Political Science

10 minute wash-upB-Day off1 week off2 hrs offweek.61kmonth6 wage increase
These are all the benefits that the employer is planning to give to the employees. Each item will be translated into a total cost applicable in a year for one employee only. The assumed rate for the employees salary is 25 working 6 days a week. The computed salary per month is therefore 4,800 for 8 hrs a day working 6 days a week without the benefits mentioned above.

For the first item which is the ten minute wash-up 10 minutes is divided by 60 minutes to derive the loss per hr. It is then multiplied with the rate per hour of 25. The result is 4.17 loss in total. For the second item which is a single day off for the employees birthday the salary rate is simply multiple with 8 hrs to derive the 200 loss result.

The one week off is calculated in the same way which is to multiply the loss in a single day with 6 days to derive the figure of 1,200 in total.

The loss associated with the salary is derived by dividing the salary per 1k and then multiplying it with 0.6 to derive the loss on a per month basis.

The calculation of loss associated with the 6 wage increase is almost the same. Simply multiply the 6 with the monthly salary to derive the increase in cost for the employer.

All of these calculations are in their raw form only and not yet translated into cost per employee per year.

The ten minute wash up has to be multiplied with the remaining days of the year to derive the loss incurred within a year. The 365 days of the year minus the 7 days that will paid days off amount to 358 multiplied with the loss per ten minute wash up. The result is 1,491.67 on a per year basis. Both the single birthday off and the one week off per year does not need to be calculated further as they are already applicable on a per year basis.

The 2 hrs off per week has to be multiplied with 4 weeks a month and 12 months a year to derive the figure of 2,400 a year in losses. The insurance premium paid per month is simply multiplied in 12 months to derive the 34.56 losses in a year. The increase in salary is multiplied by 12 to derive the losses to employer per year.

Finally all of these figures are added together in order to derive the losses per employee per year. This figure is again multiplied by 2080 which is the total number of employees of the company to derive the total cost for all employees per year cost to the employer. This 18,267,031.47 final figure is the total cost that will have to be borne by the employer to give consideration to the human side of their employees.

Table of costing each Item benefits given by employer.
per employeeyr4.17 losshr1,491.67 200 lossday200 1,200 loss in a 6 day work week1,200 50 loss in 2 hrs2,400 2.88 loss based from total salary34.56 288.00 increase in salary3,456.00 Total losses per employeeyr8,782.23 Total losses per total of 2080 employeesyr18,267,031.47

It is interesting to note that the seemingly minor benefit of ten minute wash up loss in time productivity is second highest in cost to the employer aside from the actual salary increase. The other items which are one time only do not cost as much for the employer. The reason is because these ten minute wash ups happens every day which constitutes a lot of wastes if we are to look at it in its totality per year. This insight can lead the employer to ensure that there are no wasted time every day since the productivity of each employee ultimately leads to the performance of the company that will be experienced by their clients and customers, (Revsine 2004).

There is a danger of course not to base everything on numbers as it is not  a very accurate means of getting the workforce perform to the highest levels. There is still a need to consider the normal physiological needs of human beings as the workforce. If an employer wants to increase their productivity, they can try other means like increasing the morale of their employees. These things are not quantifiable by numbers but the results are nevertheless felt in every way. If we are to go the extreme way of restricting the employees even with a simple wash up at the CR, they might be demoralized completely which can result to more downtime than the employer can handle.

The cost calculation is simply a guide for the employer to know the losses that they are incurring versus the morale strengthening that their employees experience. It is a simple matter of factoring this cost into the product or services that they are producing in order to retain profitability all the time.