Software that calculates answers to one or more of the following exercises can be found at http://hrcosting.com/hr/ .

1. Consolidated 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. Of the total employees absent, 65 percent were blue collar

(average wage of $25.15 per hour), 25 percent were clerical (average wage of

$19.80 per hour), and the remainder were management and professional (average salary $37.60 per hour). On average, the firm spends 38 percent more of each employee’s salary on benefits and, as company policy, pays workers even if they are absent.