Reinvest in employees

Article Abstract:

Many firms are focusing on reducing costs to stay competitive, but often the results of such efforts are negative: employees are less motivated and generate lower quality work. One way to offset these negative results is to reinvest in employees. Reinvesting involves taking a portion of savings generated by cost reductions and spending the funds to improve employee work life. However, it is important that management devise a reinvestment plan so that funds are spent on programs which will achieve results. Steps in the planning process include: defining the objectives of reinvesting; making a commitment to reinvesting; and and defining the expected return on reinvesting.

Management, Cost control

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Stamp out absenteeism

Article Abstract:

Industrial equipment manufacturer Lufkin Industries, Inc faced extremely high absenteeism. The company introduced an Attendance Incentive Program (AIP) to encourage attendance. AIP awards trading stamps and books to individuals with certain attendance levels. It also allows employees to 'erase' past absentee days after a couple of months of perfect attendance. As a result of AIP, absenteeism fell by 25% and the company saved about $800,000 in labor costs. Success was attributed to the total commitment of top management; to the fair distribution of rewards and punishments in the program; and to the positive, rather than negative, orientation of the program.

Lufkin Industries Inc.

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Absenteeism: you get what you accept

Article Abstract:

Levels of absenteeism reflect management tolerance: the higher the tolerance, the higher the absenteeism, and vice versa. Managers should be aware of attendance levels: excellent, good, and problem attendance, as well as chronic absenteeism. Each level should be handled differently. All employees should be aware of attendance requirements, and managers should provide an example. Those with good to excellent attendance should receive recognition; those with problem attendance should be counseled, formally and informally. If absenteeism is allowed to persist, it will become not only normal, but accepted.

Corporate culture

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