Effectiveness of Sick Leave Reduction Incentive Programs

Technical Bulletin Last updated 07/01/2014
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Reducing the amount of expenses due to sick leave usage is an area that has a major impact on budgets. Eastside Fire and Rescue (EFR) has implemented a number of sick leave reduction incentive programs that reward employees for reducing sick leave usage. Knowing how effective these incentive programs have been in influencing the behavior of employees will be useful in deciding whether to continue or modify the programs. The problem was that EFR did not know how effective these sick leave reduction incentive programs have been. The purpose of this project was to determine what effect the sick leave reduction programs had on sick leave usage at EFR and provide recommendations. The research method used was descriptive. The research questions were (a) What was the sick leave usage from 2001 to 2012? (b) Since 2004, how many employees have taken advantage of the Sick Leave Reduction Incentive Programs? (c) What behavioral factors influence the level of participation in the Sick Leave Reduction Incentive Programs? (d) What demographic factors influence the level of participation in the Sick Leave Reduction Incentive Programs? And (e) what economic impact does the Sick Leave Reduction Incentive Programs have on current budgetary constraints and on future budgetary liabilities? The procedures included a survey and historical data analysis. The challenge of reducing sick leave usage is adaptive in nature. The results showed that changing attitudes and behavior of the employee as a result of increasing awareness of personal responsibility for controlling costs and incentive programs that reward reduced sick leave use have had a positive effect on lowering the overall cost to the department. Any hours of sick leave converted by using any of the incentive programs reduces the expenses associated with sick leave. The recommendation was to continue the current sick leave reduction incentive programs.

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