Employee attendance

Employee attendance in the workplace is critical to a business’s success. If people do not show up to work on time each day, productivity suffers and costs increase. Absenteeism is also challenging to manage due to union agreements and increasingly complex federal and state leave of absence laws. By accurately monitoring attendance, however, employers can better understand the direct and indirect costs of employee absenteeism, proactively address problems and minimize compliance risk.

What is employee attendance?

Employee attendance is the frequency with which employees arrive and leave on time when they are scheduled to work. To help ensure good attendance and comply with leave of absence regulations, employers may have to fulfill the following responsibilities:

• Create an employee attendance policy
• Track infractions and discipline policy offenders
• Calculate paid time off (PTO) balances
• Track leave requests, eligibility and documentation
• Analyze absence trends and compare them to industry benchmarks

Importance of employee attendance

Poor employee attendance can be incredibly expensive for employers. Some of the direct and indirect costs of absenteeism include the following:

• Employers may have to pay a staffing agency to replace a team member temporarily
• Workforce morale often suffers when employees are asked to do more with less
• Lost productivity due to absenteeism may result in dissatisfied customers
• Unexpected absences can increase overtime expenses
• Managers must spend more time on absentee-related administration
• Turnover may increase if the root causes of absenteeism are not addressed

Challenges of employee attendance management

Absence management has long been a challenging undertaking. Employers must keep pace with fast-changing regulations, maintain accurate records, and enforce attendance policies without causing presenteeism.

Regulatory compliance

Employees may be entitled to a leave of absence under the Family Medical Leave Act (FMLA), the Americans with Disabilities Act (ADA) and the Pregnancy Workers Fairness Act. Certain state and local laws might also provide paid family leave, paid sick leave, short-term disability, long-term disability, discretionary leave and various other unpaid leaves. These laws vary by jurisdiction, can take effect independently or together, and may be continuous or intermittent, creating potential confusion for employers who must know which leave of absence applies and when.

Recordkeeping

The FMLA requires employers to determine employee eligibility and manage and track continuous and intermittent leaves of absence. These record keeping responsibilities are particularly complex when they pertain to part-time, variable-work-schedule, hourly and non-exempt employees. Employee attendance records may also be audited by the Internal Revenue Service (IRS), Department of Labor (DOL) and other government agencies. To help minimize their risk, employers should track all policy infractions and disciplinary actions.

Policy enforcement

Employers may have their own rules governing employee attendance. These policies must be applied consistently across all locations to help avoid claims of favoritism or fraud. That does not mean, however, that exceptions cannot be made when warranted. Enforcing attendance policies too strictly may compel employees to work when ill – a behavior known as presenteeism, which can be just as costly as absenteeism.

How to manage employee attendance

Managing attendance requires expertise in payroll, compliance and physical health and wellness. Employers can reduce some of the burden with an automated time and attendance solution. Comprehensive systems may include:

• Dashboards showing presences and absences
• Scheduling tools to fill open shifts caused by absences
• Analytics to understand absence trends and reasons for absenteeism
• Leave of absence tracking and compliance support
• Attendance policy and point system management
• Infraction and discipline tracking

Absence management audits

In addition to simplifying administration, employee time and attendance solutions allow employers to conduct absence management audits. There are three steps:

1. Track employee attendance
   Knowing who is absent, when and why helps employers identify potential attendance issues and evaluate the related costs.
2. Review benchmark data
   Employers can compare attendance data by location, department or season to see if there have been any changes in attendance patterns or if their absence management efforts are falling short.
3. Develop proactive solutions
   Once they’ve located the cause of absence-related issues, employers should address them appropriately. Solutions might include wellness programs, on-site medical services, improved communication tactics, etc.

How to improve employee attendance

Absence management doesn’t have to be overwhelming. Employers can help minimize their risk, simplify complexity, and create a positive work environment with these tips:

• Communicate frequently
  Talking often with employees about attendance policies, including any proposed changes and how their lives may be impacted, can help reduce absences and early departures.
• Train supervisors
  Managers must be kept up to date on employee attendance policies and leave of absence regulations so they can apply the rules consistently and accurately.
• Offer self-service
  Self-service features may allow employees to apply for leave, view their leave calendar, check job protection and manage current leaves.
• Integrate HR operations
  Integrating absence management with scheduling systems, time and labor, and payroll provides a holistic view of employee data with a comprehensive audit trail.
• Limit presenteeism
  Employers should reserve disciplinary action as a last resort for attendance policy violations to prevent employees from feeling compelled to work when sick.
• Identify root causes of absenteeism
  Analyzing trends might reveal an issue with a manager, coworker or working conditions as the reason why people do not want to come to work.

Frequently asked questions about employee attendance

How do you keep track of employee attendance?

Time and attendance software can help employers track leave eligibility, reasons for employee time off, and hours accrued and used. With this data, they may be able to promote regular attendance, plan for potential labor gaps and maintain team productivity.

How many absences are too many at work?

Although they may want to approve all PTO requests, employers should limit planned absences to 10% or less of the total hours worked.¹ Exceeding this threshold may hamper a department’s ability to operate without overtime. However, 10% is merely a suggested guideline and does not supersede any laws, rules or regulations that entitle employees to time off for serious health conditions or other reasons.

Can I terminate an employee who is always sick?

Termination as discipline for poor attendance must be grounded in official policy. If an ill employee takes time off according to the company rules and any applicable leave of absence laws, it may not be a fireable offense. This situation illustrates why employers must accurately track time off accruals and thoroughly understand leave of absence laws, rules and regulations.

What is HR’s role in employee attendance tracking?

HR leaders are responsible for tracking employee attendance to maintain optimal productivity throughout their organization. They must completely understand absence management in all its forms – PTO, leave, disability, etc. – as well as how to properly secure attendance records. Cloud-based timekeeping solutions that are accessible from anywhere can help make this responsibility easier.

Who is responsible for managing employee attendance?

HR associates and front-line managers commonly oversee employee attendance. Representatives from finance and operations may also be involved in aligning expectations and setting absence management goals.

This guide is intended to be used as a starting point in analyzing how to track 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.

¹10 Best Practices for Time & Attendance Professionals