While some companies don’t care when an employee logs in & logs out, others are very particular on employee work hours. In this article we explore how companies handle late and overtime instances.
Employee attendance tracking is very common among companies, large and small. A large part of this tracking is to make sure teams spend maximum time together to deliver on projects and deadlines. Some companies are very particular about the number of employee man-hours, specially factories, shop floors, call centres, hospitals etc. Let’s look at how these companies ensure employees are doing their designated tasks consistently.
If you look at companies today, you can broadly categorize them into 3 categories: 1. Manufacturing 2. Service 3. Startups.
Manufacturing jobs need presence of skilled workforce for various shop-floor activities including operating machines for production, quality control, inventory management, packaging and shipping. To ensure effective work-hour management, manufacturing companies run a shift roster with designated shift timings for all employees. Examples of manufacturing jobs include factory engineers, operators, fitters, quality control managers etc.
Service jobs need presence of trained workforce for customer support, service delivery and quality control. Service sector companies need effective workforce and time tracking processes to ensure consistent service quality to customers. Examples of service jobs include nurses, call support executives, airhostess and pilots, restaurant chefs etc.
New age companies and product based start-ups have teams working on product design, development and marketing. By and large, these jobs don’t need people to log their time consistently. Startups are more output driven and less prone to monitoring workhours of employees.
Manufacturing and service sector companies put in place time-tracking business processes to ensure consistent product/service levels for customers.
Most manufacturing and service companies are prone to cyclicality of demand. There are days where demand is very low (eg. rainy season for hotels and hospitality industry) and days where demand is extremely high (flue season for hospitals, holiday season for retail etc). Due to such demand cyclicality, companies have an overtime policy where employees get paid extra if they stay back longer hours or if they work on holidays. For these periods, companies monitor employee hours over and above regular work hours and pay employees on a per-hour basis.
While the exact compensation policy might vary from company to company, most companies pay 2–2.5X of standard pay for overtime hours. This is enough incentive for employees to pitch in when there is urgent work overload.
Overtime pay is 2–2.5X that of standard pay rate
Manufacturing companies typically run in shifts — At the end of each shift, operators of machines and industrial equipment hand over duty to another operator in the incoming shift. Such hand overs are common across industries that run 24*7 because the cost of stopping and restarting is simply too high.
In these circumstances, it is extremely important for employees to report on or before their shift start times. Reporting late causes undue stress on the employee who just completed his/her shift hours. To ensure attendance discipline, HR teams of companies usually formulate a ‘late’ policy.
Some examples of late policies include:
While each company designs their own late policy, it is important to note that time tracking is essential for managing check-in discipline of employees.
To manage both, late and overtime policies, companies need an easy way of recording, tracking and analysing work-hours of employees. Arvi selfie-check-in provides an easy, smart and seamless attendance management solution that works on facial recognition.
Arvi selfie-checkin allows companies to configure flexible late and overtime policies and instantly generate reports that capture late and overtime hours. You can check out a 30-day free trial to test the solution