MANAGING ABSENTEEISM AMONG HOURLY EMPLOYEES Ryan McAllister April 29, 2010 XYZ, Corp. 2010 Human Resource Conference  Okla...
Overview <ul><li>Growing Problem </li></ul><ul><ul><li>Costs </li></ul></ul><ul><ul><li>Turnover </li></ul></ul><ul><ul><l...
Absenteeism
Growing Problem <ul><li>Unscheduled absenteeism in U.S. at highest level in several years </li></ul><ul><ul><li>1/3 due to...
Embed in an Engaged Workplace  <ul><li>More job autonomy </li></ul><ul><li>Involvement in decision making </li></ul><ul><l...
Suggested Solutions <ul><li>Impossible to manage what you don’t measure </li></ul><ul><ul><li>Clearly defined and communic...
Best Practice: Honda Motors <ul><li>Some U.S. plants have less than 2% absenteeism  </li></ul><ul><li>Cash bonus for emplo...
Best Practice: JCPenny <ul><li>1,500 workers absent per day:$760, 000 per year  </li></ul><ul><li>Watson Wyatt Absenteeism...
Best Practice: British Airways <ul><li>Clearly communicated company-wide policy </li></ul><ul><li>Trigger review mechanism...
Useful Sources and Databases <ul><li>ABI Inform </li></ul><ul><li>Business Source Complete </li></ul><ul><li>Emerald </li>...
QUESTIONS? THANK YOU
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Managing absenteeism among hourly employees

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  • Wally and Dilbert
  • 2/3 of people who call in sick really are not Turnover is major problem among hourly employees that is only exacerbated by absenteeism Both Acts of Withdrawal
  • Inexpensive, only two would be considered an expense: training programs and fringe benefits Avoid the shocks that cause sudden withdrawal
  • Know it is a costly detriment, but don’t give it proper due diligence Software: Kronos’ “Workforce Central Suite”: prevent absenteeism and plan for impacts
  • Powerline team responsible for reducing absenteeism;
  • Applies to all staff regardless of title Trigger Review: metrics showing patterns that need to be taken care of
  • Managing absenteeism among hourly employees

    1. 1. MANAGING ABSENTEEISM AMONG HOURLY EMPLOYEES Ryan McAllister April 29, 2010 XYZ, Corp. 2010 Human Resource Conference Oklahoma City, Oklahoma
    2. 2. Overview <ul><li>Growing Problem </li></ul><ul><ul><li>Costs </li></ul></ul><ul><ul><li>Turnover </li></ul></ul><ul><ul><li>More than being sick </li></ul></ul><ul><li>Suggested Solutions </li></ul><ul><li>Best Practices </li></ul><ul><ul><li>Honda Motors </li></ul></ul><ul><ul><li>JCPenny </li></ul></ul><ul><ul><li>British Airways </li></ul></ul><ul><li>Questions and Answers </li></ul>
    3. 3. Absenteeism
    4. 4. Growing Problem <ul><li>Unscheduled absenteeism in U.S. at highest level in several years </li></ul><ul><ul><li>1/3 due to personal illness </li></ul></ul><ul><li>Devastating Costs </li></ul><ul><ul><li>$40 Billion per year in U.S. </li></ul></ul><ul><ul><li>As much as 15% of company’s payroll </li></ul></ul><ul><ul><li>$3,600 per hourly employee per year </li></ul></ul><ul><li>Turnover </li></ul><ul><ul><li>Short term circumstances or “shocks” cause withdrawal </li></ul></ul>Source: U.S. Census Bureau and CCH Unscheduled Absence Survey
    5. 5. Embed in an Engaged Workplace <ul><li>More job autonomy </li></ul><ul><li>Involvement in decision making </li></ul><ul><li>Flexible workplace </li></ul><ul><li>Training/Education Programs </li></ul><ul><li>Supervisor and co-worker support </li></ul><ul><li>Mutual trust </li></ul><ul><li>Fringe benefits </li></ul><ul><li>Work-life culture </li></ul>
    6. 6. Suggested Solutions <ul><li>Impossible to manage what you don’t measure </li></ul><ul><ul><li>Clearly defined and communicated metrics </li></ul></ul><ul><ul><li>Analytic tracking software </li></ul></ul><ul><li>More Responsibility and Autonomy </li></ul><ul><ul><li>Challenge: New employees </li></ul></ul><ul><ul><li>Trust earned over time, but need accountable autonomy </li></ul></ul><ul><li>Flexible Workplace </li></ul><ul><ul><li>Challenge: Need to be at post for business to carry on </li></ul></ul><ul><ul><li>Some opportunity to work around personal life </li></ul></ul><ul><li>Think Outside of the Box </li></ul>
    7. 7. Best Practice: Honda Motors <ul><li>Some U.S. plants have less than 2% absenteeism </li></ul><ul><li>Cash bonus for employees </li></ul><ul><ul><li>Monthly and Yearly </li></ul></ul>
    8. 8. Best Practice: JCPenny <ul><li>1,500 workers absent per day:$760, 000 per year </li></ul><ul><li>Watson Wyatt Absenteeism Program </li></ul><ul><li>Powerline Team </li></ul><ul><ul><li>Determines type of benefit received </li></ul></ul><ul><ul><li>Notifies store and manager </li></ul></ul><ul><ul><li>Follows up with employee until return </li></ul></ul>
    9. 9. Best Practice: British Airways <ul><li>Clearly communicated company-wide policy </li></ul><ul><li>Trigger review mechanism </li></ul><ul><li>Return to work discussions/interviews </li></ul>
    10. 10. Useful Sources and Databases <ul><li>ABI Inform </li></ul><ul><li>Business Source Complete </li></ul><ul><li>Emerald </li></ul><ul><li>Google Scholar </li></ul>
    11. 11. QUESTIONS? THANK YOU
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