Saskatoon needs to look at major changes in how it handles absenteeism and its long-term disability program, according to an internal audit.

The audit, performed by financial firm PwC, says the city doesn't have an overarching framework that keeps track of attendance or return-to-work support after an employee uses its disability program.

The report says absenteeism cost the city $3.9 million in 2016 and 2017, and short-term medical conditions were estimated at $1.7 million.

"These recommendations focus on initiatives to provide better support to employees, reduce risks associated with the current service delivery model and enable performance through updated policy, investment in technology and increased capacity," the report reads.

Absenteeism a problem

The report notes employees were absent an average of 7.2 days in 2017, and mental health claims were becoming more prevalent. It says supervisors are challenged by periodic absences.

PwC recommends the city outsource its illness assessment program to a third-party company staffed by medical personnel. Right now, the report says, "unqualified personnel" are in charge of case management for employees dealing with short-or-long term disability.

"Employees and unions will have a higher trust that the program is meeting employee needs through third party evaluations by qualified professionals that maintain the appropriate level of confidentiality," the report reads.

It also says union involvement in the adjudication of claims through its role on the sick bank committee is a critical risk.

As well, the city needs to do a better job at tracking attendance, report says, noting there are no policies governing overall absenteeism management.

Track information long-term

The auditors say the city should compile any absenteeism reports in a spreadsheet and bring in standardized filing practices to track that information long-term.

The report was commissioned by the city at a finance committee meeting n May.

The auditors talked with managers and employees as part of the study and sent out a survey.

In a report to councillors, the human resources department says it has implemented some of the changes.

It has been working on developing a standard communication template for employees. As well, the city has now begun to compile absenteeism reports on a spreadsheet, and a framework has been established to outline how to deal with absenteeism

The report is expected to be brought before the city's finance committee on Tuesday afternoon.