic that my reason for being late was due to me trying to juggle the responsibilities as an employer dealing with somebody who is on long-term sick absence, which is impacting massively on a number of other things.

From what I have heard, the main points have been covered by other Members, and I concur with most of what has been said. At the outset, it is worth noting that absence due to ill health has huge adverse effects on individuals, businesses, the public sector and, consequently, the economy as a whole. It is an area of policy where the UK is falling behind other countries, and, indeed, the Northern Ireland public sector is performing particularly poorly. Although this report was specifically looking at the absence levels in the public sector, it is widely acknowledged that the percentage of hours lost to sickness in the public sector has continuously been higher than that of the private sector. Therefore, the Committee considered what the absence patterns were like in the private sector and whether any lessons could be learned or best practice shared across both sectors.

There are, however, a number of factors to consider when interpreting the differences between the public and private sectors such as the fact that there are differences in the types of jobs between the two sectors and that some job profiles or work patterns have higher likelihoods of sickness than others.

Another issue to consider is that, on average, women have more sickness absence than men. The public sector employs a higher proportion of female workers and, therefore, figures could be slightly skewed. Individuals in the private sector are more likely not to be paid for a spell of sickness than those in the public sector. That may mean that private sector workers are more likely to go to work when they are sick. Absence levels also tend to increase with an organisation's size, regardless of sector. Most of our public-sector organisations dwarf our business sector in Northern Ireland, so that could be one of the reasons why there are such big differences.

We should not be disheartened. Our report recognises that the Civil Service has good policies in place to address absence and that new health and well-being initiatives are being rolled out. That may be the reason why over 55% of employees have no sick absence at all, and that good news should be celebrated. It is the other 45% that needs to be addressed to reduce the burden of the £30 million cost associated with sick absence.

The report recognised an increase in stress and mental health problems among employees. We need to ask why that is the case. Is it the result of more work pressure, which could be exacerbated with continued public-sector reform? Is it simply that nowadays staff are struggling to cope with their caring responsibilities outside work? Most families now need two incomes, which results in much more pressure on juggling priorities at home. We therefore need to look more at what workplace flexibility is offered to see whether it can help to reduce absence.

The report highlights the importance of the effective use of the return-to-work interview process. Making adjustments early on really helps to iron out some issues and can prevent the long-term absences that we often see. The report also referred to early interventions, such as referral to physiotherapists or cognitive behavioural therapy. These are recommended as a way to reduce the likelihood of small absences becoming larger.

We have an ageing population, which means that people are working longer, but it also means that there is likely to be a greater prevalence of chronic illness, which is likely to affect those in work and those with caring responsibilities. We need to continue to come up with innovative ways to address the changing needs of the workforce. It is normal for the work environment to change as people's careers progress, and that may entail physical changes to the work environment as well as changes to the terms and conditions of employment. Introducing more flexible working, where we can, can be key to supporting employees' health and well-being as they get older. Other important measures include skills analyses, job design and coaching and mentoring to make sure that people are in the right job, which is also essential for good mental health.

In conclusion, workplace absenteeism is costly and, if not addressed, it will restrain our public sector from delivering services to their full potential. Reducing sickness absence is a must, and the report highlights a number of effective strategies that are worth pursuing. I commend the report to the House.

Photo of Mitchel McLaughlin Mitchel McLaughlin Speaker

I call the Minister for Finance — Sorry, there is one more. John McCallister has joined the queue.

Photo of John McCallister John McCallister UUP

Thank you, Mr Speaker. I thought that you were introducing me as the Minister. I will not detain the Minister for too long; I just have a couple of points to make.

The Minister is usually keen to stress how difficult a financial period we face, and there is a huge financial gain for the public service in putting in place a better process and making sure that we are doing all we can. As colleagues have mentioned, it will take a partnership approach to drill down, look at best practice and see what needs to change. Also, as Mrs Cochrane mentioned, we have to look at early interventions where possible, whether it is physiotherapy or access to the types of services that return people to full health more quickly and get them back to work, or partially back to work. All those factors need to be taken into account.

One huge issue is the number of females in the public sector, who often must balance work with family life and caring responsibilities, whether for children or an older family member or parent. That can all have a huge impact on how we manage, and we need more flexibility at times in the workplace, as I know from my family experience. We have just finished six weeks of chickenpox with three children and having to find a place for them, since they could not go to their childminder during that period. You either rely on grandparents to help out or else one of the parents has to take a day off. That flexibility needs to be built in because it can be very difficult for any of us to manage, and those in the public sector are no different.

All these factors are very relevant, but we must continue to drive the figure down, reminding ourselves that, if we were at the same level as the rest of the country, £30 million to £37 million — a huge sum of money — could be reinvested and redirected into other services, so there is a huge gain to be got. We also have to remember and look at the issues of stress and mental health. Quite rightly, mental health is the biggest disability we have, and we have to look at the workplace practices that lead to stress and mental health issues, because, as a general rule, work is good for people's mental and physical health. It is a positive thing, and those are some of the factors that we need to look at, Mr Speaker. On that, thank you.

Photo of Mitchel McLaughlin Mitchel McLaughlin Speaker 11:15, 21 April 2015

Thank you very much. I am glad that I remembered to call you.

Photo of Simon Hamilton Simon Hamilton DUP

I welcome the opportunity to speak on this motion and respond to the Committee's report. I do so because sickness absence is a serious issue; during my entire time in the Assembly and my extensive membership of the Committee for Finance and Personnel down through those years, the issue has always been at the forefront of the Committee's agenda. Michaela Boyle asked that the Executive take this seriously. Looking around the Assembly Chamber, it is probably something that our Whips should take seriously as well, as it would appear that there is high degree of sickness absence in this place — perhaps some sort of lurgy or other affliction has hit Members of this House.

It is a serious issue; it is taken seriously by the Executive, and that is reflected in the Programme for Government, which sets a target for reducing sickness absence. The target is a challenging one, and we have not been successful in reaching it every year, but I welcome the fact that there has been a general downward trend in sickness absence in the Civil Service. It is important at the outset to note, as many contributors did, that, although sickness absence is a problem, over 55% of civil servants in the most recent year, as Mr Girvan reminded us, took no sickness absence. That is not just one year: it is habitually the case that over half, or a majority, take no sickness absence at all.

There were a lot of contributions throughout the debate, and, as you would expect, I am always very interested to hear suggestions about saving money. The figure of £37 million, which relates to the savings in the entire public sector if we were to take sickness absence down to the UK level, has been put out there by the Committee in its report. Whilst that would not realise £37 million in additional cash, it would be in additional productivity. Irrespective of whether it is cash or better productivity, it is still a saving that we should pursue, and, indeed, are pursuing. Additional productivity was a point laboured by Mr Nesbitt, who is no longer here. He encouraged us to look at the Deloitte 'The State of the State 2014-15' report, which, as he indicated, I think, informed part of his manifesto. I put it on the record that I contributed to the Deloitte 'The State of the State' report. That is perhaps why it was worthy of being included in his party's manifesto for the upcoming election. That is no doubt a very accurate explanation of why that is the case.

DFP is responsible for the Northern Ireland Civil Service sickness absence policy and procedures. In the time that is available to me, I will deal with the recommendations that relate to Northern Ireland Civil Service Departments only. I will leave comments on the health and education sectors to their respective Ministers, and I encourage members of the relevant Committees to pursue recommendations directly with those Ministers. Although the Civil Service is substantial in size, with roughly 28,000 staff, the health and education sectors account for considerably more staff, with some 65,000 in health and 50,000 in education. Action to tackle sickness absence levels has to be taken right across the public sector if we are to maximise savings from managing sickness absence.

I welcome the recommendations contained in the report. I acknowledge that sickness absence is a topic that requires constant attention and that there is always more work to be done. However, I am pleased to inform Members that much of what has been recommended in the report for the Northern Ireland Civil Service is either in place, under development or being considered for introduction.

Mental health and well-being features heavily in the report. That is not a surprise. That type of illness, and its long-term nature, has had a significant impact on overall sickness absence levels in the Northern Ireland Civil Service for a number of years, accounting for around a third of all sickness absence. That is not particular to the Northern Ireland Civil Service; rather, it has been a general trend across the public and private sectors in recent years. Many observers suggest that that trend will continue as issues such as job insecurity, financial pressures and general life difficulties become increasingly apparent. A point that many Members who spoke made was that it is not clear whether that means work-related stress or, indeed, stress that is related to other aspects of people's lives.

The Northern Ireland Civil Service is going through a major period of change, which many Members mentioned, with the introduction of the voluntary exit scheme and the reduction in the number of Departments. It is therefore vital that we have the appropriate support available to staff and managers to mitigate any potential impact that health and well-being issues will have, not only on individuals involved, managers and colleagues but on the business and the service that we provide. Preventing sickness absence rather than reacting to it is key. I am therefore pleased to inform colleagues that that approach is being adopted by Civil Service Departments.

The 2014 well-being survey includes stress as a major part of its analysis. To maximise its benefits, the survey is being managed by a cross-departmental working group, which includes the Health and Safety Executive for Northern Ireland. The working group is coordinating and managing the survey and the response on behalf of Departments. Departments have been asked to consider the impact of the voluntary exit scheme and the reduction in the number of Departments when considering their individual action plans.

The sickness absence recording tool, which is mentioned in the report, is a standardised list of reasons used by the Northern Ireland Civil Service to record sickness absence. It provides for more detailed reporting on types of sickness absence as a result of stress-related illness, including work-related stress. In many stress-related cases, an immediate referral to the Occupational Health Service is a routine intervention, while welfare and other support mechanisms are also organised. The availability of that information has helped Departments to formulate an organisational response that is specific to their particular needs. It allows for more targeted interventions for specific business or hotspot areas that are experiencing particular issues. Again, targeted responses were a recommendation in the Committee’s report.

I am happy to advise Members that mental health first-aid training, which provides participants with the knowledge and confidence to recognise mental health problems, to respond helpfully and to support the person's recovery is now being offered to all Northern Ireland Civil Service staff. I am also happy to report that the WELL programme, which received a positive commentary in the Committee’s report, has been extended for a further three years. The WELL programme was mentioned and praised not just in the report but by several Members in their contributions to the debate. It is worth acknowledging the success of that innovative scheme, which, as I said, has been rolled out across the Civil Service and has been extended for a further three years, Since its introduction, we have seen a 2% increase in employee engagement; a 2% improvement in health and well-being; a 2·3% decrease in staff absence due to mental health problems; and better attendance at work in 2013 compared with the 2010-11 figure, which saved us roughly £1·6 million.

It is an innovative programme that I am very proud of, and I welcome the Committee's praise for the WELL programme.

The "Beating the Blues" online cognitive behaviour therapy programme for those suffering from depression and anxiety, also supported in the report, was introduced into Occupational Health Service practice in April 2011. It has been widely acknowledged that people on long-term sickness are at a high risk of developing depression. In addition, depression is in itself a significant primary cause of long-term sickness absence. Depression is regarded, therefore, as a major predictor of non-return to work and, the longer the spell of absence, the less likely a return to work. Suitable clients are offered access to the programme as part of their OHS assessment, with the option of activating the programme through OHS or their GP practice. Since its introduction, 99 sessions have been accessed by staff. The programme is also actively promoted through WELL and the rehabilitation programme provided by the Northern Ireland Civil Service welfare service.

The Northern Ireland Civil Service is committed to improving staff engagement. One of the reasons for this is that there is strong evidence to suggest that there is a correlation between increased staff engagement and reduced absenteeism. I am happy to advise Members that a staff engagement charter was launched on 4 March 2015. The launch of this charter clearly demonstrates a commitment from senior staff in the Civil Service to the principle of having an engaged workforce. The charter sets out the importance of clear and visible leadership, engaging with managers, listening to staff, measuring levels of engagement, and what is expected of our staff. Departments will use the charter as a springboard to consider how best to improve staff engagement at all levels.

The effective management of sickness absence remains a priority for all Departments. I am confident that all Departments are working hard to reduce sickness absence and to ensure that the policies and procedures that are in place to manage sickness absence are being applied consistently. To ensure that this is the case, a series of compliance measures have been introduced in relation to the prompt recording of absence, return-to-work interviews and the provision of appropriate certification. These additional measures will be reviewed by each departmental board, alongside their existing absence analysis, to provide the necessary reassurance, governance and authority to ensure that any actions required are being taken forward in Departments. HR Connect is supporting this strategy by providing specially commissioned reports to monitor the achievement of these targets. Another initiative being explored is how the most advanced HR Connect reporting tool, Oracle Business Intelligence, could be exploited to deliver comparable management information directly to line managers across the service.

Supporting managers to manage sickness absence is, of course, of the utmost importance. I am aware that the Northern Ireland Civil Service managing attendance training provisions have been reviewed and that a revised package of training measures has been agreed. All staff will have health and well-being and compliance with Northern Ireland Civil Service policy and procedures incorporated into their annual personal objectives. In addition, all departmental business plans will include, as a priority, the provision of the appropriate staff support measures.

My officials are currently considering two NISRA reports on female absence rates and sickness absence rates in the 55-plus category. High levels of female absence rates have been an area of particular concern. Civil Service female absence levels are over 30% more than Northern Ireland Civil Service male absence levels and almost twice that of females in the GB Civil Service. Reducing the levels of female absence to those of male staff would have a significant impact on overall Civil Service sickness absence levels.

The rationale behind commissioning the report on staff who are over 55 was that, with a recruitment embargo, low levels of staff turnover because of the wider labour market position, the removal of any policy on age retirement in order to comply with age discrimination legislation and the probability that changes to public sector pension schemes will require staff to work much longer before they can draw an occupational pension, the Northern Ireland Civil Service workforce is likely to become an ageing one. It is not envisaged that the voluntary exit scheme will make a significant impact on this overall trend. As this ageing profile is likely to have an adverse impact on sickness absence levels in the future, it is important now to consider what interventions might be possible.

In the past, the Committee produced a report on flexible work practices; that is also mentioned in the report. I am glad that the recent report acknowledged the work of DFP as an exemplar organisation in relation to flexible working. There are many benefits, which include improved staff morale and commitment, reduced staff turnover and absenteeism and an improved work/life balance. In recognition of those benefits, the Northern Ireland Civil Service has already implemented a number of alternative working patterns under the umbrella of flexible working, including flexible hours or flexitime; compressed hours and personalised hours; part-time working, including job sharing; partial retirement; and term-time working.

The majority of Civil Service employees can avail themselves of at least one of those schemes, and there is no doubt that they have a positive impact on the work/life balance of staff. For example, the results of last year’s Civil Service staff survey showed that over 60% of staff agreed that they achieve a good balance between their work life and their private life. That is something that can only have a positive impact on staff absence levels.

I assure Members that we will continue to benchmark with other organisations to ensure that the best possible practice is being applied in the Civil Service and that, where appropriate, we will engage with external providers to ensure that we tap into all available support.

Overall, therefore, I can assure colleagues that sickness absence in the Northern Ireland Civil Service is receiving constant attention. Positive initiatives, such as the extension of the WELL programme, welfare support services and the launch of a staff engagement charter, will be important in reducing Northern Ireland Civil Service sickness absence levels. Managers and staff are supported through dedicated training courses, online e-learning and the provision of sophisticated sickness absence data analysis. Departments are vigilant in monitoring sickness absence trends and compliance targets and in adapting their approach in response to that data. Targeted interventions are being deployed with the analysis of female and over-55 sickness absence in addition to the development of well-being and stress action plans. A wide range of flexible working policies are in place to support work/life balance.

It is clear that there is no one silver bullet to resolve sickness absence issues in any organisation, not least one of the size and complexity of the Northern Ireland Civil Service. However, I am confident that we have a wide range of initiatives in progress that, with continued perseverance, training, support and enforcement when required, will result in a reduction in the Northern Ireland Civil Service sickness absence and the associated cost to the public purse.

Photo of Daithí McKay Daithí McKay Sinn Féin 11:30, 21 April 2015

Go raibh maith agat, a Cheann Comhairle. This has been a very useful debate on the Committee's report. I thank Members and the Minister for their contributions. As I indicated at the outset of the debate, the reality of life is that people do get sick and can need to take time off work at some stage in their working career.

John McCallister made a couple of important points. One thing that he said was that work is good for people's health. I think the vast majority of people do enjoy their work and get a lot from it. At some stage in employees' careers they come across situations that put them off work. Sometimes a lot of the problems are down to management, how those issues are handled and whether the issue becomes protracted and considerably worse over time. We have to learn how to nip those issues in the bud for the sake of the employees and also to get value for money, as the Minister said, from employees, because employees want to be productive. They want to get their work/life balance correct, and all that they want is assistance in doing that.

Of course, I welcome the introduction of mental health first aid and the availability of that for staff, because I think it is an issue. Perhaps staff do want to help their employees and help those that they have line-management responsibility for, but it is about ensuring that they know what to do and how to spot certain signs, especially in regard to employees' mental health.

The Committee's report has outlined how that reality can be dealt with to minimise, manage and reduce absence levels. There is undoubtedly scope for improvement through the public sector that could result, as we said, in savings of approximately £37 million a year to the public purse. Of course, Mr Nesbitt pointed out that a 1% increase in productivity could lead to savings of £64 million.

The figures, as referred to during the debate, show that the average level of sickness absence in the public sector here compares quite unfavourably to that in England, Scotland and Wales. While the figures may vary according to the different parts of the public sector, a rough indicator is that the level of sickness absence in the Civil Service in Britain is about 7·5 average working days lost per staff year, compared with slightly over 10 days in the Civil Service here.

We have heard that the health and wider education sectors need to improve the monitoring and reporting of sickness absence and to set and adhere to challenging and realistic targets. In the health sector, the focus continues to be on long-term absence, particularly related to mental health and musculoskeletal problems. Members are pleased, therefore, to see specific programmes targeting these issues, such as rapid referral to physiotherapy services in the case of the latter.

It has been emphasised that such early intervention schemes need to be replicated across not only the health sector but the entire public sector. In the education sector, stress-related absence in the teaching profession needs to be addressed. This includes, amongst other things, evaluating the health and well-being programmes and training in this area in an effort to increase early intervention and decrease the human and financial cost of teacher absence and, of course, the cost to children.

In relation to the performance of the Civil Service, it is clear that there are a number of well-established procedures and programmes in place to assist staff and that absence is taken seriously. However, as noted earlier, the forthcoming public sector reforms — in particular, the loss of a large number of staff under the voluntary exit scheme — could have an impact on the staff who remain in post. As changes take effect and workloads increase, so, too, may the need for support services such as Carecall and the welfare support service.

Reference has been made to the difference between sick absence rates in the public sector and the private sector. The Committee commissioned research into this issue. From the research findings, members noted that comparisons between the public and private sectors can prove difficult. Levels of absence may appear lower in the private sector, but we need to be very careful about making straight comparisons due to a lack of data on absence levels in that sector. The private sector also covers different types of jobs, and there are differences in the gender breakdown of its workforce, a point that was also raised by Members today.

While the Committee was encouraged to note that the research suggests that more robust reporting mechanisms for sick absence exist in the public sector, I urge caution in making straight comparisons due to the differences outlined. Similarly, direct comparisons between sick absence levels in different Departments and areas of the public sector can be problematic due to the different job profiles and working patterns of their staff. The Committee has, therefore, based its analysis on comparing performance of public sector bodies here with their equivalents in Britain.

The Committee is convinced of the value of benchmarking and learning from the successes of other comparable organisations in other places. This is highlighted by the example of HMRC, which is referenced in the Committee's report. It successfully reduced its absence rate from 10·5 days in 2010 to 7·51 days in 2013 by introducing a robust assurance programme. This raises the prospect of what the Civil Service here could achieve from a more concerted effort to apply consistently the procedures and policies that are already in place: in other words, better compliance with performance management and absence management policies.

Given the persistent themes around long-term absence and mental health issues, it is clear that resources must be focused on addressing the underlying causes and implications, taking the health and well-being of staff to the very heart of organisations whilst being clear that each Department will have different circumstances with regard to the reasons for absence and related needs. Members have rightly highlighted the fact that long-term absence needs a particular focus. As the Chair of the Public Accounts Committee, Michaela Boyle, highlighted, 70% of days lost are due to long-term absence. As has been said, that needs to be a priority for Departments and the Executive.

Publication of the sickness absence recovery strategy, the roll-out of the mental health first-aid training programme, cognitive behavioural therapy, tailored and targeted training, and adequate policies that are supported by management to deal with bullying and harassment have all been identified as important measures in going forward. It has also been pointed out that there could be value in researching the reasons why mental health-related issues continue to be such a significant causation factor behind absence rates in the local public sector.

Also, as indicated by a number of Members, there must be effective monitoring and reporting systems in place consistently across all Departments. Awareness needs to be raised of how a simple measure, such as a return-to-work interview, can be used to encourage individuals returning to work to be open and candid about any problems which may affect their attendance or ability in work. The evidence shows that, at the heart of these measures and at all stages, the importance of staff engagement should not be underestimated.

We heard from Peter Weir, Leslie Cree and others how the WELL programme, cycle to work schemes, the Caloriewise scheme and adoption of early intervention policies are all ways in which the Civil Service can be more proactive. The value of giving employees the option to work flexibly, particularly in terms of work location, has been proven to reduce sick absence and encourage people to return to work more quickly. It has been emphasised that this option should be progressed in a strategic and coordinated manner. It is fair to say that, in the Committee, Mr Girvan was a wee bit sceptical about flexible location working, but I have to agree with the Member that mechanisms need to be put in place to ensure that work is done and that Members and employers in the public sector can have confidence that flexible location working can work.

In conclusion, I emphasise that we are talking about a significant amount of money. There is a potential saving of £37 million per year to the public purse through simply matching the comparable public sector sickness absence levels in Britain. That is a staggering figure, particularly given the financial squeeze on the public sector and public purse. The Committee's recommendations could have a significant impact on achieving those savings and we expect the Department to study the report very carefully. The Committee looks forward to receiving a formal response to the report after the Department has reflected further on the evidence and the recommendations therein. I therefore commend the report to the House and ask for support for the Committee's motion.

Question put and agreed to. Resolved:

That this Assembly approves the report of the Committee for Finance and Personnel on its review of sickness absence in the Northern Ireland public sector; and calls on the Minister of Finance and Personnel, in conjunction with Executive colleagues, to implement, as applicable, the recommendations contained therein.