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1、SPRING2004AGuidetoManagingAbsenceCostsbyDanielD.SkwireTherapidlyrisingcostofemployeebenefitsisfamiliarandtermdisabilities(STD),long-termdisabilities(LTD),amongtroublingnewstoemployers.Withmostofthediscussionfocusedothers.Second,therearebothdirectandindirectcostsassociat-onhealthcaretrendsas
2、theprimaryculprit,however,manyemploy-edwithemployeeabsences.Directcostsconsistofdollarspaidersfailtorecognizehowmuchoftheirtotalbenefitscostpertainstointheformofsalarycontinuation,disabilitybenefits,orinsur-absence-relatedprograms—andhowmuchabilitytheyhavetoancepremiums,onbehalfoftheabsente
3、mployees.Indirectmanagethesecosts.costsincludeexpensesincurredbytheemployertokeepthebusinessoperatingatlessthanfullstaff.Examplesincludepay-QuantifyingAbsenceCostsingovertimetootheremployees,hiringtemporaryhelp,orMeasuringabsence-relatedcostsisnotaneasytask.First,thereacceptingareductionins
4、alesorprofitsduetolostproductivity.aremanydifferenttypesofemployeeabsences:vacations,sickdays,familymedicalleave,workers’compensationclaims,short-Thedistributionoftotalcompensationcosts(wagesandbene-fits)forvariousbenefitprogramsisshowninTable1.ThetableTABLE1revealsthatthecostofabsence-rela
5、tedbenefits,includingSTDandLTD,isthesecondlargestcomponentofbenefitcosts,DISTRIBUTIONOFTOTALCOMPENSATIONCOSTS*behindonlymedicalbenefits.CategoryCostas%TotalCompensationTable2providesfurtherdetailonthesourceoftheseabsence-relatedWorkers’Compensation,UnemploymentCompensation,costs,showingthew
6、idevarietyofbenefitsthatcontributetototalSocialSecurityTaxes8.7%absence-relatedcosts.Atfirstglance,manyoftheseprogramsappearMedicalandLifeInsurancetohavelowoverallcosts.Butthisismisleadingfortworeasons:(ExcludingDisability)14.8%TimeNotWorked•Manyoftheprogramsarecloselyrelatedtoeachother(Inc
7、ludingDisability)12.0%andtoothertypesofbenefits.Forexample,sickleaveRetirementandSavings6.2%claimsoftentransitiontoSTDclaimsandthentoLTDMiscellaneousBenefits0.6%claims,anddisabilityclaimantsaccountforalargeshareTotal42.3%ofanemployer’shealthcarecosts.*So