Data Analysis and Decisions
Circuit Systems Incorporated
Section 1 - Executive Summary
There is a concern of absenteeism within the company amongst the hourly employees. With each hourly employees only earning 18 days of paid sick leave, it was found that many of them use most or all of their sick leave well before the year is over. It has been determined that the reason is because many of them viewed paid sick leave as a "extra" vacation benefit, and dishonestly called in as being sick at their leisure. This has been a major conflict between the employees and management due in part to a restrictive vacation policy that includes one week of paid vacation time, and a few paid holidays.
A two-point plan was developed and approved by the President to combat the abuse of paid sick leave. Workers will now be allowed to convert unused paid sick leave to cash on a "three for one" day basis to add a possible six days of pay each year.
Figure 1
Figure 2The second part of the plan is the development of a voluntary exercise program for the employees to participate in at a company expense of $200 that will reduce the company's contribution to health premiums. It was agreed that the plan should be given a one year trial period to see if it reduced the cost of absenteeism per hourly worker.
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Section 2 - Methodology and Solution
Two years' worth of data (both before and after the program) was maintained to analyze and determine if the newly implemented program was effective in reducing the average cost of absenteeism per employee thus increasing productivity. The first step in the process was establishing a Null and Alternative Hypothesis.
Null Hypothesis: The new plan has no effect on avg. cost of absenteeism...