Employee absenteeism costs the average business between $2,660 and $3,600 per worker each year, which makes it a huge concern for organisations.
See our proven tips for minimizing employee lateness, no-shows, early-outs and more.
What Is an Employee Attendance Policy?
An employee attendance policy is a crucial document for any business. It sets clear expectations about employee attendance, punctuality, and leave.
An effective employee policy can improve productivity, maintain fairness, and promote individual accountability across the workforce. It can also help ensure compliance with local, state and federal labor laws.
Importance of an Attendance Policy
Having an effective attendance policy can benefit a business in several ways : improved productivity, compliance with labor laws and regulations and improved company culture.
1. Improved Productivity
- Businesses with effective attendance policies are more likely to have employees who are consistently present and punctual. This allows operations to run more smoothly and efficiently.
- High attendance rates also contribute to a more stable work environment, where tasks are completed on time, empowering teamwork to flourish.
Conversely, absenteeism can disrupt workflows, leading to delays and increased workload for other employees. This can result in poor employee morale and lower productivity.
According to a study by the Society for Human Resource Management (SHRM), unscheduled absenteeism costs U.S. employers approximately $3,600 per year for each hourly worker and $2,650 for each salaried employee.
This underscores the significant financial impact poor attendance can have on a business.
2. Compliance With Labor Laws and Regulations
- Employee attendance policies also have significant legal and compliance implications. These policies must comply with various labor laws and regulations to avoid legal repercussions and ensure fair treatment of employees.
- According to the U.S. Department of Labor, non-compliance with wage and hour laws can result in penalties and back wages.
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- Fair Labor Standards Act (FLSA): Federal law mandating minimum wage, overtime pay, recordkeeping, and child labor standards. Attendance policies must align with these requirements to ensure proper compensation and record-keeping.
- Family and Medical Leave Act (FMLA): Entitles eligible employees to take unpaid, job-protected leave for specified family and medical reasons. Attendance policies must accommodate these provisions.
- Americans with Disabilities Act (ADA): Requires employers to provide reasonable accommodations for employees with disabilities, such as flexible attendance arrangements.
- State and Local Laws: May impose additional requirements on attendance policies, such as paid sick leave laws.
3. Improved Company Culture
Business culture is a company’s single most powerful advantage, according to Forbes.
A clear attendance policy is instrumental in fostering a positive work environment. It sets transparent expectations, promotes fairness, and enhances overall workplace morale.
- A well-defined attendance policy ensures that all employees are held to the same standards. This consistency helps prevent perceptions of favoritism and creates a fair work environment.
- By clearly outlining attendance expectations, employees understand their responsibilities and the consequences of non-compliance. This promotes individual accountability, leading to a more reliable and dependable workforce.
- With clear procedures for reporting absences and requesting time off, there is less room for misunderstandings and disputes. This reduces conflicts between employees and management, contributing to a harmonious workplace.
- When employees see that everyone is adhering to the same rules, it fosters a sense of equity and respect. This can boost morale and job satisfaction, as employees feel they are part of a fair and supportive environment.
- Clear attendance guidelines help ensure that the necessary staffing levels are maintained, minimizing disruptions and allowing teams to work efficiently. This leads to higher overall productivity and a smoother operation.
Difference Between an Absenteeism Policy & Attendance Policy
While an absenteeism policy and an attendance policy both aim to maintain productivity and a positive work environment, they do have some key differences.
Attendance Policy
Scope: Comprehensive policy covering all aspects of employee presence & punctuality
Goal: Promote regular attendance & punctuality at work
Components:
- Expectations for working hours
- Guidelines for reporting absences & tardiness
- Procedures for requesting time off
- Consequences for non-compliance
Absenteeism Policy
Scope: Subset of the attendance policy specifically addressing the issue of employees not showing up for work as scheduled
Goal: Reduce the frequency & impact of absences, whether they are health-related, personal, or otherwise
Components:
- Acceptable & unacceptable reasons for absences
- Procedures for notifying supervisors about absences
- Consequences of excessive or unexcused absences
What to Include in an Attendance Policy
Every employee attendance policy should include the following elements:
- Definitions – Clearly define what constitutes attendance, tardiness, and absenteeism.
- Expectations – Specific expectations for attendance and punctuality.
- Reporting procedures – Detail how employees should report tardiness and absences (e.g., who to contact, when, and how).
- Leave policies – Explain different types of leave (sick leave, personal leave, vacation, etc.) and how each type is handled.
- Time off requests – Include standardized processes on how both planned and last-minute time off are handled to reduce confusion and ensure sufficient staffing.
- Strategies for minimizing absences – Include strategies for reducing absenteeism and job abandonment to foster a reliable workforce.
- Consequences for violations – Clearly spell out the repercussions of unexcused or unreported absences to emphasize the importance of adherence.
- Support and resources – Mention any support systems available to employees (e.g., Employee Assistance Programs).
- Date and signature – Ensure employees and a witness date and sign the policy.
- Mention of updates – Specify that the policy is subject to updates to ensure compliance with evolving company policies and labor laws. Employees will be required to read and commit to updated attendance policies.
6 Tips for Implementing Your Attendance Policy
Here are 6 tips for effectively implementing and enforcing an attendance policy that promotes productivity, fairness, and a positive work environment.
1. Clear Communication
- Share the attendance policy with all employees through multiple channels such as emails, meetings, and the company intranet.
- Ensure the policy is easily accessible for reference, perhaps in an employee handbook or on the company’s intranet.
2. Manager & Employee Training
- Conduct in-depth workshops to educate managers on the details of the policy and their role in enforcing it. Use real-life scenarios to train managers on handling various attendance issues effectively.
- Include a detailed review of the attendance policy during new hire onboarding. Hold regular refresher sessions and online courses to keep all employees updated on policy changes and expectations.
3. Monitoring & Tracking
- Utilize a digital time clock system for precise tracking.
- Implement comprehensive HR software to monitor attendance and generate reports.
- Set up automated alerts for managers when employees hit certain attendance thresholds, such as excessive tardiness or absences.
4. Regular Policy Reviews
- Schedule regular one-on-one meetings, at least annually, to review the attendance policy with HR and management teams to ensure it remains effective and competitive.
- Collect feedback from employees on the policy’s clarity and fairness, and consider their suggestions for improvement.
- Make necessary adjustments to the policy based on feedback, legal changes, and business needs to keep it current and effective.
5. Consistent Policy Enforcement
- Ensure the policy is applied consistently across all departments to avoid perceptions of favoritism or unfairness.
- Maintain detailed records of attendance issues and the actions taken to address them. This helps in defending against potential disputes and demonstrates fair treatment.
6. Supportive Work Environment
- Encourage open dialogue between employees and managers regarding attendance issues. This can help identify underlying problems and find solutions.
- Provide support for employees facing genuine difficulties, such as flexible work arrangements or access to wellness programs.
8 Common Challenges to Attendance Policies & Solutions
There are a number of challenges many businesses face when implementing and enforcing a new employee attendance policy. By anticipating these challenges, businesses can proactively put strategies to address them efficiently.
1. Resistance to Change
Employees and managers may resist new policies, especially if they are used to a more relaxed attendance environment.
- Solutions:
- Explain the reasons behind the new policy and how it benefits both the company and employees.
Involve employees in the development of the policy to increase buy-in and reduce resistance.
- Explain the reasons behind the new policy and how it benefits both the company and employees.
2. Inconsistent Enforcement
Managers may apply the policy inconsistently, leading to perceptions of unfairness.
- Solutions:
- Provide thorough training to managers on how to enforce the policy consistently.
- Develop clear, standardized procedures for handling attendance issues and ensure all managers follow them.
3. Monitoring and Tracking Attendance
Keeping accurate and up-to-date records of attendance can be difficult, especially in larger organizations.
- Solutions:
- Implement automated attendance tracking systems such as time clocks, biometric systems, or HR software.
- Conduct regular audits to ensure the accuracy and reliability of attendance data.
4. Genuine Absenteeism Causes
Employees may have legitimate reasons for their absences, such as last minute sick calls or personal emergencies.
- Solutions:
- Incorporate flexibility into the policy for genuine cases, such as allowing remote work or flexible hours.
- Provide support programs like Employee Assistance Programs (EAPs) to help employees manage personal issues.
5. Legal and Compliance Issues
Ensuring the attendance policy complies with all relevant labor laws and regulations can be complex.
- Solutions:
- Consult with legal experts to ensure the policy is compliant with local, state, and federal laws.
- Regularly review and update the policy to reflect any changes in legislation.
6. Lack of Employee Awareness
Employees may not be fully aware of the details or importance of the attendance policy.
- Solutions:
- Include the attendance policy in onboarding sessions and provide regular training.
- Use various communication channels to remind employees of the policy and its key points.
7. Cultural and Behavioral Shifts
Changing the organizational culture to prioritize attendance and punctuality can be difficult.
- Solutions:
- Encourage senior leaders and managers to model the desired behavior.
- Use positive reinforcement, such as recognition and rewards, to encourage adherence to the policy.
8. Chronic Absenteeism
Dealing with employees who have a pattern of chronic absenteeism can be challenging.
- Solutions:
- Hold private meetings with chronic offenders to discuss their attendance issues and find solutions.
- Implement a progressive discipline process to address ongoing absenteeism issues.
Improving Employee Attendance Checklist
- Create a clear and comprehensive attendance policy.
- Ensure all employees understand the expectations and consequences.
- Make the policy easily accessible to all employees.
- Foster a positive and inclusive workplace culture where employees feel valued and engaged.
- Regularly recognize and reward good attendance and punctuality to motivate employees.
- Offer remote work options where feasible to accommodate personal and family responsibilities.
- Provide flexible working hours to help employees balance work and personal life.
- Encourage open communication between employees and management about attendance issues.
- Establish channels for employees to provide feedback on attendance policies and practices.
- Offer EAPs to help employees manage personal issues that may affect attendance.
- Promote health and wellness programs to reduce illness-related absences.
- Implement automated attendance tracking systems to accurately monitor and record attendance.
- Regularly monitor attendance records to identify patterns and address issues promptly.
- Train managers on the importance of attendance and how to address attendance issues effectively.
- Conduct workshops for employees on time management and the importance of attendance.
- Hold private meetings with employees who have frequent absences to understand their reasons and offer support.
- Develop action plans to help employees improve their attendance, including setting specific goals and providing resources.
- Implement attendance incentive programs that reward employees for consistent attendance.
- Recognize good attendance publicly, such as through company newsletters or meetings.
- Ensure the attendance policy is applied consistently across all departments to maintain fairness.
- Use a progressive discipline approach for attendance issues, starting with verbal warnings and escalating as necessary.
- Create engaging and meaningful work that employees are passionate about and committed to.
- Offer opportunities for career growth and development to increase job satisfaction and engagement.
- Regularly review and update the attendance policy to ensure it remains effective and relevant.
- Continuously gather feedback from employees and managers to identify areas for improvement.
When Should Employees Sign the Attendance Policy?
All employees should sign the attendance policy during onboarding. By signing the attendance policy, employees acknowledge that they understand the company’s expectations regarding attendance and agree to adhere to them.
How Many Attendance Policies Should a Business Have?
Businesses can create one company-wide attendance policy or several department-based versions, depending on the size and composition of their workforce.
How Often Should Employee Attendance Policies Be Updated?
All businesses should update their attendance policies periodically to ensure they remain effective, competitive, and compliant with current laws and best practices.
Most businesses find that routine annual or biennial reviews are sufficient. However, the following circumstances may warrant more frequent or even immediate updates:
- Changes in federal, state, or local labor laws and regulations that impact attendance, leave, or related issues.
- Structural or policy changes within the organization, such as mergers, acquisitions, or restructuring, that might impact attendance expectations or procedures.
- Feedback from employees and/or managers pinpointing policy shortcomings or improvements.
- Attendance data and performance metrics that indicate emerging trends or issues requiring policy changes.
- Introduction of new tools or technological advancements, such as attendance tracking tools or systems.
- Evolving industry trends and best practices in attendance management.
- Specific incidents or patterns of behavior that highlight weaknesses or gaps in the current policy, or in response to major attendance-related cases.
