Managing sickness absence, performance and the default retirement age are the issues most troubling HR professionals.

A survey among employers, carried out by law firm Charles Russell, recently found that the top three concerns for HR professionals in 2010 so far are, in order of priority:
• dealing with sickness absence
• performance management
• proposed changes to the national retirement age

Although these issues also trouble firms in more buoyant times, they are currently being addressed with added caution and increased scrutiny because maintaining the best workforce has never been more crucial.

Sickness absence
Sickness absence reduces productivity and has a negative impact on morale. A reduction in manpower magnifies this further, because absenteeism puts an increased strain on an already stretched workforce. Employers cited stress in the workplace as a key aspect of absenteeism, as staff face demands to improve productivity through increased workloads while the potential loss of their jobs looms large in the background.

To alleviate this concern, employers should be:

• monitoring sickness absence
• using strong team management to identifying undue pressures
• improving communications with staff and encouraging them to voice concerns early
• redistributing workloads
• offering employees support in the form of counselling or additional time off work

When “fit notes” come into force on 6 April 2010, switching the emphasis from what employees cannot do to what they can do, employees should be reintegrated back into the workforce earlier, possibly by using phased returns. Challenges accompany this, particularly in respect of employers’ duties under the Disability Discrimination Act 1995. Doubts have been expressed over whether GPs have the right expertise to make informed assessments on individuals’ capability within their specific industry. Employers face the added problem of staff returning but not operating at full capacity, necessitating the redistribution of workloads to maximise efficiency.

Performance management
This is widely recognised as a big thorn in the side of many organisations, particularly during leaner times. Under-performing employees are not always the first to go in redundancy programmes and, now more than ever, employers cannot afford to “carry” inefficient staff.

Employers should ensure any performance management is carried out as quickly and efficiently as possible. This requires:

• early identification, coupled with the necessary warnings about consequences if performance doesn’t improve
• effective monitoring with support and training over a reasonable length of time
• clear parameters of what improvement is expected

National retirement age
Under the Age Regulations 2006, any retirement below 65 needs to be justified and is only permissible in limited circumstances. Employers must comply with retirement provisions and a formal process should be followed to prevent any claims for unfair dismissal.

The Department for Business, Innovation and Skills is currently carrying out a consultation on whether the default retirement age of 65 remains appropriate and necessary.

The impact of such a move on organisations could be huge. Employers should be exploring options now for their older employees, such as part-time working and job sharing, which may be mutually beneficial to both employees and the organisation.