PROPOSAL FOR DATA ANALYTICS PROJECT ON EMPLOYEE ABSENTEEISM AT ROCKWELL MINE

Slide 1.m4a. PROPOSAL FOR DATA ANALYTICS PROJECT ON EMPLOYEE ABSENTEEISM AT ROCKWELL MINE.

Slide 2.m4a. AGENDA. BACKROUND CONTEXT PURPOSE OF PROJECT PROPOSAL ANALYTICAL QUESTION DEFINITION OF CONCEPTS RELEVANCE OF THE ANALYSIS SCOPE & SCALE DATA METHODOLOGY LIMITATION ANALYSIS COMMUNICATION SIGNIFICANCE AND IMPLICATIONS FOR HR AND IR REFERENCES.

Slide 3.m4a. 1. BACKROUND CONTEXT. Rockwell Mine Is a private gold mining company based in Ontario and has been in operation since 2010 Concerns about the state of absenteeism of employees which negatively impacting on the business, specifically in terms if costs Loss of hours to production, and productivity Costs: Paid absences (e.g. sick absences); Employees also paid to cover absences Need for investigation of the situation and remediation, hence the purpose of this data analytics project proposal for consideration..

Slide 4bbb-1.m4a. BACKROUND CONTEXT- WORKFORCE. GENDER UNIONIZATION Male 1020 TOTAL: 1200 984 (82%) Unionized employees, 216 (18%) non-unionized employees Female 180 STAFF CATEGORY NO. OF EMPLOYEES SHIFT SYSTEM WORKERS Surface 60 8-hour, 5 days a week (Mon-Fri) Administrative Underground 1100 12-hour, 6 days on (3 day, 3 nights) 3 days off Miners Underground Support Staff 40 12-hour, 6 days on (3 day, 3 nights) 3 days off Technical support staff, Safety officers, First Aid Post Attendants, Emergency Response Team.

Slide 5.m4a. BACKROUND CONTEXT – ATTENDANCE RECORDING.

Slide 6.m4a. 2. PURPOSE OF THE DATA ANALYTICS PROJECT PROPOSAL.

Slide 7.m4a. 3. ANALYTICAL QUESTIONs. Do we have high rate of absenteeism? What are the contributing causes of the absenteeism? Is absenteeism impacting organizational productivity and costs? Do we have an existing system to monitor absenteeism? How do we manage and reduce absenteeism?.

Slide8.m4a. 4 . DEFINITION OF CONCEPTS. Absenteeism: Absences that are avoidable, habitual and unscheduled, is a source of irritation to employers and co-workers (StatsCan) disruptive to proper work scheduling and output, and costly to organizations and the economy as a whole. Not easy to quantify Absence rate: Total paid and unpaid sick days (all employees) divided by # of employees in the 12 month period = Average number of sick days taken per employee (Government of New Brunswick. Calculating Absenteeism, Retention & Turnover) Absenteeism cost: Sum of all costs per employee for paid absenteeism = Total Annual Costs of Paid Absenteeism days (Government of New Brunswick. Calculating Absenteeism, Retention & Turnover) Days lost per worker: calculated by multiplying the inactivity rate by the estimated number of working days in the year (250), which excludes about 10 statutory holidays in a year. Direct cost of absenteeism: The salary cost associated with the number of workdays lost (Conference Board of Canada Briefing, Sep 2013) 2011–12: organizations estimated that the direct cost of absenteeism averaged 2.4 per cent of gross annual payroll, down slightly from 2.6 per cent in 2009. Presenteeism: Attending work while ill (Johns, 2010); Has the potential to contribute to loss of productivity ( Ruhle and Stefan, 2020).

Slide 9.m4a. 5. RELEVANCE. Determining the case of absenteeism problem is relevant for; For workplace policy decision making To improve absenteeism situation and associated costs To address workplace induced absences such as poor work conditions, less leave days for workers, etc..

Slide 10.m4a. 6. SCOPE AND SCALE. To study and analyze the situation of absenteeism at our workplace to determine the problem of absenteeism, find the causes and remediate the problem Analysis will be done using internal data records from Jan 2016 to Dec 2021 Data Sources Primary Data: Response from surveys administered to the sampled employees Secondary Data (Administrative Data): Internal data of records of absences and the causes of those absences (e.g. Illnesses related, non-illnesses related, authorized and unauthorized absences, absences beyond control e.g. lockdowns). Financial costs captured (Paid sick leave; cover of absences and overtime) Secondary Data: StatsCan Days Lost per worker in a year, 2015 to 2020 Rate of absenteeism will be benchmarked against StatsCan rate to determine the rate of absenteeism relative to our situation; Conference Board of Canada records.

11bbb.m4a. SCOPE AND SCALE CONT.. Timeline: 3 months (February 2022 to April 2022) Data collection (Surveys, HR data and clocking system) : 3 weeks Data Sorting & Analysis: 1 month 2 weeks Validation of results: 2 weeks Communication of results to management and workforce: 1 Week Budget: This is expected to be a low budget exercise done internally with our support from the HR team during regular hours of work. Financial costs will be realized in instances of overtime hours utilized as part of the project. This would still be lower compared to using the services an external consultant/analyst. Other Resources: A dedicated conference room for the team to converge daily for progress reporting. Minor logistics like projector, flip charts and markers will be needed. Dedicated support of an HR officer, Industrial Relations officer, Finance officer.

Slide 12bbb.m4a. DATA SOURCES. DATA WHAT IT WILL INCLUDE ADVANTAGES DISADVANTAGES PRIMARY DATA Surveys (administered to sampled employees to collect data from them) Directly from employees Provides specific information about the perspectives of employees about absenteeism Problem of biases in the responses Time & cost constraints SECONDARY DATA Administrative Data: Our internal data on absenteeism captured through HR’s records of absences and the clocking system reports Payroll and financial data on employee absences Readily available internally Data accuracy & completeness (where absenteeism records are up to date and reflect the absences documented Data not in ready to use format Statistics Canada: Absences Data by industry ( Forestry, fishing, mining, quarrying, oil and gas, 2015 to 2020) Readily Available Can be used to benchmark our absenteeism situation 1. Data may be irrelevant to our organizational situation.

Slide 13.m4a. METHODOLOGY AND ANALYSIS. Sampling will be done by stratified sampling to ensure that the selected sample is representative of the employee population, taking into account the category of work, gender and union status. Primary data will be collected using surveys administered to the sample respondents. Data will then be categorized based on the perceived causes of absences for analysis. Percentage analysis will be done with regards to gender and the perceived causes of absenteeism among the respondents, as well as unionized representation and staff categories Administrative data from the clocking system, and HR’s records and paid absences of financial records for the past 6 years (Jan 2016 to Dec 2021) will be analyzed Data analysis will be done with using summary statistics (average working days lost per employee on annual basis for the various reasons ), and graphical analysis for trends Calculate annual absenteeism rate and Annual Absenteeism cost: Benchmarking with StatsCan absence records (2015-2020); Conference Board of Canada – Overall organizational absenteeism rates.

Slide 14.m4a. Slide 14.m4a. LIMITATIONS. Time constraints for collecting the needed data and analyzing them within the designated timelines Lack of co-operation from some respondents Response bias as some respondents may fail to provide honest responses Accuracy and completeness of administrative data from HR, and Finance Issue of generalization of outcomes and conclusions based on the respondents may not accurately reflect the situation at hand Generally difficult to quantify absenteeism by establishing a clear line between avoidable and unavoidable absences (StatsCan).

Slide 16.m4a. ANALYSIS - StatsCan. Illness/Disability 2015 2016 2017 2018 2019 2020 6.2 6.4 6.7 6.7 6.9 8 Personal/Family Reasons 2015 2016 2017 2018 2019 2020 1.3 1.3 1.4 1.6 1.4 1 Total Days lost 2015 2016 2017 2018 2019 2020 7.4 7.7 8 8.3000000000000007 8.3000000000000007 9.

Slide 17.m4a. ANALYSIS – Conference Board of Canada.

18bbbbbb.m4a. ANALYSIS – Conference Board of Canada.

Slide 18bbb.m4a. COMMUNICATING THE RESULTS. Results will be communicated in the format of PowerPoint presentation to management Graphical representation will be done to show the trends of absences Use of line graph for the trend Bar charts for comparisons among the causes of absenteeism Pie chart to indicate the split between illnesses, non-illnesses and uncontrolled absences Interpretation of absenteeism rate, benchmarking against StatsCan and Conference Board of Canada records Tables will be used to present the outcomes of the summary statistics Communication to employees by email in the form of employing briefing email Emphasizing on the main contributors how it is impacting on organizational productivity and costs short-term and long-term interventions to improve the situation HODs to explain these to employees in their teams.

Slide 20b-1.m4a. SIGNIFICANCE FOR HR AND IR. “Canadian companies lose an estimated $16.6 billion in productivity per year due to workers calling in sick, as a result of mental health issue” 1 in 4 workers has left his or her job due to work-related stress, according to a 2017 Monster Canada study. (Mercer Canada) Workplace agreements could play significant roles in reducing or contributing to it (conference Board of Canada): In 2011, 74.7% of public sector employees were union members/covered by a collective agreement. The days lost per worker were 13.2 days for union members/those covered by a collective agreement, compared with 7.5 days for non-unionized employees. In their collective agreements, unionized employees usually have more generous sick leave entitlements, job security, and better safeguards against punitive actions due to absences. The sick leave and security negotiated by unionized employees also tend to influence benefits received by non-unionized employees in the same organization. Public sector employees have access to a greater number of paid sick leave days than those in the private sector (11.6 days per employee compared with 8.2 for the private sector). (Conference Board of Canada) Issue of presenteeism in the workplace.

Slide 21-1-1.m4a. IMPLICATIONS FOR HR AND IR. Need to establish an effective absence and disability management program Policies to reduce absenteeism Control the contributors of absenteeism found in the workplace Work environment conditions: Poor working conditions underground; Stress; Burnout, modify shift system our? What employment conditions are contributors? (lesser number of paid days hence employees do not get adequate rest or too many paid leave days leading to abuse?) Awareness for employees, targeted at changing behaviours towards attendance culture.

REFERENCES. Conference Board of Canada Briefing. (2013, September). Absenteeism Trends in Canadian Organizations. Retrieved on December 2021, from https://www.conferenceboard.ca/temp/099918f5-3757-458b-a3cf-47168863bb70/14-100_MissinginAction.pdf Government of New Brunswick. Calculating Absenteeism, Retention & Turnover. Retrieved on December 2021, from https://www.gnb.ca/0012/womens-issues/wg-es/tools/pdf/hr_calc-e.pdf Johns, G. (2010). Presenteeism in the workplace: A review and research agenda. Journal of Organizational Behavior , 31(4), 519–542. https:// doi.org /10.1002/job.630. Mercer Canada. (2018, April). How much are you losing to absenteeism?. Retrieved on December 2021, from https://www.mercer.ca/en/our-thinking/how-much-are-you-losing-to-absenteeism.html Ruhle, S. A., & Süß , S. (2020). Presenteeism and absenteeism at Work—an analysis of archetypes of sickness attendance cultures. Journal of Business and Psychology, 35 (2), 241-255. https:// doi.org /10.1007/s10869-019-09615-0 Statistics Canada. Table: 14-10-0191-01. Work Absence of Full-Time Employees By Industry, Annual. Retrieved December 2021, from https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=1410019101 Statistics Canada. Work Absence Rates: Data quality, concepts and methodology. Retrieved on December 2021 from https://www.statcan.gc.ca/en/statistical-programs/document/3701_D68_T25#b.

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