Over the last 18 months my department overtime expense has increased by 37%, which has been the direct result of a 28% increase in absenteeism. By introducing a flexible working schedule I am confident absenteeism will drop, therefore lowering the overtime expense within my department. In a survey on organizations that are using flextime, conducted by Nollen and Martine with the American Management Association, they "found that the executives in approximately three quarters of firms experienced reductions in absenteeism" it went on to say, "that absenteeism declined in half to three quarters of the firms that used it."
Flexible working hours is an alternative work schedule that grants employees certain freedom in choosing their times of arrival and departure from work, within the restrictions set by us. "Flextime is a popular response to a changing labor force needs and is a particularly effective as a low cost employee benefit." Flextime studies suggest that this scheduling option will enhance employee morale and commitments, which are intangibles that are often cited as factors that have a direct impact on productivity, thereby increasing the organization profits. In the Nollen and Martin survey they "reported that 97% of the organizations using flextime experienced an improvement in moral"
In a 1988 survey conducted by Trevose with the Pennsylvania based Administrative Management Society of 500 companies, 31% percent of the 290 of organizations that responded used flextime and another 4% were considering its adoption. In the organizations that were using flextime they all reported a significant decrease in overtime expenses. This decrease is a direct result in the lowering in their employee absenteeism.
An alterative to lowering overtime expense would be to hire qualified employees on a per diem bases. An employee that works on a per diem, is one that is on call to...