Employees' presence at work is essential for achieving the company's goals. If employees fail to arrive on time daily, it can negatively impact productivity and can lead to higher expenses. Managing absenteeism can be challenging due to existing Collective Agreements with unions and the complexity of federal and provincial laws regarding leaves of absence. However, through tracking attendance precisely, companies can gain a clearer insight into the costs associated with employee absenteeism, tackle issues proactively, and reduce the risk of non-compliance.
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What is employee attendance?
Employee attendance refers to how consistently employees show up and depart as per their work schedules. To promote satisfactory attendance and adhere to absence management rules, employers might need to undertake the following tasks:
- Develop an employee attendance policy
- Monitor violations and enforce disciplinary actions against those who do not follow the policy
- Develop paid time off (PTO) policies
- Keep records of leave applications, qualifications, and required paperwork
- Examine patterns of absence and assess them against standards within the industry
Importance of employee attendance
Inadequate employee attendance can significantly impact an organization’s bottom line. The costs associated with absenteeism can manifest in various direct and indirect ways, including:
- The necessity for employers to hire temporary replacements through staffing agencies.
- A decline in team morale as employees are burdened with additional work.
- A drop in productivity from absenteeism leading to customer dissatisfaction.
- A rise in overtime costs due to unforeseen absences.
- Increased managerial effort devoted to handling issues related to absenteeism.
- A potential uptick in turnover if the underlying reasons for absenteeism go unaddressed.
How to manage employee attendance
Handling attendance effectively involves knowledge of payroll, compliance with regulations, and maintaining employees’ physical well-being. Employers can alleviate part of this load through the use of time and attendance software. Such systems typically offer:
- Interactive dashboards that display attendance and absence records
- Scheduling features to cover shifts left open by absences
- Analytical tools to identify patterns and causes of absenteeism
- Tools for tracking leaves of absence and ensuring compliance
- Management of attendance policies and point systems
Absence management audits
While employee time and attendance systems help create seamless administrative processes, they also enable employers to conduct audits on absence management. The process involves three key steps:
- Monitoring employee attendance
Understanding who is absent, the reasons for their absence, and when the absences occur is important information for employers as it can help understand potential attendance problems and assess the associated costs. - Analyzing comparative data
By examining attendance records across different locations, departments, or seasons, employers can identify shifts in attendance trends or areas where their absence management strategies might be lacking. - Implementing forward-looking strategies
After identifying the root causes of attendance issues, employers need to tackle these problems effectively. This could involve introducing wellness initiatives, providing on-site healthcare services, enhancing communication methods, and more.
How to improve employee attendance
Managing absenteeism does not have to be a daunting task. Employers can reduce their risks, cut down on complexity, and foster a positive workplace with the following strategies: ?
- Encourage open communication: Regular discussions about attendance rules, potential adjustments, and their impact on employees can help diminish instances of absenteeism and early leave.
- Educate team leaders: Managers should try to stay informed about employee attendance policies and leave regulations to ensure they are enforcing these policies fairly and accurately.
- Implement self-service options: Allowing employees to request leaves, view their leave schedules, verify job protections, and manage ongoing leaves through self-service portals can make the process easier for both the employees and their managers.
- Integrate HR processes: By integrating absence management with systems for scheduling, timekeeping, and payroll, businesses can gain a unified understanding of employee information and maintain a detailed record of activities.
- Limit presenteeism: Taking disciplinary action for breaches of attendance policies should be a measure of last resort to avoid pushing employees to come to work when they're unwell.
- Investigate the underlying causes of absenteeism: Looking into patterns of absenteeism can help uncover if issues with a supervisor, a colleague, or the work environment itself are driving people to stay away from work.
Frequently asked questions
How do you keep track of employee attendance?
Employers can use time and attendance software to monitor employee leave eligibility, have a record of hours accumulated and used, and get an understanding of the reasons for absence. This information enables employers to encourage consistent attendance, prepare for potential labour shortages, and ensure team efficiency is upheld.
How many absences are too many at work?
According to the 10 Best Practices for Time & Attendance Professionals, while employers may wish to accommodate all requests for time off, it is advisable to keep planned absences below 10% of total work hours. Going beyond this limit can affect a department's ability to function efficiently without resorting to overtime. Nonetheless, this 10% figure is a recommendation and should not override any legal entitlements employees have to leave for significant health issues or other justified reasons.
Can I terminate an employee who is always sick?
Terminating an employee for frequent absences should be based on established company policies. Dismissal is not justified if the employee is absent in accordance with company regulations and any relevant laws regarding leaves of absence. This highlights the importance for employers to have an accurate time-off tracking system in place and a comprehensive understanding of laws, regulations, and rules related to leaves of absence.
What is HR’s role in employee attendance tracking?
HR professionals play a key role in monitoring employee attendance to ensure the organization operates at peak efficiency. They need to have a thorough grasp of all aspects of absence management, including paid time off (PTO), leaves of absence, and disability. Additionally, they should ensure attendance records are securely maintained. A cloud-based attendance system can ease this task significantly as it makes remote access possible.
Who is responsible for managing employee attendance?
HR personnel and line managers typically manage employee attendance. Financial and operations staff might also contribute to setting realistic absence management objectives and aligning them with broader organizational goals.
Learn More
Enhance employee productivity with ADP’s Attendance Management solutions with accurate tracking, employee self-service, integration with payroll, and more!
Talk to us about your employee attendance challenges, and we’ll walk you through our solutions — including how companies like yours use them. Call 866-622-8153 or start a quote.
This guide is intended to be used as a starting point in analyzing employee attendance and is not a comprehensive resource of requirements. It offers practical information concerning the subject matter and is provided with the understanding that ADP is not rendering legal or tax advice or other professional services.
