Welcome Presenting the ‘Sick Notes’ report and introducing InteractPlus One Great George Street 31 st January 2012

Professor Cary L. Cooper, CBE Distinguished Professor of Organizational Psychology and Health, Lancaster University

Causes of Long-Term Absence – Non-Manual Workers CIPD 2011 Percentage of respondents citing this reason as leading cause (base 286) All Manufacturing Private Public Non- and Services Services Profit Production Stress Mental health Acute medical conditions Recurring medical conditions Back pain Musculo-skeletal injuries Minor Illness Injuries/accidents not related to work Home/family responsibilities

Cost per average employee (£) Total cost to UK employers (£billion) Per cent of total Absenteeism Presenteeism Turnover Total Estimated Annual Costs to UK Employers of Mental Ill Health (Sainsbury Centre for Mental Health, 2007)

Presenteeism Health “Good”Health “Not good” No absencesHealthy & present Unhealthy and present “Sickness Presentees” Some absencesHealthy and not always present Unhealthy and not always present Over half feel guilty about taking a day off sick and only 27% do no work and just recover Around 80% have gone to work ill in the past 12 months and 90% have done so at some point Over 80% of employers believe that presenteeism has a negative impact 23% work from home despite being ill; 35% still work from home or check their blackberry;

Poor mental health increases absenteeism Percentage of absenteeism due to mental illness on total days of absenteeism from 1994 to 2006 for members of the Allgemeine Ortskrankenkasse (AOK) which is the biggest sickness fund in Germany Source: Kilian & Becker 2007 Absenteeism increased in many MS: e.g. Netherlands, Austria, Finland, Sweden,UK Line Managers tend to have a more sympathetic view towards mental illnesses (depression, anxiety etc) than employees – depression for example (60% vs 48%)

Major Cause of Early Retirement

Research from Sick Notes shows….. Line Managers tend to have a more sympathetic view towards mental illnesses (depression, anxiety etc) than employees – depression for example (60% vs 48%) 50% of employees say that flexible working would reduce time off sick Over 70% of LMs believe working at home would reduce hours lost to sickness

CEO, Ellipse John Ritchie One Great George Street 31 st January 2012

A new product combining classic income protection and absence management InteractPlus One Great George Street 31 st January 2012

11 Changes in the workplace and technology demand a rethink of absence management

12 “The changing nature of the workplace......creates a serious grey area between the genuine need to take to time off and an implicit pressure to keep working” Cary Cooper CBE Prof Organisational Psych, Lancaster

13 Am I dealing with the risk, and economic and human wastage, that employee health brings to my business

14 Where are my people And How are they

15 What have I learned in 30 years as a reinsurer, insurer, manager and colleague? Talking is everything. It can be a profoundly uncomfortable process. Line managers are critical to it but should not be relied upon. Doctors are essential are dangerous if you cede control to them.

16 Line managers are ill equipped to manage absence ~ they should be part of it but not critical to it.

17 If you price and absorb the long tail of the sickness risk You must have the ability to manage potential long term sick people from day 1 of absence.

18 Five steps towards better absence management.

19 How do you create a process which guarantees appropriate intervention early enough to make a difference

20 InteractPlus provides a full absence reporting capability through MyAbsenceManager.

21 The Case Manager enables the communication that is the heart of this proposition Case Manager Commissions or does, early factfind Nigel – our workmate Attending doctors Commission interventions, objective assessment Rules running on the absence data creates referrals Absence data Employer Claims Officer for insurer

22 What next.... Tomorrow InteractPlus <300 lives quotes online >300 lives contact March Interact notify 90% of claims by week 4 of absence to earn 10% premium credit >300 lives Q4 Interact online <300 lives

23 Am I dealing with the risk, and economic and human wastage, that employee health brings to my business

24 InteractPlus – more information Visit Live on Wednesday, 1 st February