Index
NUMBERS
40 percent rule, SDy, 234–235
100 Best Companies to Work For, 143
2008 National Study of the Changing Workforce, 145
2010 World’s Most Admired companies,
A
case studies, 68
categories of costs, 56
causes of, 54
compensation for absent employees’ time, 60–61
consequences of, 55
defined, 52
direct costs and incidence of, 54
estimating cost of, 58–65
exercises, 74–75
indirect costs, 69–70
interpreting absenteeism costs, 66–68
measures of, 58
reducing, 68–69
positive incentives, 69–70
presenteeism, 72–74
PTO (paid time off), 70–71
summary comments on absence-control policies, 71
substitute employees, cost of, 64
total hours lost to, 59–60
yearly cost per employee, 65
absorption, 145
accuracy of estimates, SDy, 246–249
acquisition of, of employees, 81
adjustments, employee selection, 271–272
Americans with Disabilities Act (ADA), 122
analytics
computing, turnover rates, 89
EAPs (employee assistance programs), 132–133
LAMP, 13–14
Taylor-Russell Model, 201–206
applicant pools, 199
attitude-analysis systems into organizational systems, 162
attitudes, 144–145
casual ordering, 155–156
connecting with financial outcomes, 146–148
exercises, 164
levels of analysis, 154–155
measuring, 151–152
positive attitudes, 313–314
time lags, 153–154
B
bankers, skills training for, 296–298
behavior-costing approach, 163
estimating financial impact of employee attitudes, 156
SYSCO, 156
casual model, 157
connecting models to management behaviors, 157–158
integrating attitude-analysis system into organizational systems, 162
measures, 158–159
translating analysis into dollar values, 161–162
web portal for manager, 160–161
behaviors, connecting with financial outcomes, 146–148
benefits
for absent employees’ time, 61
EAPs (employee assistance programs), 131–132
Bock, Laszlo, 79
Boudreau, John, 2
break-even analysis, 44–46, 272–273
HRD (human resources development) programs, 294–295
duration of effects, 295
economics and finance, 295–297
skills training for bankers, 296–298
Brogden-Cronbach-Gleser model, 209–214
exercises, 218
modifying to apply to training, 290–292
Burd, Steve, 113
business lost, cost of turnover, 105–107
C
CA (conjoint analysis), 43–44
calculating
economic adjustments, 261–263
employee flows, 265–268
Cascio-Ramos estimate of performance in dollars (CREPID), 239–243
case studies, absenteeism, 68
casual model, SYSCO, behavior-costing approach, 157
casual ordering, attitudes, 155–156
causality, 24–27
Chase Manhattan Bank, child care, 180
child care
emergency or sick, 68
work-life programs, 180–181
chronic conditions, WHP programs, 127–129
CIBC, child care, 180
Citigroup, child care, 180
citizenship behaviors, 147
clever counting, HR analytics, 21
client services, flexible work arrangements, 183
Comerica Bank, presenteeism, 73
flexible work arrangements, 183
improving, 150
communicating
job availability, 95
results of WHP programs, chronic conditions, 127–129
compensation for absent employees’ time, 60–61
competitive advantage, engagement and, 148
compound interest, talent, 263
employee flows, 263–265
compounding, 34–35
computing turnover rates, 88
analytics, 89
logical costs, 88–89
separation costs, 90–92
confidence intervals, 274
conjoint analysis (CA), 43–44
consequences of absenteeism, 55
Consolidated Industries, 74–75
constraints, Disney, 224
controlling, health-care costs, 117–118
correlation, 24–27
cost-accounting approach, SDy, 230–233
cost-benefit analysis, 39–41
WHP programs, 125
cost-effectiveness analysis, 39–41
WHP programs, 124–125
costs
of absenteeism, 54
categories of costs, 56
estimating, 58–65
indirect costs, 69–70
interpreting costs, 66–68
EAPs (employee assistance programs), 131–132
fixed, variable, and opportunity costs/savings, 33–34
health-care costs, 117
controlling, 117–118
informational literature, 100
of lost productivity and business, turnover, 105–107
movement costs, 106
per employee per year, absenteeism, 65
of reduced quantity or quality of work outputs, 64–65
replacement costs, Wee Care Children’s Hospital, 94–99
separation costs
computing turnover rates, 90–92
Wee Care Children’s Hospital, 92–94
service costs, 106
of substitute employees, 64
training costs, 99–103
turnover, cost elements, 85
costs and benefits, acceptance of training costs, 302
counting, HR analytics, 21
CREPID (Cascio-Ramos estimate of performance in dollars), 239–243
Crowe, Horwath, LLP, work-life programs, 175
culture, 321
cycle design, quasi-experiments, 31–32
D
data, generalizing from sample data, 23–24
decision-based framework, 196–198
decision frameworks, 6–7
decision makers, communicating impact of utility analyses, 275–276
decision science, 4
HR measurement, 5–6
HR measurement and
data, measurement, and analysis, 8
decision frameworks, 6–7
dedication, 145
Deloitte & Touche, flexible work arrangements, 183
cycle design, 31–32
quasi-experiments, 29–32
difference in performance (DP), 103–105
discounting, 34–35
present value and, 35–37
Disney
constraints, 224
talent, 224–226
DP (difference in performance), 103–105
dt, estimating, 292–293
dysfunctional turnover, versus functional turnover, 83–84
E
EAPs (employee assistance programs), 130–131
analytical considerations, 132–133
costs and benefits, 131–132
future of, 137
measuring
cost of employee turnover, 135–136
productivity, 133–135
savings in supervisors’ time, 136–137
unemployment compensation, 136
earnings per share (EPS), 153
economic adjustments, calculating, 261–263
economic considerations, HRD (human resources development) programs, 295–297
economic value added (EVA), 5
economics and finance, 33
changes in employee health affect financial outcomes, 119–120
conjoint analysis (CA), 43–44
cost-benefit analyses, 39–41
cost-effectiveness analysis, 39–41
estimating value of employee time using total pay, 37–38
fixed, variable, and opportunity costs/savings, 33–34
present value and discounting, 35–37
sensitivity and break-even analysis, 44–46
time value of money, 34–35
utility analysis, 41–43
education, 16
eliminating, alternative explanations through experiments and quasi-experiments, 27–29
employee assistance programs (EAPs), 130–131
employee flows, 263–265
calculating, 265–268
HRD (human resources development) programs, 295–297
employee selection, 256
adjustments, effects of, 271–272
exercises, 278–279
job offer rejections, effects of, 269–270
multiple selection devices, 270
probationary periods, 268–269
results of utility calculation, 260
staffing processes, 271
talent supply chain, 276–278
utility analysis, communicating impact to decision makers, 275–276
employee separations, 79–80
employee time, estimating value of with total pay, 37–38
employees, acquisition of, 81
encouraging use of work-life programs, 179
engagement, 144–146
competitive advantage, 148
service climate and, 149–151
enhanced selection, 255
entrance interviews, 95
EPS (earnings per share), 153
estimates, making utility analysis estimates more comparable to financial estimates, 260–261
economic adjustments, 261–263
financial adjustments, 261
estimating
costs of absenteeism, 58–65
dt, 292–293
financial impact of employee attitudes, 156
monetary value of variations in job performance, 230
SDy, 233–234
40 percent rule, 234–235
CREPID (Cascio-Ramos estimate of performance in dollars), 239–243
global estimation, 235–239
superior equivalents technique, 244–246
system effectiveness techniques, 243–244
value of employee time using total pay, 37–38
EVA (economic value added), 5
exercises
absenteeism, 74–75
attitudes, 164
employee selection, 276–279
health, wellness, and worksite health, 137–138
HRD (human resources development) programs, 303
job performance, 249–250
turnover, 111
work-life programs, 189–190
experiments, eliminating alternative explanations, 27–29
F
finance, 6
financial impact of employee attitudes, 156
financial indicators, 153
financial outcomes, connecting, with attitudes and behaviors, 146–148
financial performance, versus layoffs, 30
firm performances, work-life programs, 183–186
firm-specific human capital, 104
fixed costs/savings, 33–34
flexible work arrangements, 181–183
client services, 183
employee commitment, 183
for-cause dismissals, cost elements, 85
frameworks, 4
decision-based framework, 196–198
HC BRidge framework, 319–322
LAMP, 10–11
analytics, 13–14
logic, 11–12
measures, 12–13
processes, 15–16
functional turnover, versus dysfunctional turnover, 83–84
future
of EAPs, 137
of WHP programs, 137
future value (FV), 34–35
FV (future value), 34–35
G
General Motors, obesity, 124
generalizing from sample data, 23–24
Genetic Information Nondiscrimination Act, 122
GlaxoSmithKline, flexible work arrangements, 183
global estimation, SDy, 235–239
for computer programmers, 235–237
modifications to procedures, 237–239
enhanced selection, 255
training and development, 283
H
HC BRidge framework, 319–322
health
changes in employee health affect financial outcomes, 119–120
exercises, 137–138
promoting, 116
WHP programs, 123–124
health-care costs, 117
controlling, 117–118
health investments, 312–313
health programs, 121
health, wellness, and worksite health promotion, 116
HR analytics, 21–22
clever counting, 21
counting, 21
influence, 22
insight, 22
HR measurement, 2
decision science and, 5–6
data, measurement, and analysis, 8
decision frameworks, 6–7
hitting the wall, 8–9
traditional versus contemporary, 20–21
HRD (human resources development) programs, 289, 317–318
break-even analysis, 294–295
duration of effects, 295
economic considerations and employee flows, 295–297
skills training for bankers, 296–298
exercises, 303
utility analysis, 289
modifying Brogden-Cronbach-Gleser Model, 290–292
training that covers less than full range of job skills, 294
HRM (human resource management), 19
human capital, framing decisions through utility analysis, 198–199
human capital measurement systems, 5
human resource management, 19
hypercompetition, 283
I
IBM
flexible work arrangements, 182–183
turnover costs, 85
improving commitment, 150
incentives, 8
for modifying lifestyles, 122
incidents of absenteeism, 54
indirect costs, absenteeism, 69–70
influence, HR analytics, 22
influencing senior leaders, work-life programs, 188–189
informational literature, costs, 100
insight, HR analytics, 22
integrating attitude-analysis systems into organizational systems, 162
Inter-Capital Limited, 75
interviews, entrance interviews, 95
involuntary turnover
cost elements, 85
versus voluntary, 83
J
job availability, communicating, 95
job offer rejections, effects of, 269–270
job outcomes, 145–146
job performance, 221
Disney, 224–226
estimating monetary value of variations in, 230
cost-accounting approach, 230–233
exercises, 249–250
impact of work-life strains on, 174
McDonald’s, 227
variances across jobs, 226–229
job satisfaction, 144–146
OJS (overall job satisfaction), 153
JPMorgan Chase, child care, 180
L
LAMP, 10–11
analytics, 13–14
logic, 11–12
measures, 12–13
processes, 15–16
layoffs, 311–312
cost elements, 85
versus financial performance, 30
legal consideration, to modifying lifestyles, 122
levels of analysis, attitudes, 154–155
Lieber, Ray, 107
lifestyle discrimination, 122
lifestyles, modifying (legal considerations and incentives), 122
lift-outs, 101
line of sight, development candidates, 288
LISREL, 26–27
logic
of health programs, 121
investment value calculated using utility analysis, 257
LAMP, 11–12
talent development, 287–289
utility analysis, 199–200
of work-life programs, 172–174
M
MAUT (multi-attribute utility theory), 42
McDonald’s
job performance, 227
turnover, 84–85
measures
of absenteeism, 58
behavior-costing approach, SYSCO, 158–159
intangible does not mean “unmeasurable,” 318–319
LAMP, 12–13
WHP programs, 126–127
attitudes, 151–152
EAPs (employee assistance programs)
cost of employee turnover, 135–136
productivity, 133–135
savings in supervisors’ time, 136–137
unemployment compensation, 136
utility components, 259–260
meetings, off-site versus web-based, 298–302
men, opting out of jobs, 175–176
meta models, HC BRidge framework, 319–322
models, connecting to management behaviors, SYSCO, 157–158
modifying lifestyles, incentives, 122
monetary value, estimating in job performance, 230
cost-accounting approach, 230–233
Monte Carlo analysis, 273–274
movement costs, 106
moving expenses, replacement costs, 96
multi-attribute utility theory (MAUT), 42
Multi-Developers, 120
multiple selection devices, effects of, 270
N
Naylor-Shine models, 206–208
exercises, 218
tables 218 See Appendix B
net present value (NPV), 5
NPV (net present value), 5
O
obesity, 122
General Motors, 124
off-site meetings versus web-based meetings, 298–302
OJS (overall job satisfaction), 153
opportunities foregone, 101
opportunity costs/savings, 33–34
opting out of jobs, women, 175–176
organizational commitment, 144–146, 151
outcomes, work-life programs, 179–180
child care, 180–181
flexible work arrangements, 181–183
overall job satisfaction (OJS), 153
P
parents, work-life programs, 171–172
PAT (Programmer Aptitude Test), 258–259
pay level for supervisors, 63
performance, firm performances (work-life programs), 183–186
pharmacy costs, presenteeism, 74
pivotal roles, 248
positive attitudes, 313–314
positive incentives, reducing absenteeism, 69–70
post-employment acquisition, 96
precision, 13
predictor-criterion relationships, 210–211
pre-employment administrative functions, 95
pre-employment medical examinations, 96
pre-employment testing, 96
present value (PV), 34–35
discounting and, 35–37
presenteeism, 72–74
pharmacy costs, 74
probationary periods, 268–269
processes
LAMP, 15–16
turnover, 107–109
work-life programs, 187–188
influencing senior leaders, 188–189
productivity
EAPs (employee assistance programs), measuring, 133–135
loss of, due to turnover, 105–107
presenteeism, 72–74
training costs, 100
professional employees, work-life programs, 174–175
Programmer Aptitude Test (PAT), 258–259
promoting health, wellness, and worksite health, 116
PTO (paid time off), reducing, absenteeism, 70–71
PV (present value), 34–35
discounting and, 35–37
Q
Q12, 151
quality of work outputs, costs of absenteeism, 64–65
quantity of work outputs, costs of absenteeism, 64–65
quasi-experiments
designs, 29–32
eliminating alternative explanations, 27–29
R
Ramstad, Peter, 2
random sampling, 24
recruiting activities, 216
recruitment sources, 196
reducing absenteeism, 68–69
positive incentives, 69–70
presenteeism, 72–74
PTO (paid time off), 70–71
summary comments on absence-control policies, 71
rejecting job offers, effects of, 269–270
replacement costs, Wee Care Children’s Hospital, 94–99
replacements, differences in performance from leavers, 103–105
rewards, work-life programs, 169–170
ripple effects, 101
risk, utility analysis, 272
break-even analysis, 272–273
confidence intervals, 274
Monte Carlo analysis, 273–274
Rockford Products Corp., 117–119
ROI (return on investment), 39
S
Safeway, 113
SAS, work-life programs, 172
SAS Institute, 107–109
satisfaction, 144–146
OJS (overall job satisfaction), 153
savings (fixed, variable, and opportunity costs/savings), 33–34
SDy, 230
accuracy of estimates, 246–249
break-even analysis, 272–273
cost-accounting approach, 230–233
estimating, 233–234
40 percent rule, 234–235
CREPID (Cascio-Ramos estimate of performance in dollars), 239–243
global estimation, 235–239
superior equivalents technique, 244–246
system effectiveness techniques, 243–244
role in utility analysis, 229–230
Secretarial Aptitude Test (SAT), 219
selection ratio (SR), 257, 259
selection tests, for computer programmers, 257
SEM (structural equation modeling), 26–27
senior leaders, influencing for work-life programs, 188–189
sensitivity, break-even analysis and, 44–46
separation costs
computing turnover rates, 90–92
Wee Care Children’s Hospital, 92–94
service climate, engagement and, 149–151
service costs, 106
service value, 106
service-value-profit framework, 12
Singapore, work-life programs, firm performances, 184–185
Sobriety, Inc., 137–138
SR (selection ratio), 257, 259
staff meetings, replacement costs, 96
staffing decisions, utility models, 200
Brogden-Cronbach-Gleser model, 209–214
Naylor-Shine model, 206–208
Taylor-Russell model, 200–206
staffing measurements, decision-based framework, 196–198
staffing supply chains versus traditional supply chains, 315–317
staffing utilities, supply-chain analysis, 215–216
stock market, reactions to work-life initiatives, 186–187
stock prices, relationship with training and development, 285–287
stress, work-life strains, 176–177
structural equation modeling (SEM), 26–27
substitute employees, cost of, 64
success, work-life programs, 177–179
summary comments on absence-control policies, reducing absenteeism, 71
Superior Energy Services, 107
superior equivalents technique, estimating, SDy, 244–246
supervisors
EAPs (employee assistance programs), savings in supervisors’ time, 136–137
pay level for, 63
supply-chain analysis, staffing utilities, 215–216
SYSCO, behavior-costing approach, 156
casual model, 157
connecting models to management behaviors, 157–158
integrating attitude-analysis system into organizational systems, 162
measures, 158–159
translating analysis into dollar values, 161–162
web portal for manager, 160–161
system effectiveness techniques, estimating, SDy, 243–244
T
tables
Naylor-Shine tables 221 See Appendix B
Taylor-Russell tables 221 See Appendix A
talent, 221
compound interest, 263
employee flows, 263–265
Disney, 224–226
SDy, accuracy of estimates, 248
talent development, 287–289
talent investment, 307
talent pools, 198
turnover, 84–85
talent supply chain, employee selection, 276–278
Taylor-Russell models, 200–201, 218
analytics, 201–206
tables 201 See Appendix A
testing, pre-employment testing, 96
Thrivent Financial for Lutherans, 107
time lags, 153–154
time value of money, 34–35
total pay, estimating value of employee time, 37–38
training, for bankers, 296–298
training and development, 283–285
acceptance of cost and benefit analysis, 302
Brogden-Cronbach-Gleser model, 290–292
off-site versus web-based meetings, 298–302
relationship with stock prices, 285–287
training that covers less than full range of job skills, 294
training costs, 99–103
Wee Care Children’s Hospital, 102–103
training expenditures, stock prices, 285–287
travel expenses, replacement costs, 96
Turner Broadcasting, 120
computing rates, 88
analytics, 89
logical costs, 88–89
separation costs, 90–92
cost elements, 85
costs, of lost productivity and business, 105–107
EAPs (employee assistance programs), measuring, 135–136
exercises, 111
for-cause dismissals, 85
functional versus dysfunctional, 83–84
layoffs, cost elements, 85
logic of, 80–82
performance differences between leavers and their replacements, 103–105
pivotal talent pools with high rates of voluntary turnover, 84–85
processes, 107–109
replacement costs, Wee Care Children’s Hospital, 94–99
separation costs, Wee Care Children’s Hospital, 92–94
training costs, 99–103
voluntary versus involuntary, 83
U
risk and uncertainty, Monte Carlo analysis, 273–274
utility analysis, 272
break-even analysis, 272–273
confidence intervals, 274
unemployment compensation, EAPs (employee assistance programs), measuring, 136
Ups and Downs, Inc., 110
communicating impact to decision makers, 275–276
framing human capital decisions, 198–199
HRD (human resources development) programs, 289
modifying Brogden-Cronbach-Gleser Model, 290–292
training that covers less than full range of job skills, 294
logic, 199–200
logic of investment value, 257
making estimates more comparable to financial estimates, 260–261
making utility analysis estimates more comparable to financial estimates
economic adjustments, 261–263
financial adjustments, 261
risk and uncertainty, 272
break-even analysis, 272–273
confidence intervals, 274
Monte Carlo analysis, 273–274
SDy, 229–230
utility calculations, results of employee selection, 260
utility components, measuring, 259–260
utility models, 217
staffing decisions, 200
Brogden-Cronbach-Gleser model, 209–214
Naylor-Shine model, 206–208
Taylor-Russell Model, 200–206
Utrecht Work Engagement Scale, 9, 151–152
V
Valero Energy, 216
validity, 199
value, service value, 106
value-profit chains, 163
variable costs/savings, 33–34
voluntary turnover
cost elements, 85
versus involuntary, 83
W
Wal-Mart, turnover, 79–80
Wawa, Inc., 107
web-based meetings versus off-site meetings, 298–302
web portal for manager, SYSCO, 160–161
Wee Care Children’s Hospital
performance differences between leavers and their replacements, 105
replacement costs, 94–99
separation costs, 92–94
training costs, 102–103
wellness
promoting, 116
WHP programs, 123–124
Weyco, Inc., 120
WHP programs, 123–124
communicating results, 127–129
cost-benefit analysis, 125
cost-effectiveness analysis, 124–125
future of, 137
ROI (return on investment), 125, 129
solving analysis and measurement dilemmas, 126–127
women, opting out of jobs, 175–176
workforce
changes in, 169–170
parents, 171–172
Working Mothers “100” Best companies, 187
work-life balance, 314–315
work-life programs, 171
connecting to outcomes, 179–180
child care, 180–181
flexible work arrangements, 181–183
encouraging use of, 179
enhancing success through implementation, 177–179
exercises, 189–190
firm performances, 183–186
logic of, 172–174
parents, 170–171
processes, 187–188
influencing senior leaders, 188–189
professional employees and, 174–175
reasons for not using, 178–179
remixing rewards, 169–170
SAS, 172
stock market reactions to, 186–187
work-life strains
job performance, 174
stress, 176–177
worksite health, promoting, 116