Just how much is Employee Lateness costing your Business?
Human Resource Management, People Management, Workforce Management
Have you ever missed your train or gotten a flat tyre en route to work? Maybe your just not a morning person or you struggle to get the kids out for school before you head to the office?
Whatever the reason, when not measured and managed properly, employees’ lateness can cause businesses thousands of dollars each year in lost productivity and profits.
To understand exactly how much lateness could be costing your business, let’s look at the example below.
XYZ Pty Ltd has 120 employees.
10% of their workforce (12 employees) is persistently late for work by 10 minutes. Their average hourly pay is $25.00 p/h (10 minutes late represents $4.16)
Assuming there are 232 working days per year: 232 x 12 (late employees) x $4.16 ($ lost due to lateness) = $11,581.44 lost per year
And when you combine this with the lost productivity, extra overtime costs incurred when covering workload, and the potential order value of contracts lost due to delays in delivery, you can clearly see how just a few minutes lateness can really affect your bottom line.
How might a Time & Attendance System help reduce the financial impact of Employee Tardiness?
It doesn't take a rocket scientist to know that if you monitor employees’ attendance and absence patterns their overall presence rate will generally improve.
An automated Time and Attendance system can help reduce employee lateness by effectively monitoring and analysing working time and absence patterns. I for one know that if I have to register my attendance in the morning, I make double sure I make it into the office on time!
An effective Time and Attendance system also allows you to set up specific rules relating to your business operation. For example, you could set up a rule whereby once a person arrives late to work by 7 minutes, the system rounds that figure up to 15 minutes, meaning 15 minutes worth of pay will be reduced from your employee’s salary.
Continue to our website to find out more information about automated Time and Attendance systems and absence management modules - www.mitrefinch.com.au
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