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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
  • Transcript

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

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