Opinion: To the Point - Sick of extra staff costs

A number of readers have contacted me regarding possible consequences for our sector of the recession. Many express grave concern that if margins or occupancy are pushed any further, it could be difficult to survive.

Two ideas were discussed at our annual managers conference this month. The efficient use of staff is essential to maintaining a commercially viable nursery, but that efficiency can be severely compromised by sickness which results in the use of agency staff. In our chain of 20 nurseries, the levels of sickness varied enormously. Last year, in an attempt to prevent some of the most damaging excesses, we introduced two 'work and relationship management' tools. This year managers reported back on the results.

The first change was a return-to-work interview after each period of sickness for every member of staff. At this meeting the manager or deputy seeks to ascertain exactly what the sickness entailed, and explains the effect the employee's absence had on the room where they normally work. The effect of this interview was remarkable in almost all cases where bad sickness levels had been experienced. Naturally, some people are more prone to sickness than others and some may have long-term health problems that need to be accommodated, but sickness levels dropped dramatically.

The second tool was the use of what is called the BRADFORD Factor, a standard way of comparing time off for sickness for each employee. In its basic form, one multiplies the number of days taken in sick leave by the number of individual times sick leave is taken. You then provide each employee with a chart as to how these numbers are interpreted by you, and the consequences of exceeding such levels. These consequences can start with a verbal warning, and go through written warning to, in extreme cases, dismissal.

Finally, using a carrot as well as a stick, you can introduce a bonus system that rewards individual members of staff for little or no sickness over the whole year, and even introduce a 'competitive' element by offering an additional bonus to all staff if the overall sickness level in the nursery is at an acceptable level. This last system is particularly effective as it is 'policed' by the nursery staff themselves. As with most bonus payments, Christmas seems to be a good time to crystallise any reward due.