Question: 1 ) ABC Industries, a 2 , 5 0 0 employee firm ( 3 0 hour work week ) , is faced with a serious,

1) ABC Industries, a 2,500 employee firm (30 hour work week), is faced with a serious, and growing, absenteeism problem. Last year, total employee hours lost to absenteeism came to 17,000. Of the total employees absent,45 percent were blue collar (average wage of 19.25/hour),40 percent were clerical (average wage of $25/hour), and the remainder were management and professional (average salary $45.50/hour). On average, the firm spends 15 percent more of each employees salary on benefits, and, as company policy, pays workers even if they are absent. The 30 supervisors (average salary of $34.5/hour) involved in employee absenteeism problems estimate they lose 30 minutes per day for each of the 270 days per work year just dealing with the extra problems imposed by those who fail to show up for work. Finally, the company estimates it loses $566,650 in additional overtime premiums, in extra help that must be hired, and in lost productivity from the more highly skilled absentees. As HR director for Consolidated Industries your job is to estimate the cost of employee absenteeism so that management can better understand the dimensions of the problem. Calculate the total estimated absenteeism cost per employee (5pts). Make sure you include the following in your answer:
a) Weighted average wage/salary per hour per absent employee
b) Cost of employee benefits per hour per absent employee
c) Total compensation lost per hour per absent employee
d) Total compensation lost to absent employees
e) Total supervisory hours lost on employee absenteeism
f) Average hourly supervisory wage, including benefits
g) Total supervisory salaries lost to managing problems of absenteeism
h) Cost of substitute employees
i) Total estimated cost of absenteeism per employee

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