To regulate the attendance process to ensure that production and other operational activities are running smoothly, companies set up written procedures. Shift timings, week offs, definition of hours required for considering full day/half day presence, over time rules, etc., together are termed as Attendance Policy.
HR needs to determine every day whether an employee has come in to work on that day or not. For this, they need to create the Attendance Policy of the organization. Various factors go into determining the policy. This could be based on whether the organization has multiple shifts, whether the weekends are fixed, number of hours worked, whether late coming is tracked and the effect of late coming, etc. The process of determining can be quite simple or complex depending on the policies of the organization.
- In a simple case, organizations do not track the absence at all. They only track the leave taken by the employee as informed by the employee.
- In other cases where attendance is tracked, organizations require employees to mark their attendance by either manually signing in a register, punching a time card, using a swipe/RFID card and flashing it in front of a reader or recording their physical presence on a biometric reader.
HR needs to ensure the following:
- In case of electronic readers, the readers are functioning every day and recording the swipes/impressions of the employee.
- In case of manual registers, the registers are kept in the right place for signature in the specified time.
- Employees who have not come in or have come in late and have an approval from their manager need to regularize their attendance. This is to be tracked so that accurate status can be determined.
- If an organization is working in Shifts, HR has to ensure that correct shifts information is updated so that the late coming, early going, and hours worked can be tracked.
If an employee has gone on tour or outside the office, this needs to be tracked. Similarly, if the organization has a work-from-home policy this information also needs to be tracked.
HR needs to work with the Line Managers to ensure that all Over Time (OT) done by the employees are tracked. Based on the swipes, shifts assigned, weekend days, Leave and Attendance Regularization, HR needs to compute the attendance of the employee for the month. They need to create a report called an Attendance Muster.
Employees need to made aware of this information before Payroll is processed so that they are aware of the affect of this on their salary and also have a chance to fix any issues before payroll is processed.
Information needs to be shared with the Payroll team on Absent Days, OT Hours, Shift Allowances and other related information. Based on organization policy, this information will be used in the Payroll computation.
HR needs to generate various statutory reports based on hours worked, leave taken, OT paid, weekends worked, etc. There are a varied set of reports that need to be generated and these differ from state to state.