Inter-Capital Limited is a 500-employee firm faced with a 3.7 percent annual absenteeism rate…

Inter-Capital Limited is a 500-employee firm faced with a 3.7 percent annual absenteeism rate over the 1, 960 hours that each employee is scheduled to work. About 15 percent of absentees arc blue collar (average wage $26.96 per hour), 55 percent arc clerical employees (average wage $20.25 per hour), and the remainder are management and professional workers (average salary $44.50 per hour). About 40 percent more of each employee’s salary is spent on benefits, but employees are not paid if they are absent from work- In the last six months, supervisors (average salary of $29.75 per hour) estimate that managing absenteeism problems costs them about an hour a day for each of the 245 days per work year. It’s a serious problem that must be dealt with, since about 20 supervisors are directly involved with absenteeism. On top of that, the firm spends approximately $590,000 more on costs incidental to absenteeism. Temporary help and lost productivity can really cut into profits. Just how much is absenteeism costing Inter-Capital Limited per year per employee? (Use the software available at

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