Absenteeism at Ono Inc. Case 2-1 Essay

957 Words Sep 18th, 2012 4 Pages
Case 2-1

Absenteeism at ONO Inc.

ONO is a large auto-supply company that does a large volume of business with only eleven employees. Absenteeism seems to have increased over the last two years and has had a significant effect on ONO. The information in the text shows that ONO had lost 539 employee labor-hours or 67.375 days to employee absenteeism last year. Because there are only eleven employees, this equals out to 6.125 missed days per employee. This is actually less than the United States average of seven missed days per year. Is absenteeism at ONO a serious problem? Whether or not a serious problem, the data from ONO, Inc. suggests there is enough to warrant an investigation and a new strategy to minimize absenteeism. As
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Table 1 Breakdown of Total Cost of Absenteeism

|Item |ONO,Inc |
|Total hours lost to employee absenteeism for the period |539 hours (given) |
|Weighted average wage or salary per hour per absent employee |$21.00 (given) |
|Cost of employee benefits per hour per absent employee |$6.93 |
| |Calculation = (33%)($21.00) |
|Total Compensation lost per hour per absent employee |$27.93 |
| |Calculation = ($21.00 + $6.93) |
|Total compensation lost to absent employees |$15054.27 |
| |Calculation = (539 hours * $27.93) |
|Total supervisory hours lost on employee absenteeism |101.0625 hours |