In the past couple of weeks we have seen and heard from a number of business owners who have tried to put a price tag on the implementation of the Affordable Care Act cloaked in the argument as to why they have to add costs to their ultimate end users- the customer.
Whether it is the owner of Papa John's Pizza or the franchise owner of Denny's they seem to be forgetting one very important piece of the picture. In each case where would these organizations be if their human capital made the concerted decision that since we have been categorized in such a low number, we are going to go where we are more appreciated?
The demographics of our businesses have changed. The old adage that the proof is in the profit has morphed into how can we show that our human capital asset are a vital part of our organization. Telling the world that we have to raise our prices $.15 because we have to provide the benefits to our employes to make them more productive for the organization leaves the wrong impression in that regard.
According to a presentation at the 2010 SHRM conference in San Diego, a study sponsored by Kronos and conducted by Mercer found that unplanned absences cost the organizations in this country 8.7 percent of the total payroll costs.
The Kronos study revealed the following data points:
Based on these data points explain to me the logic of the Papa John's et al comments. If I am correct in my assumptions that the CEO of Papa John's and the Denny's franchisee are not capable of being in every facility that their organization's runs 24/7 then making the investment in a healthier workforce in the long run means that the organization actually saves sources of funding for the profit down the road.
There are numerous examples in the business world of when human capital left in mass the organization rapidly dissolves and goes out of existence. The human capital assets of today's business environment expect to be appreciated. Take for example Gen Y - if they do not feel a part of the organization they are gone in an average of 18 months. So do you risk alienating the next generation of your workers by telling them that their value to your organization is $.15 per customer. I would think not.