Employee Attendance Policies

BY: TEAM 1

Definition of Absenteeism:

Failure of employees to report for work when they are scheduled to work.

To create a positive desire of the employees to attend work on the regular, and to also encourage their coworkers to attend work regularly.

A honest and stable policy is important for business.

An effective attendance policy helps the business ensure employees can accomplish the work

Purpose Of Attendance Policy

Serious Accidents/Illnesses Poor Working Conditions Boredom No Job Satisfaction Poor Supervision Stress Personal/Transportation Problems Poor Physical Fitness/Nutrition

Causes of Absenteeism:

Accidents & Illnesses

Accidents can happen at any time and are uncontrollable and

employers will understand if this were to keep you from work

Everybody gets sick at some point in their lives, but it becomes a problem

when you are ALWAYS sick and ALWAYS calling off work because you have a

stuffy nose.

Poor Working Conditions

• Working conditions may not always be favorable

• Compromise to get as comfortable as possible:• Better Chair• Better Shoes

Boredom/No Satisfaction

• Work as if you love your job• Find ways to make it more enjoyable• If allowed, listen to music through headphones

Poor Supervision and Stress

• Do your job how you were taught• Do your job to the best of your ability• Supervision is not you concern

• Stay Calm• Take Deep Breaths• Relax• Take a walk in fresh

air to ease your mind• Ask for help

Personal & Transportation Problems

• Everyone has problems• Leave them at home and

focus on your work while at work

• Always have a back up plan in case your car breaks down

• Set up a carpool with co-workers

Poor Physical Fitness/Nutrition

• Go on a daily walk after work or on breaks

• Get a gym membership• Do be so sedentary

• Pack a healthy lunch and snacks• Do not eat fast food all the time• Drink only water • No soda

Higher absenteeism in unionized organizations Women are absent more frequently than men Younger employees are absent more frequently than

older employees Older employees are absent for longer periods of time

Trends in Absenteeism

Goals must be tangible More meaningful job, greater motivation for regular

attendance High expectations are discouraged employees are more

likely to quit Low expectations will have negative results

Goals of Attendance Policy

Review information in Human Resources Review in hiring department Refer to hiring department Invitation to interview if all reviews went

well Accept employment offer Complete all paperwork necessary Pre-employment physical, including drug

test Complete new hire orientation

New Employee Process

Consequences of Absenteeism

Refers to employees who are absent for reasons beyond their control; like sickness and injury

Innocent absenteeism

Consists of absences where it can be demonstrated that the employee is not actually ill and is able to improve his or her attendance

Culpable absenteeism

Change Management Style Change Working Conditions Provide Incentives Develop an Attendance Policy

How to Deal with Employee Absenteeism

Total Cost of Replacing a $60,000/Year EmployeePossible Direct Costs   Job ads

- Develop a job description, write a job ad, get approvals, & post to internal & external job boards(5 hrs x $100/hr)- Run a 2-week ad on Monster- Handle/screen responses & schedule interviews(10 hrs x $100/hr)

   Interviewing costs (7 candidates x 3 hrs ea x $100/hr)   External recruiting fees ($66,000 x 33%)      Pre-employment testing/reference check     Salary increase ($60,000 x 10%)   Sign-on bonus ($67,200 x 5%)   Relocation   Training (30 days x 2hrs/day x $100/hour + $1,000)TOTAL DIRECT COSTS

    

$500$100

 $1,000$2,100

$22,176$1,000$7,200$3,360$5,000$7,000

$49,436

Possible Indirect Costs   Loss of training   Loss of institutional knowledge   Loss of productivity    Loss of morale in other employees   Additional stress on management   Consulting fees   Overtime expense       TOTAL INDIRECT COSTS

 $5,000

$15,000$26,000$18,924$12,000$18,000$5,640

       $100,56

4TOTAL COST = $150,000*

*Based on statistics, the total cost of replacing this employee could range from $120K to $180K.

All numbers in this scenario are estimates based on previous experience.  The following are our assumptions:-    It takes 5 hours to develop a job description, write a job ad, get approval, and post the ad.-    The person responsible for hiring is worth $100/hour to the company based on typical productivity.-    It takes 10 hours to handle and screen all ad responses and schedule candidate interviews.-    Approximately 7 candidates will be interviewed before finding the right person for the job.-    Each candidate will require 3 hours of the hiring person’s time during the process.-    External recruiting fees will be 33% of the new annual base salary.-    Pre-emptive testing for the chosen candidate will be $100.-    The base salary for the position will get an average 12% increase.-    The new employee will receive an average bonus of 5% of his or her annual base salary.-    An average relocation fee of $5,000 will be offered and taken.-    The new employee will receive an average of 2 hours of training per day for the first 6 weeks.-    Training materials for this person will cost $1,000.-    The person responsible for training the new employee is worth $100/hour to the company based on typical productivity.

Cost of Replacing an Employee

    Total Cost of Retaining a $60,000/Year EmployeeMonetary Rewards   Salary increase ($60,000 x 10%)   Annual bonus ($66,000 x 12%)        TOTAL MONETARY REWARD COSTS

 $6,000$7,920

        

$13,920

Non-Cash Incentives   Flexible scheduling   Telecommuting      - Laptop      - Internet access   Employee appreciation   One week of additional vacation ($31.73/ hr x 40 hrs)   Clear & precise career path   One training course per quarter (1 training/qtr x 4 qtrs x $1,000/training)   Additional exposure   Communication = $0TOTAL NON-CASH INCENTIVE COSTS

     $0

 $1,000$1,500

$100$1,270

$0$4,000

$0$0

$7,870

TOTAL COST = $21,790All numbers in this scenario are estimates based on our experience.  The following are our assumptions:-    In order to retain this employee, you have chosen to implement an above-average 10% adjustment in the employee’s current annual base

salary.-    You have also chosen to implement an above-average bonus equivalent to 12% of the new annual base salary.-    The employee earns the full bonus.-    Also in an attempt to retain this employee, you choose to add each of the non-cash incentives we discussed to the employee’s current total

compensation package.-    Flexible scheduling is free as it is simply an exchange of hours.-    The cost of telecommuting will include only a laptop and a year’s worth of internet access.-    You will purchase $100 worth of employee appreciation items over the course of the year.-    With a $66,000 annual salary, the employee’s hourly rate is $31.73.-    You will give the employee one week of additional vacation which is equivalent to 40 hours.-    The cost of implementing a career path for the employee is virtually free.-    You will send the employee to one training course per quarter.-    The average cost of a training course for this employee is $1,000.-    Any cost associated with additional exposure for this employee will be offset by the employee’s increased productivity and value to the

company.-    The cost of communicating with this employee is negligible.

Cost of Retaining Employee

Saving Employees=saving $$$$$$$$$$$$$$$$$

Happy employees means better job performance.

Losing Employees means company looses money hiring more employees

Benefit of employee retention

When all else fails…

The employment termination process usually involves, a first verbal warning, then a written warning then termination after the third offence.

Employee Termination process

Culpable absenteeism consists of absences where it can be demonstrated that the employee is not actually ill and is able to improve his or her attendance. In this case, disciplinary procedures may be appropriate.

When termination is appropriate