Glasgow chosen as HQ to target absenteeism

Published on Monday 21 July 2008 21:47

KCRS, an American software firm, is to open its first international office in Scotland to tap into politicians' battle against employee absenteeism.

KCRS makes HR-related packages that enable firms to measure and manage the "sick-note culture". It plans to launch in Glasgow by the end of the year.

Chief executive Pat Kalnas initially planned to set up his European headquarters in Ireland, but was persuaded to consider Scotland instead by Scots-born board member Tom MacMurray.

Kalnas, speaking to The Scotsman on a brief trip to the UK, said: "Scotland has a lot of initiatives that make it an attractive prospect for us.

"We needed to have a presence outside of the US – a lot of companies we work with have told us that – and Glasgow seems like the perfect choice."

Through Scottish Enterprise, the company has also been offered a 240,000 Scottish Government Regional Selective Assistance (RSA) grant – handed out to firms planning to expand. Kalnas refused to disclose figures for the privately-owned firm, but said it had become profitable in 2006. He added that he expected KCRS's European business eventually to exceed its US operation.

The firm, which boasts a string of blue-chip clients, including car maker Nissan, initially plans to hire six staff in Glasgow, but expects the office to reach up to 100 employees over the next couple of years.

It was claimed this year that sick days in Scotland's public sector costs the economy about 1.1 billion in lost wages and output. Kalnas cited one client, which he claims cut the number of staff days lost to sick leave from 45,000 to just 8,000 a year.

Using the company's software, the client's HR department was more easily able to assess employees' ability to return to work and, where necessary, redeploy them in areas more suited to their physical conditions.

The company, which already has placed one member of staff in Glasgow, working from home, has arranged office space at Glasgow University, with which it has developed a close relationship. Now Kalnas is looking around for a strong "anchor" client in the UK before it begins recruitment in Scotland.

He has been in discussion with the Scottish Government to put KCRS software into public sector departments, but is also looking for blue-chip and SME clients Scotland-wide.

He added: "Scottish Enterprise have been a great help – they're not just potentially giving us an RSA grant, but they give support and want our presence to be a win-win situation for everyone."