impact of employee absences in employer cost

Impact of Employee Absences on Employer Cost among Organizations in El Salvador City and Iligan City

A Research Study Presented to the Faculty of

Department of Accountancy and Business Management College of Business Administration and Accountancy

Mindanao State University at Naawan 9023, Naawan, Misamis Oriental

In Partial Fulfillment of the Course Requirement for the Degree of

Bachelor of Science in Business Administration Major in Management

Galarpe, Flora Mae B. Pasco, Jessie Mae C. Patlunag, Genalyn R.

Tumampoc, Rexon M.

December 2015

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APPROVAL SHEET

The research entitled “The Impact of Employee Absences on Employer Cost among Organizations in El Salvador City to Iligan City”, prepared and submitted by Flora Mae B. Galarpe, Genalyn R. Patlunag, Jessie Mae C. Pasco and Rexon M. Tumampoc, in partial fulfillment of the requirements for the degree of Bachelor of Science in Business Administration Major in Management has been examined and recommended for approval and acceptance for ORAL EXAMINATION.

MANOLITO E. PARUNGAO, MBM Adviser

Approved by the panel of Oral Examiners on_______________ with a grade of_______.

DANIZA MAE J. CALIMOT, MBM

Panel Chairperson DELYN M. BUCAY, MBM HESLIE REE P. PONTILLO, MBM Panel Member Panel Member

Jackie Lou A. Valdez English Critic

Accepted and approved in partial fulfillment of the requirements for the degree of Bachelor of Science in Business Administration major in Management.

HEIDIE AMOR A. PARCIA, MBM

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OIC Dean, CBAA

ACKNOWLEGDEMENT

The researchers sincerely extended their profound gratitude to various persons who

contributed to the success of the study.

Our adviser and mentor, Mr. Manolito E. Parungao, MBM, thank you for guiding and

editing our paper, for helping us through with your advices, encouragement, patients and

knowledge.

Researchers are also grateful to the defense panel, Ms. Daniza Mae J. Calimot, MBM, Mr.

Heslie Ree P. Pontillo, MBM and Ms. Delyn M. Bucay, MBM for giving and sharing their valuable

time, positive thoughts and insight.

To Mr. Renante Lumactad and Mr. Guilbert Cabillian for their assistance in interpreting

the data gathered;

To Zest-O Corporation and TITA FANNIES for allowing the researchers to conduct surveys

and giving us the data that we need for the study. To the respondents, for the cooperation and

for answering the questions given to them, especially the Human Resource Personnel and

Managers in Production Department.

Researchers also express sincere thanks to their parents for their unconditional love,

endless sacrifices, moral and financial support throughout the completion of this paper.

Above all else to our God who gives strength, wisdom and grace in facing the difficulties

in making this study a successful one.

Flora Mae, Genalyn, Rexon and Jessie Mae

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ABSTRACT

This study aims to identify the most common cause of employee absences in the organization and the impact of employee absences on employer cost. The objective of the study is to test whether there is an impact on employer cost. The respondents of the study are the employees of the production department from Zest-O Corporation at El Salvador City and from Tita Fannies Food Chains at Iligan City with a total of 101 respondents. Researchers conducts an interview with the Human Resource Personnel of each organization for the cost incurred due to employees’ absences. The results shows that out of 101 respondents, 56% of them belongs to the age bracket of 18-28, 53% belongs to male, 62% belongs to single and 53% belongs to college level. Furthermore, the common cause of absence is illnesses among the organizations. The study found out that ZEST – O Corporation had 5.21% of absences incurred by the employees in the organization which generates a cost of ₱ 112,993.00. While, TITA Fannies Food Chains had 6.9% of employee absences in their organization with the cost incurred ₱ 447,722.40. With the results, the study reveals that employees’ absences has an impact to the employer cost because the higher the percentage of employees’ absences in the organization the higher the cost employer incurred due to it.

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TABLE OF CONTENTS

Page TITLE PAGE i APPROVAL SHEET ii AKNOWLEDGEMENT iii ABSTRACT iv TABLE OF CONTENTS v LIST OF TABLES vi LIST OF FIGURES viii CHAPTER I THE PROBLEM AND ITS SCOPE

Introduction 1 Theoretical Background 3 Conceptual Framework of the Study 6 Research Process of the Study 7 Statement of the Problem 8 Significance of the Study 9 Scope and Limitation 10 Definition of Terms 10

CHAPTER II REVIEW OF THE RELATED LITERATURE 12 CHAPTER III RESEARCH DESIGN AND METHODS

Research Design 15 Research Locale 15 Research Subject 18 Data Gathering Method 18 Sampling Procedure 18 Statistical Treatment 19

CHAPTER IV Presentation, Analysis, and Interpretation of Data 20 CHAPTER V Summary of the Findings, Conclusion, Recommendation 58

BIBLIOGRAPHY 78

APPENDICES 80

Appendix A. Approval Letter 64

B. Survey Questionnaire 66

C. Computations 72

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D. Curriculum Vitae 77

LIST OF TABLES

Table No. Page

1 Distribution of Respondents Profile according to Age. 19 2 Distribution of Respondents Profile according to Sex. 20

3 Distribution of Respondents Profile according to Civil Status. 20 4 Distribution of Respondents Profile according to 22

Educational Attainment.

5 Percentage of Absences incurred of the Employees in the 23 Organization.

6 Frequency distribution of the cause of employee absences by 24

Bullying and Harassments in ZESTO –O Corporation. 7 Frequency distribution of the cause of employee absences by 25

Burnout, Stress and low morale in ZEST-O Corporation. 8 Frequency distribution of the cause of employee absence by 26

Children care and Elder Care in ZEST-O Corporation. 9 Frequency distribution of the cause of employee absence by 27

Depression in ZEST- O Corporation. 10 Frequency distribution of the cause of employee absences by 29

Disengagement in ZEST – O Corporation. 11 Frequency distribution of the cause of employee absences by 30

Illness ZEST – O Corporation. 12 Frequency distribution of the cause of employee absences by 31

Injuries in ZEST – O Corporation. 13 Frequency distribution of the cause of employee absences by 32

Job hunting in ZEST – O Corporation. 14 Frequency distribution of the cause of employee absences by 33

Partial shift in ZEST – O Corporation. 15 Summary Distribution of Weighted Mean of the Common Cause 34

of Employee Absences in ZEST – O Corporation.

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16. Frequency distribution of the cause of employee absences by 37 Bullying and harassments in TITA FANNIES.

17 Frequency distribution of the cause of employee absences by 38

Burnout, stress and low morale in TITA Fannies. 18. Frequency distribution of the cause of employee absence by 40

Children care and Elder Care in TITA Fannies. 19 Frequency distribution of the cause of employee absence by 42

Depression in TITA Fannies. 20. Frequency distribution of the cause of employee absences by 43

Disengagement in TITA Fannies. 21 Frequency distribution of the cause of employee absences by 45

Illness in TITA Fannies. 22 Frequency distribution of the cause of employee absences by 46

Injuries in TITA Fannies. 23 Frequency distribution of the cause of employee absences by 47

Job hunting in TITA Fannies. 24 Frequency distribution of the cause of employee absences by 48

Partial shift in TITA Fannies. 25 Summary Distribution of Weighted Mean of the Common Cause 49

of Employee Absences in TITA Fannies. 26 Cost of Employee Absences in the ZEST – O Corporation and 50

TITA Fannies Food chains. 27 Summary of Employees Percentage of Absences against 79

Cost of employee Absences in ZEST – O Corporation and TITA Fannies Food Chain.

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LIST OF FIGURES Figure Number Page

1 Conceptual Framework of the Study 6

2 The Research Process of the Study 7

3 Map of the Locale 15

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CHAPTER I

Problem and Its Scope

Absences of employees have always been one of the persistent problems in business.

“Absences” is generally understood in different ways by different people. It is usually interpreted

as an employee or a group of employees remaining absent from work either continuously for a

long period or repeatedly for short periods (Chandramouli and M.C. Sandhyarani, 2013).

Absences convey different meanings, and is pressed out in different ways in different states or

industries. In simple words by Paul Rourke (2011), it is the total number of workers absent

expressed as a percent of the total number of employees hired. In more technical words the same

may be stated to imply “a ratio of the number of production man-days or shifts lost to the entire

figure of production man-days or shifts scheduled to work”.

These absences within any workforce is something inevitable because even the hardest

working people are starting to find themselves needing time off outside of their workplace. That

is the reason the researchers came up with this study because some organizations do not devote

much attention to this matter. Gratuitous to say, they do not recognize that it has hidden effects

to their organization and that employee absences are one of the greatest troubles that a

director/manager has to manage on an ongoing basis as it impacts on service delivery, staff

morale, and could contribute to financial losses and this financial loss is hard to quantify in some

instances; like absence is not registered and the indirect cost associated with absence is not easily

identified and counted. So absence control can often be an important measure in the procedure

of reducing business cost and because of competitive pressures, companies can no longer afford

to carry unnecessary absence that they may have suffered in the past years.

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In small cases, some businesses are not immune to such "financial losses." There are

obvious costs associated with an absent employee, including consequences difficult to measure.

The most obvious cost is in the area of sick leave benefits—provided that the business offers such

benefits—but there are significant hidden costs as well. The SOHO Guidebook cites the following

as notable hidden cost factors associated with absences: lost productivity of the absent employee,

overtime for other employees to fill in, decreased overall productivity of those employees, costs

incurred to secure temporary help, possible loss of business or dissatisfied customers and

problems with employee morale.

And in accordance with the research conducted by Mercer and sponsored by Kronos, it

reveals that employee absence costs, on average, the equivalent of 35 percent of base payroll.

This includes the direct and indirect costs of planned absences like vacations and holidays,

unplanned absences from sick days, and extended absences such as short-term disability and

Family and Medical Leave Act leave. Each type of absence carries costs that can significantly affect

the company, yet most organizations lack a clear understanding of them.

As most employers will know, absences come in all forms and sizes and can last anything

from days to years. In connection to that, researchers decided to identify what are the most

common causes of absences among employees’ reason for absences in TITA FANNIES Food Chains

at Iligan City and in ZEST-O Corporation at El Salvador City, Misamis Oriental and sits impact to

employer cost.

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Theoretical Background

According to Barkha Gupta (2013), some of the common causes of employee’s absences

that people fail to go work include (but are not limited to):

1. Bullying and harassment - employees who are bullied or harassed by coworkers and/or bosses

are more likely to call in sick to avoid the situation.

2. Burnout, stress and low morale - heavy workloads, stressful meetings/presentations and

feelings of being unappreciated can cause employees to avoid going into work. Personal stress

(outside of work) can lead to absenteeism.

3. Childcare and Eldercare - employees may be forced to miss work in order to stay home and

take care of a child/elder when normal arrangements have fallen through (for example, a sick

caregiver or a snow day at school) or if a child/elder is sick.

4. Depression - according to the National Institute of Mental Health, the leading cause of

absenteeism in the United States is depression. Depression can lead to substance abuse if

people turn to drugs or alcohol to self-medicate their pain or anxiety.

5. Disengagement - employees who are not committed to their jobs, coworkers and/or the

company are more likely to miss work simply because they have no motivation to go.

6. Illness - injuries, illness and medical appointments are the most commonly reported reasons

for missing work (though not always the actual reason). Not surprisingly, each year during the

cold and flu season, there is a dramatic spike in absenteeism rates for both full-time and part-

time employees.

7. Injuries - accidents can occur on the job or outside of work, resulting in absences. In addition

to acute injuries, chronic injuries such as back and neck problems are a common cause of

absenteeism.

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8. Job hunting - employees may call in sick to attend a job interview, visit with a headhunter or

work on their resumes/CVs.

9. Partial shifts – the example of this causes is arriving late, leaving early and taking longer breaks

than allowed are considered forms of absenteeism and can affect productivity and workplace

morale.

Furthermore, the causes of absences mentioned above also contribute cost to

organizations as what Guy Carpenter et.al. (2008) state and this includes:

1. Direct costs – it is the payment or benefit provided to an employee for time not worked. For

example, this may be “salary continuation” for a vacation or a short-term disability, or a

separate benefit paid by a disability carrier.

2. Indirect costs - these costs represent the real impact to the organization as a result of the

absence. There are two main components:

A. Replacement labor expenses - the costs for employers to have other individuals do

the work that an absent employee is unable to do. Replacement worker costs are hard-

dollar expenses, representing added pay and benefits for extra staffing, or costs for

overtime, temporary labor, and outside contractors.

B. Net lost productivity value - a soft-dollar measure of potential lost revenue to the

extent that the work is not fully “covered” by replacement labor. In other words, if

fewer widgets are produced, fewer customers are served, or fewer sales are

completed, potential revenue is lost. It is conservatively estimated the value to equal

the salary and benefits/other HR costs as a percentage of payroll for the percentage

of work not fully covered by replacements or by exempt employees working longer

hours. In reality, a for-profit employer’s lost productivity value could be much higher,

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since the work needs to cover not only employee expenses but other business costs

as well, plus a return or profit on the work performed.

3. Administrative costs – it is the additional costs an employer bears for internal staff, software,

office space and equipment — or for an outside organization — to administer absence benefits

(tracking, review, approvals, processing, case management, clinical support, etc.). While not

normally included in indirect costs, these are clearly additional expenses associated with

employee absenteeism for all organizations.

It is therefore concluded that in every employees’ absences, a certain cost is incurred by

the organization. Thus, the causes of absences contribute cost to the organization.

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Conceptual Framework of the Study

Figure 1. Conceptual Framework of the Study

This part of the research involves concepts used as the foundation of the study. This study

aims to identify the impact of employee absences on the employer cost.

The independent variables of the study are composed of the socio-demographic profile

of the respondents which includes age, sex, civil status and educational attainment, causes of

absenteeism, the bullying and harassment, burnout, stress and low morale, children and elder

care, depression, disengagement, illness, injuries, job hunting, and partial shifts.

The dependent variable is the employers cost cause by its employees’ absences.

Impact of Employee s’

Absences on Employer

Cost

a. Direct Cost

b. Indirect cost

c. Administrative Cost

1. Socio-demographic Profile of the

Respondents

a. Age

b. Sex

c. Civil Status

d. Educational Attainment

2. Causes of Absenteeism

a. Bullying and Harassment

b. Burnout, Stress and Low

Morale

c. Children and Eldercare

d. Depression

e. Disengagement

f. Illness

g. Injuries

h. Job Hunting

i. Partial Shift

Independent Variable Dependent Variable

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1. Socio-demographic Profile of the Respondents

a. Age

b. Sex

c. Civil Status

d. Educational

Attainment

2. Causes of Absences

a. Bullying and Harassment

b. Burnout, Stress

and Low Morale

c. Children and

Eldercare

d. Depression

e. Disengagement

f. Illness

g. Injuries

h. Job Hunting

i. Partial Shift

Research Process of the Study

Figure 2. The Research Process of the Study

Figure 2 outlines the entire flow of the research. The input includes respondents’ profile

and the causes of employee absences. Next is the research process that is divided into five major

parts. The result of the survey will measure the impact of employees’ absences on employer cost

in the organizations.

Impact of

Employee s’

Absences in

its Employer

Cost

a. Direct Cost

b. Indirect cost

c. Administrative

Cost

Input Research Process

1. Construct

questionnaire

2. Distribute

questionnaire

3. Interview to

Human Resource

Personnel

3. Collect questionnaire

4. Tabulate the

collected data

5. Analysis and

interpret data

Output

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Statement of the Problem

This study was conducted to identify the most common cause of employees’ absences

and in cost on the employer side. Specifically, this study seeks to answer the following questions:

1. What is the socio-demographic profile of the respondents in terms of:

A. Age

B. Sex

C. Civil Status

D. Educational Attainment

2. What is the percentage of absences committed by the employees in the organization?

3. What is the most common cause of employee’s absences in the organization?

4. What is the cost of employee absences in the organization in terms of:

A. Direct Cost

B. Indirect cost

C. Administrative Cost

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Significance of the study

This study determined the common cause of employees’ absence. This study will give the

readers the idea how absences affect organizations. Moreover, this study will be beneficial to the

following:

To the Management

The study will help to build up a systematic approach in reviewing absence issues. To

realize the most appropriate solutions for the organizational circumstances and identify the most

useful sources of further guidance and information. He/she can likewise recognize how to handle

employees’ reason for absences and be flexible to it to encourage harmonious relationships and

productive organization.

To the Employees

The study will help them to know how their absences contributes cost to the employer

and how to be flexible in their work in order to be productive.

To the Organizations

The study will help them to know the steps to be taken or required to prevent employee’s

absences and how to create a concise absence policy in order to bring down the employee

percentage level of absences. This study will be serving as their basis in handling such causes of

employee’s absences and promoting flexible programs, benefits and even policies to prevent

absenteeism. The organization will also know how costly absences of their workers in their

organization.

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To the Future Researchers

This research output will serve as their reference guide in studying employee absences

in a organization and also give idea on how absences can be minimized.

Scope and Limitation

This research study was conducted in ZEST-O Corporation in El Salvador City and TITA

Fannies Food Chains in Iligan City. The secondary data of employer cost incurred due to employees

absences, the direct cost, indirect cost and administrative cost were analyzed and computed. The

study was limited to nine causes of employee absences as cited by Barka Gupta, while

respondents are limited to the worker of production department of the said organizations.

Definition of Terms

Technical Definition

Absences - it is the state of not being present that occurs when an employee is not present at

work during a normally scheduled work period.

Employer costs - it includes productivity losses, lost business opportunities, salary of the injured

employee or of a replacement employee or additional overtime costs, expenses reimbursed to

the injured employee, repair, rental or replacement costs, changes to insurance premiums, and

legal costs.

Disengagement - it is the act of releasing from an attachment or connection.

Employee - is defined as any person employed in terms of the Public Service Act, 1994 irrespective

of rank or position (Public Service Act, 1994: Subsection 1.5). Todd (2001:1) refers to an employee

as any person, excluding an independent contractor, who works for another person and is entitled

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to be paid for it, or who in any manner assists in carrying on or conduct the business of the

employer. Bendix (2000:123) defines an employee as a person in a workplace except a “senior

managerial employee” who’s status and contract of service grants the employee the authority to

represent the employer in interactions with the workplace forum, to determine policy on behalf

of the employer and make decisions which might conflict with representation of workers at the

workplace.

Employer – a person or firm that employs workers or a legal entity that controls and directs a

worker under an express or implied contract of employment and pays him or her salary or

wages in return.

Lateness - employees are considered “late” when they arrive for work after their scheduled

starting time, or if they leave before the end of the scheduled work day.

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CHAPTER II

Review of Related Literature

It is a renowned fact that employees are the lifeblood of every organization. The better

they are, the better qualified, trained, and managed, more effective and profitable the

organization will be. But their absences within any workforce are something inevitable for many

companies. Even the hardest working individuals are going to find themselves needing time off

outside of their designated vacation time. Whether it be personal reasons or sickness, companies

will always require a flexible plan of attack to the attendance of staff members. However, there

can also be times when workers seemingly take advantage of an employer's relaxed approach.

Many workers did not see the act of missing a shift as being a particularly pressing cause for

concern. However, for companies themselves the situation can sometimes be difficult to resolve.

According to the Irish Business and Employers’ Confederation survey the main causes of

short-term absence were illnesses, such as colds/ flu, stomach upset, headaches etc. for both

males and females. Some 44% of respondents identified this as the primary cause of absence for

men and 49% as the primary cause of short-term absence for women and in terms of causes other

than minor illness, home responsibilities and recurring health problems also ranked as the main

causes of short-term absence. In the long-term absence the main cause recorded by respondents

was recurring health problems for both males and females.

In connection to the study, the survey conducted by Irish Business and Employers’

Confederation is relevant to the present study because the most common cause in employee

absences is illness in both companies that the researchers have conducted and a small percentage

in home responsibilities.

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Additionally, the Community Based Health Insurance Scheme (CBI’s) Absence and

Workplace Health Survey 2011 reveals illnesses remain the most common reason why people

commit short-term absences; but long-term absence accounts for nearly a third (32%) of lost

working time. This can relate to stress, anxiety and depression, while musculoskeletal disorders

are the second most common reason for long-term sickness, especially among manual workers,

followed by chronic back pain which can be classified as an injury in the causes of absences. Some

72% of CBI respondents reported non-work-related ill-health had an adverse effect on staff

performance and productivity.

The CBI’s survey supports this study wherein injuries like chronic back pain is the second

of the most common reasons of long term sickness leads to lost in working time, especially among

manual workers and in this study musculoskeletal disorder is classified as an injury. In this, we can

say that in manufacturing industry like ZEST – O Corporation, one of the common causes of

employees’ absences is due to injuries of their manual workers especially in the production

department.

Furthermore, the study of Ricard Webster (2012) stated that work-related injuries,

illnesses and deaths impose costs on employers, workers and the community. These include both

direct costs and indirect costs. Direct costs include items such as workers‟ compensation

premiums paid by employers or payments to injured or incapacitated workers from workers‟

compensation jurisdictions. Indirect costs include items such as lost productivity, loss of current

and future earnings, lost potential output and the cost of providing social welfare programs for

injured or incapacitated workers. The level of costs borne by each economic agent varies with the

severity of the injury or disease. While measures of direct costs are understood and reasonably

simple to measure, these costs cover only a fraction of the total cost of work-related injury and

disease.

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As mentioned by Ricardo Webster, work-related injuries, illnesses and deaths impose

costs to employers and these costs can be direct and indirect cost. Researchers include this in the

study for it supports the theoretical background of the study.

Additionally, the research conducted by Mercer and sponsored by Kronos reveals that

employee absence costs, on average, the equivalent of 35 percent of base payroll. This includes

the direct and indirect costs of planned absences like vacations and holidays, unplanned absences

from sick days, and extended absences such as short-term disability and Family and Medical Leave

Act leave. Each type of absence carries costs that can significantly affect the company, yet most

organizations lack a clear understanding of them.

As an overall view, there are many other causes of absences that affects employees like

the job they have, health conditions, and even to their co-workers and other matters. The cost of

absence is often misunderstood, seen as immeasurable, or dismissed as a negligible amount.

While most other expenses for an organization, including most benefit programs, have clearly

defined costs, employee absence is an area that is often not carefully tracked or even when it is,

does not easily reveal its full costs. In a simplistic view, absences are sometimes seen as having

no extra costs, since they are largely included in payroll expenses. But most managers know that

absences do affect an organization’s customer service, staffing, and attainment of production and

other business objectives. Otherwise, there would be no need to try to manage them. Through

employee absences companies or organization incur cost and losses in productivity as mentioned

above. Preventing absences can be difficult to achieve since there are a lot of factors to be

considered. Managing, making policies and tracking absenteeism can be the ways of minimizing

absenteeism. So management must also give attention to employee’s absences for it highly

affects organization productivity, financial cost and success in unseen ways.

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CHAPTER III

Research Design and Methodology

This chapter shows the methods and procedure used in the study. These consist

of the following topics: Research design, Research locale, Research subject, Data gathering

method, Sampling procedures, and Statistical treatment of data.

Research Design

The descriptive-quantitative method of research was used in this study as the research

design. Descriptive-quantitative method of research is a design where the researchers considered

two variables (not manipulated) and established a formal procedure to relate the variables. The

quantitative research is used to quantify the problem by using a Likert Scale in generating

numerical data or data that can be transformed into useable statistics. It is used to quantify the

causes of absences and other defined variables – and generalize results from a larger sample

population and its methods include various forms of surveys –paper surveys, face-to-face

interviews and telephone interviews.

Research Locale

The first area of the study is situated at the city of El Salvador, Misamis Oriental where

ZEST – O Corporation is located. The company’s location has a coordinate of 8⁰34’9”N and

124⁰30’38”E. Zest-O Corporation also is one of the largest beverage companies in the Philippines

and a Philippine market leader in ready-to-drink juices. It was founded by Chinese Filipino

businessman Alfredo Yao. The company's juices currently offer eleven different flavors: orange,

mango, grape, pineapple, strawberry, guyabano, apple, calamansi, mango-orange, mango-

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calamansi, and mango- lemon lime. It also manufactures other products like tomato sauce,

toothpaste, Quickchow instant mami.

The second area of the study is in Iligan City where the TITA FANNIES is located. Tita

Fannies is nestled on a two-storey building on a small alley of Roxas Avenue in Iligan City. It has

been spreading roasted goodness to Iliganons since its humble inception 14 years ago. Looking at

the number of franchises it now has and its posh restaurant interiors, you wouldn’t think that its

first store was made from nipa and bamboo materials. Besides lechon manoks, Tita Fannies also

offers the crispiest pork liempo in town. Good thing Tita Fannies has got a few more dishes up her

sleeves, like meaty pork barbecues were soon served on the table plus their Bila-Overload and

many more desserts and other delicious recipe.

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Figure 3. Map of the Research Locale

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Research Subject

The respondents of the study are the workers from production department of ZEST-O

Corporation in El Salvador City which has fifty – seven (57) employees and in TITA FANNIES Food

Chains which has forty-four (44) employees in a total of 101 respondents. Also, the other subjects

of the study are the Human Resource Personnel in each company who answered to the

researchers’ interviews regarding the cost they have incurred due to employees’ absences.

Data Gathering method

The research study was conducted through distributing questionnaires for the employees

of the chosen establishments which serves as the primary data. Before the distribution of

questionnaires, there was a letter sent first to the ZEST – O Corporation and TITA FANNIES in order

to seek permission to conduct surveys. After the permit had been approved, by the Manager, the

questionnaires were administered to the employees as subjects of the study. Researchers also

conducted an interview to the Human Resource Personnel of each company to get secondary data

regarding the cost each organization had incurred due to employees’ absences.

Sampling Procedure

Random sampling was used in the study where individuals were samples to serve the

purpose.

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Statistical Treatment

After the questionnaires were collected, the researchers tabulated and analyzed the data.

The questionnaire response is sorted into categories. Then, the responses are tallied accordingly.

To get the percentage, divide the frequency with the total number of respondents then

multiplied by 100%.

Formula: P = ( f / n ) x 100 Where: P = percentage f = frequency n = total number of employees 100 = constant To determine the frequency of the data, the researchers used a weighted mean: Formula: x = ( f x i ) /N Where:

X = mean f = frequency i = points/score N = number of respondents

Percentage of Absences incurred by the employees in the Organization

In this portion of the study one can see how to compute percentage of employee

absences in ZEST – O Corporation and TITA Fannies against their total operation hour.

Formula:

Total hours of all employee absences Percentage of = ___________________________________________________________________X 100 Absences Total days company operated x daily hours operated x number of employees

Weight Range Verbal Interpretation Score

1.0 – 1.75 Always 1

1.76 – 2.5 Often 2

2.6 – 3.5 Sometimes 3

3.6 – 4.0 Never 4

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CHAPTER IV

Presentation, Analysis, and Interpretation of Data

The findings of the study and analysis of data are presented in this chapter. The

discussions were based on the data gathered from ZEST-O Company wherein there are 57

respondents out of 80 employees and in TITA FANNIES wherein there are a total of 44

respondents. The discussion includes the result on profile of employees, the percentage of

absences in terms of operation hours of employee, the common causes of absences that

employee have and the cost that a company incurred due to absences of employees.

Table 1. Distribution of Respondents according to Age

Age Zest – O Corporation Tita Fannies

Frequency Percentage (%) Frequency Percentage (%)

18-27 years old 29 50 28 64

28-37 years old 22 39 12 27

38-47 years old 6 11 4 9

Total 57 100 44 100

Table 1 shows the distribution of respondents according to age. Out of 57 respondents

from ZEST – O Corporation, 50% are between 18-27 years old; 39% are between 28-37 years old,

and 11 % are between 38-47 years old. While in Tita Fannies, out of 44 respondents, 64% are

between 18-27 years old ; 27% are between 28-37 years old, and 9% are between 38-47 years old.

The data show that most employees in the production department of Zest-O Corporation

and Tita Fannies are in the age bracket of 18-27 years old. This implies that in ZEST-O Corporation

and TITA Fannies they need younger workers to endure the manual work which require energy,

capacity to do work and natural thirst for knowledge which can rub off on colleagues and help

invigorate the workplace. Furthermore, according to Felipe (2015), employees in their 20’s are

eager to work, can multi-task, and work under pressure. They are enthusiastic, energetic and

29

physically active. The amount of work they can offer is greater, and younger employees endure

the pressure and night shift in their work.

Table 2. Distribution of Respondents according to Sex

Sex ZEST-O CORPORATION TITA FANNIES


Male 29 51 25 57

Female 28 49 19 43

Total 57 100 44 100

Table 2 shows the distribution of respondents according to sex. The data shows that from

ZEST – O Corporation 51% are male and 49% are female. This shows that most of the employees

in the production area of Zest-O Corporation are male. This shows that ZEST – O Corporation

prefer male because of the nature of the business operation which is manufacturing. It has a night

shift schedule and male employees are much needed because the nature of work requires

endurance and strength.

The data also show that there are 57% males and 43% are females in TITA Fannies. This

implies that the majority of the employees of Tita Fannies are male. Since the nature of business

is a restaurant they need a male employee as a delivery personnel. Tita Fannies also offer catering

on which male is also much needed for the carrying of tables, plates, and other heavy materials

and food. It is more convenient for male employees having this kind of work than female.

Table 3. Distribution of Respondents according to Civil Status

Status

Zest - O Corporation Tita Fannies


Single 31 54 32 73

Married 26 46 10 23

Live-in 0 0 2 4

Total 57 100 44 100

30

Table 3 shows that out of 57 respondents there are 54% single, and 46% are married in

ZEST – O Corporation. While in TITA Fannies, 73% are single, 23% are married and 4% are live-in

It reveals that most employees are single. This infers that ZEST-O Corporation prefers single

employees because they have night and day shift schedule of work, and so that employees do not

have a lot of worries thinking about their family or left child unlike married people same as in the

TITA Fannies. Furthermore, since most of the employees are single, then most of them are able

and willing to work longer. This is connected to De Paulo, B. M. (2006) findings that single

individuals are able and willing to work longer hours than married peoples because single people

have fewer obligations outside of work.

Table 4. Distribution of Respondents Profile according to Educational Attainment

Educational Attainment ZEST – O Corporation TITA Fannies


High School Level 29 51 18 41

College Level 28 49 26 59

Total 57 100 44 100

Table 4 shows that 51% of the respondents from the production department in ZEST – O

Corporation are High School Level and 49% are College Level. Meanwhile, 59% are College Level

and 41% are High school Level in TITA Fannies. This means that majority of the respondents are

high school level in ZEST – O Corporation while most of the employees in TITA FANNIES are College

level. This implies that employees in ZEST – O Corporation especially in the production

department are not necessary to obtain skill or higher educational attainment for the work in the

company is manual, adaptable and easy to learn while TITA Fannies preferred college level

employee in the company for it has a lot of ideas on how to easily make food and blending

different kinds of seasoning and even facing the customer.

31

II. Percentage of Absences incurred by the Employees in the Organization

Table 5. Percentage of Absences incurred by the Employees in the Organization in 2015

Percentage of Absences against Total Operation Hour

ZESTO – O Corporation TITA Fannies

5.21 % 6.9%

Table 5 shows the percentage of absences incurred by the employees in the ZEST – O

Corporation and TITA Fannies which computation is in Appendix C.

It shows that ZEST – O Corporation had 5.21% of those where the percentage employees

absent in their work. While TITA Fannies had 6.9% of employee absences in work. It indicates

that TITA Fannies has a high percentage of employee absences compare to ZEST – O

Corporation.

This result is relevant to what the Human Resource Personnel in every company said as

the researchers conducted an interview with them last December 2015. In ZEST – O

Corporation, Ms. Liziel B. Lumbay said that they have a less percentage of absences because

they implement a tight policy regarding absences and time control using bundy clock and also

they have proper assistance and benefits to their employees. While in TITA Fannies, they do

not have a tight policy in controlling absences and they are only using log books as a record

for employees’ time in and time out which can be manipulated easily and they have twice a

month meeting for all employees to discuss the reasons for their absences and other matters

which is very costly and time consuming as what Miss Jannah said, the Human Resource

Personnel of TITA Fannies.

32

III. Causes of Employee Absences

Table 6. Frequency distribution of the cause of employee absences due to bullying and harassments in ZESTO –O Corporation

Bullying and Harassments

Always Often Sometimes Never Weighted

Mean VI F % F % F % F %

1. How often did you experience any repeated hurtful remarks or attacks and/or did people make fun of your work and you as a person that made you decide not to go to work?

0 0 0 0 3 5.26 54 94.74 3.95 Never

2. Do you skip your work because your boss or coworkers intimidate you?

0 0 1 1.75 4 7.02 52 91.23 3.89 Never

3. Has your superior or the management ever given you impossible jobs that can’t be done in the given time or with the resource provided which causes you to absent in your work?

0 0 0 0 0 0 57 100 4.00 Never

4. Do you experience any sexual harassment like unwelcome touching and sexually explicit comments and requests that make you feel uncomfortable causes you to skip work to avoid them?

0 0 0 0 1 1.75 56 98.25 3.98 Never

5. Does your co-worker or boss push, trips, shoves or grab you in your workplace that causes you to skip work?

0 0 0 0 2 3.51 55 96.49 3.96 Never

Average Weighted Mean 3.96 Never

33

Table 6 shows the frequency distribution of the cause of employees’ absence due to

bullying and harassment. The table display the average weighted mean of 3.96 with the verbal

interpretation as never. This means that bullying and harassment is not the common cause of

employee absences in the organization. Then according to Rodel Batocabe, the enactment of a

law against bullying in the workplace would carry out the constitutional provision mandating

respect for the dignity and rights of every person.

34

Table 7. Frequency distribution of the cause of employee absences due to Burnout, Stress and Low Morale in ZEST-O Corporation

Burnout, Stress and Low Morale

Always Often Sometimes Never Weighted Mean

VI F % F % F % F %

1. Does your employer or organization set unrealistic job expectations that stresses and causes you to commit absence in the work?

0 0 1 1.75 5 8.77 51 89.47 3.88 Never

2. Do you commit absences in your work because of self-apathy (the trait of lacking enthusiasm for or interest in things generally) because the demand of your client or supervisors exceeds to your capability or resources and feel like you cannot do anything about it?

0 0 2 3.51 1 1.75 54 94.74 3.91 Never

3. Do you commit absences because of the volume of your works?

0 0 1 1.75 1 1.75 55 96.50 3.95 Never

4. Do you skip in your work because of the inflexible working conditions of the workplace?

0 0 2 3.51 2 3.51 53 92.98 3.89 Never

5. Do you skip work because of the level of respect you receive in the workplace which leads you to have emotional exhaustion?

0 0 1 1.75 2 3.51 54 94.74 3.93 Never


Table 7 shows the frequency distribution of the cause of employee absence due to

burnout, stress, and low morale in ZEST – O Corporation. The data displays the average weighted

mean of 3.91 with the verbal interpretation of never. This indicates that burnout, stress and low

35

morale in the Zest-O Corporation is not the common reasons why employee commit absences.

Table above also implies that some of the employees in the said organization are suffering from

stress.

Table 8. Frequency distribution of the cause of employee absence due to Children Care and Elder Care in ZEST-O Corporation

Children Care and Elder Care


VI F % F % F % F %

1. Do you skip your work because no one will take care of your children in your house?

0 0 3 5.26 2 3.51 52 91.23 3.86 Never

2. Do you try to commit absences at work because your child is sick?

0 0 7 12.28 6 10.53 44 77.19 3.65 Never

3. Do you skip in your work because no one would take good care of your old mother/father?

0 0 1 1.75 1 1.75 55 96.50 3.95 Never

4. Do you commit absences because your old mother/father is sick?

0 0 1 1.75 3 5.26 53 92.98 3.91 Never

5. Do you commit absences because of the medical appointment of your children or old mother/father?

0 0 3 5.26 3 5.26 51 89.47 3.84 Never



children care and elder care. The data show that child care and elder care is not one of the most

common causes of employee absences in the Zest-O Corporation which has an average weighted

mean of 3.84 which has a verbal interpretation of never. Furthermore, even the child care and

elder care are not the leading cause of employees’ absences still it gets some portion of the

employee absences from work. It is also reported that the number of children and marital status

36

are variables that represent kinship responsibilities and are considered a major contributor to

absence. They might lead to higher levels of absenteeism, because of the increased role demands

on employees who are married and have more children (Cohen and Golan, 2007).

Table 9. Frequency distribution of the cause of employee absence due to Depression in ZEST- O Corporation

Depression Always Often Sometimes Never Weighted

Mean VI

F % F % F % F %

1. Do you drink alcohol to self-medicate your pain and anxiety that causes you to be absent in your work?

0 0 4 7.02 13 22.81 40 70.81 3.63 Never

2. How often do you feel fatigued that causes you to skip in your work?

0 0 9 15.79 15 26.23 33 57.89 3.42 Sometimes

3. Do you commit absences because you feel guilty, hopeless, or worthless in your work?

0 0 1 1.75 1 1.75 55 96.50 3.95 Never

4. Do you commit absences in your work because you are restless or feel irritable?

0 0 1 1.75 1 1.75 55 96.50 3.95 Never

5. Did you lose interest in activities once enjoyed in your work and causes you to be absent?

0 0 0 0 1 1.75 56 98.25 3.98 Never


37


depression. In the questions under depression, one of these results to the verbal interpretation

as sometimes with a weighted mean of 3.42 which is the question number 2 that is “How often

do you feel fatigued that causes you to skip in your work?”. This implies that employees are

depressed because they feel fatigue due to work that leads them to commit absences in work.

This also indicates that depression is not the most common causes of the employees’ absences in

the Zest-O Corporation with an average weighted mean of 3.79. Moreover, according to the San

Antonio Business Journal (2012) the experience of some degree of depression is universal. That is

why employers have such a difficult time identifying the more serious forms of depression that

can affect a person, resulting in deterioration of relationships and job performance.

38

Table 10. Frequency distribution of the cause of employee absences due to Disengagement in ZEST – O Corporation

Disengagement


VI F % F % F % F %

1. Do you skip work because of the instability and insecurity arising in the company?

0 0 0 0 2 3.51 55 96.49 3.96 Never

2. Do you skip work because of lack of psychological meaningfulness and psychological safety at work?

0 0 0 0 0 0 57 100 4.00 Never

3. Do you commit absences in your work because you lost your interest in the job?

0 0 0 0 2 3.51 55 96.49 3.96 Never

4. Do you commit absence in your work because the job you have is not a match to your expectation and qualification?

0 0 0 0 2 3.51 55 96.49 3.96 Never

5. Do you commit absences in your work because you are not satisfied with the benefits you get?

0 0 1 1.75 1 1.75 55 96.49 3.95 Never



disengagement. The data show that disengagement does not take part to employees’

absences in ZEST – O Corporation which has a weighted mean of 3.97 which is never in

verbal interpretation. Table above also implies that some of the employees are not

satisfied for the benefits they get from the company and not totally engage to their work.

Still, for the last several years, observers have been interested greatly in employee

engagement. Some have asserted that employee engagement forecasts employee

39

results, organizational accomplishment, and financial performance (Harter, Schmidt and

Hayes 2002; Bates 2004).

Table 11. Frequency distribution of the cause of employee’s absences due to Illness ZEST – O Corporation

Illness Always Often Sometimes Never Weighted

Mean VI

F % F % F % F %

1. Do you commit absence at work because you are sick or have a high fever or severe disease?

2 3.51 10 17.54 27 47.37 18 31.58 3.07 Sometimes

2. Do you commit absence from work due to medical appointments?

0 0 11 19.30 17 29.82 29 50.88 3.32 Sometimes

3. Do you commit absences because of mental ill health?

0 0 0 0 0 0 57 100 4.00 Never

4. Do you suffer minor illness that causes you to skip in work?

0 0 7 12.28 19 33.33 31 54.39 3.42 Sometimes

5. Do you commit absences due to other genuine health problems?

0 0 6 10.53 19 33.33 32 56.14 3.46 Sometimes

Average Weighted Mean 3.45 Sometimes

Table 11 shows the frequency distribution of the cause of employee’s absences through

Illness which has a weighted mean of 3.45 which is sometimes in verbal interpretation. This

indicates that through illnesses, employee commit absences sometimes and it has a bigger

contribution to employees’ absences in ZEST – O Corporation.

40

This indicates that illnesses are one of the major cause of employee absences in ZEST – O

Corporation. Table above also implies that most of the employees from the organization are prone

to illnesses except mental illnesses. Furthermore, long-term physical illnesses are more significant

for manual employees, while recurring illnesses is more common among non-manual employees.

Long-term absences has the greatest impact on business, resulting in over 40 percent of total

working time lost (Haswell, 2003).

Table 12. Frequency distribution of the cause of employee absences due to Injuries in ZEST – O Corporation

Injuries

Always Often Sometimes Never

Weighted Mean

VI F % F % F % F %

1. Do you commit absence in your work because of work accidents that causes you injuries?

0 0 0 0 5 8.77 52 91.23 3.91 Never

2. Did you absent in your work because of severe back pain?

0 0 4 7.02 1 1.75 52 91.23 3.84 Never

3. Do you commit absences in your work due to severe neck and head pain?

0 0 3 5.26 10 17.54 44 77.19 3.72 Never

4. Do you commit absences in your work because of injuries you acquire outside of your work?

0 0 2 5.26 5 8.77 50 87.72 3.84 Never

5. Do you commit absences in your work because of other injuries not stated above?

0 0 3 5.26 8 14.04 46 80.70 3.75 Never


41

Table 12 shows the frequency distribution of the cause of employee’s absence due to

Injuries which gain a weighted mean of 3.81 which mean never in verbal interpretation in ZEST -

O Corporation. Table above implies that employees from the said organization are suffering from

injuries mostly on having a severe neck and head pain. Also, from the 2013 report by The Work

Foundation, European workers in particular, musculoskeletal pain and injury is a concern: nearly

half of all absences in the EU from work lasting more than three days are caused by

musculoskeletal disorders (MSDs) and injury, which can affect the body’s muscles, joints, tendons,

ligaments, bones and nerves which mostly occur in the manufacturing company.

Table 13. Frequency distribution of the cause of employee absences due to Job Hunting in ZEST – O Corporation

Job Hunting


VI F % F % F % F %

1. Do you commit absence from work due to a job interview of another company?

0 0 0 0 0 0 57 100 4.00 Never

2. Do you commit absences in attaining other job orientation?

0 0 0 0 0 0 57 100 4.00 Never

3. Did you commit any absences due to attaining seminar and conferences of another company in order to be qualified in their company even you have your other current job?

0 0 0 0 0 0 57 100 4.00 Never

4. Do you skip your job for finding another job? 0 0 0 0 0 0 57 100 4.00 Never

5. Do you commit absence from work due to making and processing your resumes/Cvs?

0 0 0 0 0 0 57 100 4.00 Never


42

Table 13 shows the frequency distribution of the cause of employee absence by job

hunting with a weighted mean of 4.00 which mean never in verbal interpretation. In table above,

it implies that job hunting does not take part to the causes of employees absences in ZEST – O

Corporation because no one commit absences due to it because maybe the employees are

satisfied in their salary or they are tired of finding new job.

Table 14. Frequency distribution of the cause of employee absences due to Partial Shift in ZEST – O Corporation

Partial Shift


VI

F % F % F % F %

1. Do you arrive late at your work?

0 0 0 0 0 0 57 100 4.00 Never

2. Do you leave early in your work even it is not a time to go out?

0 0 0 0 0 0 57 100 4.00 Never

3. As has been a night shift worker. Do you commit absences because of your schedule?

0 0 4 7.02 21 36.84 32 56.14 3.49 Sometimes

4. Do you commit absences of your work because your schedule at work is a day shift?

0 0 0 0 0 0 57 100 4.00 Never

5. Do you take longer breaks in working?

0 0 0 0 0 0 57 100 4.00 Never



partial shifts which has a weighted mean of 3.90 which means never in verbal interpretation. This

implies that partial shifts in work schedule of ZEST – O Corporation is not the common cause of

employee absences. The table also shows that employees commit absences sometimes because

43

they are night shift worker. In addition, In Peter Finn (2008) study entitled “The Effect of Work

Shifts on the Lives of Employee”, he mentioned that the attractions of shift work are considerable

for many individuals. But the benefits must be weighed by shift workers and policymakers alike

against the drawbacks that affect the health, interpersonal relationships, leisure time activities,

and perhaps the safety of a large proportion of shift workers. The central feature of shift work

that creates dissatisfaction for many evening and night workers is that it puts them "out of

rhythm" with their minds and bodies, families and social lives, and routines of the rest of the

community. So, this dissatisfaction created by shifts of works leads the worker to commit

absences at work because their body cannot easily adopt the changes and it may lead to sickness.

Table 15. Summary Distribution of the Average Weighted Mean of the Common Causes of Absences in ZEST – O Corporation

Common Causes of Absences

Weighted Mean Verbal Interpretation

Bullying and Harassment 3.96 Never

Burnout, Stress and Low Moral 3.91 Never

Child care and Elder Care 3.84 Never

Depression 3.79 Never

Disengagement 3.97 Never

Illnesses 3.45 Sometimes

Injuries 3.81 Never

Job Hunting 4.00 Never

Partial Shift 3.90 Never

Table 15 shows the summary of the weighted mean of the common causes of absence in

ZEST – O Corporation.

The data show that Bullying and Harassment develops a verbal interpretation never as

the cause of employee’s absences in the company with the weighted mean 3.96. In Burnout,

stress and low morale, it also develops a verbal interpretation never as the cause of absences with

the weighted mean 3.91. In the part of Child care and Elder care as the cause of employee’s

absences which gained a weighted mean of 3.84 it also has a verbal interpretation as never.

44

Depression gets 3.79 which also means never, disengagement which has a weighted mean of 3.97

which means never, `Illness develops a weighted mean of 3.45 which means sometimes, injuries

3.81 which means never, job hunting 3.99 which also means never and lastly partial shift which

has a weighted mean of 3.86.

The data above if arrange from the most significant to least, illnesses is the most common

reason why employee commit absences, 2nd is depression, 3rd is injuries, 4th is child care and elder

care, the 5th is the partial shift, 6th is the burnout, stress and low morale, 7th is the bullying and

harassment, 8th is the disengagement and lastly, the 9th rank is job hunting. Thus, all the eight

causes of employees’ absences contribute to employee absences in ZEST – O Corporation except

job hunting. Generally, the leading cause of employees’ absences in the company is

uncontrollable.

45

Table 16. Frequency distribution of the cause of employee absences due to Bullying and

Harassments in TITA FANNIES

Bullying and Harassments


VI F % F % F % F %


3 6.82 1 2.27 3 6.82 37 84.09 3.68 Never


0 0 1 4.55 1 2.27 41 93.18 3.89 Never


1 2.27 0 0 1 2.27 42 95.45 3.91 Never


1 1.27 0 0 2 4.55 41 93.18 3.89 Never


0 0 0 0 4 9.09 40 90.91 3.91 Never



bullying and harassment in TITA Fannies. The table above shows that bullying and harassment

46

acquired 3.88 average weighted mean which means never in verbal interpretation. This also

implies that some employees from TITA Fannies are experiencing bullying and harassment.

Furthermore, according to ACAS (2014) bullying and harassment can make someone feel anxious

and humiliated. Feelings of anger and frustration at being unable to cope may be triggered. Some

people may try to retaliate in some way. Others may become frightened and de-motivated. Stress,

loss of self-confidence and self-esteem caused by harassment or bullying can lead to job

insecurity, illness, absence from work, and even resignation. Almost always job performance is

affected and relations in the workplace suffer.

47

Table 17. Frequency distribution of the cause of employee absences due to Burnout, Stress

and Low Morale in TITA Fannies.

Burnout, Stress and Low Morale


VI F % F % F % F %


0 0 2 4.55 3 6.82 39 88.64 3.84 Never


0 0 5 11.36 4 9.09 35 79.55 3.68 Never


1 2.27 3 6.82 4 9.09 36 81.82 3.70 Never


0 0 2 4.55 6 13.64 36 81.82 3.77 Never


1 2.27 0 0 2 4.55 41 93.18 3.89 Never


Table 17 shows the frequency distribution of the cause of employees’ absence by

burnout, stress, and low morale.

48

This indicates that burnout, stress and low morale in the TITA Fannies got an average

weighted mean of 3.78 which means never in verbal interpretation. Table above also implies that

most of the employees are suffering in burnout, stress and low morale most especially in the part

of self-apathy (the trait of lacking enthusiasm for or interest in things generally) because the

demand of the client or supervisors exceeds to their capability or resources and feel like they

cannot do anything about it. Moreover, burnout can be explained through differences at the

personal level. This factor includes situational and personal influences that may lead to burnout,

such as personality, over-commitment and setting unrealistic job expectations (Beasley,

Thompson, & Davidson, 2003; Pines & Aronson, 1988).

49

Table 18. Frequency distribution of the cause of employee’s absence due to Children Care and Elder Care in TITA Fannies

Children care

and Elder Care


VI

F % F % F % F %


0 0 6 13.64 5 11.36 33 75.00 3.61 Never


1 2.27 6 13.64 6 13.64 31 70.45 3.52 Never


0 0 1 2.27 5 11.36 38 86.36 3.84 Never


0 0 4 9.09 3 6.82 37 84.09 3.75 Never


1 2.27 10 22.73 3 6.82 30 68.18 3.41 Sometimes


Table 18 shows the frequency distribution of the cause of employee absence by child care

and elder care which has an average weighted mean of 3.63 which means never in verbal

interpretation. This implies that even the child care and elder care is not the most common cause

50

of employee’s absences in TITA Fannies still it gets some portion of the employee’s absences

which is alarming for some of the respondents answered often and sometimes in committing

absences due to child care and elder care. Lastly, Twenty nine percent of employed parents

experienced some kind of child care breakdown in the past three months, and those child care

breakdowns were associated with absenteeism, tardiness, and reduced concentration at work

(Bond et al., 2001).

51

Table 19. Frequency distribution of the cause of employee absence due to Depression in TITA Fannies

Depression Always Often Sometimes Never Weighted

Mean VI

F % F % F % F %


0 0 3 6.82 4 9.09 37 84.09 3.77 Never


0 0 9 20.45 10 22.73 25 56.82 3.36 Sometimes


0 0 1 2.27 5 11.36 38 86.36 3.84 Never


0 0 1 2.27 5 11.36 38 86.36 3.84 Never


0 0 3 6.82 1 2.27 40 90.91 3.84 Never



depression of employee in TITA Fannies. This indicates that depression is not the most common

cause in employees’ absences in TITA Fannies with a weighted mean of 3.73 which means never.

Table above also implies that most of the employees in the said establishment are suffering from

52

depression. Moreover, absences may rise because it is not socially acceptable to take off work for

depression and in accordance to that employees may frequently call in sick with other complaints

such as colds or flu and it is very common for those with untreated depression to self-medicate

with drugs or alcohol ( San Antonio Business Journal, 2012).

Table 20. Frequency distribution of the cause of employee absences due to Disengagement

Disengagement


VI F % F % F % F %


1 2.27 1 2.27 2 4.55 40 90.91 3.84 Never


0 0 2 4.55 0 0 42 95.45 3.91 Never


0 0 0 0 3 6.82 41 93.18 3.93 Never


0 0 2 4.55 4 9.09 38 86.36 3.82 Never


0 0 7 15.91 5 11.36 32 72.73 3.57 Never


53

Table 20 shows the frequency distribution of the cause of employees’ absence due to

disengagement. The table indicates that disengagement in TITA Fannies got an average weighted

mean of 3.81 which means never in verbal interpretation. Table above also shows that most

employees in TITA Fannies are not satisfied with the benefits they get from the establishment and

the job they have is not a match to their expectation and qualification in work. Additionally,

disengaged employees have misgivings about their company in terms of customer satisfaction,

providing little personal investment in customer focus, so productive output of not-engaged and

disengaged employees is much less than the output of engaged workers (Towers Perrin 2003).

Employees with a low level of engagement have more accidents at work and more inventory

shrinkage (Harter, Schmidt, Killham, and Asplund 2006, p. 28).

54

Table 21. Frequency distribution of the cause of employee absences due to Illness in TITA Fannies

Illness


VI F % F % F % F %


2 4.55 20 45.45 9 20.45 13 29.55 2.77 Sometimes


1 2.27 12 27.27 6 13.64 25 56.82 3.25 Sometimes


0 0 0 0 0 0 44 100 4.00 Never


1 2.27 13 29.55 5 11.36 25 56.82 3.23 Sometimes


1 2.27 10 22.73 10 22.73 26 59.09 3.32 Sometimes

Average Weighted Mean 3.31 Sometimes

Table 21 shows the frequency distribution of the cause of employee’s absences due to

Illness which has a weighted mean of 3.27 which mean sometimes in verbal interpretation. This

implies that illnesses has a bigger contribution and the most common cause of employees’

absences in TITA Fannies. Furthermore, according to the Department for Work and Pensions,

more than 130 million days are still being lost to sickness absence every year in Great Britain and

working-age ill health costs the national economy £100 billion a year. It states that employers face

55

a yearly bill of around £9 billion for sick pay and associated costs, with individuals missing out on

£4 billion a year in lost earnings.

Table 22. Frequency distribution of the cause of employee’s absences due to Injuries in TITA Fannies

Injuries


VI F % F % F % F %


0 2.27 0 0 1 2.27 42 95.45 3.91 Never


1 2.27 5 11.36 3 6.82 35 79.55 3.64 Never


2 4.55 5 11.36 7 15.91 30 68.18 3.48 Sometimes


0 0 0 0 0 0 44 100 4.00 Never


1 2.27 1 1.27 4 9.09 38 86.36 3.80 Never


Table 22 shows the frequency distribution of the cause of employee absence because due

to Injuries which has an average weighted mean of 3.77 which means never in verbal

interpretation. Table above implies that employees in TITA Fannies are prone to severe neck and

head pain because of their work that leads them to skip work. In addition, according to the U.S.

56

Department of Labor, companies lose approximately 2.8 million workdays a year because of

employee’s injuries and illnesses. The inability to plan for these unexpected absences means that

companies hire last minute temporary workers, or pay overtime to their regular workers, to cover

labor shortfalls; they may also maintain a higher staffing level regularly in anticipation of

absences.

Table 23. Frequency distribution of the cause of employee absences due to Job Hunting in TITA Fannies

Job Hunting


VI F % F % F % F %


0 0 0 0 0 0.00 44 100 4.00 Never


0 0 0 0 0 0 44 100 4.00 Never


0 0 0 0 0 0 44 100 4.00 Never

4. Do you skip your job for finding another job?

0 0 0 0 0 0 44 100 4.00 Never

5. Do you commit absence

fro work due to making and

processing your

resumes/Cvs?

0 0 0 0 0 0 44 100 4.00 Never


Table 23 shows the frequency distribution of the cause of employee absence by job

hunting. Table above shows that employees never commit absences in terms of job hunting,

which has an average weighted mean of 4.00 which means never in verbal interpretation. This

implies that job hunting does not take any part in employees’ absences in TITA Fannies.

57

Table 24. Frequency distribution of the cause of employee absences due to Partial Shift in TITA Fannies

Partial Shift


VI

F % F % F % F %


3 6.82 13 29.55 5 11.36 23 52.27 3.09 Sometimes


0 0 1 2.27 5 11.36 36 81.82 3.75 Never


0 0 0 0 0 0 44 100 4.00 Never


0 0 0 0 0 0 44 100 4.00 Never

5. Do you take longer breaks in working?

0 0 2 4.55 4 9.09 38 86.36 3.82 Never


Table 24 shows the frequency distribution of the cause of employee’s absence by partial

shifts which has a weighted mean of 3.70 which means never in verbal interpretation. In the

data above, it denotes that a large portion of employees are arriving late in the organization

which is seconded by leaving early from work. This implies that the said establishment did not

implement tight policy regarding employees’ time in and out unlike in ZEST – O Corporation.

58

Additionally, according to Peter Davidson (2011) he found that chronic employee lateness is

related to disengagement from the job, absenteeism, and decreased job performance.

Table 25. Summary Distribution of the Average Weighted Mean of the Common Causes of Employee Absences in TITA Fannies

Common Causes of Absences Average Mean Verbal Interpretation

Bullying and Harassment 3.88 Never

Burnout, Stress and Low Morale 3.78 Never

Children Care and Elder Care 3.63 Never

Depression 3.73 Never

Disengagement 3.81 Never

Illnesses 3.31 Sometimes

Injuries 3.77 Never

Job Hunting 4.00 Never

Partial Shift 3.73 Never

Table 15 shows the summary of weighted mean of the common causes of absence in TITA

Fannies Food chains.

The data show that Bullying and Harassment generates a verbal interpretation never as

the cause of employee’s absences in the company with the weighted mean 3.88. In Burnout,

stress and low morale, it also generates a verbal interpretation never as the cause of absences

with the weighted mean 3.78. In the part of Child care and Elder care as the cause of employee’s

absences it gained a weighted mean of 3.63 which also has a verbal interpretation as never.

Depression gets 3.73 which also means never, Illness gets a weighted mean of 3.31 which means

sometimes, injuries 3.77 which means never, job hunting 4.00 which also means never and lastly

partial shift which has a weighted mean of 3.73.

59

The data above if arrange from the most significant to least, illnesses is the most common

reason why employee commit absences, 2nd is child care and elder care, 3rd is depression, 4th is

partial shift, 5th is injuries, 6th is burnout, stress and low morale, 7th disengagement, 8th is bullying

and lastly, the 9th rank is job hunting. Thus, all the eight causes of employees’ absences contribute

to employee absences in TITA Fannies except job hunting like in ZEST – O Corporation. Generally,

the leading cause of employee absences in the company is still illnesses. Furthermore, the other

causes of absences have also a big contribution to employees’ absences in the organization,

except job hunting as what the researchers mentioned earlier.

III. Cost of Absences (Interview to the Manager or Human Resources)

Table 26. Cost of Employee Absences in the ZEST – O Corporation and TITA Fannies Food chains

Cost of Employee Absences ZEST – O Corporation TITA Fannies Food chains

Direct Cost None ₱ 279,639.00

Indirect Cost ₱ 112, 993 .00 ₱ 18, 083.40

Administrative Cost None ₱ 150, 000.00

Total Cost ₱ 112, 993.00 ₱ 447, 722. 40

Table 26 shows the Cost of Absences in ZEST-O Company and TITA Fannies Food Chains.

ZEST-O Corporation doesn’t have an Occupational Sick Pay under the direct cost of

absences which can only be allowed within 30 days per year. There is no overtime and other types

of indirect cost because operation is 12 hours a day and there is a strict policy to follow.

Furthermore, the company did not pay directly to employees their sick pay according to the

Human Resource Manager because it is the health insurance that pays. That is why, Ma’am Liziel

Lumbay, the Human Resource Manager, did not give information on how much were spent on

their occupational sick pay because it is out of her knowledge.

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In terms of Indirect Costs of Absences, ZEST – O Corporation has only three (3)

classifications of cost under Indirect Cost. First is the cost of recruiting and training extra staff

which company only occur ₱ 313.00. The second one is the lower product quality of work due to

replacement of staff, cost of rejects, i.e. cost of scrap materials and the cost of re-work, i.e.

materials and labor costs to put things right and the cost of extra premiums to maintain saleable

volume where in ZEST –O Corporation gained ₱ 37, 560 in that matter. Lastly, the third one is the

cost of monitoring equipment and staff. The estimated cost involved in equipment purchase or

hire, and wages and employment costs of staff which are the company spent ₱ 75, 120.00 because

of it. Furthermore, ZEST-O Company has no administrative cost in controlling absences.

Similarly, TITA FANNIES has two types of Direct Costs of Absences. The first direct cost

incurred in TITA FANNIES and the most costly part is the occupational sick pay for it amounted to

₱ 13,803.00 per month which is equivalent to ₱165,639 per year. The second one is the overtime

payments for employees for those filling in for absentees and according to TITA FANNIES it

amounted to ₱9,500 per month due to overtime which is equivalent to ₱ 114,000.00 per year. To

compute overtime payments, divide the daily salary of a worker over hours of works per day. So,

for example, if there were 5 employees who took 5 hours of overtime per day. It can incur a cost

of ₱978.125 per day (₱ 39.125 per hour X 5 x 5) but according to the management the payment

is always based on position of the company.

In terms of Indirect Costs of Absences in TITA FANNIES it has two types. The first indirect

cost at TITA FANNIES is the cost of recruiting and training extra staff wherein ₱ 1,125.00 is spent.

The second indirect cost incurs in TITA FANNIES is the cost of management/ supervisory time to

devote in dealing with absence-related issues, e.g. revising schedules, disciplining, record keeping,

counselling, etc., where ₱1,413.20 per month is spent which is equivalent to ₱ 16, 958.40 per

year.

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In TITA FANNIES, ₱150, 00. 00 is allocated to administer absence benefits like tracking,

review, approvals, processing, case management and other activities that involve in administering

employee absences.

Generally, ZEST – O Corporation incurred almost ₱ 112,993.00 because of employee’s

absences while TITA Fannies incurred a cost of ₱ 447, 722.40 where TITA Fannies has a bigger cost

incurred compared to ZEST – O Corporation. This implies that the absences of employee can

generate cost in every organization where it can be direct, indirect or administrative cost.

Additionally, the costs mentioned above are not totally all the costs incurred by the company.

Human Resource Personnel in every company only gives estimation, but near to reality since it is

a confidential information that only the management must know and cannot be shared to non-

employees or outsiders of the organization.

Table 27. Summary of Employees’ Percentage of Absences against Cost of Employees’ Absences in ZEST – O Corporation and TITA Fannies Food Chain

Company Percentage of Absences against Total

Operation Hour Cost of Employee

Absences

ZESTO – O Corporation 5.21 % ₱ 112, 993.00

TITA Fannies 6.9% ₱ 447, 722. 40

Table 27 shows the summary of the employees’ percentage of absences against the cost

of employees’ absences in ZEST – O Corporation and TITA Fannies’ Food Chain. In this table, it

shows that ZEST – O Corporation has a 5.21% of employees’ absences against its total operation

hours which costs ₱ 112, 993.00 in 2015 while TITA Fannies has ₱ 447, 722.40 incurred cost, 6.9

% of employees’ absences against its total operation hours. This implies that the higher the

percentage of employees’ absences in the organization the higher it incurred costs to the

organization. This means that if employee commit absences, employer must hired a temporary

62

worker to replace the worker for the day, the overtime payment in order to cover the work that

the absent worker must done, loss in productivity and many more negative impacts due to

employee absences which generates another cost to the employer side. So, if the workers in an

organization frequently commit absences it also generates frequent cost to the organizations.

63

CHAPTER V

This chapter presents the summary of findings, conclusion, and recommendations of the

research.

Summary of Findings

This study is undertaken to identify the most common cause of employees’ absences in

ZEST – O Corporation and TITA Fannies and the cost on employer’s side. The subject of the study

are ZEST – O Corporation in El Salvador City and TITA Fannies Food Chains in Iligan City.

The study reveals that the leading cause of employees’ absences in terms of bullying and

harassment, burnout, stress and low morale, children and elder care, depression, disengagement,

illness, injuries, job hunting, and partial shifts in both companies is illnesses. In ZEST – O

Corporation illnesses gathered a weighted mean of 3.45 which means sometimes while in TITA

Fannies it generates a weighted mean of 3.31 which also means sometimes.

The results also shows that out of 101 respondents, 56% of them belongs to the age

bracket of 18-28, 53% belongs to male, 62% belongs to single and 53% belongs to college level.

Furthermore, the common cause of absence is illnesses among the organizations. The study also

shows that ZEST – O Corporation had 5.21% of absences incurred by the employees in the

organization which generates a cost of ₱ 112,993.00. While, TITA Fannies Food Chains had 6.9%

of employee absences in their organization with the cost incurred ₱ 447,722.40.

Furthermore in ZEST –O Corporation, employees sometimes commit absences because

they suffering from high fever or severe disease which is seconded by their medical appointment

then suffering from minor illnesses and other genuine health problem. Study also reveals that

they also commit absences due to the feeling of being fatigued that leads them to depression.

64

Moreover, the employees also commit absences due to injuries, especially in the part of having a

severe neck and head pain with an average weighted mean of 3.72. Furthermore, partial shift of

workers as a night shift worker also compliment to employee absences which has a weighted

mean of 3.49 which means sometimes in verbal interpretation.

On the other hand, the leading cause of employee absences in TITA Fannies Food Chains

is still illnesses which is alarming for almost half of the respondents answered that they commit

absences often and sometimes due to it. Researchers also found out that employees sometimes

also commit absences because their child is sick and due to the medical appointment of their child

and old parents wherein child care and elder care as the cause of employee absences is the second

leading cause of employee absences in the organization with a weighted mean of 3.63. What's

more is that employees also render absences sometimes, for they feel fatigue in their work which

has a weighted mean of 3.36 under depression. The data also show that employees from TITA

Fannies are suffering from burn out, stress and low morale and some of them suffered because

of bullying and harassment like experiencing any repeated hurtful remarks, attacks or make fun

of them during their work. Additionally, employees of the said organization are not satisfied with

the benefits they received from the management and in terms of partial shift employees are

mostly arriving at work late and leave early even if it is not time to go.

CONCLUSION

Based on the findings of the study, the following conclusion are drawn:

The researchers concluded that the major contributor of employee absences in both

organizations is the illnesses of the employees. In this matter ZEST – O Corporation has a lower

absences compared to TITA Fannies Food Chains.

65

In ZEST – O Corporation, researchers also conclude most of their employees are suffering

from injuries same as in TITA Fannies even though they are not in the same industry for their

employees suffer mostly severe neck and head pain. Then in terms of partial shifts employees

from ZEST – O Corporation commit absences because of their night shift work while in TITA

Fannies they don’t have a tight control in arriving late and going out of employees in the work.

Furthermore, employees from both companies are suffering also in burnout, stress and low

morale but TITA Fannies has the highest cases compared to ZEST – O Corporation. Additionally,

both companies also have a medium percentage of employee’s absences when it comes to child

care and elder care which means that they have less emphasis on the policy and benefits regarding

on this matter and as what as the Human Resource Personnel of both companies stated as the

researchers conducted the interview. Moreover, researchers can visibly say that employees’

absences have a significant impact on its employer cost.

These findings clearly show that businesses will be able to reap significant rewards in

terms of greater productivity and staff retention if they put in place strategies to effectively deal

with all types of absence, whether that’s health related or not. Offering different types of benefits

not only makes companies most desirable places to work, but can also mean that staff work more

efficiently, take less time off and are more loyal. And the study clearly shows that employees’

absences are costly to the organization.

66

RECOMMENDATION

Based on the findings and conclusions of the study, the following recommendations are

presented:

1. To the Managers who want to minimize employee absences effectively. He/she must

limit the amount of employee absences, understand why workers are arriving late or not showing

up at all in the first place and make them feel important. Managers have to gain employee trust

and respect through honest communication. When managers have a better approach to their

often absent workers, the higher-ups will find these problems and be able to resolve them faster

with open conversations. Workers should be happy in their jobs, and when they enjoy the work

they do, their production levels will increase. Managers have to fight absences by connecting with

workers on a more personal level. Workers shouldn't feel like they can show up to work or leave

at any time without anyone noticing which also more recommended on TITA Fannies Food Chains.

2. To the Employees, the researchers recommend to the employees that as much as

possible they should avoid absences for these absences may cause termination of their present

job. Having no or less absent would help them to hold regular positions if they are contractual, or

they may receive promotion and incentives. And according to the Labor Code of Philippines for

the regular employees that if an employee haven’t availed all their leave of absences it would be

beneficial in the day of employees’ retirement.

3. To the ZEST – O Corporation, the researchers would like to recommend that they

maintain a tight control regarding absence, must adopt flexible working arrangement and Health

Education/ Wellness Program to reduce the levels of employee sickness in the organization.

4. To the TITA Fannies Food Chains, the researchers would like to recommend that they

must have Health Care so that sick employees can be seen and treated more quickly. This in return

67

means that they are not ‘worried' and ‘distracted' for such a long period and they will be treated

and return to work in a shorter period of time. This is a benefit to both the employee and the

organization. They can also facilitate Health Education/ Wellness Program through offering

occupational health services and supporting health promotion activities. Then they must have a

written Absence Policy Document once the organization has decided on the absence management

strategies, these should be clearly documented and communicated so that employees and

management are clear about the objectives, processes and procedures that make up your

absence management policy.

5. To all the faculty members of the College of Business Courses, the result of this study

may be used as a reference for your future lectures and local researchers.

68

BIBLIOGRAPHY

Books

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Chungsup Lee, Jarrod Scheunemann Robin, Hall Laura Payne (2012). “Low Staff Morale &

Burnout”. New York. P 55.

Rourke, Paul O (2011). “Employee Absenteeism: A Guide to Managing Absence”. Europe: Belgium.

P 15.

Finn, Peter (2003). “The Effects of Work Shift on the Lives of Employees”. Canada: Toronto.

P 1-34.

Heikkeri, Elena (2010). “Roots and Consequences of the Employee Disengagement Phenominon”.

Maters Thesis. P 24.

Journals:

Barnett, R. C., Brennan, R. T., & Gareis, K. C. (1999). “A Closer Look at the Measurement of

Burnout.” Journal of Applied Biobehavioral Research, Volume 4, Issue2. P 65-78

Borritz, M (2006). “Burnout in Human Service Work – Causes and Consequences.” Unpublished

Doctoral Dissertation: National Institute of Occupational Health, Denmark. P.6

Marsh, Mercer, Kroll, Carpenter, Guy and Wyman, Oliver (2008). “The Total Financial Impact of

Employee Absences”. Survey Highlights. P 2

Chandramouli and M.C. SAndhyarani (2013). “A Study on Absenteeism (Clothing Company Private

Limited, Mysore)”. National Monthly Refereed Journal of Research in Arts and Education,

Volume 2. P. 18

Kocakulah, Mehmet C. (2009). “Absenteeism Problems And Costs: Causes, Effects And Cures”.

International Business & Economics Research Journal Volume 8, Number 5. P 82

Gupta, Barkha (2013). “Employees Absenteeism: Barrier for Retail Sector Organization Success”.

Volume-3, Issue-6. P 5

Shellenback (2004). “Child Care and Parent Productivity: Making the Business Case”. P. 2

Cohen, A. and Golan, R., (2007). “Predicting Absenteeism and Turnover Intentions by Past

Absenteeism and Work Attitudes”. Career Development International, 12(5). P 416-432

69

Fard, H. D., Ghatari, A. R., & Hasiri, A. (2010). “Employees’ Morale in Public Sector: Is

Organizational Trust an Important Factor?”. European Journal of Scientific Research,

46(3). P 378-390

Borda, R. G. and Norman, I.J., (1997). “Factors Influencing Turnover and Absence of Nurses: A Research Review”. International Journal of Nursing Studies, Volume 34. P 385-394

Vanden, A. Heuvel, and Wooden, M., (1995). “Do Explanations of Absenteeism Differ for Men

and Women?” . Human Relations, Volume 48, Issue 11. P 1309-1329

Intrenet

Team Synerion (2015, Jan. 2). “The Cost of Absenteeism in the Workplace”. Synerion Blog .

Retrieved from http://www. Synerioblog.com

Hemsley, Steve (2011, July 21). “Absence: How does it affect the workplace and what can

employers do about it?”. Mark Allen Group Article. Retrieved from

http://www.MAGarticles.com

Millett, T (2010). “6 Reasons Why Staff Morale is Important”. Retrieved from

http://EzineArticles.com

Gallup Organization (2008). “Health Care Practice”. Retrieved from

http://www.galluporganization.com

United Kingdom (2015). “Absence Management: A Simple Guide”. Retrieved from

http://www.unum.co.uk/absence-management-simple-guide">

Mazin, R. (2010). The effects of high morale on employee performance. Retrieved from

http://www.ehow.com.

Levine, G (2012). Absenteeism - Causes and Cures. Retrieved from [http://

www.findarticles.com/p/articles/mi_m3638/is_12_40/ai_

US Legal Authority (2001- 2015). “Absenteeism Law and Legal Definition”. Retrieved from

http://uslegal.com/

Profiles International (2014). “Manager Communication Can Prevent Employee Absenteeism”.

Solving Talent Management Challenges blog. Retrieved from

http://www.profilesinternationalblogs.com.

http://www.magarticles.com/

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http://www.findarticles.com/p/articles/mi_m3638/is_12_40/ai_

http://uslegal.com/

70

APPENDICES

71

“APPENDIX A”

Mindanao State University at Naawan College of Business Administration and Accountancy

Department of Accountancy and Business Management 9023, Poblacion, Naawan, Misamis Oriental

To OIC, Finance and Admin Head Ms. Liezel P. Lumbay El Salvador City Dear Sir/ Madame: God day! The undersigned are conducting research entitled “THE IMPACT OF EMPLOYEE ABSENCES IN THE ORGANIZATION IN ITS EMPLOYER COST” in partial fulfillment into the requirement of Management 198 (Management Research). The group has decided to conduct a study on your establishment, since your company is one of the leading companies that focus on production. The target respondents of this research would be the personnel of the Production Department. In line with this, the undersigned would like to seek approval from your good office to conduct the said study, in addition the undersigned would also like to ask permission to gather secondary data to measure the labor cost because of employee absence in the organization. Your generous cooperation will give a big contribution to the success of the research. Thank you and May God bless you in His very wise keeping. Respectfully yours, Researchers: GALARPE, FLORA MAE B. PASCO, JESSIE MAE C. PATLUNAG, GENALYN R. TOMAMPOC, REXON M. Noted by:

MANOLITO E. PARUNGAO, MBM Research adviser / Instructor

HEIDIE AMOR A. PARCIA OIC Dean, CBAA

November 4, 2015

72

Mindanao State University at Naawan

College of Business Administration and Accountancy Department of Accountancy and Business Management

9023, Poblacion, Naawan, Misamis Oriental

TITA FANNIES Production Manager Mrs. Vicky S. Dumapias Iligan City Dear Sir/ Madame: God day! The undersigned are conducting research entitled “THE IMPACT OF EMPLOYEE ABSENCES IN THE ORGANIZATION IN ITS EMPLOYER COST” in partial fulfillment into the requirement of Management 198 (Management Research). The group has decided to conduct a study on your establishment, since your company is one of the leading companies that focus on production. The target respondents of this research would be the personnel of the Production Department. In line with this, the undersigned would like to seek approval from your good office to conduct the said study, in addition the undersigned would also like to ask permission to gather secondary data to measure the labor cost because of employee absence in the organization. Your generous cooperation will give a big contribution to the success of the research. Thank you and May God bless you in His very wise keeping. Respectfully yours, Researchers: GALARPE, FLORA MAE B. PASCO, JESSIE MAE C. PATLUNAG, GENALYN R. TOMAMPOC, REXON M. Noted by:

MANOLITO E. PARUNGAO, MBM Research adviser / Instructor

HEIDIE AMOR A. PARCIA OIC Dean, CBAA

November 4, 2015

73

“APPENDIX B” QUESTIONNAIRE:

Part 1: Respondent’s Profile

Direction: Please provide the following information about yourself by filling in the space provided and by checking the space provided that corresponds your answer.

Name (optional): _________________________________________________

Age: _____

Sex: ____ Male

____ Female

Civil Status:

____ Single

____ Married

____ Others

Educational Attainment

____ High School Level

____ College Level

____ Post Graduate

If others, please specify: _______________

74

Part II. Causes of Absences (for all employee)

Direction: Listed below are the factors that cause absenteeism. Based on the following

options given below, please check (√) the box that corresponds your answer.

1 - Always 2 – often 3 – sometimes 4 – Never

1 2 3 4

A. Bullying and Harassment






B. Burnout, stress and low morale






C. Children care and Elder Care



75




D. Depression






E. Disengagement






F. Illness






G. Injuries


76





H. Job Hunting




4. Do you skip your job for finding another job?

5. Do you commit absence from work due to making and processing your

resumes/Cvs?

I. Partial Shift





5. Do you take longer breaks in working

77

Part III. Cost of Absenteeism (Interview to the Manager or Human Resource)

Direction: Please answer the questions accurately and honestly. Answers to this question may

limit to the estimated cost that occur, but it must be reliable and base in your companies’

record.

1. Direct Costs of Absence (Annual)

1.1 Occupational Sick Pay

1.2 Continued payment of fringe benefits during absence

1.3 Overtime payments for those filling in for absentees

1.4 Overtime payments for employees later down the line which arise out of absence

1.5 Excess cost of temporary staff (e.g. employment agency fee)

1.6 Overstaffing to cover for absence (weekly wage plus the employment cost x number

of extra staff x 52)

2. Indirect Costs of Absence (Annual)

2.1 Cost of recruiting and training extra staff (cost per person x number of persons)

2.2 Cost of management/supervisory time devoted to dealing with absence-related

issues, e.g. revising schedules, disciplining, record keeping, counselling, etc. (hours

devoted per week x hourly rate x 52)

2.3 Reduced productivity from work being done by less experienced/more tired

employees, from returning workers operating at the lowest point in learning curve (excess

hours per annum required to achieve standard output x hourly pay rate, or lost output

per annum x profit contribution per unit of output)

78

2.4 Lower product quality of work due to replacement of staff, cost of rejects, i.e. cost of

scrap materials and the cost of re-work, i.e. materials and labor costs to put things right

and cost of extra premiums to maintain saleable volume (e.g. extra overtime to make up

the volume).

2.5 Cost of disruptions/section shut down due to absenteeism; estimate of profit

foregone by lost production or financial penalty incurred due to late delivery; cost of

feeding other parts of the company.

2.6 Extra costs incurred to meet slipped deadline (e.g. freighted by air instead of sea.)

2.7 Loss of customers due to failure to meet deadline or to inferior product quality (last

financial year) – profit, loss of customers who did not re-order as expected (when this can

be related to the absence)

2.8 Low morale amongst other staff caused by the lax attendance of certain employees

(lateness, turnover, failure to work on measured standard performance).

2.9 Cost of absence monitoring equipment and staff. Estimate the cost involved in

equipment purchase or hire, and wages and employment costs of staff.

3. Administrative Cost

3.1 How much do your company incur cost in administration?

Example of Administrative cost: (additional costs an employer bears for internal staff,

software, office space and equipment — or for an outside organization — to administer absence

benefits (tracking, review, approvals, processing, case management, clinical support, etc.)

79

“APPENDIX C”

Raw Data

Percentage of Absences incurred by the Employees in the Organization

In this portion of the study you can see how to compute percentage of absences in ZEST–

O Corporation and TITA Fannies against their total operation hour.

Formula:

Total hours of all employee absences Percentage of = ____________________________________________________________ X 100 Absences Total days company operated x daily hours operated x number of employees

Solutions of the Problem In ZEST- O Corporation 10, 260 hours Percentage of Absences = ___________________________________________ X 100 288 days x 12 hours x 57 employees = 10, 260 X 100 196,992 = 0.025 x 100 = 5.21 % In TITA Fannies Percentage of Absences = 6, 976 hours __________ X 100 288 days x 8 hours x 44 employees = _____6,976____ X 100 101, 376 = 0.069 X 100 = 6.9%

Note: In getting the total hours of all employee absences, researchers add-up all the

respondents’ absences this year x daily hours company operated.

80

Computation in ZEST – O Corporation Data

Bullying and Harassment Depression

Q1. 0 (1) + 0 (2) + 3 (3) + 54 (4) = 3.95 Q1. 0 (1) + 4 (2) + 13 (3) + 40 (4) = 3.63

57 57

Q2. 0 (1) + 1 (2) + 4 (3) + 54 (4) = 3.89 Q2. 0 (1) + 9 (2) + 15 (3) + 33 (4) =3.42

57 57

Q3. 0 (1) + 0 (2) + 0 (3) + 57 (4) = 4.00 Q3. 0 (1) + 1 (2) + 1 (3) + 55 (4) = 3.95

57 57

Q4. 0 (1) + 0 (2) + 1 (3) + 56 (4) = 3.98 Q4. 0 (1) + 1 (2) + 1 (3) + 55 (4) =3.95

57 57

Q5. 0 (1) + 0 (2) + 2 (3) + 55 (4) = 3.96 Q5. 0 (1) + 1 (2) + 1 (3) + 55 (4) = 3.98

57 57

Burnout, Stress and Low Morale Disengagement

Q1. 0 (1) + 1 (2) + 5 (3) + 51 (4) = 3.88 Q1. 0 (1) + 0 (2) + 2 (3) + 55 (4) = 3.96

57 57

Q2. 0 (1) + 2 (2) + 1 (3) + 54 (4) = 3.91 Q2. 0 (1) + 0 (2) + 0 (3) + 57 (4) = 4.00

57 57

Q3. 0 (1) + 1 (2) + 1 (3) + 55(4) = 3.95 Q3. 0 (1) + 0 (2) + 2 (3) + 55 (4) = 3.96

57 57

Q4. 0 (1) + 2 (2) + 2 (3) + 53 (4) = 3.89 Q4. 0 (1) + 0 (2) + 2 (3) + 55 (4) = 3.96

57 57

Q5. 0 (1) + 1 (2) + 2 (3) + 54 (4) = 3.93 Q5. 0 (1) + 1 (2) + 1 (3) + 55 (4) = 3.95

57 57

Children Care and Elder Care Illnesses

Q1. 0 (1) + 3 (2) + 2 (3) + 52 (4) = 3.86 Q1. 2 (1) + 10 (2) + 27 (3) + 18 (4) = 3.07

57 57

Q2. 0 (1) + 7 (2) + 6 (3) + 44 (4) = 3.65 Q2. 0 (1) + 11 (2) + 17 (3) + 29 (4) = 3.32

57 57

Q3. 0 (1) + 1 (2) + 1 (3) + 55 (4) = 3.95 Q3. 0 (1) + 0 (2) + 0 (3) + 57 (4) = 4.00

57 57

Q4. 0 (1) + 1 (2) + 3 (3) + 53 (4) = 3.91 Q4. 0 (1) + 7 (2) + 19 (3) + 31 (4) = 3.42

57 57

Q5. 0 (1) + 3 (2) + 3 (3) + 51 (4) = 3.84 Q5. 0 (1) + 6 (2) + 19 (3) + 32 (4) = 3.46

57 57

81

Injuries Partial Shift

Q1. 0 (1) + 0(2) + 5 (3) + 52 (4) = 3.91 Q1. 0 (1) + 0 (2) + 0 (3) + 0 (4) = 4.00 57 57 Q2. 0 (1) + 4 (2) + 1 (3) + 52 (4) = 3.84 Q2. 0 (1) + 0 (2) + 0 (3) + 0 (4) = 4.00 57 57 Q3. 0 (1) + 3 (2) + 10 (3) + 44 (4) = 3.72 Q3. 0 (1) + 4 (2) + 21 (3) + 0 (4) = 3.49 57 57 Q4. 0 (1) + 2 (2) + 5 (3) + 50 (4) = 3.84 Q4. 0 (1) + 2 (2) + 5 (3) + 50 (4) = 3.84 57 57 Q5. 0 (1) + 3 (2) + 8 (3) + 46 (4) = 3.75 Q5. 0 (1) + 3 (2) + 8 (3) + 46 (4) = 3.75 57 57 Job Hunting Q1. 0 (1) + 0 (2) + O (3) + 57 (4) = 4.00 57 Q2. 0 (1) + 0 (2) + 0 (3) + 57 (4) = 4.00

57

Q3. 0 (1) + 0 (2) + 0 (3) + 0 (4) = 4.00

57

Q4. 0 (1) + 0 (2) + 0 (3) + 0 (4) = 4.00

57

Q5. 0 (1) + 0 (2) + 0 (3) + 0 (4) = 4.00

57

TITA FANNIES

Bullying and Harassments Burnout, Stress and Low Morale

Q1. 3 (1) + 1 (2) + 3 (3) + 37 (4) = 3.68 Q1. 0 (1) + 2 (2) + 3 (3) + 39 (4) = 3.84

44 44

Q2. 0 (1) + 1 (2) + 1 (3) + 41 (4) = 3.89 Q2. 0 (1) + 5 (2) + 4 (3) + 35 (4) = 3.68

44 44

Q3. 1 (1) + 0 (2) + 1 (3) + 42 (4) = 3.91 Q3. 1 (1) + 3 (2) + 4 (3) + 36 (4) = 3.70

44 44

Q4. 1 (1) + 0 (2) + 2 (2) + 41 (4) = 3.89 Q4. 0 (1) + 2 (2) + 6 (3) + 36 (4) = 3.77

44 44

Q5. 0 (1) + 0 (2) + 4 (3) + 40 (4) = 3.91 Q5. 1 (1) +0 (2) + 2 (3) + 41 (4) = 3.89

44 44

82

Children Care and Elder Care Illnesses

Q1. 0 (1) + 6 (2) + 5 (3) + 33 (4) = 3.61 Q1. 2 (1) + 20 (2) + 9 (3) + 13 (4) = 2.77

44 44

Q2. 1 (1) + 6 (2) + 6 (3) + 31 (4) = 3.52 Q2. 1 (1) + 12 (2) +6 (3) + 25 (4) = 3.25

44 44

Q3. 0 (1) + 1 (2) + 5 (3) + 38 (4) = 3.84 Q3. 0 (1) + 0 (2) + 0(3) + 0 (4) = 4.00

44 44

Q4. 0 (1) + 4 (2) + 3 (3) + 37 (4) = 3.75 Q4. 1 (1) + 13 (2) + 5 (3) + 25 (4) = 3.23

44 44

Q5. 1 (1) + 10 (2) + 3 (3) 30 (4) =3.41 Q5. 1 (1) + 10 (2) + 10 (3) + 26 (4) = 3.32

44 44

Depression Injuries

Q1. 0 (1) + 3 (2) + 4 (3) +37 (4) = 3.77 Q1. 1 (1) + 0 (2) + 1 (3) + 42 (4) =3.91

44 44

Q2. 0 (1) + 9 (2) + 10 (3) + 25 (4) = 3.36 Q2. 1 (1) + 5 (2) + 3 (3) + 35 (4) = 3.64

44 44

Q3. 0 (1) + 1 (2) + 5 (3) + 38 (4) = 3.84 Q3. 2 (1) +5 (2) + 7 (3) +_ 30 (40) = 3.48

44 44

Q4. 0 (1) + 1 (2) + 5 (3) + 38 (4) = 3.84 Q4. 0 (1) + 0 (2) + 0 (3) + 44 (4) = 4.00

44 44

Q5. 0 (1) + 3 (2) + 1 (3) + 40 (4) = 3.84 Q5. 1 (1) + 1 (2) + 4 (3) + 38 (4) = 3.80

44 44

Disengagement Job Hunting

Q1. 1 (1) + 1 (2) + 2 (3) + 40 (4) = 3.84 Q1. 0 (1) + 0 (2) + 0 (3) + 0 (4) = 4.00

44 44

Q2. 0 (1) + 2 (2) + 0 (3) + 42 (4) = 3.91 Q2. 0 (1) + 0 (2) + 0 (3) + 0 (4) = 4.00

44 44

Q3. 0 (1) + 0 (2) + 3 (3) + 41 (4) = 3.93 Q3. 0 (1) + 0 (2) + 0 (3) + 0 (4) = 4.00

44 44

Q4. 0 (1) + 2 (2) + 4 (3) + 38 (4) = 3.82 Q4. 0 (1) + 0(2) + 0 (3) + 0 (4) = 4.00

44 44

Q5. 0 (1) + 7 (2) + 5 (3) + 32 (4) = 3.57 Q5. 0 (1) + 0 (2 ) + 0 (3) + 0 (4) = 4.00

44 44

83

Partial Shift Q1. 3 (1) + 13 (2) + 5 (3) + 23 (4) = 3.09 44 Q2. 0 (1) + 1 (2) + 5 (3) + 36 (4) =3.75 44 Q3. 0 (1) + 0 (2) + 0 (3) + 44 (4) =4.00 44 Q4. 0 (1) + 0 (2) + 0 (3) + 44 (4) = 4.00 44 Q5. 0 (1) + 2 (2) + 4 (3) + 38 (4) = 3.82 44

84

“APPENDIX C”

CURRICULUM VITAE Name: Genalyn R. Patlunag Address: P-1, Poblacion, Initao Misamis Oriental Email add: [email protected] Contact Number: 09973805105 PERSONAL INFORMATION Nickname: Gepats/ en2x Civil Status: Single Gender: Female Citizenship: Filipino Date of birth: November 13, 1995 Religion: Roman Catholic Place of birth: Initao Hospital

EDUCATIONAL BACKGROUND Tertiary: BSBA Major in Management 2012 - 2016 Mindanao State University at Naawan Naawan, Misamis Oriental Secondary: Initao National Comprehensive High School 2008-2012 Initao , Misamis Oriental Elementary: Initao National Comprehensive High School 2002-2008 Poblacion, Initao, Misamis Oriental

QUALIFICATION Skills: Proficient in Communication skills, Microsoft office (Word, Excel, Publisher and

PowerPoint) and Photo Editing (Photoshop)

Work experience: Internship in FICCO Naawan Branch April – May 2015 ORGANIZATIONAL AFFLIATION Junior Executive Club (Mindanao State University at Naawan) 2014 – 2015 P.I.O (Public Information Officer) Junior Executive Club (Mindanao State University at Naawan) 2015 – 2016 4th Year Representative

85

CURRICULUM VITAE Name: Jessie Mae C. Pasco Address: Purok 2-B Biga, Lugait, Misamis Oriental Email add: [email protected] Contact Number: 09756122669 PERSONAL INFORMATION Nickname: Wowie Civil Status: Single Gender: Female Citizenship: Filipino Date of birth: December 24, 1995 Religion: Roman Catholic Place of birth: Iligan City Hospital

EDUCATIONAL BACKGROUND Tertiary: BSBA Major in Management 2012 - 2016 Mindanao State University at Naawan Naawan, Misamis Oriental Secondary: Lugait National High School 2008-2012 Lugait Misamis Oriental Elementary: Biga Elementary School 2002-2008 s Biga, Lugait, Misamis Oriental

QUALIFICATION

Skills: Proficient in Communication skills, Microsoft office (Word, Excel and PowerPoint)

ORGANIZATIONAL AFFLIATION Junior Executive Club (Mindanao State University at Naawan) 2012 – 2016 Member

86

CURRICULUM VITAE

Name: Tomampoc, Rexon M.

Address: Betahon, Lugait, Misamis Orirntal

Email add: [email protected]

PERSONAL INFORMATION

Nick-Name:”Rex” Civil Status: Single

Gender: Male Citizenship: Filipino

Date of Birth: October 10, 1994 Religion: Roman Catholic

Place of Birth: Betahon, Lugait, Misamis Oriental

EDUCATIONAL BACKGROUND

Tertiary: BSBA Major in Management 2012 - 2016 Mindanao State University at Naawan Naawan, Misamis Oriental Secondary: Lugait National High School 2008-2012 Lugait Misamis Oriental Elementary: Biga Elementary School 2002-2008 Biga, Lugait, Misamis Oriental

QUALIFICATION Skills: Proficient in Communication skills, Microsoft office (Word, Excel and PowerPoint) and

Photo Editing (Photoshop)

ORGANIZATIONAL AFFLIATION Junior Executive Club (Mindanao State University at Naawan) 2012 – 2016 Member

87

CURRICULUM VITAE

Name: Flora Mae B. Galarpe Address: P-5 , Apas , Initao Misamis Oriental Email add: [email protected]

Contact Number: 09056555513

PERSONAL INFORMATION Nickname: daime Civil Status: Single Gender: Female Citizenship: Filipino Date of birth: June 13, 1995 Religion: Roman Catholic Place of birth: Initao Hospital

EDUCATIONAL BACKGROUND Tertiary: BSBA Major in Management 2012 - 2016 Mindanao State University at Naawan Naawan, Misamis Oriental Secondary: Xavier Academy, Initao , Misamis Oriental 2008-2012 Elementary: Initao National Comprehensive High School 2002-2008 Poblacion, Initao, Misamis Oriental

QUALIFICATION Skills: Proficient in Communication skills, Microsoft office (Word, Excel and PowerPoint) and

Photo Editing (Photoshop)

Work experience: Government internship program date April-May 2014 ORGANIZATIONAL AFFLIATION

Junior Executive Club (Mindanao State University at Naawan) 2012 – 2016 Member

impact of employee absences in employer cost

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