You've gathered the absence data ... but now what?

Today's post comes from G.Neil's HR News Weekly:

You’re well-versed in the Fair Labor Standards Act (FLSA) time and pay laws, you keep careful records of each employee’s attendance and you’ve even identified your company’s biggest attendance issues. But that’s where it stops, according to a Liberty Mutual survey of 300 human resource and benefits professionals conducted in April 2011.

The survey found that employers are making the effort to stay informed and track attendance, but they’re not using the numbers to address the bottom-line impact of employees missing work. Specifically, 53% of respondents ranked compliance with state and federal leave laws as their greatest concern, yet nearly 50% didn’t know the cost of absence within their own workplaces.

That can be an expensive mistake! The U.S. Department of Labor (DOL) calculates that uncontrolled employee absence costs employers $100 billion per year, based on 2009 data.

“While employers are clearly aware of how important it is to comply with leave regulations — and are therefore tracking these leaves — many haven’t taken steps to use the data they collect to proactively manage absence and control the total financial impact on their companies,” says Heather Luiz, disability product manager for Liberty Mutual Group Benefits. insurancenewsnet.com

From at-a-glance tracking sheets to software, G.Neil offers a variety of practical tools to help you manage attendance, employee vacations, sick time and other time off.

Beyond the tracking, it's up to you to review the data and look for weaknesses in employee attendance. Is it a certain handful of employees who call in sick or come in late month after month? It may be time for these employees' managers to have a heart-to-heart talk with them about what is going on and what they expect going forward. If your attendance rules are clear and you enforce them consistently, this type of counseling shouldn't pose any problems.

Managing medical leave - and preventing FMLA abuse - can be a little trickier. In addition to the administrative side of FMLA leave (requiring leave request forms and medical certifications, for example), you'll need to track used and available FMLA time based on the latest federal regulations.

You've gathered the absence data ... but now what?

No excuses! Employees can't dodge a well-defined employee attendance policy

No matter how compelling the reason (and employees come up with loads of them), missing work without permission is unacceptable.

In a recent appealed court case, Matter of Rivers v. Commissioner of Labor, the ruling stands that an employee’s unapproved absence was properly deemed misconduct and as such, made the employee ineligible for unemployment benefits.

The employee, an automotive technician, requested time off to spend time with his son returning from Iraq. He was approved for one day. But when he decided to extend his family visit two additional days without approval, he opened an unintended door. When he returned, he was fired for misconduct and as a result, couldn’t file for unemployment.

If we were to step out of the “employer’s advocate” arena for a moment, we might feel an emotional pull regarding the employee wanting to reconnect with his son. But rules are rules. Most employers have a clear employee attendance policy that outlines the request/approval process … and specifies that a “no show” is grounds for disciplinary action or termination. That’s your first line of defense. Your second line, regarding using “misconduct” as a basis for denying unemployment benefits, is showing that the employee deliberately and willfully engaged in activity that showed a complete disregard for your workplace standards and policies.

This employee overstepped his bounds on both counts … and suffered the consequences.

No excuses! Employees can't dodge a well-defined employee attendance policy

When "fun in the sun" dampens work productivity

While the beach, backyard or neighborhood barbeque may beckon during the sunny days of summer, the fact remains that you’re running a business and the work must get done. Don’t wait until you have an attendance problem on your hands before taking a stand.

Your employee attendance policy should be in writing, included in your employee handbook and communicated to all employees so it can be enforced. Clarify when chronic lateness and absenteeism are cause for discipline, and outline how many absences or instances of lateness are acceptable.

Your company's attendance guidelines also must comply with the FLSA, which governs minimum wage requirements, overtime, timekeeping practices, child labor laws and other pay-related issues.

Finally, be certain to enforce the policy consistently. You may be courting a discrimination lawsuit if you only discipline some employees for poor attendance, while ignoring the time-management habits of others.

When "fun in the sun" dampens work productivity

Time-sheet cheating creates unnecessary costs

About one in five hourly employees admits to cheating on their time sheets to receive extra pay from their employers, according to a new survey conducted by Harriss Interactive and commissioned by The Workforce Institute.

While it’s hardly a new problem for employers, the rate at which time-sheet cheating is happening should be raising a few red flags that the problem is growing.

Of those who said they admitted to cheating on their time sheets:

• 69% admit to punching in earlier or punching out later than scheduled
• 22% admit to adding additional time to their time sheet
• 14% say that they don’t punch out for unpaid lunches or breaks
• 5% admit to having someone else punch them in or out

About 35% of survey respondents said their employers use paper time sheets to keep track of employees’ time, a practice that could be putting companies at risk for significant payroll inflation.

Organizations that use manual time and attendance tracking systems generally run up unnecessary payroll costs of roughly 1.2% of their total payroll costs because of inaccurate application of payroll rules and human errors, according to a Nucleus Research report.

Remember, the survey only discovered how many employees “admit” to cheating on their time sheets at work, suggesting that the actual number of time-sheet cheats is much higher.

Fortunately, businesses can do something to fight unnecessary payroll costs by moving away from outdated or mechanical employee time-tracking systems. Automated time-tracking tools can prove to be significantly more efficient than any paper-based payroll system.

With the vast number of options out there, it’s possible for businesses of any size to find an automated time-tracking tool that fits their needs. From basic software systems that electronically track who’s on the clock or not, to more advanced solutions that turn any PC into a time clock station, automated employee time tracking can lower costs and reduce payroll errors.

Ensure hourly employees are being paid for the time they work and limit the risk of costly payroll mistakes by taking control with an updated timekeeping system.

Time-sheet cheating creates unnecessary costs

Tracking attendance: Top reasons employees call in sick

An estimated 33% of employees have played hooky from the office at least once this year by calling in sick when they were well, according to CareerBuilder.com’s annual survey on absenteeism.

The majority of employers surveyed said they generally don’t question the reason for an employee’s absence. However, 31% have checked up on an employee who called in sick and 18% have gone as far as firing an employee for missing work without a legitimate excuse.

From the survey of more than 6.800 workers and 3,300 employers, CareerBuilder.com found the most common reasons for calling in sick, including:

• 9% wanted to miss a meeting, buy some time to work on an overdue project or avoid the wrath of a boss or coworker
• 30% needed to relax and recharge
• 27% went to a doctor’s appointment
• 22% needed to catch up on sleep
• 14% wanted to run personal errands
• 34% simply didn’t feel like going to work that day

Of the 31% of employers who checked up on an employee who called in sick:

• 71% required the employee to show a doctor’s note
• 56% called the employee at home
• 18% had another worker call the employee
• 17% drove by the employee’s home

"It’s in your best interest to be up-front with your employer and chances are you’ll get the time you need," said Rosemary Haefner, Vice President of Human Resources at CareerBuilder.com. "More companies today are moving toward a Paid Time Off system, giving employees more flexibility in how they categorize time away from the office. Employers are also expanding the definition of the sick day with 65 percent stating that they allow their team members to use sick days for mental health days."

Whether you require employees to have a legitimate excuse or not, tracking employee attendance can be one of the most burdensome and paperwork-filled tasks managers must deal with.

If you’re looking for a way to eliminate attendance paperwork and move to an electronic attendance tracking platform, we have a free webinar coming up that could offer a solution.

In our free, 30-minute “lunch and learn” presentation you’ll learn how unscheduled absenteeism affects your bottom line, the benefits of electronic recordkeeping and how software can help you get rid of employe attendance paperwork forever.

Software Basics: Track Attendance Electronically Like a Pro is sponsored by Gradience and created specifically for workplace software beginners interested in reducing unwanted paperwork and moving to a “greener” electronic solution.

Sign up today for Software Basics: Track Attendance Electronically Like a Pro on Wednesday, November 5, 2008 at 1 p.m., ET.

View upcoming webinars at G.Neil.com.

Tracking attendance: Top reasons employees call in sick