How To Create an Attendance Policy in 2024 (Includes a Free Template)
Absenteeism can be a major concern for many employers and HR. The annual costs related to lost productivity are in the region of $84 billion. Habitual absence also places a burden on the rest of the team. To keep employees accountable, HR should develop an employee attendance policy, also known as a time and attendance policy – a set of guidelines and rules to regulate employee attendance and punctuality.
Contents
What is an attendance policy?
Understanding basic attendance policy terms
Can you fire an employee for poor attendance?
What to include in an attendance policy: 9 elements
Attendance policy template
How to write a good attendance policy in 12 steps
4 attendance policy company examples
What is an attendance policy?
A well-defined attendance policy sets clear expectations and standards for attendance, contributing to a more disciplined and productive work environment. It helps maintain fairness and consistency in addressing attendance-related matters, treating all employees equitably. Additionally, an attendance policy ensures compliance with labor laws and regulations related to leave entitlements and employee rights.
The negative impact of employee absence on a business is significant. Unscheduled absenteeism costs roughly $3,600 per year for each hourly worker. Additionally, it also costs roughly $2,650 each year for salaried employees. Absenteeism and tardiness also lead to productivity losses, decreased team performance, and increased workloads for remaining staff. It disrupts project timelines and reduces customer service quality.
With a comprehensive attendance policy, you can manage and reduce absenteeism and improve productivity and performance. In fact, robust attendance management can help reduce costs by over $7.9 million per year for a company with 5,000 hourly employees.
Understanding basic attendance policy terms
- Tardiness: Tardiness is when an employee arrives late for work or beyond the specified start time. It’s disrespectful, affects productivity, and can lead to resentment from the team.
- Absenteeism: Absenteeism is when an employee is frequently absent for work without good reason or prior approval.
- Presenteeism: The total cost of presenteeism is estimated to be more than $150 billion per year. Presenteeism is when an employee is there in body but not in spirit. They are present at work but not fully engaged or productive due to illness, personal issues, or other distractions.
- Excused absences: Excused absences are authorized absences from work, that are granted for reasons such as illness, family emergencies, bereavement, medical appointments, or other pre-approved leave.
- Unexcused absences: Unexcused absences are unapproved absences from work. They are not considered acceptable and may lead to disciplinary actions.
- Quiet quitting: At least half of the U.S. workforce is quiet quitting. Also known as silent resignation; an employee disengages from their job duties and responsibilities without formally resigning or notifying the employer. They gradually withdraw from the workplace through a lack of effort and productivity.
Can you fire an employee for poor attendance?
You have the right to dismiss an employee for poor attendance, especially if the absenteeism is excessive and they frequently and consistently miss work without valid reasons or proper approval.
Before you consider firing someone, follow the correct process:
- Attendance policy: Have a clear attendance policy in place that outlines the expectations regarding attendance, the process for requesting leave, and the consequences for excessive absenteeism. Communicate it to all employees during onboarding and review it regularly to ensure everyone knows the rules.
- Document attendance records: Maintain accurate and detailed attendance records for each employee. Include dates and times of absences, reasons for absences, any communication between the employee and HR/management regarding attendance, and any supporting documentation (e.g., medical certificates, proof of family emergency).
- Communication: When you notice a pattern of excessive absenteeism, have a conversation with the employee. Express concern about their attendance and ask about the reasons for being absent. Give them an opportunity to explain any underlying issues or challenges.
- Investigate: If the employee has reasons, conduct an investigation to verify the validity of those reasons. Request medical certificates from healthcare providers if the absences are due to illness.
- Counseling: Offer counseling or support to the employee if the absences are due to personal issues or health problems. Refer the employee to your Employee Assistance Program (EAP) or give them resources to help address their issues.
- Performance improvement plan (PIP): If the excessive absenteeism continues, implement a performance improvement plan (PIP). Clearly outline the attendance expectations, the consequences for not meeting those expectations, and a reasonable timeframe for improvement.
- Monitor and review: Monitor the employee’s attendance during the PIP period. If it improves, recognize and acknowledge their efforts. If excessive absenteeism persists, proceed with further disciplinary actions.
- Progressive discipline: Depending on the severity of the absenteeism and your company’s policies, apply progressive discipline, including verbal warnings, written warnings, and, ultimately, termination.
- Termination: In cases where the employee’s excessive absenteeism continues, termination is your final course of action. Ensure that the termination process complies with employment laws and regulations.
What to include in an attendance policy: 9 elements
Here are the key elements to include in your attendance policy:
1. Set attendance expectations
- Define regular work hours, including start and end times, and specify any core hours when employees must be present.
- Be clear about flexible work hours and office-first or remote-first policies.
Tessian’s First Choice approach enables its employees to choose attendance based on three options. Each option outlines the expectation of attendance for the various roles.
2. Define how to report absences
Establish a clear procedure for employees to report absences, including whom to notify, how to inform the company (phone call, email, etc.), and the timing of notification (e.g., before the start of the workday). Google employees use an absence management system to book their absences and view the availability of their team members. The absences are then sent directly to managers for approval from the system.
3. Define absence categories
Differentiate between various types of absences, such as scheduled time off (vacations, personal days), sick leave, bereavement leave, jury duty, parental leave, etc. Specify the approval process for each type of absence.
4. Time and attendance tracking
If applicable to your organization, explain the time tracking methods, whether through an electronic system, time clock, or any other means.
It’s also important to note that, while a report from Digital found that 60% of organizations use monitoring software to track its remote employees, there are several negative implications associated with tracking employees. A survey conducted by Morning Consult revealed that over 50% of unmonitored workers surveyed indicated they would resign if their employer monitored their productivity with facial recognition technology or recorded audio or video of them. The survey also found that 1 in 2 tech workers indicated they would decline a new role if the organization used a surveillance technique.
5. Excessive absences and tardiness policies
- Define what constitutes excessive absences and tardiness.
- Explain the consequences for violating the attendance policy, including progressive discipline steps.
6. Maintaining attendance records
State how attendance records will be maintained, who will have access to them, and the confidentiality measures in place.
There are several U.S. laws that mandate record-keeping or time and attendance requirements for employers. It is HR’s responsibility to ensure that the organization remains legally compliant. For example, the Fair Labor Standards Act (FLSA) requires employers to maintain accurate records of hours worked by non-exempt employees, including regular hours, overtime hours, and total wages paid.
7. Accommodations and FMLA
- Outline the process for employees to request reasonable accommodations related to attendance, as required by disability laws.
- Provide information on how Family and Medical Leave Act (FMLA) requests will be handled, if applicable.
8. Policy review and updates
- Specify how often the attendance policy will be reviewed and updated, if needed, to stay current with changing laws or company needs.
9. Measuring attendance
- Mention any tools or techniques used to measure attendance, such as predictive analytics which analyzes historical data to make predictions about the future, including which employees are more likely to quit within a certain timeframe.
Attendance policy template
Developing a clear and effective attendance policy helps organizations achieve operational efficiency and foster a productive work environment.
You can use the attendance policy template below as a foundation to create a policy that is in accordance with the unique needs of your organization.
How to write a good attendance policy in 12 steps
Writing a good attendance policy requires careful consideration of the organization’s needs, legal requirements, and input from stakeholders. Here are the steps to create an effective attendance policy:
- Understand the organization’s needs: Analyze the organization’s specific requirements, including productivity goals, employee morale, and operational needs. Consider how attendance impacts the organization’s overall performance and identify areas that need improvement.
- Research legal requirements: Familiarize yourself with applicable labor laws, regulations, and employment contracts related to attendance, leave entitlements, and employee rights. Ensure that the policy complies with all relevant legal requirements to avoid potential legal issues.
- Gather input from stakeholders: Involve key stakeholders in the policy development process, including HR, management, and employees. Conduct surveys or focus groups to understand employees’ preferences and concerns regarding attendance policies.
- Define policy objectives: Clearly state the objectives of the attendance policy. For example, it may aim to improve employee punctuality, reduce absenteeism, or provide flexibility to employees.
- Outline attendance expectations: Align attendance expectations with the organization’s goals and culture. For instance, specify if the organization follows an “office-first” attendance policy, allows full remote work, or offers flexible work hours. Clearly define work hours, including start and end times, and any core hours required for employees’ presence.
- Address various types of absences: Differentiate between different types of absences, such as scheduled time off (e.g., vacations, personal days), sick leave, bereavement leave, parental leave, etc. Specify the process for requesting and approving each type of absence.
- Establish reporting procedures: Create a clear procedure for employees to report absences, including whom to inform, how to notify the company (e.g., phone call, email), and the timing of notification. Address the requirement for employees to notify their absence in advance whenever possible.
- Define attendance tracking and records: Specify the methods of time tracking, whether through an electronic system, time clock, or any other means. Outline how attendance records will be maintained, who will have access to them, and the confidentiality measures in place.
- Communicate the policy: Clearly communicate the attendance policy to all employees. Make it easily accessible through employee handbooks, company intranet, or other relevant platforms. Provide training or information sessions to ensure that employees fully understand the policy.
- Enable employees to use time and attendance tools: Implement employee self-service systems or other time-tracking tools to enable employees to record their attendance accurately. Offer support and resources to help employees effectively use these tools.
- Review and update the policy: Regularly review the attendance policy to ensure it remains relevant and aligned with the organization’s changing needs. Make updates as necessary to comply with legal requirements or to improve policy effectiveness.
- Have it reviewed by legal: Before finalizing the policy, have it reviewed by legal experts to ensure compliance with all applicable laws and regulations.
4 attendance policy company examples
1. Walmart’s point system
Walmart employs a point system to track attendance. Employees accumulate points for absences, tardiness, and early departures. Points are assigned based on the severity of the attendance violation, and employees may face disciplinary actions for exceeding a certain point threshold within a defined period.
Pros:
- The point system provides a transparent and measurable way to manage attendance issues.
- It sets clear consequences for attendance violations, allowing for progressive discipline.
Cons:
- It doesn’t account for individual circumstances or emergencies, leading to unfair penalties for some employees.
- Employees might feel compelled to come to work even when they are genuinely unwell, potentially spreading illness.
With a structured approach to attendance management, it’s crucial to build in flexibility and consider exceptions for genuine emergencies. Encouraging a healthy work-life balance and prioritizing employee well-being should also be part of the policy.
2. Netflix’s “No policy” policy
Netflix has an unconventional approach to absence and attendance policies. The company’s philosophy is built on trust and treating employees like adults. There are no set limits on vacation days, and employees are free to take time off when they feel it’s necessary as long as their work responsibilities are fulfilled.
Pros:
- Employees feel empowered to manage their own time, leading to higher job satisfaction and loyalty.
- The policy accommodates individual needs and work styles.
Cons:
- Without clear guidelines, some employees may take advantage of the policy, leading to decreased productivity and increased workload for others
- The absence of critical team members could disrupt project timelines or daily operations.
Netflix’s approach highlights the importance of trust and autonomy in the workplace. Complete absence of policies might not suit every organization, but you can consider adopting a more flexible and employee-centric approach, allowing employees to have more control over their time while still ensuring accountability and fairness.
3. Coca-Cola’s strict attendance policy
Coca-Cola’s attendance policy sets clear expectations for punctuality and attendance. Workers are expected to be at work on time every time. Without at least 48 hours of prior notice given, employees will be penalized if they’re absent. The policy includes a defined number of allowable occurrences within a specific period. If employees exceed this limit, they may face disciplinary actions, up to and including termination.
Pros:
- A clear policy discourages excessive absenteeism and tardiness
- Employees are aware of the consequences of attendance violations, promoting a fair and consistent work environment.
Cons:
- The policy doesn’t allow for individual circumstances or emergencies.
- Strict policies can create stress and fear among employees, impacting their well-being and job satisfaction.
While clear expectations are necessary, excessive rigidity can have negative consequences. Striking a balance between setting guidelines and considering individual needs is crucial to a healthy work culture.
4. Oracle’s unlimited vacation time
Oracle offers unlimited vacation time – or “flexible vacation” as they call it – means employees can take time off at any time as long as they have approval from their manager. The company emphasizes results over hours worked and trusts employees to manage their own time responsibly.
Pros:
- The policy promotes trust and shows respect for employees’ personal lives.
A focus on results rather than hours worked can boost motivation and productivity.Cons:
- Some employees may take advantage of the policy, affecting team collaboration and productivity
- The policy might make it challenging to ensure adequate staffing levels for critical projects.
Oracle’s approach highlights the importance of empowering employees and emphasizing work outcomes. You can adopt a similar policy while maintaining some structure to ensure accountability.
Key takeaway
Absenteeism is a big problem for many employers these days, costing them billions of dollars in lost productivity. That’s why it’s imperative to have an attendance policy in place, with a set of rules and guidelines to manage employee attendance and punctuality. This helps reduce costs and creates a more disciplined work environment. It’s also fairer to treat all employees equally when it comes to attendance issues. Plus, having an attendance policy ensures that the company follows the law and ensures employees’ rights are respected.
Walmart has a points system, Netflix lets employees decide their time off, Coca-Cola has a strict attendance policy, and Oracle offers unlimited vacation time. Each approach has its pros and cons, and there’s no one-size-fits-all solution. It’s important for every organization to create a well-structured attendance policy that suits the business’s needs and considers employee well-being.
FAQs
It’s a set of guidelines and rules that regulate employee attendance, punctuality, and absenteeism. It outlines the expectations for employees’ work hours, reporting absences, and the consequences of excessive absenteeism or tardiness. The policy should include details about various types of leave, such as vacation, sick leave, and personal days, as well as procedures for requesting time off and tracking attendance records.
Yes, in most cases you can, especially if the absenteeism is excessive and impacts work productivity or operations. But it’s essential to follow a fair and consistent process, including progressive discipline, support, or accommodations where necessary, and compliance with relevant employment laws.
This is when employees are not penalized for absences or tardiness up to a certain threshold, regardless of the reasons for their time off. Instead of focusing on the reasons, the policy counts instances of absence or tardiness towards a predetermined limit. Once an employee exceeds the limit, disciplinary actions are taken. This creates a more equitable and consistent approach to managing attendance, avoiding the need for employees to provide detailed explanations for each absence.
It strikes a balance between operational needs while accommodating personal or health-related reasons for absences. The policy sets clear expectations for attendance, provides a fair process for handling attendance issues, and offers flexibility, such as remote work or flexible hours, to help employees manage their work-life balance. It also complies with employment laws and ensures that disciplinary actions are proportionate to the violations.
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