Management Involvement Reduces Absenteeism

October 19, 2000 (PLANSPONSOR.com) - Management involvement can have a significant impact on worker absences, reducing the rate by as much as 74% according to a new survey, which also found an "employee entitlement mentality" the most commonly cited reason for absenteeism.

Employers that implement three specific disability and absence management techniques have an absence rate of just 1.4%, compared with a 5.3% rate for employers that don’t, according to the fifth annual Washington Business Group on Health (WBGH)/Watson Wyatt Worldwide survey on integrated disability management.

According to the survey, employers could realize a significant decrease in their absenteeism by:

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  • Utilizing disability case management
  • Involve line supervisors in absence management
  • Designating an internal absence manager

The survey also found that two-thirds of employers don’t know what their current absence rate is, or how it compares with competitors. The survey was based on responses from 106 employers with more than 1,000 workers.

While surveyed employers are aware of the importance of having accurate systems to measure absences, 61% cited a lack of information systems to track disability experience, while a comparable 61% cited a lack of cooperation from doctors as a barrier to absence management.

This year’s survey also asked employers to rate the importance of items commonly believed to affect absenteeism and disability. The most important causes were:

  • 78% – Employee entitlement mentality
  • 68% – Lack of supervisor involvement
  • 66% – Recurrent sick leave use
  • 60% – Personal or family responsibilities
  • 59% – Employee dissatisfaction with job

Private Equity Investment On Record Pace

October 17, 2000 (PLANSPONSOR.com) - Global private equity and venture capital investment rose at a 65% pace last year, to $136 billion, and looks to be on track to beat that in 2000, according to a new study.

According to Global Private Equity 2000, the $99 billion of North American private equity investments topped the global list and was 73% of the total. The US accounted for 98% of North American investments, according to the study by by 3i, a global venture capital company, and PricewaterhouseCoopers.

Global Going

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In the US, private equity soared 77% from 1998 to 1999, while Western Europe grew nearly as fast, rising 65% during the same period.

The remaining investment came from the following regions:

  • Asia Pacific – $6 billion
  • Middle-East and Africa – $1.4 billion
  • Central and South America – $700 million
  • Central and Eastern Europe – $227 million

Over the past five years, private equity and venture capital investments have shown an average annual growth rate of 36% on a global basis, with Sweden (201%) and Switzerland (119%) topping the list.

In the US, buyouts accounted for approximately $62 billion of the $98 billion of private equit, or 63 percent of the total. The rest of the dollars, approximately $36 billion, up 150 percent from $14 billion in 1998, were traditional venture capital investments in emerging, private companies in the form of cash-for-equity.

The report also noted that the $36.7 billion of venture capital investments in the US during the first six months of this year already exceed the $35.6 billion raised in all of 1999.

“The stock market may be uncertain about the (US) economy, but venture capitalists aren’t,” said Tracy Lefteroff, global managing partner, private equity and venture capital, at PWC. “They’re betting on the future. Barring catastrophic occurrences, we expect venture capital investing in the USA to double 1999’s figure in 2000.”

Supply In Demand

The study cited substantial funds available for investment as a result of:

  • significant overhang of funds raised over investment in previous years
  • the increase in fundraising activity in 2000
  • an increase in corporate venturing activity
  • the emergence of seed capital incubators

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