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 collar0.65$28.75
Clerical0.15$13.50
Management & Professional0.20$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


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




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.