One of the most important responsibilities of HR operations is managing employee attendance. Effective management requires an understanding of the operation, the concepts and best practices. This guide will provide a detailed overview of the attendance management software and the key responsibilities of administrators handling workforce management and attendance.
What is Attendance?
According to company policies, attendance is when you are present at work. Absence from work is the opposite of attendance.
It isn’t as easy as it seems. Most companies require employees to be present for a set period to be considered present.
If an employee arrives at a factory at 3:00 PM but leaves after only one hour, it doesn’t count. Employees must be present at all times, from the beginning to the end of each shift.
For teams that do not have customer contact or work that is not time-dependent, attendance may mean 8 hours of work per day. On one day, you could have 9 to 5 and 6 to 2, while it might be 6 to 2 the next.
Aside from the narrow definition, attendance can be considered a shorthand term that covers a wide range of issues like absenteeism and time discipline, workforce management, productivity, etc.
Why Attendance Management Software is a must?
It is vital to track employee attendance to improve your company’s reliability, profitability, and reputation. Attendance management is essential for seven reasons:
The time spent at work is an important input variable in production that involves human workers. More time at work equals higher productivity.
Smooth Running of Operations
This is not only about the individual productivity of an employee but also the productivity of the entire team and the organization as a whole. The absence of a team member can lead to delays, coordination problems, high work-in-progress, inventory, and higher work-in-progress (WIP). This can happen multiple times with different people, and the impact of being absent is multiplied instead of adding up.
Inadequate discipline within an organization can lead to unpredictable delivery times, delays and unpredictability. The difficulty is also contagious. It can also cause other employees to fall for the same bad habits, only making the problem worse.
Conscientious employees become frustrated when they see that indifference is accepted and ignored. They may eventually leave the company searching for a better job while the employer’s brand is damaged.
Time discipline is a key element of lean management. It helps to reduce variability and delay.
Many businesses, such as hospitals and retail outlets, operate multiple shifts. High production demands may mean that people have to work overtime on weekends and holidays or beyond their regular hours.
From a cost-efficiency standpoint and employee satisfaction perspective, a proper time tracking system is essential. A poor system can lead to disputes, higher employee expenses, and stress for administrators.
In the industrial age, time clocks were created to ensure workers were paid only when they were working. Some people might misuse the system by stealing time through time theft, late arrivals, early departures, and too many coffee breaks.
A fool proof system that tracks attendance and enforces policy consistently and diligently can only solve time theft.
Some employees push work that could be done in regular hours to overtime hours because they have an overtime policy. This is another form of time theft. Good record-keeping and tracking can help to curb misbehaviour.
Accurate Payroll Data
To accurately calculate salaries, attendance inputs are essential. This information can be derived from attendance data. Salaries are calculated based on the number of days worked. This data can also be used to calculate Shift Allowances and Attendance Bonuses.
For various compliance reports, attendance data is also required. These reports include hours worked per day, week, shifts worked, overtime hours worked, and details on days present and absent.
These reports will be generated in India under different Acts such as the Factories Act and Shops & Establishment Acts.
What is Attendance Management?
Attendance management refers to a collection of employee activities and processes essential for time accounting, discipline and productivity, and statutory compliance.
As we have seen in the previous section, the attendance system comprises several parts. Each subsystem must work together to make the entire system run smoothly. Administrators are responsible for setting up and running each sub-system efficiently.
Attendance management involves:
- Designing attendance policies
- Shift rostering and shift management
- Operating and managing attendance devices & registers
- Maintain accurate time records
- Processing raw attendance data
- Overtime management and payment
- Employee communications and alerts: Sharing live attendance information daily as feedback to staff, informing employees about shift rosters, and making announcements.
- Monitoring attendance processes such as overtime approvals and attendance regularization
- Finalization of overtime and attendance within the cut-off dates
- By pursuing violations, you can enforce attendance policies.
- Compliance with the law
- Preparing MIS reports and obtaining insights
- Monitoring absenteeism individually as well as collectively
- Set up an employee help desk to answer employee questions and provide support.
What Industries need Attendance Management?
Both the service and manufacturing sectors have fixed hours. A sound attendance management system is essential for all industries, including factories, retail shops and schools, hospitals, software companies, financial institutions, and software companies.
For seamless work processing, organizations that work on multiple shifts must ensure that employees are available during shifts.
Many industries have long hours that employees must work, whether on the weekdays or weekends. Time tracking software is crucial to comply with overtime laws and accurately pay overtime.