[CSM]

I just completed the initial training for compliance at my employer, a publicly held Fortune 5 company. Here are some numbers for you:

All salary employees must complete the initial self audit (6 hrs.) and the initial training (1.5 hrs.). Add to that that 10% of them will be participating in the full audit (32 hrs.).

We have 40,000 salaried employees. This is the caluclaion:
40,000 x 8 hrs. = 320,000 hrs.
40,000 x 10% x 32 hrs. = 144,000 hrs.
Total man hours lost to this audit 464,000.

47.5 weeks of production x 40 hrs. per week = 1,900 hrs. per employee.
464,000/1,900 = 244.21 additional employees (round to 245)

If you take a min. $55 per hour fully fringed rate, used by financial planners for indirect labor, multiply that by 464K hours and you end up with a cost of $25,520,000 in opportunity cost to my company.

Now, that is opportunity costs, but it is also $25 M in lost productivity for my company.

I can only imagine the total cost to our economy if this trend is consistent with all publicly held companies!

[adam_az]

I'm glad that long-silent thread finally got a reply!

I agree, the latest round of 'corporate governance' regulation is an iron on the leg of business.

I made a similar point yesterday about HIPAA (AKA KENNEDY-Kassebaum) on a health care thread.

http://www.freerepublic.com/focus/f-news/1113480/posts?page=29#29

What a waste of time, talent, and resources!

[Keith in Iowa]

Freepmail me.

My employer has a software product your company might find usefull in this regard.