Effectively managing absence across your school or trust can be tricky when not done properly. The days of old diaries with the names of staff written on the days they are off, or never-ending spreadsheets, are over! These methods do not allow you to effectively manage the cost of your absence. Here we provide advice on how to effectively do this.
The most common mistake made when calculating absence is only taking into consideration the cost of the employee being absent. Realistically this is the start of the equation…
There are four elements of the equation to take into consideration:
- Employee Sick Pay (Occupational and Statutory)
- Cover Costs (Bringing in supply, engaging a zero hours employee, instructing an employee to step up either HLTA or Cover Supervisor)
- Length of absence i.e., half-days, part-days, full-days, part weeks etc.
- Rate of Pay for staff involved
Sick pay
Sick pay is a large cost, especially as staff are entitled to Occupational Sick Pay (OSP) as well as Statutory Sick Pay (SSP). Step one is to calculate what proportion of OSP your staff are entitled to. Record the percentage of staff that get occupational sick pay as FIGURE A.
Cover costs
Many schools/academies have at least some proportions of absent employees’ timetable covered. The slack will usually be picked up by colleagues working overtime or agency workers and there is a cost involved.
Step two is to calculate what proportion of absentees’ timetable need to be covered. Record the percentage of staff as FIGURE B.
Length of a working day
This part is easy. What is the normal length of a working day at your school? The common length of a school day in the UK is 6.5 hours. Record the length of a working day as FIGURE C.
Rates of pay
To complete the calculation, you need to know the average rate of pay for both Occupational Sick Pay and agency staff or overtime. In the formula below, we use hourly pay rates rather than annualised salaries because it makes more sense in calculating a cost per absence day. To convert an annual salary to an hourly rate:
Teachers
£Annual Salary / 195 / 6.5 OR £Annual Salary / 1265 = £Average hourly pay = Figure D
Support Staff
£Actual Annual salary / Contracted Weeks (incl Holiday) / Contracted hours = £Average hourly pay = Figure D
Do the same calculation for cover staff, or use their specified hourly rate and record this as Figure E.
Calculation
(A * D * C) + (B * E * C) = Average cost per absence day
Then multiply this by the number of days the employee is absent. Be sure to make amendments when the employee drops to SSP only, half or nil pay.
Or, to make the job easier for yourself, use our absence cost calculator that does it all for you! Just click here to find out how.
If you would like assistance managing your absence levels and you’re not already benefiting from SAM (absence management software), ask for a free demo today. Call 01924 907319 or click here.
