Absenteeism at Ono Inc. Case 2-1

Topics: Costs, Absenteeism, Employment Pages: 4 (951 words) Published: September 11, 2012
Case 2-1

Absenteeism at ONO Inc.

ONO is a large auto-supply company that does a large volume of business with only eleven employees. Absenteeism seems to have increased over the last two years and has had a significant effect on ONO. The information in the text shows that ONO had lost 539 employee labor-hours or 67.375 days to employee absenteeism last year. Because there are only eleven employees, this equals out to 6.125 missed days per employee. This is actually less than the United States average of seven missed days per year. Is absenteeism at ONO a serious problem? Whether or not a serious problem, the data from ONO, Inc. suggests there is enough to warrant an investigation and a new strategy to minimize absenteeism. As the book states, “Unfortunately, there are no industry-specific figures on the costs of employee absenteeism.” (Cascio, Pg. 54). These costs change depending on the industry, type of firm, and whether employees are unskilled or professionals (Cascio, Pg. 54). In the case of ONO, Inc. it is difficult to determine if the cost of absenteeism is a serious problem or not without adequate information like whether or not the employees of the company have flexible shifts/hours and can work from home and how much it would cost to implement a method or program that would aim to reduce absenteeism. Having this type of information would make the assessment of absenteeism more accurate. Comparing the cost it would take to reduce absenteeism to the cost it saves lets the company know if the problem is worth fixing.

On the other hand, based on the information provided, it is known that the rate of absenteeism is increasing. Therefore, even if it is not currently a serious problem, it has the potential of becoming a serious problem. Looking at the data provided from last year the cost of absenteeism can be calculated and an assessment on the potential threat absenteeism is causing can be determined. Table 1 shows the...
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