Impact of employee absences in employer cost

Impact of Employee Absences on Employer Cost among Organizations
in El Salvador City and Iligan City
A Research Study
Presented to the Faculty of
Department of Accountancy and Business Management
College of Business Administration and Accountancy
Mindanao State University at Naawan
9023, Naawan, Misamis Oriental
In Partial Fulfillment of the Course
Requirement for the Degree of
Bachelor of Science in Business Administration
Major in Management
Galarpe, Flora Mae B.
Pasco, Jessie Mae C.
Patlunag, Genalyn R.
Tumampoc, Rexon M.
December 2015

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APPROVAL SHEET
The research entitled “The Impact of Employee Absences on Employer Cost among
Organizations in El Salvador City to Iligan City”, prepared and submitted by Flora Mae B. Galarpe,
Genalyn R. Patlunag, Jessie Mae C. Pasco and Rexon M. Tumampoc, in partial fulfillment of the
requirements for the degree of Bachelor of Science in Business Administration Major in
Management has been examined and recommended for approval and acceptance for ORAL
EXAMINATION.
MANOLITO E. PARUNGAO, MBM
Adviser
Approved by the panel of Oral Examiners on_______________ with a grade of_______.
DANIZA MAE J. CALIMOT, MBM
Panel Chairperson
DELYN M. BUCAY, MBM HESLIE REE P. PONTILLO, MBM
Panel Member Panel Member
Jackie Lou A. Valdez
English Critic
Accepted and approved in partial fulfillment of the requirements for the degree of Bachelor of
Science in Business Administration major in Management.
HEIDIE AMOR A. PARCIA, MBM

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OIC Dean, CBAA
ACKNOWLEGDEMENT
The researchers sincerely extended their profound gratitude to various persons who
contributed to the success of the study.
Our adviser and mentor, Mr. Manolito E. Parungao, MBM, thank you for guiding and
editing our paper, for helping us through with your advices, encouragement, patients and
knowledge.
Researchers are also grateful to the defense panel, Ms. Daniza Mae J. Calimot, MBM, Mr.
Heslie Ree P. Pontillo, MBM and Ms. Delyn M. Bucay, MBM for giving and sharing their valuable
time, positive thoughts and insight.
To Mr. Renante Lumactad and Mr. Guilbert Cabillian for their assistance in interpreting
the data gathered;
To Zest-O Corporation and TITA FANNIES for allowing the researchers to conduct surveys
and giving us the data that we need for the study. To the respondents, for the cooperation and
for answering the questions given to them, especially the Human Resource Personnel and
Managers in Production Department.
Researchers also express sincere thanks to their parents for their unconditional love,
endless sacrifices, moral and financial support throughout the completion of this paper.
Above all else to our God who gives strength, wisdom and grace in facing the difficulties
in making this study a successful one.
Flora Mae, Genalyn, Rexon and Jessie Mae

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ABSTRACT
This study aims to identify the most common cause of employee absences in the
organization and the impact of employee absences on employer cost. The objective of the study
is to test whether there is an impact on employer cost. The respondents of the study are the
employees of the production department from Zest-O Corporation at El Salvador City and from
Tita Fannies Food Chains at Iligan City with a total of 101 respondents. Researchers conducts an
interview with the Human Resource Personnel of each organization for the cost incurred due to
employees’ absences. The results shows that out of 101 respondents, 56% of them belongs to the
age bracket of 18-28, 53% belongs to male, 62% belongs to single and 53% belongs to college
level. Furthermore, the common cause of absence is illnesses among the organizations. The study
found out that ZEST – O Corporation had 5.21% of absences incurred by the employees in the
organization which generates a cost of ₱ 112,993.00. While, TITA Fannies Food Chains had 6.9%
of employee absences in their organization with the cost incurred ₱ 447,722.40. With the results,
the study reveals that employees’ absences has an impact to the employer cost because the
higher the percentage of employees’ absences in the organization the higher the cost employer
incurred due to it.

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TABLE OF CONTENTS
Page
TITLE PAGE i
APPROVAL SHEET ii
AKNOWLEDGEMENT iii
ABSTRACT iv
TABLE OF CONTENTS v
LIST OF TABLES vi
LIST OF FIGURES viii
CHAPTER I THE PROBLEM AND ITS SCOPE
Introduction 1
Theoretical Background 3
Conceptual Framework of the Study 6
Research Process of the Study 7
Statement of the Problem 8
Significance of the Study 9
Scope and Limitation 10
Definition of Terms 10
CHAPTER II REVIEW OF THE RELATED LITERATURE 12
CHAPTER III RESEARCH DESIGN AND METHODS
Research Design 15
Research Locale 15
Research Subject 18
Data Gathering Method 18
Sampling Procedure 18
Statistical Treatment 19
CHAPTER IV Presentation, Analysis, and Interpretation of Data 20
CHAPTER V Summary of the Findings, Conclusion, Recommendation 58
BIBLIOGRAPHY 78
APPENDICES 80
Appendix A. Approval Letter 64
B. Survey Questionnaire 66
C. Computations 72

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D. Curriculum Vitae 77
LIST OF TABLES
Table No. Page
1 Distribution of Respondents Profile according to Age. 19
2 Distribution of Respondents Profile according to Sex. 20
3 Distribution of Respondents Profile according to Civil Status. 20
4 Distribution of Respondents Profile according to 22
Educational Attainment.
5 Percentage of Absences incurred of the Employees in the 23
Organization.
6 Frequency distribution of the cause of employee absences by 24
Bullying and Harassments in ZESTO –O Corporation.
Burnout, Stress and low morale in ZEST-O Corporation.
8 Frequency distribution of the cause of employee absence by 26
Children care and Elder Care in ZEST-O Corporation.
Depression in ZEST- O Corporation.
Disengagement in ZEST – O Corporation.
Illness ZEST – O Corporation.
Injuries in ZEST – O Corporation.
Job hunting in ZEST – O Corporation.
Partial shift in ZEST – O Corporation.
15 Summary Distribution of Weighted Mean of the Common Cause 34
of Employee Absences in ZEST – O Corporation.

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16. Frequency distribution of the cause of employee absences by 37
Bullying and harassments in TITA FANNIES.
Burnout, stress and low morale in TITA Fannies.
18. Frequency distribution of the cause of employee absence by 40
Children care and Elder Care in TITA Fannies.
Depression in TITA Fannies.
20. Frequency distribution of the cause of employee absences by 43
Disengagement in TITA Fannies.
Illness in TITA Fannies.
Injuries in TITA Fannies.
Job hunting in TITA Fannies.
Partial shift in TITA Fannies.
25 Summary Distribution of Weighted Mean of the Common Cause 49
of Employee Absences in TITA Fannies.
26 Cost of Employee Absences in the ZEST – O Corporation and 50
TITA Fannies Food chains.
27 Summary of Employees Percentage of Absences against 79
Cost of employee Absences in ZEST – O Corporation
and TITA Fannies Food Chain.

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LIST OF FIGURES
Figure Number Page
1 Conceptual Framework of the Study 6
2 The Research Process of the Study 7
3 Map of the Locale 15

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CHAPTER I
Problem and Its Scope
Absences of employees have always been one of the persistent problems in business.
“Absences” is generally understood in different ways by different people. It is usually interpreted
as an employee or a group of employees remaining absent from work either continuously for a
long period or repeatedly for short periods (Chandramouli and M.C. Sandhyarani, 2013).
Absences convey different meanings, and is pressed out in different ways in different states or
industries. In simple words by Paul Rourke (2011), it is the total number of workers absent
expressed as a percent of the total number of employees hired. In more technical words the same
may be stated to imply “a ratio of the number of production man-days or shifts lost to the entire
figure of production man-days or shifts scheduled to work”.
These absences within any workforce is something inevitable because even the hardest
working people are starting to find themselves needing time off outside of their workplace. That
is the reason the researchers came up with this study because some organizations do not devote
much attention to this matter. Gratuitous to say, they do not recognize that it has hidden effects
to their organization and that employee absences are one of the greatest troubles that a
director/manager has to manage on an ongoing basis as it impacts on service delivery, staff
morale, and could contribute to financial losses and this financial loss is hard to quantify in some
instances; like absence is not registered and the indirect cost associated with absence is not easily
identified and counted. So absence control can often be an important measure in the procedure
of reducing business cost and because of competitive pressures, companies can no longer afford
to carry unnecessary absence that they may have suffered in the past years.

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In small cases, some businesses are not immune to such "financial losses." There are
obvious costs associated with an absent employee, including consequences difficult to measure.
The most obvious cost is in the area of sick leave benefits—provided that the business offers such
benefits—but there are significant hidden costs as well. The SOHO Guidebook cites the following
as notable hidden cost factors associated with absences: lost productivity of the absent employee,
overtime for other employees to fill in, decreased overall productivity of those employees, costs
incurred to secure temporary help, possible loss of business or dissatisfied customers and
problems with employee morale.
And in accordance with the research conducted by Mercer and sponsored by Kronos, it
reveals that employee absence costs, on average, the equivalent of 35 percent of base payroll.
This includes the direct and indirect costs of planned absences like vacations and holidays,
unplanned absences from sick days, and extended absences such as short-term disability and
Family and Medical Leave Act leave. Each type of absence carries costs that can significantly affect
the company, yet most organizations lack a clear understanding of them.
As most employers will know, absences come in all forms and sizes and can last anything
from days to years. In connection to that, researchers decided to identify what are the most
common causes of absences among employees’ reason for absences in TITA FANNIES Food Chains
at Iligan City and in ZEST-O Corporation at El Salvador City, Misamis Oriental and sits impact to
employer cost.

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Theoretical Background
According to Barkha Gupta (2013), some of the common causes of employee’s absences
that people fail to go work include (but are not limited to):
1. 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.
2. 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.
3. 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.
4. 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.
5. 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.
6. 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.
7. 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.

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8. Job hunting - employees may call in sick to attend a job interview, visit with a headhunter or
work on their resumes/CVs.
9. Partial shifts – the example of this causes is arriving late, leaving early and taking longer breaks
than allowed are considered forms of absenteeism and can affect productivity and workplace
morale.
Furthermore, the causes of absences mentioned above also contribute cost to
organizations as what Guy Carpenter et.al. (2008) state and this includes:
1. Direct costs – it is the payment or benefit provided to an employee for time not worked. For
example, this may be “salary continuation” for a vacation or a short-term disability, or a
separate benefit paid by a disability carrier.
2. Indirect costs - these costs represent the real impact to the organization as a result of the
absence. There are two main components:
A. Replacement labor expenses - the costs for employers to have other individuals do
the work that an absent employee is unable to do. Replacement worker costs are hard-
dollar expenses, representing added pay and benefits for extra staffing, or costs for
overtime, temporary labor, and outside contractors.
B. Net lost productivity value - a soft-dollar measure of potential lost revenue to the
extent that the work is not fully “covered” by replacement labor. In other words, if
fewer widgets are produced, fewer customers are served, or fewer sales are
completed, potential revenue is lost. It is conservatively estimated the value to equal
the salary and benefits/other HR costs as a percentage of payroll for the percentage
of work not fully covered by replacements or by exempt employees working longer
hours. In reality, a for-profit employer’s lost productivity value could be much higher,

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since the work needs to cover not only employee expenses but other business costs
as well, plus a return or profit on the work performed.
3. Administrative costs – it is the additional costs an employer bears for internal staff, software,
office space and equipment — or for an outside organization — to administer absence benefits
(tracking, review, approvals, processing, case management, clinical support, etc.). While not
normally included in indirect costs, these are clearly additional expenses associated with
employee absenteeism for all organizations.
It is therefore concluded that in every employees’ absences, a certain cost is incurred by
the organization. Thus, the causes of absences contribute cost to the organization.

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Conceptual Framework of the Study
Figure 1. Conceptual Framework of the Study
This part of the research involves concepts used as the foundation of the study. This study
aims to identify the impact of employee absences on the employer cost.
The independent variables of the study are composed of the socio-demographic profile
of the respondents which includes age, sex, civil status and educational attainment, causes of
absenteeism, the bullying and harassment, burnout, stress and low morale, children and elder
care, depression, disengagement, illness, injuries, job hunting, and partial shifts.
The dependent variable is the employers cost cause by its employees’ absences.
Impact of Employee s’
Absences on Employer
Cost
a. Direct Cost
b. Indirect cost
c. Administrative Cost
1. Socio-demographic Profile of the
Respondents
a. Age
b. Sex
c. Civil Status
d. Educational Attainment
2. Causes of Absenteeism
a. Bullying and Harassment
b. Burnout, Stress and Low
Morale
c. Children and Eldercare
d. Depression
e. Disengagement
f. Illness
g. Injuries
h. Job Hunting
i. Partial Shift
Independent VariableDependent Variable

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1. Socio-demographic Profile
of the Respondents
a. Age
b. Sex
c. Civil Status
d. Educational
Attainment
2. Causes of Absences
a. Bullying and
Harassment
b. Burnout, Stress
and Low Morale
c. Children and
Eldercare
d. Depression
e. Disengagement
f. Illness
g. Injuries
h. Job Hunting
i. Partial Shift
Research Process of the Study
Figure 2. The Research Process of the Study
Figure 2 outlines the entire flow of the research. The input includes respondents’ profile
and the causes of employee absences. Next is the research process that is divided into five major
parts. The result of the survey will measure the impact of employees’ absences on employer cost
in the organizations.
 Impact of
Employee s’
Absences in
its Employer
Cost
a. Direct Cost
b. Indirect cost
c. Administrative
Cost
Input Research Process
1. Construct
questionnaire
2. Distribute
questionnaire
3. Interview to
Human Resource
Personnel
3. Collect questionnaire
4. Tabulate the
collected data
5. Analysis and
interpret data
Output

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Statement of the Problem
This study was conducted to identify the most common cause of employees’ absences
and in cost on the employer side. Specifically, this study seeks to answer the following questions:
1. What is the socio-demographic profile of the respondents in terms of:
A. Age
B. Sex
C. Civil Status
D. Educational Attainment
2. What is the percentage of absences committed by the employees in the organization?
3. What is the most common cause of employee’s absences in the organization?
4. What is the cost of employee absences in the organization in terms of:
A. Direct Cost
B. Indirect cost
C. Administrative Cost

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Significance of the study
This study determined the common cause of employees’ absence. This study will give the
readers the idea how absences affect organizations. Moreover, this study will be beneficial to the
following:
To the Management
The study will help to build up a systematic approach in reviewing absence issues. To
realize the most appropriate solutions for the organizational circumstances and identify the most
useful sources of further guidance and information. He/she can likewise recognize how to handle
employees’ reason for absences and be flexible to it to encourage harmonious relationships and
productive organization.
To the Employees
The study will help them to know how their absences contributes cost to the employer
and how to be flexible in their work in order to be productive.
To the Organizations
The study will help them to know the steps to be taken or required to prevent employee’s
absences and how to create a concise absence policy in order to bring down the employee
percentage level of absences. This study will be serving as their basis in handling such causes of
employee’s absences and promoting flexible programs, benefits and even policies to prevent
absenteeism. The organization will also know how costly absences of their workers in their
organization.

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To the Future Researchers
This research output will serve as their reference guide in studying employee absences
in a organization and also give idea on how absences can be minimized.
Scope and Limitation
This research study was conducted in ZEST-O Corporation in El Salvador City and TITA
Fannies Food Chains in Iligan City. The secondary data of employer cost incurred due to employees
absences, the direct cost, indirect cost and administrative cost were analyzed and computed. The
study was limited to nine causes of employee absences as cited by Barka Gupta, while
respondents are limited to the worker of production department of the said organizations.
Definition of Terms
Technical Definition
Absences - it is the state of not being present that occurs when an employee is not present at
work during a normally scheduled work period.
Employer costs - it includes productivity losses, lost business opportunities, salary of the injured
employee or of a replacement employee or additional overtime costs, expenses reimbursed to
the injured employee, repair, rental or replacement costs, changes to insurance premiums, and
legal costs.
Disengagement - it is the act of releasing from an attachment or connection.
Employee - is defined as any person employed in terms of the Public Service Act, 1994 irrespective
of rank or position (Public Service Act, 1994: Subsection 1.5). Todd (2001:1) refers to an employee
as any person, excluding an independent contractor, who works for another person and is entitled

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to be paid for it, or who in any manner assists in carrying on or conduct the business of the
employer. Bendix (2000:123) defines an employee as a person in a workplace except a “senior
managerial employee” who’s status and contract of service grants the employee the authority to
represent the employer in interactions with the workplace forum, to determine policy on behalf
of the employer and make decisions which might conflict with representation of workers at the
workplace.
Employer – a person or firm that employs workers or a legal entity that controls and directs a
worker under an express or implied contract of employment and pays him or her salary or
wages in return.
Lateness - employees are considered “late” when they arrive for work after their scheduled
starting time, or if they leave before the end of the scheduled work day.

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CHAPTER II
Review of Related Literature
It is a renowned fact that employees are the lifeblood of every organization. The better
they are, the better qualified, trained, and managed, more effective and profitable the
organization will be. But their absences within any workforce are something inevitable for many
companies. Even the hardest working individuals are going to find themselves needing time off
outside of their designated vacation time. Whether it be personal reasons or sickness, companies
will always require a flexible plan of attack to the attendance of staff members. However, there
can also be times when workers seemingly take advantage of an employer's relaxed approach.
Many workers did not see the act of missing a shift as being a particularly pressing cause for
concern. However, for companies themselves the situation can sometimes be difficult to resolve.
According to the Irish Business and Employers’ Confederation survey the main causes of
short-term absence were illnesses, such as colds/ flu, stomach upset, headaches etc. for both
males and females. Some 44% of respondents identified this as the primary cause of absence for
men and 49% as the primary cause of short-term absence for women and in terms of causes other
than minor illness, home responsibilities and recurring health problems also ranked as the main
causes of short-term absence. In the long-term absence the main cause recorded by respondents
was recurring health problems for both males and females.
In connection to the study, the survey conducted by Irish Business and Employers’
Confederation is relevant to the present study because the most common cause in employee
absences is illness in both companies that the researchers have conducted and a small percentage
in home responsibilities.

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Additionally, the Community Based Health Insurance Scheme (CBI’s) Absence and
Workplace Health Survey 2011 reveals illnesses remain the most common reason why people
commit short-term absences; but long-term absence accounts for nearly a third (32%) of lost
working time. This can relate to stress, anxiety and depression, while musculoskeletal disorders
are the second most common reason for long-term sickness, especially among manual workers,
followed by chronic back pain which can be classified as an injury in the causes of absences. Some
72% of CBI respondents reported non-work-related ill-health had an adverse effect on staff
performance and productivity.
The CBI’s survey supports this study wherein injuries like chronic back pain is the second
of the most common reasons of long term sickness leads to lost in working time, especially among
manual workers and in this study musculoskeletal disorder is classified as an injury. In this, we can
say that in manufacturing industry like ZEST – O Corporation, one of the common causes of
employees’ absences is due to injuries of their manual workers especially in the production
department.
Furthermore, the study of Ricard Webster (2012) stated that work-related injuries,
illnesses and deaths impose costs on employers, workers and the community. These include both
direct costs and indirect costs. Direct costs include items such as workers‟ compensation
premiums paid by employers or payments to injured or incapacitated workers from workers‟
compensation jurisdictions. Indirect costs include items such as lost productivity, loss of current
and future earnings, lost potential output and the cost of providing social welfare programs for
injured or incapacitated workers. The level of costs borne by each economic agent varies with the
severity of the injury or disease. While measures of direct costs are understood and reasonably
simple to measure, these costs cover only a fraction of the total cost of work-related injury and
disease.

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As mentioned by Ricardo Webster, work-related injuries, illnesses and deaths impose
costs to employers and these costs can be direct and indirect cost. Researchers include this in the
study for it supports the theoretical background of the study.
Additionally, the research conducted by Mercer and sponsored by Kronos reveals that
employee absence costs, on average, the equivalent of 35 percent of base payroll. This includes
the direct and indirect costs of planned absences like vacations and holidays, unplanned absences
from sick days, and extended absences such as short-term disability and Family and Medical Leave
Act leave. Each type of absence carries costs that can significantly affect the company, yet most
organizations lack a clear understanding of them.
As an overall view, there are many other causes of absences that affects employees like
the job they have, health conditions, and even to their co-workers and other matters. The cost of
absence is often misunderstood, seen as immeasurable, or dismissed as a negligible amount.
While most other expenses for an organization, including most benefit programs, have clearly
defined costs, employee absence is an area that is often not carefully tracked or even when it is,
does not easily reveal its full costs. In a simplistic view, absences are sometimes seen as having
no extra costs, since they are largely included in payroll expenses. But most managers know that
absences do affect an organization’s customer service, staffing, and attainment of production and
other business objectives. Otherwise, there would be no need to try to manage them. Through
employee absences companies or organization incur cost and losses in productivity as mentioned
above. Preventing absences can be difficult to achieve since there are a lot of factors to be
considered. Managing, making policies and tracking absenteeism can be the ways of minimizing
absenteeism. So management must also give attention to employee’s absences for it highly
affects organization productivity, financial cost and success in unseen ways.

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CHAPTER III
Research Design and Methodology
This chapter shows the methods and procedure used in the study. These consist
of the following topics: Research design, Research locale, Research subject, Data gathering
method, Sampling procedures, and Statistical treatment of data.
Research Design
The descriptive-quantitative method of research was used in this study as the research
design. Descriptive-quantitative method of research is a design where the researchers considered
two variables (not manipulated) and established a formal procedure to relate the variables. The
quantitative research is used to quantify the problem by using a Likert Scale in generating
numerical data or data that can be transformed into useable statistics. It is used to quantify the
causes of absences and other defined variables – and generalize results from a larger sample
population and its methods include various forms of surveys –paper surveys, face-to-face
interviews and telephone interviews.
Research Locale
The first area of the study is situated at the city of El Salvador, Misamis Oriental where
ZEST – O Corporation is located. The company’s location has a coordinate of 8⁰34’9”N and
124⁰30’38”E. Zest-O Corporation also is one of the largest beverage companies in the Philippines
and a Philippine market leader in ready-to-drink juices. It was founded by Chinese Filipino
businessman Alfredo Yao. The company's juices currently offer eleven different flavors: orange,
mango, grape, pineapple, strawberry, guyabano, apple, calamansi, mango-orange, mango-

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calamansi, and mango- lemon lime. It also manufactures other products like tomato sauce,
toothpaste, Quickchow instant mami.
The second area of the study is in Iligan City where the TITA FANNIES is located. Tita
Fannies is nestled on a two-storey building on a small alley of Roxas Avenue in Iligan City. It has
been spreading roasted goodness to Iliganons since its humble inception 14 years ago. Looking at
the number of franchises it now has and its posh restaurant interiors, you wouldn’t think that its
first store was made from nipa and bamboo materials. Besides lechon manoks, Tita Fannies also
offers the crispiest pork liempo in town. Good thing Tita Fannies has got a few more dishes up her
sleeves, like meaty pork barbecues were soon served on the table plus their Bila-Overload and
many more desserts and other delicious recipe.

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Figure 3. Map of the Research Locale

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Research Subject
The respondents of the study are the workers from production department of ZEST-O
Corporation in El Salvador City which has fifty – seven (57) employees and in TITA FANNIES Food
Chains which has forty-four (44) employees in a total of 101 respondents. Also, the other subjects
of the study are the Human Resource Personnel in each company who answered to the
researchers’ interviews regarding the cost they have incurred due to employees’ absences.
Data Gathering method
The research study was conducted through distributing questionnaires for the employees
of the chosen establishments which serves as the primary data. Before the distribution of
questionnaires, there was a letter sent first to the ZEST – O Corporation and TITA FANNIES in order
to seek permission to conduct surveys. After the permit had been approved, by the Manager, the
questionnaires were administered to the employees as subjects of the study. Researchers also
conducted an interview to the Human Resource Personnel of each company to get secondary data
regarding the cost each organization had incurred due to employees’ absences.
Sampling Procedure
Random sampling was used in the study where individuals were samples to serve the
purpose.

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Statistical Treatment
After the questionnaires were collected, the researchers tabulated and analyzed the data.
The questionnaire response is sorted into categories. Then, the responses are tallied accordingly.
To get the percentage, divide the frequency with the total number of respondents then
multiplied by 100%.
Formula: P = ( f / n ) x 100 Where:
P = percentage
f = frequency
n = total number of employees
100 = constant
To determine the frequency of the data, the researchers used a weighted mean:
Formula: x = ( f x i ) /N Where:
X = mean
f = frequency
i = points/score
N = number of respondents
Percentage of Absences incurred by the employees in the Organization
In this portion of the study one can see how to compute percentage of employee
absences in ZEST – O Corporation and TITA Fannies against their total operation hour.
Formula:
Total hours of all employee absences
Percentage of = ___________________________________________________________________X 100
Absences Total days company operated x daily hours operated x number of employees
Weight Range Verbal Interpretation Score
1.0 – 1.75 Always 1
1.76 – 2.5 Often
2
2.6 – 3.5 Sometimes
3
3.6 – 4.0 Never 4

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CHAPTER IV
Presentation, Analysis, and Interpretation of Data
The findings of the study and analysis of data are presented in this chapter. The
discussions were based on the data gathered from ZEST-O Company wherein there are 57
respondents out of 80 employees and in TITA FANNIES wherein there are a total of 44
respondents. The discussion includes the result on profile of employees, the percentage of
absences in terms of operation hours of employee, the common causes of absences that
employee have and the cost that a company incurred due to absences of employees.
Table 1. Distribution of Respondents according to Age
Age Zest – O Corporation Tita Fannies
Frequency Percentage (%) Frequency Percentage (%)
18-27 years old 29 50 28 64
28-37 years old 22 39 12 27
38-47 years old 6 11 4 9
Total 57 100 44 100
Table 1 shows the distribution of respondents according to age. Out of 57 respondents
from ZEST – O Corporation, 50% are between 18-27 years old; 39% are between 28-37 years old,
and 11 % are between 38-47 years old. While in Tita Fannies, out of 44 respondents, 64% are
between 18-27 years old ; 27% are between 28-37 years old, and 9% are between 38-47 years old.
The data show that most employees in the production department of Zest-O Corporation
and Tita Fannies are in the age bracket of 18-27 years old. This implies that in ZEST-O Corporation
and TITA Fannies they need younger workers to endure the manual work which require energy,
capacity to do work and natural thirst for knowledge which can rub off on colleagues and help
invigorate the workplace. Furthermore, according to Felipe (2015), employees in their 20’s are
eager to work, can multi-task, and work under pressure. They are enthusiastic, energetic and

29
physically active. The amount of work they can offer is greater, and younger employees endure
the pressure and night shift in their work.
Table 2. Distribution of Respondents according to Sex
Sex ZEST-O CORPORATION TITA FANNIES
Male 29 51 25 57
Female 28 49 19 43
Total 57 100 44 100
Table 2 shows the distribution of respondents according to sex. The data shows that from
ZEST – O Corporation 51% are male and 49% are female. This shows that most of the employees
in the production area of Zest-O Corporation are male. This shows that ZEST – O Corporation
prefer male because of the nature of the business operation which is manufacturing. It has a night
shift schedule and male employees are much needed because the nature of work requires
endurance and strength.
The data also show that there are 57% males and 43% are females in TITA Fannies. This
implies that the majority of the employees of Tita Fannies are male. Since the nature of business
is a restaurant they need a male employee as a delivery personnel. Tita Fannies also offer catering
on which male is also much needed for the carrying of tables, plates, and other heavy materials
and food. It is more convenient for male employees having this kind of work than female.
Table 3. Distribution of Respondents according to Civil Status
Status
Zest - O Corporation Tita Fannies
Single 31 54 32 73
Married 26 46 10 23
Live-in 0 0 2 4
Total 57 100 44 100

30
Table 3 shows that out of 57 respondents there are 54% single, and 46% are married in
ZEST – O Corporation. While in TITA Fannies, 73% are single, 23% are married and 4% are live-in
It reveals that most employees are single. This infers that ZEST-O Corporation prefers single
employees because they have night and day shift schedule of work, and so that employees do not
have a lot of worries thinking about their family or left child unlike married people same as in the
TITA Fannies. Furthermore, since most of the employees are single, then most of them are able
and willing to work longer. This is connected to De Paulo, B. M. (2006) findings that single
individuals are able and willing to work longer hours than married peoples because single people
have fewer obligations outside of work.
Table 4. Distribution of Respondents Profile according to Educational Attainment
Educational Attainment
ZEST – O Corporation TITA Fannies
High School Level 29 51 18 41
College Level 28 49 26 59
Total 57 100 44 100
Table 4 shows that 51% of the respondents from the production department in ZEST – O
Corporation are High School Level and 49% are College Level. Meanwhile, 59% are College Level
and 41% are High school Level in TITA Fannies. This means that majority of the respondents are
high school level in ZEST – O Corporation while most of the employees in TITA FANNIES are College
level. This implies that employees in ZEST – O Corporation especially in the production
department are not necessary to obtain skill or higher educational attainment for the work in the
company is manual, adaptable and easy to learn while TITA Fannies preferred college level
employee in the company for it has a lot of ideas on how to easily make food and blending
different kinds of seasoning and even facing the customer.

31
II. Percentage of Absences incurred by the Employees in the Organization
Table 5. Percentage of Absences incurred by the Employees in the Organization in 2015
Percentage of Absences
against Total Operation Hour
ZESTO – O Corporation TITA Fannies
5.21 % 6.9%
Table 5 shows the percentage of absences incurred by the employees in the ZEST – O
Corporation and TITA Fannies which computation is in Appendix C.
It shows that ZEST – O Corporation had 5.21% of those where the percentage employees
absent in their work. While TITA Fannies had 6.9% of employee absences in work. It indicates
that TITA Fannies has a high percentage of employee absences compare to ZEST – O
Corporation.
This result is relevant to what the Human Resource Personnel in every company said as
the researchers conducted an interview with them last December 2015. In ZEST – O
Corporation, Ms. Liziel B. Lumbay said that they have a less percentage of absences because
they implement a tight policy regarding absences and time control using bundy clock and also
they have proper assistance and benefits to their employees. While in TITA Fannies, they do
not have a tight policy in controlling absences and they are only using log books as a record
for employees’ time in and time out which can be manipulated easily and they have twice a
month meeting for all employees to discuss the reasons for their absences and other matters
which is very costly and time consuming as what Miss Jannah said, the Human Resource
Personnel of TITA Fannies.

32
III. Causes of Employee Absences
Table 6. Frequency distribution of the cause of employee absences due to bullying and
harassments in ZESTO –O Corporation
Bullying and
Harassments
Always Often Sometimes Never
Weighted
Mean
VIF % F % F % F %
1. How often did you
experience any repeated
hurtful remarks or
attacks and/or did people
make fun of your work
and you as a person that
made you decide not to
go to work?
0 0 0 0 3 5.26 54 94.74 3.95 Never
2. Do you skip your work
because your boss or
coworkers intimidate
you?
0 0 1 1.75 4 7.02 52 91.23 3.89 Never
3. Has your superior or
the management ever
given you impossible jobs
that can’t be done in the
given time or with the
resource provided which
causes you to absent in
your work?
0 0 0 0 0 0 57 100 4.00 Never
4. Do you experience any
sexual harassment like
unwelcome touching and
sexually explicit
comments and requests
that make you feel
uncomfortable causes
you to skip work to avoid
them?
0 0 0 0 1 1.75 56 98.25 3.98 Never
5. Does your co-worker
or boss push, trips,
shoves or grab you in
your workplace that
causes you to skip work?
0 0 0 0 2 3.51 55 96.49 3.96 Never
Average Weighted Mean 3.96 Never

33
Table 6 shows the frequency distribution of the cause of employees’ absence due to
bullying and harassment. The table display the average weighted mean of 3.96 with the verbal
interpretation as never. This means that bullying and harassment is not the common cause of
employee absences in the organization. Then according to Rodel Batocabe, the enactment of a
law against bullying in the workplace would carry out the constitutional provision mandating
respect for the dignity and rights of every person.

34
Table 7. Frequency distribution of the cause of employee absences due to Burnout, Stress and
Low Morale in ZEST-O Corporation
Burnout, Stress and Low
Morale
Always Often Sometimes Never Weighted
Mean
VI
F % F % F % F %
1. Does your employer or
organization set
unrealistic job
expectations that stresses
and causes you to commit
absence in the work?
0 0 1 1.75 5 8.77 51 89.47 3.88 Never
2. Do you commit
absences in your work
because of self-apathy
(the trait of lacking
enthusiasm for or interest
in things generally)
because the demand of
your client or supervisors
exceeds to your capability
or resources and feel like
you cannot do anything
about it?
0 0 2 3.51 1 1.75 54 94.74 3.91 Never
3. Do you commit
absences because of the
volume of your works?
0 0 1 1.75 1 1.75 55 96.50 3.95 Never
4. Do you skip in your
work because of the
inflexible working
conditions of the
workplace?
0 0 2 3.51 2 3.51 53 92.98 3.89 Never
5. Do you skip work
because of the level of
respect you receive in the
workplace which leads
you to have emotional
exhaustion?
0 0 1 1.75 2 3.51 54 94.74 3.93 Never
Table 7 shows the frequency distribution of the cause of employee absence due to
burnout, stress, and low morale in ZEST – O Corporation. The data displays the average weighted
mean of 3.91 with the verbal interpretation of never. This indicates that burnout, stress and low

35
morale in the Zest-O Corporation is not the common reasons why employee commit absences.
Table above also implies that some of the employees in the said organization are suffering from
stress.
Table 8. Frequency distribution of the cause of employee absence due to Children Care and
Elder Care in ZEST-O Corporation
Children Care and Elder
Care
Mean
VI
F % F % F % F %
because no one will take
care of your children in
your house?
0 0 3 5.26 2 3.51 52 91.23 3.86 Never
2. Do you try to commit
absences at work
because your child is
sick?
0 0 7 12.28 6 10.53 44 77.19 3.65 Never
work because no one
would take good care of
your old mother/father?
0 0 1 1.75 1 1.75 55 96.50 3.95 Never
4. Do you commit
absences because your
old mother/father is
sick?
0 0 1 1.75 3 5.26 53 92.98 3.91 Never
5. Do you commit
absences because of the
medical appointment of
your children or old
mother/father?
0 0 3 5.26 3 5.26 51 89.47 3.84 Never
children care and elder care. The data show that child care and elder care is not one of the most
common causes of employee absences in the Zest-O Corporation which has an average weighted
mean of 3.84 which has a verbal interpretation of never. Furthermore, even the child care and
elder care are not the leading cause of employees’ absences still it gets some portion of the
employee absences from work. It is also reported that the number of children and marital status

36
are variables that represent kinship responsibilities and are considered a major contributor to
absence. They might lead to higher levels of absenteeism, because of the increased role demands
on employees who are married and have more children (Cohen and Golan, 2007).
Table 9. Frequency distribution of the cause of employee absence due to Depression in ZEST- O
Corporation
Depression
Mean
VI
F % F % F % F %
1. Do you drink
alcohol to self-
medicate your pain
and anxiety that
causes you to be
absent in your
work?
0 0 4 7.02 13 22.81 40 70.81 3.63 Never
2. How often do
you feel fatigued
that causes you to
skip in your work?
0 0 9 15.79 15 26.23 33 57.89 3.42 Sometimes
3. Do you commit
absences because
you feel guilty,
hopeless, or
worthless in your
work?
0 0 1 1.75 1 1.75 55 96.50 3.95 Never
4. Do you commit
absences in your
work because you
are restless or feel
irritable?
0 0 1 1.75 1 1.75 55 96.50 3.95 Never
5. Did you lose
interest in
activities once
enjoyed in your
work and causes
you to be absent?
0 0 0 0 1 1.75 56 98.25 3.98 Never

37
depression. In the questions under depression, one of these results to the verbal interpretation
as sometimes with a weighted mean of 3.42 which is the question number 2 that is “How often
do you feel fatigued that causes you to skip in your work?”. This implies that employees are
depressed because they feel fatigue due to work that leads them to commit absences in work.
This also indicates that depression is not the most common causes of the employees’ absences in
the Zest-O Corporation with an average weighted mean of 3.79. Moreover, according to the San
Antonio Business Journal (2012) the experience of some degree of depression is universal. That is
why employers have such a difficult time identifying the more serious forms of depression that
can affect a person, resulting in deterioration of relationships and job performance.

38
Table 10. Frequency distribution of the cause of employee absences due to Disengagement in
ZEST – O Corporation
Disengagement
Mean
VI
F % F % F % F %
1. Do you skip work
because of the instability
and insecurity arising in
the company?
0 0 0 0 2 3.51 55 96.49 3.96 Never
2. Do you skip work
because of lack of
psychological
meaningfulness and
psychological safety at
work?
0 0 0 0 0 0 57 100 4.00 Never
3. Do you commit
because you lost your
interest in the job?
0 0 0 0 2 3.51 55 96.49 3.96 Never
4. Do you commit
absence in your work
because the job you have
is not a match to your
expectation and
qualification?
0 0 0 0 2 3.51 55 96.49 3.96 Never
5. Do you commit
because you are not
satisfied with the
benefits you get?
0 0 1 1.75 1 1.75 55 96.49 3.95 Never
disengagement. The data show that disengagement does not take part to employees’
absences in ZEST – O Corporation which has a weighted mean of 3.97 which is never in
verbal interpretation. Table above also implies that some of the employees are not
satisfied for the benefits they get from the company and not totally engage to their work.
Still, for the last several years, observers have been interested greatly in employee
engagement. Some have asserted that employee engagement forecasts employee

39
results, organizational accomplishment, and financial performance (Harter, Schmidt and
Hayes 2002; Bates 2004).
Table 11. Frequency distribution of the cause of employee’s absences due to Illness ZEST – O
Corporation
Illness
Mean
VI
F % F % F % F %
1. Do you
commit absence
at work because
you are sick or
have a high fever
or severe
disease?
2 3.51 10 17.54 27 47.37 18 31.58 3.07 Sometimes
2. Do you
commit absence
from work due to
medical
appointments?
0 0 11 19.30 17 29.82 29 50.88 3.32 Sometimes
3. Do you
commit absences
because of
mental ill health?
0 0 0 0 0 0 57 100 4.00 Never
4. Do you suffer
minor illness that
causes you to
skip in work?
0 0 7 12.28 19 33.33 31 54.39 3.42 Sometimes
5. Do you
commit absences
due to other
genuine health
problems?
0 0 6 10.53 19 33.33 32 56.14 3.46 Sometimes
Average Weighted Mean 3.45 Sometimes
Table 11 shows the frequency distribution of the cause of employee’s absences through
Illness which has a weighted mean of 3.45 which is sometimes in verbal interpretation. This
indicates that through illnesses, employee commit absences sometimes and it has a bigger
contribution to employees’ absences in ZEST – O Corporation.

40
This indicates that illnesses are one of the major cause of employee absences in ZEST – O
Corporation. Table above also implies that most of the employees from the organization are prone
to illnesses except mental illnesses. Furthermore, long-term physical illnesses are more significant
for manual employees, while recurring illnesses is more common among non-manual employees.
Long-term absences has the greatest impact on business, resulting in over 40 percent of total
working time lost (Haswell, 2003).
Table 12. Frequency distribution of the cause of employee absences due to Injuries in ZEST – O
Corporation
Injuries
Always Often Sometimes Never
Weighted
Mean
VI
F % F % F % F %
1. Do you commit
because of work
accidents that causes
you injuries?
0 0 0 0 5 8.77 52 91.23 3.91 Never
2. Did you absent in
your work because of
severe back pain?
0 0 4 7.02 1 1.75 52 91.23 3.84 Never
3. Do you commit
absences in your
work due to severe
neck and head pain?
0 0 3 5.26 10 17.54 44 77.19 3.72 Never
4. Do you commit
absences in your
work because of
injuries you acquire
outside of your
work?
0 0 2 5.26 5 8.77 50 87.72 3.84 Never
5. Do you commit
absences in your
work because of
other injuries not
stated above?
0 0 3 5.26 8 14.04 46 80.70 3.75 Never

41
Table 12 shows the frequency distribution of the cause of employee’s absence due to
Injuries which gain a weighted mean of 3.81 which mean never in verbal interpretation in ZEST -
O Corporation. Table above implies that employees from the said organization are suffering from
injuries mostly on having a severe neck and head pain. Also, from the 2013 report by The Work
Foundation, European workers in particular, musculoskeletal pain and injury is a concern: nearly
half of all absences in the EU from work lasting more than three days are caused by
musculoskeletal disorders (MSDs) and injury, which can affect the body’s muscles, joints, tendons,
ligaments, bones and nerves which mostly occur in the manufacturing company.
Table 13. Frequency distribution of the cause of employee absences due to Job Hunting in ZEST
– O Corporation
Job Hunting
Mean
VI
F % F % F % F %
1. Do you commit absence
from work due to a job
interview of another
company?
0 0 0 0 0 0 57 100 4.00 Never
2. Do you commit absences in
attaining other job
orientation?
0 0 0 0 0 0 57 100 4.00 Never
3. Did you commit any
absences due to attaining
seminar and conferences of
another company in order to
be qualified in their company
even you have your other
current job?
0 0 0 0 0 0 57 100 4.00 Never
4. Do you skip your job for
finding another job? 0 0 0 0 0 0 57 100 4.00 Never
from work due to making and
processing your
resumes/Cvs?
0 0 0 0 0 0 57 100 4.00 Never

42
Table 13 shows the frequency distribution of the cause of employee absence by job
hunting with a weighted mean of 4.00 which mean never in verbal interpretation. In table above,
it implies that job hunting does not take part to the causes of employees absences in ZEST – O
Corporation because no one commit absences due to it because maybe the employees are
satisfied in their salary or they are tired of finding new job.
Table 14. Frequency distribution of the cause of employee absences due to Partial Shift in ZEST
– O Corporation
Partial Shift
Mean
VI
F % F % F % F %
1. Do you arrive late
at your work?
0 0 0 0 0 0 57 100 4.00 Never
2. Do you leave early
in your work even it
is not a time to go
out?
0 0 0 0 0 0 57 100 4.00 Never
3. As has been a
night shift worker.
Do you commit
absences because of
your schedule?
0 0 4 7.02 21 36.84 32 56.14 3.49 Sometimes
4. Do you commit
absences of your
work because your
schedule at work is a
day shift?
0 0 0 0 0 0 57 100 4.00 Never
5. Do you take
longer breaks in
working?
0 0 0 0 0 0 57 100 4.00 Never
partial shifts which has a weighted mean of 3.90 which means never in verbal interpretation. This
implies that partial shifts in work schedule of ZEST – O Corporation is not the common cause of
employee absences. The table also shows that employees commit absences sometimes because

43
they are night shift worker. In addition, In Peter Finn (2008) study entitled “The Effect of Work
Shifts on the Lives of Employee”, he mentioned that the attractions of shift work are considerable
for many individuals. But the benefits must be weighed by shift workers and policymakers alike
against the drawbacks that affect the health, interpersonal relationships, leisure time activities,
and perhaps the safety of a large proportion of shift workers. The central feature of shift work
that creates dissatisfaction for many evening and night workers is that it puts them "out of
rhythm" with their minds and bodies, families and social lives, and routines of the rest of the
community. So, this dissatisfaction created by shifts of works leads the worker to commit
absences at work because their body cannot easily adopt the changes and it may lead to sickness.
Table 15. Summary Distribution of the Average Weighted Mean of the Common Causes of
Absences in ZEST – O Corporation
Common Causes of Absences Weighted Mean Verbal Interpretation
Bullying and Harassment 3.96 Never
Burnout, Stress and Low Moral 3.91 Never
Child care and Elder Care 3.84 Never
Depression 3.79 Never
Disengagement 3.97 Never
Illnesses 3.45 Sometimes
Injuries 3.81 Never
Job Hunting 4.00 Never
Partial Shift 3.90 Never
Table 15 shows the summary of the weighted mean of the common causes of absence in
ZEST – O Corporation.
The data show that Bullying and Harassment develops a verbal interpretation never as
the cause of employee’s absences in the company with the weighted mean 3.96. In Burnout,
stress and low morale, it also develops a verbal interpretation never as the cause of absences with
the weighted mean 3.91. In the part of Child care and Elder care as the cause of employee’s
absences which gained a weighted mean of 3.84 it also has a verbal interpretation as never.

44
Depression gets 3.79 which also means never, disengagement which has a weighted mean of 3.97
which means never, `Illness develops a weighted mean of 3.45 which means sometimes, injuries
3.81 which means never, job hunting 3.99 which also means never and lastly partial shift which
has a weighted mean of 3.86.
The data above if arrange from the most significant to least, illnesses is the most common
reason why employee commit absences, 2nd
is depression, 3rd
is injuries, 4th
is child care and elder
care, the 5th
is the partial shift, 6th
is the burnout, stress and low morale, 7th
is the bullying and
harassment, 8th
is the disengagement and lastly, the 9th
rank is job hunting. Thus, all the eight
causes of employees’ absences contribute to employee absences in ZEST – O Corporation except
job hunting. Generally, the leading cause of employees’ absences in the company is
uncontrollable.

45
Table 16. Frequency distribution of the cause of employee absences due to Bullying and
Harassments in TITA FANNIES
Bullying and
Harassments
Mean
VI
F % F % F % F %
1. How often did you
experience any repeated
hurtful remarks or
attacks and/or did
people make fun of your
work and you as a
person that made you
decide not to go to
work?
3 6.82 1 2.27 3 6.82 37 84.09 3.68 Never
because your boss or
coworkers intimidate
you?
0 0 1 4.55 1 2.27 41 93.18 3.89 Never
3. Has your superior or
the management ever
given you impossible
jobs that can’t be done
in the given time or with
the resource provided
which causes you to
absent in your work?
1 2.27 0 0 1 2.27 42 95.45 3.91 Never
4. Do you experience
any sexual harassment
like unwelcome touching
and sexually explicit
comments and requests
that make you feel
uncomfortable causes
you to skip work to
avoid them?
1 1.27 0 0 2 4.55 41 93.18 3.89 Never
5. Does your co-worker
or boss push, trips,
shoves or grab you in
your workplace that
causes you to skip work?
0 0 0 0 4 9.09 40 90.91 3.91 Never
bullying and harassment in TITA Fannies. The table above shows that bullying and harassment

46
acquired 3.88 average weighted mean which means never in verbal interpretation. This also
implies that some employees from TITA Fannies are experiencing bullying and harassment.
Furthermore, according to ACAS (2014) bullying and harassment can make someone feel anxious
and humiliated. Feelings of anger and frustration at being unable to cope may be triggered. Some
people may try to retaliate in some way. Others may become frightened and de-motivated. Stress,
loss of self-confidence and self-esteem caused by harassment or bullying can lead to job
insecurity, illness, absence from work, and even resignation. Almost always job performance is
affected and relations in the workplace suffer.

47
Table 17. Frequency distribution of the cause of employee absences due to Burnout, Stress
and Low Morale in TITA Fannies.
Burnout, Stress and
Low Morale
Mean
VI
F % F % F % F %
1. Does your employer
or organization set
unrealistic job
expectations that
stresses and causes you
to commit absence in
the work?
0 0 2 4.55 3 6.82 39 88.64 3.84 Never
2. Do you commit
because of self-apathy
(the trait of lacking
enthusiasm for or
interest in things
generally) because the
demand of your client
or supervisors exceeds
to your capability or
resources and feel like
you cannot do anything
about it?
0 0 5 11.36 4 9.09 35 79.55 3.68 Never
3. Do you commit
absences because of
the volume of your
works?
1 2.27 3 6.82 4 9.09 36 81.82 3.70 Never
work because of the
inflexible working
conditions of the
workplace?
0 0 2 4.55 6 13.64 36 81.82 3.77 Never
5. Do you skip work
because of the level of
respect you receive in
the workplace which
leads you to have
emotional exhaustion?
1 2.27 0 0 2 4.55 41 93.18 3.89 Never
Table 17 shows the frequency distribution of the cause of employees’ absence by
burnout, stress, and low morale.

48
This indicates that burnout, stress and low morale in the TITA Fannies got an average
weighted mean of 3.78 which means never in verbal interpretation. Table above also implies that
most of the employees are suffering in burnout, stress and low morale most especially in the part
of self-apathy (the trait of lacking enthusiasm for or interest in things generally) because the
demand of the client or supervisors exceeds to their capability or resources and feel like they
cannot do anything about it. Moreover, burnout can be explained through differences at the
personal level. This factor includes situational and personal influences that may lead to burnout,
such as personality, over-commitment and setting unrealistic job expectations (Beasley,
Thompson, & Davidson, 2003; Pines & Aronson, 1988).

49
Table 18. Frequency distribution of the cause of employee’s absence due to Children Care
and Elder Care in TITA Fannies
Children care
and Elder Care
Mean
VI
F % F % F % F %
1. Do you skip
your work
because no one
will take care of
your children in
your house?
0 0 6 13.64 5 11.36 33 75.00 3.61 Never
2. Do you try to
commit
absences at
work because
your child is
sick?
1 2.27 6 13.64 6 13.64 31 70.45 3.52 Never
3. Do you skip in
your work
because no one
would take good
care of your old
mother/father?
0 0 1 2.27 5 11.36 38 86.36 3.84 Never
4. Do you
commit
absences
because your old
mother/father is
sick?
0 0 4 9.09 3 6.82 37 84.09 3.75 Never
5. Do you
commit
absences
because of the
medical
appointment of
your children or
old
mother/father?
1 2.27 10 22.73 3 6.82 30 68.18 3.41 Sometimes
Table 18 shows the frequency distribution of the cause of employee absence by child care
and elder care which has an average weighted mean of 3.63 which means never in verbal
interpretation. This implies that even the child care and elder care is not the most common cause

50
of employee’s absences in TITA Fannies still it gets some portion of the employee’s absences
which is alarming for some of the respondents answered often and sometimes in committing
absences due to child care and elder care. Lastly, Twenty nine percent of employed parents
experienced some kind of child care breakdown in the past three months, and those child care
breakdowns were associated with absenteeism, tardiness, and reduced concentration at work
(Bond et al., 2001).

51
Table 19. Frequency distribution of the cause of employee absence due to Depression in TITA
Fannies
Depression
Mean
VI
F % F % F % F %
1. Do you drink
alcohol to self-
medicate your
pain and anxiety
that causes you
to be absent in
your work?
0 0 3 6.82 4 9.09 37 84.09 3.77 Never
2. How often do
you feel fatigued
that causes you
to skip in your
work?
0 0 9 20.45 10 22.73 25 56.82 3.36 Sometimes
3. Do you
commit absences
because you feel
guilty, hopeless,
or worthless in
your work?
0 0 1 2.27 5 11.36 38 86.36 3.84 Never
4. Do you
commit absences
in your work
because you are
restless or feel
irritable?
0 0 1 2.27 5 11.36 38 86.36 3.84 Never
5. Did you lose
interest in
activities once
enjoyed in your
work and causes
you to be
absent?
0 0 3 6.82 1 2.27 40 90.91 3.84 Never
depression of employee in TITA Fannies. This indicates that depression is not the most common
cause in employees’ absences in TITA Fannies with a weighted mean of 3.73 which means never.
Table above also implies that most of the employees in the said establishment are suffering from

52
depression. Moreover, absences may rise because it is not socially acceptable to take off work for
depression and in accordance to that employees may frequently call in sick with other complaints
such as colds or flu and it is very common for those with untreated depression to self-medicate
with drugs or alcohol ( San Antonio Business Journal, 2012).
Table 20. Frequency distribution of the cause of employee absences due to Disengagement
Disengagement
Mean
VI
F % F % F % F %
1. Do you skip work
because of the
instability and
insecurity arising in the
company?
1 2.27 1 2.27 2 4.55 40 90.91 3.84 Never
2. Do you skip work
because of lack of
psychological
meaningfulness and
psychological safety at
work?
0 0 2 4.55 0 0 42 95.45 3.91 Never
3. Do you commit
because you lost your
interest in the job?
0 0 0 0 3 6.82 41 93.18 3.93 Never
4. Do you commit
because the job you
have is not a match to
your expectation and
qualification?
0 0 2 4.55 4 9.09 38 86.36 3.82 Never
5. Do you commit
because you are not
satisfied with the
benefits you get?
0 0 7 15.91 5 11.36 32 72.73 3.57 Never

53
Table 20 shows the frequency distribution of the cause of employees’ absence due to
disengagement. The table indicates that disengagement in TITA Fannies got an average weighted
mean of 3.81 which means never in verbal interpretation. Table above also shows that most
employees in TITA Fannies are not satisfied with the benefits they get from the establishment and
the job they have is not a match to their expectation and qualification in work. Additionally,
disengaged employees have misgivings about their company in terms of customer satisfaction,
providing little personal investment in customer focus, so productive output of not-engaged and
disengaged employees is much less than the output of engaged workers (Towers Perrin 2003).
Employees with a low level of engagement have more accidents at work and more inventory
shrinkage (Harter, Schmidt, Killham, and Asplund 2006, p. 28).

54
Table 21. Frequency distribution of the cause of employee absences due to Illness in TITA
Fannies
Illness
Mean
VI
F % F % F % F %
1. Do you
commit absence
at work because
you are sick or
have a high fever
or severe
disease?
2 4.55 20 45.45 9 20.45 13 29.55 2.77 Sometimes
2. Do you
commit absence
from work due to
medical
appointments?
1 2.27 12 27.27 6 13.64 25 56.82 3.25 Sometimes
3. Do you
commit absences
because of
mental ill health?
0 0 0 0 0 0 44 100 4.00 Never
4. Do you suffer
minor illness that
causes you to
skip in work?
1 2.27 13 29.55 5 11.36 25 56.82 3.23 Sometimes
5. Do you
commit absences
due to other
genuine health
problems?
1 2.27 10 22.73 10 22.73 26 59.09 3.32 Sometimes
Average Weighted Mean 3.31 Sometimes
Table 21 shows the frequency distribution of the cause of employee’s absences due to
Illness which has a weighted mean of 3.27 which mean sometimes in verbal interpretation. This
implies that illnesses has a bigger contribution and the most common cause of employees’
absences in TITA Fannies. Furthermore, according to the Department for Work and Pensions,
more than 130 million days are still being lost to sickness absence every year in Great Britain and
working-age ill health costs the national economy £100 billion a year. It states that employers face

55
a yearly bill of around £9 billion for sick pay and associated costs, with individuals missing out on
£4 billion a year in lost earnings.
Table 22. Frequency distribution of the cause of employee’s absences due to Injuries in TITA
Fannies
Injuries
Mean
VI
F % F % F % F %
1. Do you commit
absence in your
work because of
work accidents
that causes you
injuries?
0 2.27 0 0 1 2.27 42 95.45 3.91 Never
2. Did you absent
in your work
because of severe
back pain?
1 2.27 5 11.36 3 6.82 35 79.55 3.64 Never
3. Do you commit
absences in your
work due to
severe neck and
head pain?
2 4.55 5 11.36 7 15.91 30 68.18 3.48 Sometimes
4. Do you commit
absences in your
work because of
injuries you
acquire outside of
your work?
0 0 0 0 0 0 44 100 4.00 Never
5. Do you commit
absences in your
work because of
other injuries not
stated above?
1 2.27 1 1.27 4 9.09 38 86.36 3.80 Never
Table 22 shows the frequency distribution of the cause of employee absence because due
to Injuries which has an average weighted mean of 3.77 which means never in verbal
interpretation. Table above implies that employees in TITA Fannies are prone to severe neck and
head pain because of their work that leads them to skip work. In addition, according to the U.S.

56
Department of Labor, companies lose approximately 2.8 million workdays a year because of
employee’s injuries and illnesses. The inability to plan for these unexpected absences means that
companies hire last minute temporary workers, or pay overtime to their regular workers, to cover
labor shortfalls; they may also maintain a higher staffing level regularly in anticipation of
absences.
Table 23. Frequency distribution of the cause of employee absences due to Job Hunting in TITA
Fannies
Job Hunting
Mean
VI
F % F % F % F %
from work due to a job
interview of another
company?
0 0 0 0 0 0.00 44 100 4.00 Never
2. Do you commit absences
in attaining other job
orientation?
0 0 0 0 0 0 44 100 4.00 Never
3. Did you commit any
absences due to attaining
seminar and conferences of
another company in order to
be qualified in their company
even you have your other
current job?
0 0 0 0 0 0 44 100 4.00 Never
4. Do you skip your job for
finding another job?
0 0 0 0 0 0 44 100 4.00 Never
fro work due to making and
processing your
resumes/Cvs?
0 0 0 0 0 0 44 100 4.00 Never
Table 23 shows the frequency distribution of the cause of employee absence by job
hunting. Table above shows that employees never commit absences in terms of job hunting,
which has an average weighted mean of 4.00 which means never in verbal interpretation. This
implies that job hunting does not take any part in employees’ absences in TITA Fannies.

57
Table 24. Frequency distribution of the cause of employee absences due to Partial Shift in TITA
Fannies
Partial Shift
Mean
VI
F % F % F % F %
1. Do you arrive
late at your
work?
3 6.82 13 29.55 5 11.36 23 52.27 3.09 Sometimes
2. Do you leave
early in your
work even it is
not a time to go
out?
0 0 1 2.27 5 11.36 36 81.82 3.75 Never
3. As has been a
night shift
worker. Do you
commit
absences
because of your
schedule?
0 0 0 0 0 0 44 100 4.00 Never
4. Do you
commit
absences of your
work because
your schedule at
work is a day
shift?
0 0 0 0 0 0 44 100 4.00 Never
5. Do you take
longer breaks in
working?
0 0 2 4.55 4 9.09 38 86.36 3.82 Never
Table 24 shows the frequency distribution of the cause of employee’s absence by partial
shifts which has a weighted mean of 3.70 which means never in verbal interpretation. In the
data above, it denotes that a large portion of employees are arriving late in the organization
which is seconded by leaving early from work. This implies that the said establishment did not
implement tight policy regarding employees’ time in and out unlike in ZEST – O Corporation.

58
Additionally, according to Peter Davidson (2011) he found that chronic employee lateness is
related to disengagement from the job, absenteeism, and decreased job performance.
Table 25. Summary Distribution of the Average Weighted Mean of the Common Causes of
Employee Absences in TITA Fannies
Common Causes of Absences Average Mean Verbal Interpretation
Bullying and Harassment 3.88 Never
Burnout, Stress and Low Morale 3.78 Never
Children Care and Elder Care 3.63 Never
Depression 3.73 Never
Disengagement 3.81 Never
Illnesses 3.31 Sometimes
Injuries 3.77 Never
Job Hunting 4.00 Never
Partial Shift 3.73 Never
Table 15 shows the summary of weighted mean of the common causes of absence in TITA
Fannies Food chains.
The data show that Bullying and Harassment generates a verbal interpretation never as
the cause of employee’s absences in the company with the weighted mean 3.88. In Burnout,
stress and low morale, it also generates a verbal interpretation never as the cause of absences
with the weighted mean 3.78. In the part of Child care and Elder care as the cause of employee’s
absences it gained a weighted mean of 3.63 which also has a verbal interpretation as never.
Depression gets 3.73 which also means never, Illness gets a weighted mean of 3.31 which means
sometimes, injuries 3.77 which means never, job hunting 4.00 which also means never and lastly
partial shift which has a weighted mean of 3.73.

59
The data above if arrange from the most significant to least, illnesses is the most common
reason why employee commit absences, 2nd
is child care and elder care, 3rd
is depression, 4th
is
partial shift, 5th
is injuries, 6th
is burnout, stress and low morale, 7th
disengagement, 8th
is bullying
and lastly, the 9th
rank is job hunting. Thus, all the eight causes of employees’ absences contribute
to employee absences in TITA Fannies except job hunting like in ZEST – O Corporation. Generally,
the leading cause of employee absences in the company is still illnesses. Furthermore, the other
causes of absences have also a big contribution to employees’ absences in the organization,
except job hunting as what the researchers mentioned earlier.
III. Cost of Absences (Interview to the Manager or Human Resources)
Table 26. Cost of Employee Absences in the ZEST – O Corporation and TITA Fannies Food
chains
Cost of Employee Absences ZEST – O Corporation TITA Fannies Food chains
Direct Cost None ₱ 279,639.00
Indirect Cost ₱ 112, 993 .00 ₱ 18, 083.40
Administrative Cost None ₱ 150, 000.00
Total Cost ₱ 112, 993.00 ₱ 447, 722. 40
Table 26 shows the Cost of Absences in ZEST-O Company and TITA Fannies Food Chains.
ZEST-O Corporation doesn’t have an Occupational Sick Pay under the direct cost of
absences which can only be allowed within 30 days per year. There is no overtime and other types
of indirect cost because operation is 12 hours a day and there is a strict policy to follow.
Furthermore, the company did not pay directly to employees their sick pay according to the
Human Resource Manager because it is the health insurance that pays. That is why, Ma’am Liziel
Lumbay, the Human Resource Manager, did not give information on how much were spent on
their occupational sick pay because it is out of her knowledge.

60
In terms of Indirect Costs of Absences, ZEST – O Corporation has only three (3)
classifications of cost under Indirect Cost. First is the cost of recruiting and training extra staff
which company only occur ₱ 313.00. The second one is the lower product quality of work due to
replacement of staff, cost of rejects, i.e. cost of scrap materials and the cost of re-work, i.e.
materials and labor costs to put things right and the cost of extra premiums to maintain saleable
volume where in ZEST –O Corporation gained ₱ 37, 560 in that matter. Lastly, the third one is the
cost of monitoring equipment and staff. The estimated cost involved in equipment purchase or
hire, and wages and employment costs of staff which are the company spent ₱ 75, 120.00 because
of it. Furthermore, ZEST-O Company has no administrative cost in controlling absences.
Similarly, TITA FANNIES has two types of Direct Costs of Absences. The first direct cost
incurred in TITA FANNIES and the most costly part is the occupational sick pay for it amounted to
₱ 13,803.00 per month which is equivalent to ₱165,639 per year. The second one is the overtime
payments for employees for those filling in for absentees and according to TITA FANNIES it
amounted to ₱9,500 per month due to overtime which is equivalent to ₱ 114,000.00 per year. To
compute overtime payments, divide the daily salary of a worker over hours of works per day. So,
for example, if there were 5 employees who took 5 hours of overtime per day. It can incur a cost
of ₱978.125 per day (₱ 39.125 per hour X 5 x 5) but according to the management the payment
is always based on position of the company.
In terms of Indirect Costs of Absences in TITA FANNIES it has two types. The first indirect
cost at TITA FANNIES is the cost of recruiting and training extra staff wherein ₱ 1,125.00 is spent.
The second indirect cost incurs in TITA FANNIES is the cost of management/ supervisory time to
devote in dealing with absence-related issues, e.g. revising schedules, disciplining, record keeping,
counselling, etc., where ₱1,413.20 per month is spent which is equivalent to ₱ 16, 958.40 per
year.

61
In TITA FANNIES, ₱150, 00. 00 is allocated to administer absence benefits like tracking,
review, approvals, processing, case management and other activities that involve in administering
employee absences.
Generally, ZEST – O Corporation incurred almost ₱ 112,993.00 because of employee’s
absences while TITA Fannies incurred a cost of ₱ 447, 722.40 where TITA Fannies has a bigger cost
incurred compared to ZEST – O Corporation. This implies that the absences of employee can
generate cost in every organization where it can be direct, indirect or administrative cost.
Additionally, the costs mentioned above are not totally all the costs incurred by the company.
Human Resource Personnel in every company only gives estimation, but near to reality since it is
a confidential information that only the management must know and cannot be shared to non-
employees or outsiders of the organization.
Table 27. Summary of Employees’ Percentage of Absences against Cost of Employees’ Absences
in ZEST – O Corporation and TITA Fannies Food Chain
Company
Percentage of Absences against Total
Operation Hour
Cost of Employee
Absences
ZESTO – O
Corporation 5.21 % ₱ 112, 993.00
TITA Fannies 6.9% ₱ 447, 722. 40
Table 27 shows the summary of the employees’ percentage of absences against the cost
of employees’ absences in ZEST – O Corporation and TITA Fannies’ Food Chain. In this table, it
shows that ZEST – O Corporation has a 5.21% of employees’ absences against its total operation
hours which costs ₱ 112, 993.00 in 2015 while TITA Fannies has ₱ 447, 722.40 incurred cost, 6.9
% of employees’ absences against its total operation hours. This implies that the higher the
percentage of employees’ absences in the organization the higher it incurred costs to the
organization. This means that if employee commit absences, employer must hired a temporary

62
worker to replace the worker for the day, the overtime payment in order to cover the work that
the absent worker must done, loss in productivity and many more negative impacts due to
employee absences which generates another cost to the employer side. So, if the workers in an
organization frequently commit absences it also generates frequent cost to the organizations.

63
CHAPTER V
This chapter presents the summary of findings, conclusion, and recommendations of the
research.
Summary of Findings
This study is undertaken to identify the most common cause of employees’ absences in
ZEST – O Corporation and TITA Fannies and the cost on employer’s side. The subject of the study
are ZEST – O Corporation in El Salvador City and TITA Fannies Food Chains in Iligan City.
The study reveals that the leading cause of employees’ absences in terms of bullying and
harassment, burnout, stress and low morale, children and elder care, depression, disengagement,
illness, injuries, job hunting, and partial shifts in both companies is illnesses. In ZEST – O
Corporation illnesses gathered a weighted mean of 3.45 which means sometimes while in TITA
Fannies it generates a weighted mean of 3.31 which also means sometimes.
The results also shows that out of 101 respondents, 56% of them belongs to the age
bracket of 18-28, 53% belongs to male, 62% belongs to single and 53% belongs to college level.
Furthermore, the common cause of absence is illnesses among the organizations. The study also
shows that ZEST – O Corporation had 5.21% of absences incurred by the employees in the
organization which generates a cost of ₱ 112,993.00. While, TITA Fannies Food Chains had 6.9%
of employee absences in their organization with the cost incurred ₱ 447,722.40.
Furthermore in ZEST –O Corporation, employees sometimes commit absences because
they suffering from high fever or severe disease which is seconded by their medical appointment
then suffering from minor illnesses and other genuine health problem. Study also reveals that
they also commit absences due to the feeling of being fatigued that leads them to depression.

64
Moreover, the employees also commit absences due to injuries, especially in the part of having a
severe neck and head pain with an average weighted mean of 3.72. Furthermore, partial shift of
workers as a night shift worker also compliment to employee absences which has a weighted
mean of 3.49 which means sometimes in verbal interpretation.
On the other hand, the leading cause of employee absences in TITA Fannies Food Chains
is still illnesses which is alarming for almost half of the respondents answered that they commit
absences often and sometimes due to it. Researchers also found out that employees sometimes
also commit absences because their child is sick and due to the medical appointment of their child
and old parents wherein child care and elder care as the cause of employee absences is the second
leading cause of employee absences in the organization with a weighted mean of 3.63. What's
more is that employees also render absences sometimes, for they feel fatigue in their work which
has a weighted mean of 3.36 under depression. The data also show that employees from TITA
Fannies are suffering from burn out, stress and low morale and some of them suffered because
of bullying and harassment like experiencing any repeated hurtful remarks, attacks or make fun
of them during their work. Additionally, employees of the said organization are not satisfied with
the benefits they received from the management and in terms of partial shift employees are
mostly arriving at work late and leave early even if it is not time to go.
CONCLUSION
Based on the findings of the study, the following conclusion are drawn:
The researchers concluded that the major contributor of employee absences in both
organizations is the illnesses of the employees. In this matter ZEST – O Corporation has a lower
absences compared to TITA Fannies Food Chains.

65
In ZEST – O Corporation, researchers also conclude most of their employees are suffering
from injuries same as in TITA Fannies even though they are not in the same industry for their
employees suffer mostly severe neck and head pain. Then in terms of partial shifts employees
from ZEST – O Corporation commit absences because of their night shift work while in TITA
Fannies they don’t have a tight control in arriving late and going out of employees in the work.
Furthermore, employees from both companies are suffering also in burnout, stress and low
morale but TITA Fannies has the highest cases compared to ZEST – O Corporation. Additionally,
both companies also have a medium percentage of employee’s absences when it comes to child
care and elder care which means that they have less emphasis on the policy and benefits regarding
on this matter and as what as the Human Resource Personnel of both companies stated as the
researchers conducted the interview. Moreover, researchers can visibly say that employees’
absences have a significant impact on its employer cost.
These findings clearly show that businesses will be able to reap significant rewards in
terms of greater productivity and staff retention if they put in place strategies to effectively deal
with all types of absence, whether that’s health related or not. Offering different types of benefits
not only makes companies most desirable places to work, but can also mean that staff work more
efficiently, take less time off and are more loyal. And the study clearly shows that employees’
absences are costly to the organization.

66
RECOMMENDATION
Based on the findings and conclusions of the study, the following recommendations are
presented:
1. To the Managers who want to minimize employee absences effectively. He/she must
limit the amount of employee absences, understand why workers are arriving late or not showing
up at all in the first place and make them feel important. Managers have to gain employee trust
and respect through honest communication. When managers have a better approach to their
often absent workers, the higher-ups will find these problems and be able to resolve them faster
with open conversations. Workers should be happy in their jobs, and when they enjoy the work
they do, their production levels will increase. Managers have to fight absences by connecting with
workers on a more personal level. Workers shouldn't feel like they can show up to work or leave
at any time without anyone noticing which also more recommended on TITA Fannies Food Chains.
2. To the Employees, the researchers recommend to the employees that as much as
possible they should avoid absences for these absences may cause termination of their present
job. Having no or less absent would help them to hold regular positions if they are contractual, or
they may receive promotion and incentives. And according to the Labor Code of Philippines for
the regular employees that if an employee haven’t availed all their leave of absences it would be
beneficial in the day of employees’ retirement.
3. To the ZEST – O Corporation, the researchers would like to recommend that they
maintain a tight control regarding absence, must adopt flexible working arrangement and Health
Education/ Wellness Program to reduce the levels of employee sickness in the organization.
4. To the TITA Fannies Food Chains, the researchers would like to recommend that they
must have Health Care so that sick employees can be seen and treated more quickly. This in return

67
means that they are not ‘worried' and ‘distracted' for such a long period and they will be treated
and return to work in a shorter period of time. This is a benefit to both the employee and the
organization. They can also facilitate Health Education/ Wellness Program through offering
occupational health services and supporting health promotion activities. Then they must have a
written Absence Policy Document once the organization has decided on the absence management
strategies, these should be clearly documented and communicated so that employees and
management are clear about the objectives, processes and procedures that make up your
absence management policy.
5. To all the faculty members of the College of Business Courses, the result of this study
may be used as a reference for your future lectures and local researchers.

68
BIBLIOGRAPHY
Books
Acas (2014). “A Guide for Employer: Bullying and Harassments at Work”. United Kingdom, P 5.
Chungsup Lee, Jarrod Scheunemann Robin, Hall Laura Payne (2012). “Low Staff Morale &
Burnout”. New York. P 55.
Rourke, Paul O (2011). “Employee Absenteeism: A Guide to Managing Absence”. Europe: Belgium.
P 15.
Finn, Peter (2003). “The Effects of Work Shift on the Lives of Employees”. Canada: Toronto.
P 1-34.
Heikkeri, Elena (2010). “Roots and Consequences of the Employee Disengagement Phenominon”.
Maters Thesis. P 24.
Journals:
Barnett, R. C., Brennan, R. T., & Gareis, K. C. (1999). “A Closer Look at the Measurement of
Burnout.” Journal of Applied Biobehavioral Research, Volume 4, Issue2. P 65-78
Borritz, M (2006). “Burnout in Human Service Work – Causes and Consequences.” Unpublished
Doctoral Dissertation: National Institute of Occupational Health, Denmark. P.6
Marsh, Mercer, Kroll, Carpenter, Guy and Wyman, Oliver (2008). “The Total Financial Impact of
Employee Absences”. Survey Highlights. P 2
Chandramouli and M.C. SAndhyarani (2013). “A Study on Absenteeism (Clothing Company Private
Limited, Mysore)”. National Monthly Refereed Journal of Research in Arts and Education,
Volume 2. P. 18
Kocakulah, Mehmet C. (2009). “Absenteeism Problems And Costs: Causes, Effects And Cures”.
International Business & Economics Research Journal Volume 8, Number 5. P 82
Gupta, Barkha (2013). “Employees Absenteeism: Barrier for Retail Sector Organization Success”.
Volume-3, Issue-6. P 5
Shellenback (2004). “Child Care and Parent Productivity: Making the Business Case”. P. 2
Cohen, A. and Golan, R., (2007). “Predicting Absenteeism and Turnover Intentions by Past
Absenteeism and Work Attitudes”. Career Development International, 12(5). P 416-432

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Fard, H. D., Ghatari, A. R., & Hasiri, A. (2010). “Employees’ Morale in Public Sector: Is
Organizational Trust an Important Factor?”. European Journal of Scientific Research,
46(3). P 378-390
Borda, R. G. and Norman, I.J., (1997). “Factors Influencing Turnover and Absence of Nurses: A
Research Review”. International Journal of Nursing Studies, Volume 34. P 385-394
Vanden, A. Heuvel, and Wooden, M., (1995). “Do Explanations of Absenteeism Differ for Men
and Women?” . Human Relations, Volume 48, Issue 11. P 1309-1329
Intrenet
Team Synerion (2015, Jan. 2). “The Cost of Absenteeism in the Workplace”. Synerion Blog .
Retrieved from http://www. Synerioblog.com
Hemsley, Steve (2011, July 21). “Absence: How does it affect the workplace and what can
employers do about it?”. Mark Allen Group Article. Retrieved from
http://www.MAGarticles.com
Millett, T (2010). “6 Reasons Why Staff Morale is Important”. Retrieved from
http://EzineArticles.com
Gallup Organization (2008). “Health Care Practice”. Retrieved from
http://www.galluporganization.com
United Kingdom (2015). “Absence Management: A Simple Guide”. Retrieved from
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Mazin, R. (2010). The effects of high morale on employee performance. Retrieved from
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Levine, G (2012). Absenteeism - Causes and Cures. Retrieved from [http://
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http://www.profilesinternationalblogs.com.

71
“APPENDIX A”
9023, Poblacion, Naawan, Misamis Oriental
To OIC, Finance and Admin Head
Ms. Liezel P. Lumbay
El Salvador City
Dear Sir/ Madame:
God day!
The undersigned are conducting research entitled “THE IMPACT OF EMPLOYEE ABSENCES IN THE
ORGANIZATION IN ITS EMPLOYER COST” in partial fulfillment into the requirement of
Management 198 (Management Research). The group has decided to conduct a study on your
establishment, since your company is one of the leading companies that focus on production. The
target respondents of this research would be the personnel of the Production Department.
In line with this, the undersigned would like to seek approval from your good office to conduct
the said study, in addition the undersigned would also like to ask permission to gather secondary
data to measure the labor cost because of employee absence in the organization.
Your generous cooperation will give a big contribution to the success of the research.
Thank you and May God bless you in His very wise keeping.
Respectfully yours,
Researchers:
GALARPE, FLORA MAE B.
PASCO, JESSIE MAE C.
PATLUNAG, GENALYN R.
TOMAMPOC, REXON M.
Noted by:
Research adviser / Instructor
HEIDIE AMOR A. PARCIA
OIC Dean, CBAA
November 4, 2015

72
9023, Poblacion, Naawan, Misamis Oriental
TITA FANNIES Production Manager
Mrs. Vicky S. Dumapias
Iligan City
Dear Sir/ Madame:
God day!
The undersigned are conducting research entitled “THE IMPACT OF EMPLOYEE ABSENCES IN THE
ORGANIZATION IN ITS EMPLOYER COST” in partial fulfillment into the requirement of
Management 198 (Management Research). The group has decided to conduct a study on your
establishment, since your company is one of the leading companies that focus on production. The
target respondents of this research would be the personnel of the Production Department.
In line with this, the undersigned would like to seek approval from your good office to conduct
the said study, in addition the undersigned would also like to ask permission to gather secondary
data to measure the labor cost because of employee absence in the organization.
Your generous cooperation will give a big contribution to the success of the research.
Thank you and May God bless you in His very wise keeping.
Respectfully yours,
Researchers:
GALARPE, FLORA MAE B.
PASCO, JESSIE MAE C.
PATLUNAG, GENALYN R.
TOMAMPOC, REXON M.
Noted by:
Research adviser / Instructor
HEIDIE AMOR A. PARCIA
OIC Dean, CBAA
November 4, 2015

73
“APPENDIX B”
QUESTIONNAIRE:
Part 1: Respondent’s Profile
Direction: Please provide the following information about yourself by filling in the space provided
and by checking the space provided that corresponds your answer.
Name (optional): _________________________________________________
Age: _____
Sex: ____ Male
____ Female
Civil Status:
____ Single
____ Married
____ Others
Educational Attainment
____ High School Level
____ College Level
____ Post Graduate
If others, please specify: _______________

74
Part II. Causes of Absences (for all employee)
Direction: Listed below are the factors that cause absenteeism. Based on the following
options given below, please check (√) the box that corresponds your answer.
1 - Always 2 – often 3 – sometimes 4 – Never
1 2 3 4
A. Bullying and Harassment
1. How often did you experience any repeated hurtful remarks or attacks and/or
did people make fun of your work and you as a person that made you decide not
to go to work?
2. Do you skip your work because your boss or coworkers intimidate you?
3. Has your superior or the management ever given you impossible jobs that
can’t be done in the given time or with the resource provided which causes you
to absent in your work?
4. Do you experience any sexual harassment like unwelcome touching and
sexually explicit comments and requests that make you feel uncomfortable
causes you to skip work to avoid them?
5. Does your co-worker or boss push, trips, shoves or grab you in your workplace
that causes you to skip work?
B. Burnout, stress and low morale
1. Does your employer or organization set unrealistic job expectations that
stresses and causes you to commit absence in the work?
2. Do you commit absences in your work because of self-apathy (the trait of
lacking enthusiasm for or interest in things generally) because the demand of
your client or supervisors exceeds to your capability or resources and feel like
you cannot do anything about it?
3. Do you commit absences because of the volume of your works?
4. Do you skip in your work because of the inflexible working conditions of the
workplace?
5. Do you skip work because of the level of respect you receive in the workplace
which leads you to have emotional exhaustion?
C. Children care and Elder Care
1. Do you skip your work because no one will take care of your children in your
house?
2. Do you try to commit absences at work because your child is sick?

75
3. Do you skip in your work because no one would take good care of your old
mother/father?
4. Do you commit absences because your old mother/father is sick?
5. Do you commit absences because of the medical appointment of your
children or old mother/father?
D. Depression
1. Do you drink alcohol to self-medicate your pain and anxiety that causes you
to be absent in your work?
2. How often do you feel fatigued that causes you to skip in your work?
3. Do you commit absences because you feel guilty, hopeless, or worthless in
your work?
4. Do you commit absences in your work because you are restless or feel
irritable?
5. Did you lose interest in activities once enjoyed in your work and causes you
to be absent?
E. Disengagement
1. Do you skip work because of the instability and insecurity arising in the
company?
2. Do you skip work because of lack of psychological meaningfulness and
psychological safety at work?
3. Do you commit absences in your work because you lost your interest in the
job?
4. Do you commit absence in your work because the job you have is not a match
to your expectation and qualification?
5. Do you commit absences in your work because you are not satisfied with the
benefits you get?
F. Illness
1. Do you commit absence at work because you are sick or have a high fever or
severe disease?
2. Do you commit absence from work due to medical appointments?
3. Do you commit absences because of mental ill health?
4. Do you suffer minor illness that causes you to skip in work?
5. Do you commit absences due to other genuine health problems?
G. Injuries
1. Do you commit absence in your work because of work accidents that causes
you injuries?

76
2. Did you absent in your work because of severe back pain?
3. Do you commit absences in your work due to severe neck and head pain?
4. Do you commit absences in your work because of injuries you acquire outside
of your work?
5. Do you commit absences in your work because of other injuries not stated
above?
H. Job Hunting
1. Do you commit absence from work due to a job interview of another
company?
2. Do you commit absences in attaining other job orientation?
3. Did you commit any absences due to attaining seminar and conferences of
another company in order to be qualified in their company even you have your
other current job?
4. Do you skip your job for finding another job?
5. Do you commit absence from work due to making and processing your
resumes/Cvs?
I. Partial Shift
1. Do you arrive late at your work?
2. Do you leave early in your work even it is not a time to go out?
3. As has been a night shift worker. Do you commit absences because of your
schedule?
4. Do you commit absences of your work because your schedule at work is a day
shift?
5. Do you take longer breaks in working

77
Part III. Cost of Absenteeism (Interview to the Manager or Human Resource)
Direction: Please answer the questions accurately and honestly. Answers to this question may
limit to the estimated cost that occur, but it must be reliable and base in your companies’
record.
1. Direct Costs of Absence (Annual)
1.1 Occupational Sick Pay
1.2 Continued payment of fringe benefits during absence
1.3 Overtime payments for those filling in for absentees
1.4 Overtime payments for employees later down the line which arise out of absence
1.5 Excess cost of temporary staff (e.g. employment agency fee)
1.6 Overstaffing to cover for absence (weekly wage plus the employment cost x number
of extra staff x 52)
2. Indirect Costs of Absence (Annual)
2.1 Cost of recruiting and training extra staff (cost per person x number of persons)
2.2 Cost of management/supervisory time devoted to dealing with absence-related
issues, e.g. revising schedules, disciplining, record keeping, counselling, etc. (hours
devoted per week x hourly rate x 52)
2.3 Reduced productivity from work being done by less experienced/more tired
employees, from returning workers operating at the lowest point in learning curve (excess
hours per annum required to achieve standard output x hourly pay rate, or lost output
per annum x profit contribution per unit of output)

78
2.4 Lower product quality of work due to replacement of staff, cost of rejects, i.e. cost of
scrap materials and the cost of re-work, i.e. materials and labor costs to put things right
and cost of extra premiums to maintain saleable volume (e.g. extra overtime to make up
the volume).
2.5 Cost of disruptions/section shut down due to absenteeism; estimate of profit
foregone by lost production or financial penalty incurred due to late delivery; cost of
feeding other parts of the company.
2.6 Extra costs incurred to meet slipped deadline (e.g. freighted by air instead of sea.)
2.7 Loss of customers due to failure to meet deadline or to inferior product quality (last
financial year) – profit, loss of customers who did not re-order as expected (when this can
be related to the absence)
2.8 Low morale amongst other staff caused by the lax attendance of certain employees
(lateness, turnover, failure to work on measured standard performance).
2.9 Cost of absence monitoring equipment and staff. Estimate the cost involved in
equipment purchase or hire, and wages and employment costs of staff.
3. Administrative Cost
3.1 How much do your company incur cost in administration?
Example of Administrative cost: (additional costs an employer bears for internal staff,
software, office space and equipment — or for an outside organization — to administer absence
benefits (tracking, review, approvals, processing, case management, clinical support, etc.)

79
“APPENDIX C”
Raw Data
Percentage of Absences incurred by the Employees in the Organization
In this portion of the study you can see how to compute percentage of absences in ZEST–
O Corporation and TITA Fannies against their total operation hour.
Formula:
Total hours of all employee absences
Percentage of = ____________________________________________________________ X 100
Absences Total days company operated x daily hours operated x number of employees
Solutions of the Problem
In ZEST- O Corporation
10, 260 hours
Percentage of Absences = ___________________________________________ X 100
288 days x 12 hours x 57 employees
= 10, 260 X 100
196,992 = 0.025 x 100 = 5.21 %
In TITA Fannies
Percentage of Absences = 6, 976 hours __________ X 100
288 days x 8 hours x 44 employees
= _____6,976____ X 100
101, 376 = 0.069 X 100 = 6.9%
Note: In getting the total hours of all employee absences, researchers add-up all the
respondents’ absences this year x daily hours company operated.

80
Computation in ZEST – O Corporation Data
Bullying and Harassment Depression
Q1. 0 (1) + 0 (2) + 3 (3) + 54 (4) = 3.95 Q1. 0 (1) + 4 (2) + 13 (3) + 40 (4) = 3.63
57 57
Q2. 0 (1) + 1 (2) + 4 (3) + 54 (4) = 3.89 Q2. 0 (1) + 9 (2) + 15 (3) + 33 (4) =3.42
57 57
Q3. 0 (1) + 0 (2) + 0 (3) + 57 (4) = 4.00 Q3. 0 (1) + 1 (2) + 1 (3) + 55 (4) = 3.95
57 57
Q4. 0 (1) + 0 (2) + 1 (3) + 56 (4) = 3.98 Q4. 0 (1) + 1 (2) + 1 (3) + 55 (4) =3.95
57 57
Q5. 0 (1) + 0 (2) + 2 (3) + 55 (4) = 3.96 Q5. 0 (1) + 1 (2) + 1 (3) + 55 (4) = 3.98
57 57
Burnout, Stress and Low Morale Disengagement
Q1. 0 (1) + 1 (2) + 5 (3) + 51 (4) = 3.88 Q1. 0 (1) + 0 (2) + 2 (3) + 55 (4) = 3.96
57 57
Q2. 0 (1) + 2 (2) + 1 (3) + 54 (4) = 3.91 Q2. 0 (1) + 0 (2) + 0 (3) + 57 (4) = 4.00
57 57
Q3. 0 (1) + 1 (2) + 1 (3) + 55(4) = 3.95 Q3. 0 (1) + 0 (2) + 2 (3) + 55 (4) = 3.96
57 57
Q4. 0 (1) + 2 (2) + 2 (3) + 53 (4) = 3.89 Q4. 0 (1) + 0 (2) + 2 (3) + 55 (4) = 3.96
57 57
Q5. 0 (1) + 1 (2) + 2 (3) + 54 (4) = 3.93 Q5. 0 (1) + 1 (2) + 1 (3) + 55 (4) = 3.95
57 57
Children Care and Elder Care Illnesses
Q1. 0 (1) + 3 (2) + 2 (3) + 52 (4) = 3.86 Q1. 2 (1) + 10 (2) + 27 (3) + 18 (4) = 3.07
57 57
Q2. 0 (1) + 7 (2) + 6 (3) + 44 (4) = 3.65 Q2. 0 (1) + 11 (2) + 17 (3) + 29 (4) = 3.32
57 57
Q3. 0 (1) + 1 (2) + 1 (3) + 55 (4) = 3.95 Q3. 0 (1) + 0 (2) + 0 (3) + 57 (4) = 4.00
57 57
Q4. 0 (1) + 1 (2) + 3 (3) + 53 (4) = 3.91 Q4. 0 (1) + 7 (2) + 19 (3) + 31 (4) = 3.42
57 57
Q5. 0 (1) + 3 (2) + 3 (3) + 51 (4) = 3.84 Q5. 0 (1) + 6 (2) + 19 (3) + 32 (4) = 3.46
57 57

81
Injuries Partial Shift
Q1. 0 (1) + 0(2) + 5 (3) + 52 (4) = 3.91 Q1. 0 (1) + 0 (2) + 0 (3) + 0 (4) = 4.00
57 57
Q2. 0 (1) + 4 (2) + 1 (3) + 52 (4) = 3.84 Q2. 0 (1) + 0 (2) + 0 (3) + 0 (4) = 4.00
57 57
Q3. 0 (1) + 3 (2) + 10 (3) + 44 (4) = 3.72 Q3. 0 (1) + 4 (2) + 21 (3) + 0 (4) = 3.49
57 57
Q4. 0 (1) + 2 (2) + 5 (3) + 50 (4) = 3.84 Q4. 0 (1) + 2 (2) + 5 (3) + 50 (4) = 3.84
57 57
Q5. 0 (1) + 3 (2) + 8 (3) + 46 (4) = 3.75 Q5. 0 (1) + 3 (2) + 8 (3) + 46 (4) = 3.75
57 57
Job Hunting
Q1. 0 (1) + 0 (2) + O (3) + 57 (4) = 4.00
57
Q2. 0 (1) + 0 (2) + 0 (3) + 57 (4) = 4.00
57
Q3. 0 (1) + 0 (2) + 0 (3) + 0 (4) = 4.00
57
Q4. 0 (1) + 0 (2) + 0 (3) + 0 (4) = 4.00
57
Q5. 0 (1) + 0 (2) + 0 (3) + 0 (4) = 4.00
57
TITA FANNIES
Bullying and Harassments Burnout, Stress and Low Morale
Q1. 3 (1) + 1 (2) + 3 (3) + 37 (4) = 3.68 Q1. 0 (1) + 2 (2) + 3 (3) + 39 (4) = 3.84
44 44
Q2. 0 (1) + 1 (2) + 1 (3) + 41 (4) = 3.89 Q2. 0 (1) + 5 (2) + 4 (3) + 35 (4) = 3.68
44 44
Q3. 1 (1) + 0 (2) + 1 (3) + 42 (4) = 3.91 Q3. 1 (1) + 3 (2) + 4 (3) + 36 (4) = 3.70
44 44
Q4. 1 (1) + 0 (2) + 2 (2) + 41 (4) = 3.89 Q4. 0 (1) + 2 (2) + 6 (3) + 36 (4) = 3.77
44 44
Q5. 0 (1) + 0 (2) + 4 (3) + 40 (4) = 3.91 Q5. 1 (1) +0 (2) + 2 (3) + 41 (4) = 3.89
44 44

82
Children Care and Elder Care Illnesses
Q1. 0 (1) + 6 (2) + 5 (3) + 33 (4) = 3.61 Q1. 2 (1) + 20 (2) + 9 (3) + 13 (4) = 2.77
44 44
Q2. 1 (1) + 6 (2) + 6 (3) + 31 (4) = 3.52 Q2. 1 (1) + 12 (2) +6 (3) + 25 (4) = 3.25
44 44
Q3. 0 (1) + 1 (2) + 5 (3) + 38 (4) = 3.84 Q3. 0 (1) + 0 (2) + 0(3) + 0 (4) = 4.00
44 44
Q4. 0 (1) + 4 (2) + 3 (3) + 37 (4) = 3.75 Q4. 1 (1) + 13 (2) + 5 (3) + 25 (4) = 3.23
44 44
Q5. 1 (1) + 10 (2) + 3 (3) 30 (4) =3.41 Q5. 1 (1) + 10 (2) + 10 (3) + 26 (4) = 3.32
44 44
Depression Injuries
Q1. 0 (1) + 3 (2) + 4 (3) +37 (4) = 3.77 Q1. 1 (1) + 0 (2) + 1 (3) + 42 (4) =3.91
44 44
Q2. 0 (1) + 9 (2) + 10 (3) + 25 (4) = 3.36 Q2. 1 (1) + 5 (2) + 3 (3) + 35 (4) = 3.64
44 44
Q3. 0 (1) + 1 (2) + 5 (3) + 38 (4) = 3.84 Q3. 2 (1) +5 (2) + 7 (3) +_ 30 (40) = 3.48
44 44
Q4. 0 (1) + 1 (2) + 5 (3) + 38 (4) = 3.84 Q4. 0 (1) + 0 (2) + 0 (3) + 44 (4) = 4.00
44 44
Q5. 0 (1) + 3 (2) + 1 (3) + 40 (4) = 3.84 Q5. 1 (1) + 1 (2) + 4 (3) + 38 (4) = 3.80
44 44
Disengagement Job Hunting
Q1. 1 (1) + 1 (2) + 2 (3) + 40 (4) = 3.84 Q1. 0 (1) + 0 (2) + 0 (3) + 0 (4) = 4.00
44 44
Q2. 0 (1) + 2 (2) + 0 (3) + 42 (4) = 3.91 Q2. 0 (1) + 0 (2) + 0 (3) + 0 (4) = 4.00
44 44
Q3. 0 (1) + 0 (2) + 3 (3) + 41 (4) = 3.93 Q3. 0 (1) + 0 (2) + 0 (3) + 0 (4) = 4.00
44 44
Q4. 0 (1) + 2 (2) + 4 (3) + 38 (4) = 3.82 Q4. 0 (1) + 0(2) + 0 (3) + 0 (4) = 4.00
44 44
Q5. 0 (1) + 7 (2) + 5 (3) + 32 (4) = 3.57 Q5. 0 (1) + 0 (2 ) + 0 (3) + 0 (4) = 4.00
44 44

83
Partial Shift
Q1. 3 (1) + 13 (2) + 5 (3) + 23 (4) = 3.09
44
Q2. 0 (1) + 1 (2) + 5 (3) + 36 (4) =3.75
44
Q3. 0 (1) + 0 (2) + 0 (3) + 44 (4) =4.00
44
Q4. 0 (1) + 0 (2) + 0 (3) + 44 (4) = 4.00
44
Q5. 0 (1) + 2 (2) + 4 (3) + 38 (4) = 3.82
44

84
“APPENDIX C”
CURRICULUM VITAE
Name: Genalyn R. Patlunag
Address: P-1, Poblacion, Initao Misamis Oriental
Email add: genalynpatlunag13@gmail.com
Contact Number: 09973805105
PERSONAL INFORMATION
Nickname: Gepats/ en2x Civil Status: Single
Gender: Female Citizenship: Filipino
Date of birth: November 13, 1995 Religion: Roman
Catholic
Place of birth: Initao Hospital
EDUCATIONAL BACKGROUND
Tertiary: BSBA Major in Management 2012 - 2016
Naawan, Misamis Oriental
Secondary: Initao National Comprehensive High School 2008-2012
Initao , Misamis Oriental
Elementary: Initao National Comprehensive High School 2002-2008
Poblacion, Initao, Misamis Oriental
QUALIFICATION
Skills: Proficient in Communication skills, Microsoft office (Word, Excel, Publisher and
PowerPoint) and Photo Editing (Photoshop)
Work experience: Internship in FICCO Naawan Branch April – May 2015
ORGANIZATIONAL AFFLIATION
Junior Executive Club (Mindanao State University at Naawan) 2014 – 2015
P.I.O (Public Information Officer)
4th
Year Representative

85
CURRICULUM VITAE
Name: Jessie Mae C. Pasco
Address: Purok 2-B Biga, Lugait, Misamis Oriental
Email add: pascojessiemae@gmail.com
Nickname: Wowie
Civil Status: Single
Date of birth: December 24, 1995 Religion: Roman
Catholic
Place of birth: Iligan City Hospital
Secondary: Lugait National High School 2008-2012
Lugait Misamis Oriental
Elementary: Biga Elementary School 2002-2008 s
Biga, Lugait, Misamis Oriental
QUALIFICATION
Skills: Proficient in Communication skills, Microsoft office (Word, Excel and PowerPoint)
Member

86
CURRICULUM VITAE
Name: Tomampoc, Rexon M.
Address: Betahon, Lugait, Misamis Orirntal
Email add: Rexontomampoc@yahoo.com
Nick-Name:”Rex” Civil Status: Single
Gender: Male Citizenship: Filipino
Date of Birth: October 10, 1994 Religion: Roman Catholic
Place of Birth: Betahon, Lugait, Misamis Oriental
Secondary: Lugait National High School 2008-2012
Lugait Misamis Oriental
Elementary: Biga Elementary School 2002-2008
Biga, Lugait, Misamis Oriental
QUALIFICATION
Skills: Proficient in Communication skills, Microsoft office (Word, Excel and PowerPoint) and
Photo Editing (Photoshop)
Member

87
CURRICULUM VITAE
Name: Flora Mae B. Galarpe
Address: P-5 , Apas , Initao Misamis Oriental
Email add: benj13damz@gmail.com
Nickname: daime Civil Status: Single
Date of birth: June 13, 1995 Religion: Roman Catholic
Place of birth: Initao Hospital
Secondary: Xavier Academy, Initao , Misamis Oriental 2008-2012
Elementary: Initao National Comprehensive High School 2002-2008
Poblacion, Initao, Misamis Oriental
QUALIFICATION
Skills: Proficient in Communication skills, Microsoft office (Word, Excel and PowerPoint) and
Photo Editing (Photoshop)
Work experience: Government internship program date April-May 2014
Member

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