Employee attendance policy

Employees miss work occasionally, especially if their employer offers paid time off (PTO). Those who utilize this benefit typically provide advanced notice of the absence, allowing the employer to secure adequate coverage. Unplanned absences, on the other hand, can disrupt business operations. Productivity, the employee experience and profit margins may all suffer. Minimizing these risks usually starts with creating an employee attendance policy.

What is an attendance policy?

A workplace attendance policy outlines a company’s stance on employee punctuality and absenteeism. It helps workers understand attendance expectations, including arrival times, workday lengths and the consequences of unplanned absences. 

What to include in an attendance policy

At minimum, an attendance policy should let workers know that they’re expected to arrive on time, return from breaks on schedule and leave only when their shifts are over or they’re given authorized permission. Here are some other pertinent details that employers might include in their policies:

• Procedures for scheduling time off in advance
• Whom employees should contact, e.g., supervisors
• Preferred method of notification, e.g., phone
• Examples of policy violations
• Potential consequences of policy violations
• References to related policies, e.g., PTO, extended leave

Note: many states and localities have paid sick leave or other time off requirements that may or may not require advance notice and could severely limit an employer’s ability to question the reason and/or need for time off. Employers should consult legal counsel to ensure their attendance policies comply with federal, state and local laws.

Point systems

It’s common for attendance policies to use a point system to track fractions. If employees accumulate a certain number of points, they may be subject to disciplinary action. Any prior warnings given to these employees should be documented in case employers need to justify their actions or defend a wrongful termination suit.

In addition, points systems commonly have a rolling period, e.g., 12 months, after which points are removed. Such details should be clearly defined in the policy.

Benefits of a strong employee attendance policy

An attendance policy can have a positive impact on individual productivity, team performance and profit margins.

Productivity

Logically, when employees put in a full day of work, they’re more likely to complete their assignments on time. Employers can supplement their attendance policy with flexible scheduling and childcare accommodations to further reduce instances of missed time while keeping employees engaged.

Team performance

When departments are fully staffed, employees do not have to make up for the work missed by absent colleagues. The quality of goods or services usually improves as a result, and managers avoid wasting time adjusting schedules and workflows to maintain operations.

Profitability

Increased overtime is sometimes necessary when absences are high. Employers might also need temporary workers, which can be expensive on short notice. Maintaining adequate attendance can cut these excess costs and improve profit margins.

Communication of attendance policy for employees

Attendance policies should be distributed to new hires during orientation and readily accessible via an employee handbook or online portal for future reference. One-on-one check-ins between managers and direct reports also help ensure that employees understand attendance expectations. During these meetings, managers can assess if the employee needs a scheduling adjustment or other accommodation to address any challenges that might cause excessive absenteeism.

How to improve employee attendance

Workplace burnout, poor engagement and childcare challenges are all common reasons for unplanned absences. Addressing these underlying issues with policy adjustments and employee engagement programs can help improve overall attendance. Other approaches include the following:

1. Use time and attendance solutions
2. Address concerns promptly
3. Discipline policy offenders
4. Take a balanced approach to attendance
5. Review time off policies
6. Consider flexible work arrangements

Using a time and attendance solution

With time and attendance software, employers can track data in real-time to know if anyone was late or absent. Some solutions also have collaborative scheduling features, allowing employees to swap shifts or request coverage from coworkers when they cannot work.

Addressing concerns promptly

If employees aren’t meeting attendance expectations, employers should address the issue with them immediately and cite specific examples of policy violations. A constructive conversation is usually the most effective approach. It allows employers to gather additional information they may want to share with their legal counsel to ensure compliance with the law.

Disciplining policy offenders

Many effective attendance policies include clauses that state that employees who fail to report to work without proper notice may be subject to discipline, up to and including termination. This provision gives employers some flexibility based on the facts and circumstances of each case, including the severity of the offense and any past performance and conduct issues. 

Note: Before taking any disciplinary action, employers should consult with their HR team or legal counsel to ensure compliance with applicable laws.

Taking a balanced approach to attendance

Overly strict attendance policies can be counterproductive, especially if employees feel compelled to work even when sick. Employers should also be careful not to discourage employees from using legally entitled leave or the PTO granted to them under the policy.

Reviewing time off policies

Employers should regularly evaluate their PTO benefits to ensure they meet their employees’ needs. For instance, if a business offers ample sick days but too little vacation, some employees may "call in sick" when they are actually taking a vacation day.

Considering flexible work

Flexible work schedules and telecommuting may help employees better manage their work and personal responsibilities and, ultimately, reduce the number of unplanned absences. If such arrangements are not practical for all positions, employers can evaluate employee requests on a case-by-case basis.

Frequently asked questions about attendance policies

How do I create a workplace attendance policy?

Attendance policies should be written to meet the business’s needs and must comply with all federal, state and local leave of absence laws. With those points in mind, employers must then determine the following:

1. When employees need to arrive
2. How long employees are expected to work
3. When employees may take breaks or go home
4. How employees should notify managers of an expected absence
5. What disciplinary actions employees may be subject to for policy violations

What is a reasonable time and attendance policy?

A reasonable work attendance policy enforces punctuality without being overly rigid. Employers should particularly avoid no-fault policies, which subject employees to discipline for being absent or tardy a certain number of times, regardless of the reason. With more jurisdictions enacting PTO requirements, it is essential to ensure policies are compliant in the locations where the business operates.

How do I hold employees accountable for attendance?

Employees who abuse attendance policies may be subject to disciplinary action, up to and including termination. However, before taking any disciplinary measures, employers should speak with employees to understand the reasons for their attendance issues and determine whether they are legally protected from disciplinary action.

How do I create a work schedule for my employees?

Modern employers use time and attendance or workforce management solutions to create schedules for their employees. Depending on the provider’s capabilities, the process may proceed as follows:

1. Forecast labor needs in advance.
2. Find the best person for a shift based on needs, skills, certifications, proficiencies, preferences or availability.
3. Share open shifts with employees and manage shift swapping as needed.
4. Monitor hours worked, actual versus scheduled hours, earned hours and overtime to help stay within budget.

Why is an employee attendance policy essential?

Attendance policies are essential to maintaining individual and team productivity, as well as controlling operating costs. Without them, absences and tardy behavior may increase workloads for the employees providing coverage. Employers might also have to authorize more overtime hours or seek temporary labor to meet production goals, both of which can cut into profit margins.

This guide is intended to be used as a starting point in analyzing attendance policies 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 guidance or other professional services. Please consult with your legal counsel.