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- Solution for 2650 is what percent of 52400. (100/x).x=.x - we multiply both sides of the equation by x. 18490566.x - we divide both sides of the equation by (0566) to get x.
- Automatic percentage equivalent number calculator for% increase and percent decrease ratios. Education or school homework? Math tool to workout percentage difference number on the web. Calculate percentage change and #'s online. Percentage formula calculation for easy math numbers, values, what they equal to. Converting percentages to fractions and decimals.
How to convert percent to decimal. In order to convert percent to decimal number, the percentage should be divided by 100: 1% = 1 / 100 = 0.01. 5% = 5/100 = 0.05.
Absenteeism is an employee's intentional or habitual absence from work. While employers expect workers to miss a certain number of workdays each year, excessive absences can equate to decreased productivity and can have a major effect on company finances, morale and other factors. This article looks at the causes of absenteeism, the costs of lost productivity and what employers can do to reduce absenteeism rates in the workplace.
Causes of Absenteeism
People miss work for a variety of reasons, many of which are legitimate and others less so. Some of the common causes of absenteeism include (but are not limited to):
- Bullying and harassment - Employees who are bullied or harassed by coworkers and/or bosses are more likely to call in sick to avoid the situation
- Burnout, stress and low morale - Heavy workloads, stressful meetings/presentations and feelings of being unappreciated can cause employees to avoid going into work. Personal stress (outside of work) can lead to absenteeism.
- Childcare and eldercare - Employees may be forced to miss work in order to stay home and take care of a child/elder when normal arrangements have fallen through (for example, a sick caregiver or a snow day at school) or if a child/elder is sick.
- Depression - According to the National Institute of Mental Health, the leading cause of absenteeism in the United States is depression. Depression can lead to substance abuse if people turn to drugs or alcohol to self-medicate their pain or anxiety.
- Disengagement - Employees who are not committed to their jobs, coworkers and/or the company are more likely to miss work simply because they have no motivation to go.
- Illness - Injuries, illness and medical appointments are the most commonly reported reasons for missing work (though not always the actual reason). Not surprisingly, each year during the cold and flu season, there is a dramatic spike in absenteeism rates for both full-time and part-time employees.
- Injuries - Accidents can occur on the job or outside of work, resulting in absences. In addition to acute injuries, chronic injuries such as back and neck problems are a common cause of absenteeism.
- Job hunting - Employees may call in sick to attend a job interview, visit with a headhunter or work on their resumes/CVs.
- Partial shifts - Arriving late, leaving early and taking longer breaks than allowed are considered forms of absenteeism and can affect productivity and workplace morale.
Costs of Lost Productivity
The Gallup-Healthways Well-Being Index surveyed 94,000 workers across 14 major occupations in the U.S. Of the 77% of workers who fit the survey's definition of having a chronic health condition (asthma, cancer, depression, diabetes, heart attack, high blood pressure, high cholesterol or obesity), the total annual costs related to lost productivity totaled $84 billion. According to the survey, the annual costs associated with absenteeism vary by industry, with the greatest loss occurring in professional occupations (excluding nurses, physicians and teachers); the 14 occupations and corresponding costs of lost productivity are shown in Figure 1.
Figure 1: Annual cost of lost productivity by major U.S. occupations
According to Absenteeism: The Bottom-Line Killer, a publication of workforce solution company Circadian, unscheduled absenteeism costs roughly $3,600 per year for each hourly worker and $2,650 each year for salaried employees. The costs can be attributed to many factors including:
- Wages paid to absent employees
- High-cost replacement workers (overtime pay for other employees and/or temporary workers)
- Administrative costs of managing absenteeism
Other indirect costs and effects of absenteeism include:
- Poor quality of goods/services resulting from overtime fatigue or understaffing
- Reduced productivity
- Excess manager time (dealing with discipline and finding suitable employee replacements)
- Safety issues (inadequately trained employees filling in for others, rushing to catch up after arriving as a replacement, etc)
- Poor morale among employees who have to 'fill in' or do extra work to cover absent coworkers
What Employers Can Do
Absenteeism is an especially difficult problem to tackle, because there are both legitimate and poor excuses for missing work - and it can be challenging for employers to effectively monitor, control and reduce absenteeism. Unless a company requires a written excuse from a doctor, for example, it can be difficult to determine if an employee is actually sick when missing work. At the same time, however, it is important for employers to consider the added costs associated with a sick employee who spreads an illness that gets the whole division - or a lot of customers - sick.
To address problems like this, some companies, cities and states have moved toward a mandatory paid sick leave policy, where each employee receives a specified number of days each year to use when sick.
Opponents of mandatory sick leave argue that it will ultimately cost businesses more money and lead to increased layoffs. In addition, opponents have concerns that employees will use all their sick days whether or not they need them. Advocates of such a move, however, argue that paid sick leave makes economic sense because it will help stop the spread of communicable diseases in the workplace and in schools - resulting in fewer instances of absenteeism in the long run - and that sick employees will be able to recover sooner.
The Centers for Disease Control, for example, states that paid sick leave could have an especially significant impact in the food service industry, where it estimate that sick food handlers are responsible for 53% of norovirus (a particularly nasty form of stomach virus) outbreaks. - One sick food handler could theoretically infect dozens or even hundreds of people, resulting in a large number of absences that could have been avoided if that employee had simply stayed home. Unfortunately, workers often either need the money or are worried about being terminated for calling in sick - even if it's unpaid leave - so they go to work even if they know they are contagious.
In an effort to reduce absenteeism, some companies offer incentives for going to work, such as earned time off or lotteries for workers who do not have any unexcused absences within a certain period. Other firms might try a more proactive approach, putting policies in place to focus on responses to employee health concerns, including:
- Physical health
- Psychological health
- Work-home balance
- Environmental health
- Economic health
The logic with this approach is that healthier, happier employees will be more able and motivated to go to work each day, resulting in increased productivity and higher morale for the individual workers as well as the entire team. Although these employee wellness strategies may be expensive to implement and maintain, they can have a net positive effect on a company's bottom line - and that's good for business.
Write 2650 Percentage Change
The Bottom Line
Absenteeism costs U.S. companies billions of dollars each year in lost productivity, wages, poor quality of goods/services and excess management time. In addition, the employees who do show up to work are often burdened with extra duties and responsibilities to fill in for absent employees, which can lead to feelings of frustration and a decline in morale.
Occasional absences from work are inevitable - people get sick or injured, have to take care of others, or need time during business hours to handle personal business. It is the habitual absences that are most challenging to employers, and that can have the greatest negative effect on coworkers. Because missed work days have a profound financial effect on a company's bottom line, it is beneficial for most businesses to implement strategies to equitably monitor, reduce and respond to absenteeism.
--
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Top 4 Most Competitive Financial Careers
No matter how careful any business is in extending credit, there will always be some customers that will not pay their bills. This bad debt must be written off by the business as a loss and a reduction in its accounts receivables and as an added expense since the debt will not be collected. The Generally Accepted Accounting Principles (GAAP) allowance method allows companies to estimate and write off their bad debts. According to Michael C. Dennis, MBA, CBF, 'Under the allowance method bad debts are estimated and recorded to match revenues and expenses in a given period – satisfying the matching principle.'
Use the GAAP allowance method based on a percentage of sales to estimate the amount of bad debt that will be uncollectible during the current fiscal year. This income statement approach is very easy to calculate. Take the company's current year's sales and multiply this figure by the firm's historical rate of uncollectible debt. For example, assume that the company's sales during the current year equal $2,500,000 and its historical average for uncollectible accounts for bad debt is 3 percent of total sales per year. You would then multiply the current year's sales by the estimated amount of uncollectible debt: $2,500,000 x 3% = $75,000.
Estimate the amount of bad debt for the current fiscal year by using a percentage of total receivables. This is the balance sheet approach. Some companies assume that a certain historical or industry percentage of outstanding receivables will be uncollectible. If a company realizes that historically it has not been able to collect 6 percent of its outstanding receivables, it will use this percentage for the current year estimate as well. For example, if a company's current receivables equal $425,000 and its historical average of uncollectible bad debt is 6 percent, then the firm would multiply the current receivables by the historical average of uncollectible bad debt: 6% x $425,000 = $25,000.
Use the aging analysis of accounts receivable method (also known as the balance sheet approach) to estimate how much bad debt will be uncollectible during the current fiscal year. This GAAP accounting method is considered more sophisticated and accurate than the percentage of receivables approach. Under this allowance method, a company applies different percentages based on past experience for various aging categories. For example, a company assumes the following: 0-30 days past due current accounts receivables = $50,000 and the historical average for uncollectible debt for this period is 5 percent. Then the amount of uncollectible debt for this period would be $2,500: $50,000 x 5% = $2,500. For accounts that are 31-60 days past due with current accounts receivables = $40,000 and the historical average for uncollectible debt for this period is 5 percent, then the amount of uncollectible debt for this period would be $2,000: $40,000 x 5% = $2,000. For accounts that are 61-90 days past due (current accounts receivables = $2,650 and the historical average for uncollectible debt for this period is 10 percent, then the amount of uncollectible debt for this period would be $265: $2,650 x 10% = $265. The total estimated amount for uncollectible bad debt for the current year would be $4,765: $2,500 + $2,000 + $265 = $4,765.
Record the estimated uncollectible accounts expense. This is the estimated uncollectible bad debts for the current year. The company would establish the related allowance for uncollectible accounts (this asset account will offset the accounts receivable balance) in a ledger. Once the company has estimated the amount of bad debt that it will be unable to collect for the current year, by using either the percentage of sales, percentage of accounts receivables or aging analysis of accounts receivable method, the company must log this information into a journal. The company would simply take the estimated bad debt and debit the amount to the uncollectible accounts expense and credit the allowance for uncollectible accounts. For example, assume that the company estimated that it would not be able to collect $10,000 owed for the current year; the journal entry would look like this:
Uncollectible Accounts Expense -- $10,000 (Debit)
Allowance for Uncollectible Accounts -- $10,000 (Credit).
Write off an individual account that has been deemed uncollectible. Once a company has proven that it will definitely not be able to collect the money owed by an individual debtor, it will have to write off the amount owed in a journal. In this case the amount to be written off is not an estimate but has been proven to be uncollectible. The company would credit the allowance for uncollectible accounts and debit the accounts receivable. For example, if a particular debtor owed $1,500 and could not pay it back during the current fiscal year, the journal entry would look like this:
Allowance for Uncollectible Accounts --$1,500 (Debit)
Accounts Receivables -- $1,500 (Credit).
This write-off entry reduces both the allowance for uncollectible accounts and the related accounts receivables and has no impact on the income statement. It also has no impact on the net realized value (NRV) of receivables -- the amount of money deemed collectible after a company has estimated how much money will be uncollectible: accounts receivables = estimated uncollectible bad debts. For example, if accounts receivables = $200,000 and the allowance for uncollectible accounts = $20,000 before the write-off, then the NRV would be $180,000: $200,000 - $20,000 = $180,000. If $1,500 was then written off as uncollectible, then the NRV would still be $180,000 because the company would reduce both accounts receivables by $1,500 ($200,000 - $1,500 = $198,500) and the allowance for uncollectible accounts by $1,500 ($20,000 - $1,500 = $18,500; $198,500 - $18,500 = $180,000).
Reverse the write-off entry if a total or part of the debt that was written off was recovered and record the cash that was collected. Sometimes a company is able to collect on an account that was previously written off. In this case an entry must be recorded to show the recovery. This process involves two steps: (1) Reverse the write-off entry and (2) record the cash collection on the account. For example, if $1,000 was collected on a previous write-off, then the company would reverse the entry recorded at the time of the write-off. In this case accounts receivables would be credited, and the allowance for uncollectible accounts would be debited:
Account Receivables -- $1,000 (Debit)
Allowance for Uncollectible Accounts -- $1,000 (Credit).
The company would then record the cash it had collected by debiting cash and crediting accounts receivables.
Cash -- $1,000 (Debit) Account Receivables -- $1,000 (Credit)
In these entries it may seem that the allowance for uncollectible accounts is being increased, but it is assumed that another account may prove to be uncollectible in the future so the overall estimate for uncollectible bad debts will stay the same.
In order to minimize losses a company should extend credit only after proper references and credit scores have been obtained and analyzed.
According to Absenteeism: The Bottom-Line Killer, a publication of workforce solution company Circadian, unscheduled absenteeism costs roughly $3,600 per year for each hourly worker and $2,650 each year for salaried employees. The costs can be attributed to many factors including:
- Wages paid to absent employees
- High-cost replacement workers (overtime pay for other employees and/or temporary workers)
- Administrative costs of managing absenteeism
Other indirect costs and effects of absenteeism include:
- Poor quality of goods/services resulting from overtime fatigue or understaffing
- Reduced productivity
- Excess manager time (dealing with discipline and finding suitable employee replacements)
- Safety issues (inadequately trained employees filling in for others, rushing to catch up after arriving as a replacement, etc)
- Poor morale among employees who have to 'fill in' or do extra work to cover absent coworkers
What Employers Can Do
Absenteeism is an especially difficult problem to tackle, because there are both legitimate and poor excuses for missing work - and it can be challenging for employers to effectively monitor, control and reduce absenteeism. Unless a company requires a written excuse from a doctor, for example, it can be difficult to determine if an employee is actually sick when missing work. At the same time, however, it is important for employers to consider the added costs associated with a sick employee who spreads an illness that gets the whole division - or a lot of customers - sick.
To address problems like this, some companies, cities and states have moved toward a mandatory paid sick leave policy, where each employee receives a specified number of days each year to use when sick.
Opponents of mandatory sick leave argue that it will ultimately cost businesses more money and lead to increased layoffs. In addition, opponents have concerns that employees will use all their sick days whether or not they need them. Advocates of such a move, however, argue that paid sick leave makes economic sense because it will help stop the spread of communicable diseases in the workplace and in schools - resulting in fewer instances of absenteeism in the long run - and that sick employees will be able to recover sooner.
The Centers for Disease Control, for example, states that paid sick leave could have an especially significant impact in the food service industry, where it estimate that sick food handlers are responsible for 53% of norovirus (a particularly nasty form of stomach virus) outbreaks. - One sick food handler could theoretically infect dozens or even hundreds of people, resulting in a large number of absences that could have been avoided if that employee had simply stayed home. Unfortunately, workers often either need the money or are worried about being terminated for calling in sick - even if it's unpaid leave - so they go to work even if they know they are contagious.
In an effort to reduce absenteeism, some companies offer incentives for going to work, such as earned time off or lotteries for workers who do not have any unexcused absences within a certain period. Other firms might try a more proactive approach, putting policies in place to focus on responses to employee health concerns, including:
- Physical health
- Psychological health
- Work-home balance
- Environmental health
- Economic health
The logic with this approach is that healthier, happier employees will be more able and motivated to go to work each day, resulting in increased productivity and higher morale for the individual workers as well as the entire team. Although these employee wellness strategies may be expensive to implement and maintain, they can have a net positive effect on a company's bottom line - and that's good for business.
Write 2650 Percentage Change
The Bottom Line
Absenteeism costs U.S. companies billions of dollars each year in lost productivity, wages, poor quality of goods/services and excess management time. In addition, the employees who do show up to work are often burdened with extra duties and responsibilities to fill in for absent employees, which can lead to feelings of frustration and a decline in morale.
Occasional absences from work are inevitable - people get sick or injured, have to take care of others, or need time during business hours to handle personal business. It is the habitual absences that are most challenging to employers, and that can have the greatest negative effect on coworkers. Because missed work days have a profound financial effect on a company's bottom line, it is beneficial for most businesses to implement strategies to equitably monitor, reduce and respond to absenteeism.
--
Also From Investopedia:
No Finance Degree? No Problem! Top 10 Ways To Jumpstart A Career In Finance
Top 4 Most Competitive Financial Careers
No matter how careful any business is in extending credit, there will always be some customers that will not pay their bills. This bad debt must be written off by the business as a loss and a reduction in its accounts receivables and as an added expense since the debt will not be collected. The Generally Accepted Accounting Principles (GAAP) allowance method allows companies to estimate and write off their bad debts. According to Michael C. Dennis, MBA, CBF, 'Under the allowance method bad debts are estimated and recorded to match revenues and expenses in a given period – satisfying the matching principle.'
Use the GAAP allowance method based on a percentage of sales to estimate the amount of bad debt that will be uncollectible during the current fiscal year. This income statement approach is very easy to calculate. Take the company's current year's sales and multiply this figure by the firm's historical rate of uncollectible debt. For example, assume that the company's sales during the current year equal $2,500,000 and its historical average for uncollectible accounts for bad debt is 3 percent of total sales per year. You would then multiply the current year's sales by the estimated amount of uncollectible debt: $2,500,000 x 3% = $75,000.
Estimate the amount of bad debt for the current fiscal year by using a percentage of total receivables. This is the balance sheet approach. Some companies assume that a certain historical or industry percentage of outstanding receivables will be uncollectible. If a company realizes that historically it has not been able to collect 6 percent of its outstanding receivables, it will use this percentage for the current year estimate as well. For example, if a company's current receivables equal $425,000 and its historical average of uncollectible bad debt is 6 percent, then the firm would multiply the current receivables by the historical average of uncollectible bad debt: 6% x $425,000 = $25,000.
Use the aging analysis of accounts receivable method (also known as the balance sheet approach) to estimate how much bad debt will be uncollectible during the current fiscal year. This GAAP accounting method is considered more sophisticated and accurate than the percentage of receivables approach. Under this allowance method, a company applies different percentages based on past experience for various aging categories. For example, a company assumes the following: 0-30 days past due current accounts receivables = $50,000 and the historical average for uncollectible debt for this period is 5 percent. Then the amount of uncollectible debt for this period would be $2,500: $50,000 x 5% = $2,500. For accounts that are 31-60 days past due with current accounts receivables = $40,000 and the historical average for uncollectible debt for this period is 5 percent, then the amount of uncollectible debt for this period would be $2,000: $40,000 x 5% = $2,000. For accounts that are 61-90 days past due (current accounts receivables = $2,650 and the historical average for uncollectible debt for this period is 10 percent, then the amount of uncollectible debt for this period would be $265: $2,650 x 10% = $265. The total estimated amount for uncollectible bad debt for the current year would be $4,765: $2,500 + $2,000 + $265 = $4,765.
Record the estimated uncollectible accounts expense. This is the estimated uncollectible bad debts for the current year. The company would establish the related allowance for uncollectible accounts (this asset account will offset the accounts receivable balance) in a ledger. Once the company has estimated the amount of bad debt that it will be unable to collect for the current year, by using either the percentage of sales, percentage of accounts receivables or aging analysis of accounts receivable method, the company must log this information into a journal. The company would simply take the estimated bad debt and debit the amount to the uncollectible accounts expense and credit the allowance for uncollectible accounts. For example, assume that the company estimated that it would not be able to collect $10,000 owed for the current year; the journal entry would look like this:
Uncollectible Accounts Expense -- $10,000 (Debit)
Allowance for Uncollectible Accounts -- $10,000 (Credit).
Write off an individual account that has been deemed uncollectible. Once a company has proven that it will definitely not be able to collect the money owed by an individual debtor, it will have to write off the amount owed in a journal. In this case the amount to be written off is not an estimate but has been proven to be uncollectible. The company would credit the allowance for uncollectible accounts and debit the accounts receivable. For example, if a particular debtor owed $1,500 and could not pay it back during the current fiscal year, the journal entry would look like this:
Allowance for Uncollectible Accounts --$1,500 (Debit)
Accounts Receivables -- $1,500 (Credit).
This write-off entry reduces both the allowance for uncollectible accounts and the related accounts receivables and has no impact on the income statement. It also has no impact on the net realized value (NRV) of receivables -- the amount of money deemed collectible after a company has estimated how much money will be uncollectible: accounts receivables = estimated uncollectible bad debts. For example, if accounts receivables = $200,000 and the allowance for uncollectible accounts = $20,000 before the write-off, then the NRV would be $180,000: $200,000 - $20,000 = $180,000. If $1,500 was then written off as uncollectible, then the NRV would still be $180,000 because the company would reduce both accounts receivables by $1,500 ($200,000 - $1,500 = $198,500) and the allowance for uncollectible accounts by $1,500 ($20,000 - $1,500 = $18,500; $198,500 - $18,500 = $180,000).
Reverse the write-off entry if a total or part of the debt that was written off was recovered and record the cash that was collected. Sometimes a company is able to collect on an account that was previously written off. In this case an entry must be recorded to show the recovery. This process involves two steps: (1) Reverse the write-off entry and (2) record the cash collection on the account. For example, if $1,000 was collected on a previous write-off, then the company would reverse the entry recorded at the time of the write-off. In this case accounts receivables would be credited, and the allowance for uncollectible accounts would be debited:
Account Receivables -- $1,000 (Debit)
Allowance for Uncollectible Accounts -- $1,000 (Credit).
The company would then record the cash it had collected by debiting cash and crediting accounts receivables.
Cash -- $1,000 (Debit) Account Receivables -- $1,000 (Credit)
In these entries it may seem that the allowance for uncollectible accounts is being increased, but it is assumed that another account may prove to be uncollectible in the future so the overall estimate for uncollectible bad debts will stay the same.
In order to minimize losses a company should extend credit only after proper references and credit scores have been obtained and analyzed.
The longer a receivable is past due, the less likely the chances of collection.
References
Writer Bio
Write 2650 Percentage Calculator
Alan Nykamp has been a writer since 2004. He has contributed to several online publications, an interfaith newsletter and a best-selling college textbook on religion. Nykamp holds a Bachelor of Science in finance.
