Assignment: Calculating Costs

Complete the calculations for each of the following questions using the steps outlined in this weeks lecture slides. For full credit, please type in your work for each step in the space provided (similar to what you saw in the practice question answer key). Also, it is possible to receive partial credit for your answers even if the final answer is incorrect. Type your final answer for each question in the space provided.

This assignment should only be completed after attempting the practice questions.

QUESTION #1: ABSENTEEISM

Directions: Calculate the total cost of absenteeism per employee using the following information:

Total number of employees: 1,750

Total hours of absence: 39,680

Occupational Group	Average % of Absenteeism	Average Hourly Wage
Blue collar	0.65	$28.75
Clerical	0.15	$13.50
Management & Professional	0.20	$39.90

Cost of benefits is about 39% of hourly wage

Total number of supervisory hours lost to absenteeism: 16,300

Average hourly supervisor salary: $37.65

Yearly cost of substitute employees: $395,540

Yearly cost of reduced quality/quantity: $1,380,000

ANSWER FOR QUESTION #1:

QUESTION #2: TURNOVER

Calculate the total cost of turnover per leaver using the following information:

Number of leavers: 975

Total cost of exit interviews: $86,430

Total cost of separation pay: $408,375

Total cost of recruitment & selection: $397,000

Total onboarding costs (e.g., orientation, moving expenses, etc.): $415,000

Total training costs: $168,550

Total cost of lost productivity: $1,640,000

ANSWER FOR QUESTION #2:

QUESTION #3: ROI

Calculate the ROI of a new employee engagement program using the following information:

Type of Benefit	Benefit Amount
Reduced absenteeism	$139,650
Increased productivity	$122,300
Reduced employee turnover	$218,000

The first-year cost of the employee engagement program is $415,000.

ANSWER FOR QUESTION #3: