We all know the facts and figures: absence caused by sickness costs around £12 billion each year.

We are also familiar with the corporate mantra, “Our workforce is our most precious resource.” So it makes sense to take care of employees and to reduce those staffing costs that hit our bottom line.

One of the best ways to attack the cost of sickness is to manage absence robustly and appropriately. Sound attendance policies, firm management and a good occupational health (OH) provider will form the basis for sound absence management.

Unfortunately, research commissioned by the Health and Safety Executive shows that only 15 per cent of all UK organisations provide basic OH support, and only 3 per cent provide comprehensive support.

But what is OH? It is the field of medicine that studies the effects of work on health and health on work. It concentrates on employee performance, suitability, fitness, well-being and safety issues linked to health at work.

OH can offer an informed perspective on all of the additional work-health and well-being initiatives available, and providers should be able to refer and co-ordinate a whole range of services complementary to their own, from counselling to wellness. OH should bring added benefits to a business, both direct and indirect. These include reduced absence costs, health insurance claims and litigation risks; increased staff retention; improved productivity; and increased profitability.

Selecting an OH provider is only as complex as you make it. It takes a fair amount of research, understanding what your requirements are and making sure you know and communicate your expectations. It is important that you have a provider you can trust and be open and frank with.

1 Consider the practicalities
Draw up a list of providers that can meet your basic practical requirements, such as geography, number of employees, and so on. Points to consider are:

• What size of provider do you require – local, national, large regional?

• How many employees do you have and is there a shift pattern to cover? Small providers might not be able to resource large contracts, while some SMEs can find large providers too impersonal.

• Who will be making most contact with the service? If you have many line managers making referrals, you might prefer a call centre. However, if only you will be liaising on behalf of your organisation, you might prefer a dedicated contact.

• Do you require an on-site service and, if so, can you accommodate this? For on-site services, a private room or office is usually all that is required. Some providers can even offer mobile units, predominantly for health surveillance.

To save you time on the basics, the Commercial Occupational Health Providers Association (COHPA) offers a free service to help you compile a shortlist of providers who meet your requirements (see below).

2 Know what you want
Identify your top three requirements – what risks are going to affect your business the most? Check these match with the core services of the provider.

So, for example, do you have specific legislative requirements (noise, vibration, radiation)? Do they provide web-based options such as online pre-employment screening? What other stakeholders will they need to liaise with – health and safety, HR, legal? What sort of management information and feedback will you receive? How do they invoice – regionally, by depot? – and what details are provided? What services do they provide to ensure a smooth handover from existing providers?

Get input from other departments that will use the service – they will all have specific expectations.

3 Source a provider
OH organisations are not easily categorised and can be difficult to find. COHPA can help you to source a provider. Personal recommendations can be another good source; you can also use HR resources such as the CIPD’s website, forums and seminars.

4 Be rigorous in the selection process
The range of OH provision is wide but in the main falls into three categories: commercial providers, in-house services and the public sector (ie, the NHS).

You don’t have to go through a full-blown tender process, but at least compare apples with apples. Aim to talk to more than one provider, asking each organisation to comment in writing on your main requirements and provide background information, accounts and a fee schedule.

Meet with everyone at least once – the most cost-effective provider may not be the one you can work with. You need to make sure you match in as many ways as possible, since this should be a long-term partnership.

Ensure you know what you are going to receive by way of management information – chances are, you are going to be asked to show that this is money well spent.

5 Find out the cost
Fees can vary incredibly depending on service provision, factors such as who is providing the service, specialisms, geography, and what “extras” you require. The good news is that there is likely to be a service to suit every budget.

You need to provide accurate information on numbers, locations and past usage. The easiest way to compare fees is to ask everyone to complete the same fee matrix. Break down general services into service components – for example, pre-employment screening can be broken down into questionnaires, medicals and health screening.

Lastly, don’t forget to ask for costings on extras – is there an administration charge on disbursements, for example?


In summary
• Identify your main requirements and key criteria.
• Source potential providers – COHPA can help (www.cohpa.co.uk).
• Compile a longlist of between two and six providers.
• Review initial proposals or pre-qualification submissions.
• Shortlist three or four providers.
• Undertake the selection process.
• Make sure you have clarified, quantified and qualified your requirements before you sign off.
• Invest in establishing the relationship from the beginning.
• Be prepared to give and receive feedback.
• Regularly review the service provision.


About COHPA
COHPA promotes the benefits of occupational health. As a not-for-profit organisation, it offers a free information service advising on health at work issues and can help you to compile a shortlist of providers. It also regulates business standards among membership.


The expert
Genifer Foster sits on the Commercial Occupational Health Providers Association’s board of directors and is managing director of Medigold Health Consultancy, a national occupational health provider.
• geny.foster@medigold-health.com