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In a digitalized world, the workplace should be the first to implement new systems and strategies to better manage time, attendance, and absenteeism. Companies using an outdated timekeeping system have huge losses, not only from a financial aspect, but also experience a drop in productivity and job satisfaction. Using outdated timekeeping methods also makes a company more susceptible to falsified time records like, time-theft, and buddy-punching.
Absenteeism Cost to Employers
- On average, a shift worker costs a company $2,660 in absenteeism costs each year (Circadian, 2014)
- Every year in the U.S. $36.4 billion is lost from employee absenteeism (CDC, 2020)
- Time-theft makes companies lose about $11 billion per year (Workplus, 2019)
- “Buddy-punching”, where an employee clocks another employee in, costs companies about $373 million per year (Workplus, 2019)
- Moving from weekly timesheet updates to daily would recover $52,000 per employee per year (Affinitylive, 2014)
- Almost 10% of employers admit to taking time off employee timesheet (Tsheets)
Time and Attendance Overview
- On average, U.S. workers typically work 7.7 hours a day (TSheets)
- Almost 3% of an employer’s workforce was absent on any given day (U.S. Bureau of Labor Statistics, 2019)
- 93% of employees say paid time off is an important or very important contributor to their job satisfaction (SHRM, 2016)
- Most common reasons for unscheduled absenteeism are personal illness (30%), family issues (20%), personal needs (27%), and stress (12%) (Circadian, 2014)
- 88% of the “best in class” companies automate their time and attendance data collection (Aberdeen Group, 2011)
- 86% of respondents who use outsourcing management systems have reported very high satisfaction with their systems (SHRM, 2017)
Time Management Systems
- 80% of timesheets have to be corrected (Wagepoint, 2019)
- One in three timekeeping methods are outdated (Wagepoint, 2019)
- 38% of employers in the US use punch cards and paper timesheets (Workplus, 2019)
- 38% of employees track their own hours, while 18% of respondents said their manager tracks their hours (Tsheets, 2017)
- Employees that log their time at least once a day are 66% accurate, whereas those who log their time weekly are only 47% accurate (Affinitylive, 2014)
- Most common ways of receiving shift schedules is on a piece of paper (45%), via phone or text (10%), spreadsheet (10%), and whiteboard (3%)
HR Strategies to Combat Absenteeism
- 40% of large employers have an outsourcing leave-management system in place, whereas 27% of small employers outsource to vendors (SHRM, 2018)
- CDC recommends that employers introduce, promote, and support workplace wellness programs to help lower some of the health-related absences (CDC, 2020)
- Only a quarter of respondents felt their organization was tracking financial liabilities for paid leave “very accurately” (SHRM, 2014)
- 84% of respondents had a time and attendance system as part of their workforce management strategy (Deloitte, 2014)
Unscheduled absences and changes in the workplace will always happen. It is up to the company to be prepared and have good systems in place to manage and handle unpredictable changes smoothly and without major losses.
Written by shortlister editorial team
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