Presentation by Paul Avis, Corporate Development Manager, Ceridian LifeWorks Theory and Gary Hutton, HR Director, CMP

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4. 4 Agenda � Case Study* What We Had What We Did What We Found Return on Investment The Legacy � three years on *The case study company is then employer Dimension Data

5. 5 What We Had Inconsistent employee-absence notification procedure - calling line-manager, HR, receptionist, voicemail all or none of the above! Inconsistent tracking, management, reporting and financial accounting of absence Unreliable audit trail and HR visibility to effectively manage persistent short-term absence cases No policy to manage long-term absent staff �Discretionary� inconsistent application of CSP policy No focus on, or promotion of, employee well-being

6. 6 What We Had � Fiscal 2004 Facts Average 5.5* days absence per employee per annum *includes 1.5 days �unreported absence� Direct absence cost of �462,000 per annum (�210 per employee per day of absence) Seven �unmanaged� long-term absence cases Company funded healthcare/Private Medical Insurance (PMI) premium �140,000 per annum (with increasing premium and negative claims experience) No other �well-being� benefits, services or initiatives

7. 7 What We Did Assessed direct and indirect cost of absence Investigated industry practices Evaluated market providers & products Developed comprehensive absence & well-being policy AND secured executive support! Communicated policy to managers and staff Provided regular progress reports to business Reviewed and amended policy with staff representatives

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9. 9 After Launch We Found�.. Problem Departments (managers/work practices) were identified and could be addressed Just 4% of staff were responsible for 23% of absence (all of it short-term absence) Improved �health & attendance� of �breach� staff when their absence was discussed and CSP was withheld! 50%+ of the persistent short term offenders left of own accord (no staff dismissed due to absence) Long-term absent staff benefited from professional OH phased return-to-work program & had favourable view of company upon return to work

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11. 11 Return on Investment � Year One Company funded healthcare/PMI premium - reduced employer excess, dependent premium & P11d liability Company funded OH provision �20,000 (eight employees) - positive impact on healthcare claims history & renewal premium Employer Liability Insurance - premium reduction year-on-year returning almost 2x annual Absence Management Programme cost to company! Direct Absence costs reduced from �462,000 to �210,000 per annum Employee absence - reduced from 5.5 days to 2.5 days per annum The initiative delivered - �312,000 Direct Saving to company (after costs) within 18 months!

12. 12 The Legacy � Three Years On Absence notification procedure, return to work procedure & CSP benefit all managed in fair, consistent and legally compliant manner Employee notification to hotline only � one stop absence reporting and automatic notification to line-manager and HR Structured and transparent absence management process with automatic action prompts Company Sick Pay (CSP) benefit � up to 100 days paid sick leave per annum

13. 13 The Legacy � Three Years On Company funded EAP, Absence Management Programme and OH �package� promotes employee well-being, work-life balance and demonstrates company commitment to staff Effective, professional and pro-active case management of potential long-term absent staff with Occupational Health partner Defined short-term absence triggers enabling prompt & pro-active management of possible �problem people� Defined policy for compassionate leave, emergency leave and �other� leave December 2007 Absence trending at 1% to 1.5% per annum since launch