CHAPTER 20 Job Satisfaction and Employee Absenteeism Smoking in the Workplace Human Resource Information System Uses of Human Resource Research

CHAPTER 20 (cont.) HR Information and Resource Presto Electric HR Research Process Turnover Costs

The Negative Correlation Between Job Satisfaction and Employee absenteeism at a Particular Firm. High HighLow Low Employee Absenteeism Each ( ) represents an employee Job Satis- faction

Exhibit 4.1 Additional Annual Cost of Employing Smokers and allowing Smoking at the Work Place ä Absenteeism$305 a ä Medical Care147 b ä Morbidity and Premature Mortality488 b (discounted lost earnings) ä Insurance (excluding health)115 c ä On-The-Job- time lost ($1,820)0 c ä Property damage and depreciation500 d

Exhibit 4.1 Additional Annual Cost of Employing Smokers and allowing Smoking at the Work Place (cont.) ä Maintenance500 d ä Involuntary smoking376 e TOTAL COST per smoker per year$2,431 a Assumes that overall company average cost of absenteeism is $611 per year and that smokers are absent 50 percent more often b Based on Luce and Schweltzer (1976) adjusted for 1996 dollars. c Based on Kristein (1980) adjusted for 1996 dollars. d Based on Interviews by Weiss (1981a). e Based on Wynder and Stollman (1977) and luce and Schweltzer (1978). Source: adapted from Weiss, W.L. (1981, May). Can you afford to hire smokers? The May 1981 issue of Personnel Administrator, copyright 1981, the American Society for Personnel Administration.

A Human Resource Information System

Application InformationSkills Inventories (Post-Employment Data) Performance ReportsManagement Inventories Personnel Change NoticesEEO Reports Payroll DataHuman Resource Development Reports Resignation DataOSHA Reports Termination Data Medical RecordsCompensation Reports Accident Records Individual ReferencesEmployee Benefits Records Potential AssessmentTurnover and Absenteeism Reports Disciplinary ActionsHuman Resource Planning Reports Training Accomplishment Human Resource Information System Human Resource Planning Operational Planning Production, Marketing, Finance, Personnel Input Data (types) Output Data (types)

Human Resource Information and Research Government Compliance Documentation Assessment of HR Actions PURPOSE

Item Presto Electric ä Total employee-hours to absenteeism fir the period ä Weighted average wage/salary per hour per absent employee ä Cost of employee benefits per hour per absent employee ä 117,600 ä $13.80 ä $4.83

Item Presto Electric ä Total compensation lost per hour per absent employee a. if absent workers are paid (wage/salary plus benefits) b. if absent workers are not paid (benefits only) ä $18.63

Item Presto Electric ä Total compensation lost to absent employees (total employee-hours lost X 4.a or 4.b, whichever applies) ä Total supervisory hours lost on employee absenteeism ä $2,190, ä 12,250

Item Presto Electric ä Average hourly supervisory wage, including benefits ä Total supervisory salaries lost to managing problems of absenteeism (hours lost X average hourly supervisory wage - item 6 X item 7 ä $ ä $269,561.25

Item Presto Electric ä All other costs incidental to absenteeism not included in the above items ä total estimated cost of absenteeism ( E items 5, 8, and 9) ä Total estimated cost of absenteeism per employee (total estimated costs divided by the total number of employees ä $250, ä $2,710, ä $903.48

HR Research Process Recognize the Problem State the Problem Choose the Method of Inquiry Select and Use the Appropriate Research Tools Interpret the Results Take Action Evaluation

One Organization’s Costs Associated with the Turnover of One Computer Programmer Turnover costs = Separation costs + Replacement costs + Training costs Separation Costs 1. Exit interview = cost for salary and benefits of both interviewer and departing employee during the exit interview = $30 + $30 = $60 2. Administrative and record-keeping actions = $30 Separation costs = $60 + $30 = $90

One Organization’s Costs Associated with the Turnover of One Computer Programmer Replacement Costs 1. Advertising for job opening = $2, Preemployment administrative functions and record- keeping actions = $ Selection interview = $ Employment tests = $40 5. Meetings to discuss candidates (salary and benefits of managers while participating in meetings) = $250 Replacement costs = $2,500 + $100 = $250 + $40 + $250 = $3,140

One Organization’s Costs Associated with the Turnover of One Computer Programmer Training Costs 1. Booklets, manuals, and reports = $50 2. Education = $240/day for new employee’s salary and benefits X 10 days of workshops, seminars, or courses = $2,400 courses = $2, One-to-one coaching = ($240/day/new employee + $240/day/staff coach or job expert) X 20 days of one-to-one coaching = $9, Salary and benefits of new employee until he or she gets “up to par” = $240/day for salary and benefits X 20 days = $4,800 Training costs = $50 + $2,400 + $9,600 + $4,800 = $16,850 TOTAL TURNOVER COSTS = $90 + $3,140 + $16,850 = $20,080/turnover