Agenda item

To consider an update on HR matters impacting on the performance of the organisation.

The Committee received and noted the report for Quarter 4 Human Resources (HR) matters impacting on the performance of the Council during the period 2nd December 2025 to 31st March 2026.  The report included the latest position and trends relating to employee numbers, salary costs and sickness absence. A copy of the report is appended in the Minute Book.

The Committee heard that the workforce totalled 723, with the fulltime equivalent (FTE) working out at 669.09 Officers in Quarter 4. The figure represented a decrease from the previous Quarter. The period ended with an underspend of £2 million and an overspend of £1.92 million on Contractor and Agency costs.

It was confirmed that 32 individuals left the Council in Quarter 4, which was a slight decrease from the previous Quarter. The overall turnover was 16.95% in Quarter 4. Of these, six were retirements with a combined service period of 107 years. Measures to reduce turnover included enhanced exit interview arrangements better to understand reasons for leaving, regular one-to-one meetings between managers and employees, and the reintroduction of a formal incremental progression process linked to performance discussions. Consideration would be given to providing the Committee with anonymised information from exit interviews on the principal reasons for employees leaving the organisation.

Advertised vacancies decreased slightly from 72 to 67 in Quarter 4, following the significant recruitment activity undertaken in Quarter 3 to support the Food Waste Service launch. Most vacancies were within One Leisure, reflecting the transfer of Sawtry Leisure Centre and seasonal staffing requirements. Application levels remained strong, although targeted recruitment campaigns continued for hard-to-fill roles, including Planning and ICT.

No new apprenticeships commenced during the Quarter. However, apprenticeship activity continued through course completions and the hosting of an apprenticeship event at Burgess Hall. The Leadership Development Programme had been successfully completed and had now moved into business-as-usual delivery. Following the success of a previous graduate placement, recruitment activity for a new graduate placement took place during April.

The Committee discussed the low balance of the Council's Apprenticeship Levy, whether any levy funding had expired, the proportion of funds utilised, and how apprenticeship programmes contributed to longer-term recruitment and retention. While no levy funding had expired, available funds had been fully utilised to support apprenticeship and management development programmes, including Level 5 and Level 7 qualifications. Levy funds were being rebuilt to provide future apprenticeship opportunities. Additional levy funding had been secured from other councils where required. All apprentices had either been existing employees undertaking development programmes or had progressed into permanent roles within the Council. ICT apprenticeships had proved highly popular and a significant proportion of apprenticeship funding has been utilised within the ICT service. The apprenticeship scheme would not be affected by Local Government Reorganisation (LGR).

The HR caseload remained stable at 91 active cases, with absence management continuing to account for the majority of casework.

Average sickness absence increased slightly from 9.6 to 10.0 days per FTE. Long-term sickness cases reduced from 24 to 23 employees, while short-term absence fell from 684 to 642 days lost. The most common reasons for absence remained stress, anxiety and depression, followed by coughs and colds. Officers highlighted ongoing measures to support employee wellbeing and manage absence, including enhanced occupational health provision, an employee assistance programme, wellbeing initiatives and proactive absence management.

Following a question on absence levels compared with national benchmarks, it was confirmed that the newly procured occupational health provider offered a tailored service, including case conferences, greater engagement with managers, and case-specific advice to support the effective management of absence. Additional services, such as physiotherapy support, were also available to help employees recover and return to work, particularly in physically demanding roles. Officers also advised that reducing sickness absence remained a priority. While sickness levels reflected the wider national picture, the Council was aiming to reduce absence rates towards private sector levels. Proactive measures were being taken to improve attendance and employee wellbeing.

In response to questions regarding sickness absence by Councillor Francis, Officers advised that reporting arrangements were currently being refined to provide this information. Sickness absence costs were approximately £82,000 per annum on a rolling-year basis, which were broadly in line with comparable authorities. Furthermore, sickness-related dismissals were used where appropriate but progression to a Stage 3 absence management meeting did not automatically result in dismissal.

Councillor Davenport-Ray, Executive Councillor for Employees, stated that a significant proportion of the Council’s absence related to long-term sickness, often involving employees in physically demanding roles who were awaiting or recovering from surgical procedures and were therefore unable to undertake their duties, even on a reduced basis. She also highlighted that sickness absence indicators were monitored quarterly by the Performance and Growth Scrutiny Committee. Current targets and intervention levels had been established through the scrutiny process and were regularly reviewed. Councillor Davenport-Ray welcomed the suggestion that the financial cost of sickness absence be included in future workforce reports, subject to the development of a robust methodology for measuring and reporting this information.

The Committee discussed stress-related sickness absence. Stress, anxiety and depression were recorded separately as either work-related or personal. The majority of absences within this category related to personal stress rather than work-related issues. The Workforce Strategy included measures to support employee wellbeing and address personal factors affecting attendance. Where work-related stress was identified, managers followed a formal stress management process, including early intervention, discussions with the employee and the development of action plans to help address the causes of stress.

In relation to sick pay, entitlement was determined locally and formed part of employees’ contractual terms and conditions. Any changes would need to take account of wider workforce considerations, including recruitment and retention. Following a question, Councillor Davenport-Ray confirmed that the Council was not considering reducing contractual sick pay to lower absence levels.

Councillor Simpson queried whether the increase in absences relating to coughs, colds and gastrointestinal illnesses reflected a seasonal trend and whether the introduction of the hybrid working policy, requiring increased office attendance, might have contributed to higher levels of transmissible illness. An increase in such illnesses was expected during the winter months, but Officers were unable to draw a direct link between the hybrid working policy and sickness absence levels. The hybrid working policy had not resulted in a significant increase in office-based working, as many employees were already required to attend the workplace regularly due to the nature of their roles.

In response to a question by Councillor Dewey-Beckett regarding the ICT agency staff overspend, Officers advised that, where possible, agency roles were being converted to permanent posts. However, ICT remained a challenging area to recruit to due to competition from the private sector and pay constraints. Officers were working with the service manager to review recruitment challenges and identify opportunities to attract permanent staff. The use of agency staff was being maintained whilst internal service reviews and staffing changes were underway.

Further on the use of agency staff, Officers advised that the Council operated preferred supplier arrangements with approved agencies and thereby benefited from agreed rates. Alternative agencies might be engaged where necessary to secure the required skills and expertise. Decisions on converting agency roles to permanent posts were considered on a service-by-service basis and were assessed against cost efficiency and operational requirements.

Regarding the retention of staff during the period of uncertainty associated with LGR, Officers advised that this was a key element of the Workforce Strategy. However, it was reported that there was currently no evidence of staff leaving due to LGR. Regular staff engagement sessions and internal communications were provided, and services were expected to continue operating largely as usual during the transition period. Lessons learnt from other councils that had undergone LGR were being used to inform preparations. The Corporate Director of Communities provided additional information on preparations for LGR that were underway both within the Council and across Cambridgeshire and Peterborough.

The Chair raised the point that the number of reported accidents involving non-employees at One Leisure had increased from 27 in the previous quarter to 71 in Quarter 4 and requested further information on the reasons for the increase. This information would be circulated to Members following the meeting.

It was then

RESOLVED

that the contents of the report be noted.