Question

In: Operations Management

You are employed as an HR manager in an organization in the transportation industry. Your director...

You are employed as an HR manager in an organization in the transportation industry. Your director has asked you to determine whether your organization has an absenteeism problem. In your organization, the absenteeism rate is 9.5 days per employee. You visit the website of Statistics Canada’s Labour Force Survey and discover that in the transportation industry, the average days lost per worker in the transportation and warehousing sector is 10.3 days. On the surface, it looks like you don’t have an absenteeism problem.

Provide four HR/workplace metrics in your report that will help to understand whether or not the organization should be concerned about absenteeism. For each metric, explain why you selected it. After identifying four metrics that will provide some insight into the issue, answer the question – does your organization have an absenteeism problem? You may need to make some assumptions in the absence of specific data. (1 mark for each metric, 1 mark for each explanation, 2 marks for your conclusion, for a total of 10 marks)

Solutions

Expert Solution

answer-

The four metrics which i would use at my workplace to understand that Organization should be concerned about absenteeism or not are-

1- Unscheduled absence rate-

I would explain this metric as a rate metrics which tracks the percentage of workers who are absent during a given period. This metric is useful because it provides a benchmark over time.absence levels can differ from month to month, but over longer periods of time you want the rates to be relatively low and stable.

2- Absence rate per manager

By dividing the number of absence days in a team or department by the total FTE (full-time equivalent) in this team or department, HR can easily identify problem areas within the company. When certain divisions or managers structurally struggle with high absence levels, they may be doing something wrong and their performance is likely to suffer.

3- Employee Productivity Index

Traditionally, employees work from 9 to 5, yet more and more people are working from home. Companies are increasingly letting the traditional mentality go. This means that performance can no longer be measured by looking at who shows up.
Nowadays, it doesn’t really matter how many hours you worked in a day. What matters is what you actually achieved. A productivity index tracks this.

4-Employee Job satisfaction/happiness-

Employee happiness (also measured as employee satisfaction) is more often recognized as a valuable HR metric. Happy employees are productive employees, they are committed to the organization and don’t mind working overtime when necessary.

Conclusion-

If our Company's productivity is increasing due to good performance of employees in our company then we do not need to worry about employee absenteeism.We also see that absenteeism rate is 9.5 days per employee in our company as compared to 10.3 days in ransportation and warehousing sector means Employee absentieesm is normal also other competitors facing more absenteeism. If we find that employees in our company are satisfied with their job and taking absence after completing thier job then we should not be worried about this rate.


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