Return on Investment for Construction Industry

• The figures regarding training costs and numbers are provided by Petros.  The organisational data are provided by a national construction company

 

• The input costs for training provided by Petros are based upon an agreed number of one-day Challenge of Change resilience programmes (23 programmes with 15 managers per programme (345 managers – half of the manager population)) for the training to have effective penetration.

 

• The impact of the training on sickness absence has been taken from an independent empirical study conducted by a Petros client, following rollout of a Challenge of Change training programme for managers and supervisors. The recipient client of the training tracked all employee sickness absence data for a like for like 6-month period, using Divisions who had not received the training as a standard control group against those Divisions who had. This showed an impact of training on sickness absence ranging from 16-43% reduction in the Divisions who had received the training compared to the control groups.  It also demonstrated a 5% increase in workforce stability, although costs for this have NOT been included in the current calculations.

 

• The sickness absence data has been provided by a construction business HR team for a 11-month period from 31st July 2023, detailing the number of Under 7-day sickness absence occurrences, and number of Over 7-day occurrences in this period. These total 176 Over 7-day occurrences and 2021 Under 7-day occurrences.

 

• The construction business did not have the causation breakdown for these absences and so the latest CIPD (Chartered Institute of Personnel and Development) sickness causation data for 2023 was used.  This reports 63% of long-term absence is due to mental ill-health and 39% of short-term absence.

 

 

• The cost of sickness absence occurrences has been calculated using the HSE’s published appraisal values (£8300 per over 7-day sickness absence case and £150 per under 7-day sickness absence case). The construction business did not have the specific sickness calculated costs to put into the tool and so the HSE Appraisal values were used. The appraisal values incorporate sick pay, insurance premiums, production disturbance, administrative costs, and costs from investigations and prosecutions:

 

▪ Sick pay: Occupational sick pay and/or statutory sick pay paid to employees when absent from work.

 

▪ Insurance premiums: The cost of Employers’ Liability (EL) insurance premiums and the cost of corporate private health insurance premiums attributable to workplace accidents and work-related ill health.

 

▪ Production disturbance: The costs associated with work reorganisation and recruitment and induction of temporary or permanent replacement staff, to maintain output.

 

▪ Administrative costs: The costs associated with administering sickness claims; insurance claims; compensation claims etc.

 

▪ Investigations and prosecutions: The internal and legal costs arising from investigations and prosecutions for health and safety breaches by HSE or local authorities.