Reference no: EM133045039
Stonewall Industries, an 1,800 employee firm, is faced with a serious and growing absenteeism problem. Last year, total employee hours lost to absenteeism came to 119,808. Employees are paid wages and receive benefits for the hours they are absent.
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Level
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Average % of total employee absenteeism
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Average Hourly Wage
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Cost of benefits paid
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Technical
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65%
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$25.15
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38% of annual cost of wages
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Clerical
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25%
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$19.80
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Management
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10%
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$37.60
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Employees work 8 hours a day (40 hours per week) for 245 days out of the year.
To manage absentee related issues and problems when employees do not show up to work, 45 supervisors spend, on average, 40 minutes per day, for the 245 days they work per year addressing these matters. The average salary of this group is $29.35 per hour.
Additionally, the company estimates it pays an additional $729,500 each year in compensation for temporary employees to cover the work of those that are absent.
2. The HR Director at Stonewall assigns you the task to estimate the total impact and cost of employee absenteeism so that management can better understand the dimensions of the problem.
Calculate the total compensation lost to absenteeism and total compensation lost per hour per employee
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