An employee attendance policy sets clear expectations around punctuality, work hours, time off, and attendance tracking. This policy helps managers ensure consistency, fairness, and accountability in managing attendance. It can also help reduce absenteeism while meeting labor laws and regulations tied to employee rights.
In this guide, we'll break down why an attendance policy is valuable to your business and how to create one that works for your team.
What goes into an attendance policy
Attendance policies should be clear and straightforward. Here are the topics your policy should cover:
- Working hours: What time are team members required to be at work?
- Punctuality and tardiness: What are the expectations for being on time and the consequences for arriving late?
- Leave policies: How does someone request time off? What type of leave is available (for example, sick leave, vacation, parental leave)? How should someone report an excused and unexcused absence?
- Flexibility or remote work options: What provisions are in place for hybrid or remote work? Are there specific days when employees need to be in the office?
- Documentation and tracking: How will attendance be tracked (such as time clocks, punch sheets, or software)? What proof (such as a doctor's note) is required for certain absences?
- Consequences: What is the disciplinary process for excessive absences or tardiness?
- Special circumstances: Are there exceptions for jury duty, bereavement, or religious holidays?
You should also include the date from which the attendance policy will be in effect and when it was last updated, if applicable. Include contact information for the person responsible for tracking or addressing attendance issues.
[Read more: How to Write an Employee Handbook and What to Include in It]
Make sure your attendance policy is part of employee onboarding. It's important to set up new hires for success and make sure they know how to clock in and out, request leave, and document their sick days when necessary.
Why do you need an attendance policy?
Attendance policies help your team members be proactive about managing their time, reducing absenteeism and saving your company money. These policies empower employees to be on the same page about professionalism, punctuality, and prioritizing work during the day.
"Unscheduled absenteeism costs roughly $3,600 per year for each hourly worker. Additionally, it also costs roughly $2,650 each year for salaried employees," wrote the Academy to Innovate HR. "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."
The academy estimates that an attendance policy can help reduce absenteeism costs by nearly $8 million annually for a company with 5,000 hourly employees.
Moreover, attendance policies help meet labor regulations. For instance, by clearly defining your work hours, breaks, and overtime, you can avoid violating the Fair Labor Standards Act (FLSA), which governs working hours, overtime, and breaks.
[Read more: Employee Handbook Templates for Your Small Business]
Tips for creating an effective attendance policy
Ideally, attendance policies make sure every employee is treated fairly and equally. "When employees follow the same rules and guidelines, perceived inequality or bias is reduced, building trust and improving morale and engagement," wrote Rippling.
In the spirit of using your attendance policy to create a positive work culture, ask for feedback from your team when setting your guidelines. Their input can help you create a reasonable policy that balances employee autonomy and accountability.
Some companies choose to outline in detail the repercussions of tardiness and absenteeism in their attendance policy. If the disciplinary process is similar to the performance improvement plan you use for other issues, you might outline these details in your employee handbook instead. Often, the attendance policy is a subset of the employee handbook, and it gets too complicated to have different disciplinary proceedings under one resource.
Finally, make sure your attendance policy is part of employee onboarding. It's important to set up new hires for success and make sure they know how to clock in and out, request leave, and document their sick days when necessary. Feel free to revisit your attendance policy as the workforce changes or your remote work needs evolve.
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