Too much Christmas cheer is estimated to cost bosses a whopping £790 million this year in hangovers and lost productivity. Annie Hayes finds out what fearful employers can do to stem the flow of no-shows and self-inflicted sickies.

Research by budget hotel chain Travelodge has revealed the true extent of the Christmas party fall out. You know the drill, too much free alcohol, too much ‘oh what the heck it’s Christmas’ attitude and even the most abstemious are roaring with a raging hangover the day after.

All this is at an estimated cost, according to Travelodge, of £790 million a year – a calculation based on the fact that British workers predict their productivity will halve, spending two and half hours, on average, staring into space the day after the annual bash.

The poll also revealed that a massive 30 per cent of adults have called in sick due to a hangover, even though 34 per cent of respondents were convinced their boss knew they were pulling a fast one.

And the bad news continues. A new survey by Youmanage, an online HR toolkit for managers, shows that 92 per cent of UK managers worry that their staff are having too many sick or duvet days, not just on the day after the office party but over the seasonal period as a whole.

So should bosses simply pack-away the Scrooge-like mentality and adopt a more laissez-faire approach to latecomers, those pleading sore heads and dodgy tummies, or can employers expect and insist on work as normal, the day after the night before?

Add some flexibility into the Christmas mix

HR consultant Sandra Beale says bosses could fare worse than striking a bargain. “Companies should consult with their staff as to their requirements over the Christmas period. With the Christmas party, for instance, they [bosses] could ask if staff want it on a week night or at a weekend. Companies could also offer a couple of duvet days per year and this can reduce absenteeism.”

Beale also suggests offering a later start time the day after the office bash but this may come at a cost.

“A later starting time can be offered if the office party is held during the week, with management ensuring skeleton cover is provided so business needs are met with possible enhanced payment (or alternative incentive) for those employees who provide the additional cover,” she comments. “If the party is held on a Thursday evening, perhaps the Friday afternoon could be given to staff as a paid half day off.”

For those that are really struggling with absence, Beale even advises dangling a carrot incentive for staff who do not take any absence over the Christmas period.

Matthew Brearley, UK HR director for mobile telecoms firm Vodafone, says, however, that things shouldn’t get to this stage, but agrees with Beale that employees should be included in the decision making when it comes to firming up arrangements on the best time to have a party, and how to deal with operations the following day.

“If you believe in the philosophy of engagement and empowerment then you’ve got to stick to this at all times; where true commitment exists then the level of unauthorised absence is low. As ever, the right approach is to let local managers handle situations in the right way for their people.”

Both Beale and Brearley add that whatever is decided, it is crucial that the guidelines for behaviour are set in stone ahead of the planned festivities.

“The role of HR is to set the broad guidelines, then you’ve got to trust,” says Brearley. “Of course, if people do things outside of those guidelines and break the trust given to them, then you have to manage the situation seriously and let others see that it is being dealt with. At Vodafone, our flexible working approach really helps at this time of year.”

So what happens when ‘one too many’ applies to festive absence and start times. There’s always someone who pushes the Christmas spirit too far.

What to do when things turn ugly

Leon Deakin, solicitor at Thomas Eggar LLP, warns that setting a precedent for turning a blind eye can be dangerous:

“If an employee fails to turn up for work or phones in sick during the festive period, and you have good reason to believe that the absence is not genuine, you obviously have to decide what action to take. Overlooking the incident sets a dangerous precedent for the future and an employer is only really left with the option to consider discipline.”

Sadly, moving to the next stage inevitably means throwing the book at party-goers, with the statutory dismissal and disciplinary procedures as laid out in the Employment Act 2002, along with any additional procedures the employer has in place.

Deakin warns, however: “It should of course be noted that where an employee has phoned in claiming to be sick, the employer has to determine whether there is any truth in their assertion and, in the lack of any substantial or persuasive evidence to the contrary, it may be difficult to fairly progress to disciplinary.”

What this means, says Deakin, is meeting with the employee to discuss their absence as part of a return to work interview before deciding if it is possible, or indeed necessary, to progress to disciplinary.

Of course, marching down the disciplinary route is not an ideal Christmas present and both Deakin and Sarah King, partner at PJH Law, advise employers to try all alternative avenues before proceeding with legal action.

King advises bosses to look ahead to see where problems may lie. “If employers have a particular problem with certain days they need to look at ways to maximise attendance. If they give Christmas presents or bonuses to staff, ensure this is done on Christmas Eve to encourage attendance.

“Other ways may be to make the day more unusual,” she adds. “Perhaps a dress down day or informing staff before hand that if the day is quiet they can finish early, which may do the trick. Generally, if staff are happy in their place of work, morale is high and they enjoy their work, they are less likely to throw a sickie or go missing.”

Deakin says that peer-pressure can also do wonders for work attendance: “An employer can also emphasise the additional burden placed on colleagues who are left at work during any unauthorised absences.”

Another point picked up in the Travelodge survey was that, unsurprisingly, 67 per cent of respondents confirmed they get annoyed when a team member is off due to a self-inflicted illness resulting from a night out.

A fair dollop of common-sense coupled with some seasonal guidelines should see bosses in good shape to start the New Year. For those who don’t fair as well, the law is on their side, but, reminds Deakin, what is set in stone this year ends up as a precedent for the next so be warned that past behaviour is a fair predictor of future behaviour.