Agenda item

The Committee considered a report of the Director of Corporate Resources which provided an update on workforce information and performance measures for 2025/26, including details relating to headcount, Full Time Equivalent (FTE), absence rates and reason, and reported completion of Annual Performance Reviews (APR).  A copy of the report marked ‘Agenda Item 9’ is filed with these minutes.

Arising from discussion, the following points were made:

(i)           It was noted that there were fewer people employed overall by the County Council, but that, in some areas, employees were working increased hours.

(ii)         Absence levels remained slightly above the Council’s target of 7.5 FTE days lost, although the position had improved and reflected expected seasonal pressures over the winter period.

(iii)        Members were assured that absence continued to be actively managed through established HR measures and that, from March, there had been a stronger emphasis on performance management and the consistent recording of absence data, with reminders issued where improvement was needed.

(iv)       In response to questions, the Committee was advised that the numbers of staff absent for stress and mental health reasons had been consistent for a number of years and that, whilst no single trend had emerged, the causes reflected a combination of work-related pressures and issues in employees’ personal lives. Members noted that wider uncertainty, including Local Government Reorganisation, could also be a contributing factor for some staff.

(v)         A Member asked whether home working had altered sickness reporting arrangements and was advised that the same reporting and return to work procedures applied regardless of work location. Employees were required to notify their manager before their start time if they were unfit for work, and a return-to-work interview was required to be conducted within 24 hours of the employee returning.

(vi)       A Member sought further information on the balance between permanent and agency staff numbers, what cost savings arose from this and what impact the national wage increase applied at the start of the financial year had on such costs/savings. The Director undertook to provide this information after the meeting.

(vii)      At the request of Members, the Director undertook to provide additional information on critical vacancies, hard to fill posts and the extent to which labour market conditions, an ageing workforce and uncertainty associated with Local Government Reorganisation were affecting recruitment.

(viii)    It was questioned whether the absence target of 7.5 FTE days remained realistic and should be reviewed. The Director confirmed that this remained deliberately ambitious to maintain focus on attendance management.  Members were assured that Departmental Management Teams reviewed absence data monthly.  It was acknowledged that there were notable variations between front-line and back-office services in terms of absence levels, and it was suggested that a breakdown across service areas might be beneficial so that the data could be better understood. The Director agreed to consider how future reporting could present a clearer analysis of absence data and where appropriate, how this might be considered by the Committee in closed session.

(ix)       Members raised concern at the low recorded completion rate for annual performance reviews.  The Director undertook to provide further evidence to give assurance that reviews were taking place but not always being recorded on the system.

(x)         Further questions were raised regarding the overall cost of sickness absence to the organisation and what safeguards had been put in place to ensure that any reported absence was genuine. It was noted that the Council’s approach relied on robust management oversight, supported by return-to-work interviews, well established trigger points within the process, scrutiny of patterns of absence and regular reviews by managers, Chief Officers and HR. It was acknowledged that no system could ever be completely fool proof, but Members were assured that a strong management culture and regular monitoring were central to the Council’s approach.

(xi)       It was noted that a range of support was made available for employees, including an in-house counselling service, externally commissioned support where required, stress risk assessments, wellbeing plans, a HSE stress assessment tool, and training on resilience and stress management. The Director further advised that management information on absence was circulated monthly through management chains and that an update could be included in the Health, Safety and Wellbeing report due in September specifically on this area.

RESOLVED:

(a)  That the update on workforce information and performance measures for 2025/26, including details relating to headcount, Full Time Equivalent (FTE), absence rates and reason, and reported completion of Annual Performance Reviews (APR) be noted;

(b)  That the Director of Corporate Resources be requested to provide further information on the following:

(i)               The general cost of staff absence;

(ii)              the overall saving in the total pay bill, if as suggested the Council was employing few staff and less agency workers;

(iii)            the impact fewer agency staff had on the total pay bill, given the national hourly rate wage increase;

(iv)            additional information on critical vacancies, hard to fill posts and the extent to which labour market conditions, an ageing workforce and uncertainty associated with Local Government Reorganisation were affecting recruitment;

(v)             to provide further evidence to give assurance that Annual Performance Reviews were taking place;

(c)   That the Director of Corporate Resources be requested to consider how future reporting could present a clearer analysis of absence data across service areas and where appropriate, how this might be considered by the Committee in closed session

(d)  That all written answers to questions taken away from the meeting be circulated to all members of the Committee and also recorded in the minutes for the public record.

[Subsequent to the meeting the following information was provided to Members on the matters requested in paragraph (b) above.  The Committee had requested that this be recorded in the minutes.

(i)               An average FTE absence was 8.92 days which relates to a 3.5% absence rate to the workforce.  This was an estimated cost to the Council of just over £400,000 a month.

(ii)              An overall saving on the total pay bill had not been achieved, compared with last year. As whilst we have made savings against agency costs from the last financial year this has not translated into an overall saving in the total pay bill because our FTE increased and workforce costs increased.

(iii)            Fewer agency staff helped offset the impact of the national hourly rate increase, resulting in lower agency expenditure than last year. However, this did not reduce the total pay bill due to wider workforce cost pressures.

(iv)            For some professional groups, the available supply of candidates is limited because roles require specific qualifications, training and experience. This is particularly the case in areas such as social work, engineering and educational psychology. At the same time, demand for these skills remains high across the wider labour market, increasing competition for experienced candidates. In services such as social work, waste management and driver roles, the Council is competing with other authorities as well as private sector employers for a similar workforce.

Recent agency caps and related controls in children’s social work have supported some conversion from agency to substantive posts. However, these measures do not in themselves address the underlying shortage of qualified professionals or the sustained level of demand.

The longer-term response lies in workforce planning, including growing and developing talent through recruitment, training and retention activity. While there remains a risk of losing employees to the wider market, investing in development can strengthen workforce resilience and support retention. The full impact of Local Government Reorganisation is not yet clear, although it is creating some uncertainty, particularly at senior level, while potentially changing the competitive landscape over time.

(v)             Evidence from the departments indicates that Annual Performance Reviews are taking place, although completion is not yet recorded consistently on the central system.

HR is therefore strengthening the recording and reporting process, including simplified system requirements and automated reminders, to provide greater assurance through future reporting.]