Attendance bonus policy helps to increase the rate of attendance of the employees working and can boost their motivation in order to work more efficiently and effectively. The U.S. Department of Labor (USDOL) states that such bonuses can reduce absenteeism and help employees to become more punctual and productive.
This incentive is a reward for the employees for their dedication towards work. It can benefit the company as employees will be more fruitful which will increase the company’s efficiency.
Why is it effective?
The attendance bonus payment method is an effective way of encouraging employees (especially new employees) as this is an extra reward for them outside their basic pay and they can earn extra if their attendance rate is high.
Daily attendance is essential for hourly-based employees whose co-workers are dependent on them for delivery or shipment. A good attendance of individual employees speeds up the company’s work and helps the organization to meet its mission and vision. It helps the business to become more competitive and gain higher profits and revenue.
This will decrease the abuse of sick leave and have a positive impact and will reduce short-term absences that can be shunned. Employees will be more aware because they will not want to miss the opportunity of receiving a bonus that will be provided due to less absenteeism.
Attendance bonus policy
Attendance bonuses are usually paid on the last payday in the month of June. The ideal bonus for the perfect attendance rate is $100. Employees who have perfect attendance will be registered in the monthly attendance data. An employee who achieves the attendance record in a calendar year will be qualified to receive the stated annual bonus offered by the company at the end of the office calendar year.
Employees must be working as full-time employees during the six months and have no sick leave, or take no time off, with zero late arrivals or early leave and even if they do so, they have to make up for it within the same week.
There should be no unannounced vacation leave and have to provide an advance notice regarding it to receive the attendance reward. However, an absence that is due to a family or medical emergency will be qualified as a permissible leave and will not eliminate an employee from this award.
Contemplation regarding attendance bonus
Absenteeism due to pregnancy or medical emergencies or any kind of disability should not affect this bonus reward. The law states that if any company fails to attain this policy or misuse it, employees can take legal actions under the National Minimum Wage Regulations and The Working Time Regulations which can cause trouble to the company’s reputation.
If the matter gets out of hand, the company might be penalized or even get sued due to a legal minefield. Employers need to be careful while making these decisions and be cautious about it so that every employee is paid fairly and there is no discrimination between them.
Importance of attendance bonus for hourly employees
There are several ways to keep the workforce motivated. A motivated workforce will result in company growth and development. Employees tend to be sneaky and escape early from work which can be a drawback for the company as it will slow down the management process.
It might cause conflicts among the employees especially when all the departments are related to each other and all the employees are equally obligated to the workforce which means, if one employee is absent, it can slow down the overall work process or cause delays in decision making.
By maintaining the attendance bonus policy, companies can reduce this absenteeism rate which will keep the employees motivated because it is proven that one of the main motivational factors for employees is payment. If they receive an incentive related to pay, besides their basic wage, it will stimulate their productivity.
7 Ways to reward employees for good attendance
It is essential to adopt the right incentives that will work effectively for the company. If properly maintained, it will lead to reducing the rate of absenteeism. Rather than punishing employees by deducting their wages due to poor attendance, positive behavior such as rewards is very helpful and necessary in order to keep them motivated and bring them to work every day.
- Exceptional gift items for workers who never miss workday, which includes electronic devices, gift cards or travel cards, eGift cards, etc.
- Give more authority and work responsibility
- Longer lunch breaks
- Free paid day off
- Plan special events for employees with zero absenteeism
- Offer special dinners or lunch with the CEO
- Provide high appreciation in front of the other employees
Other types of bonuses for hourly employees
There are other types of bonuses that companies offer to their employees in order to keep them encouraged. This can include-
- Holiday Bonus
- Profit-related bonuses
- Performance-related pay
- Team bonus
Each and every minute is vital for a company. It is a potential loss for the business productivity even if an employee is a minute late to work. It can cause problems in the long-term, so make the rewards memorable, unique, and attractive for your staff and you will see the results of how your team arrives early in no time.