Is It Fair to Use Employee Attendance as a Criterion in Performance Appraisals?

Dear Friends & Seniors,

The question I have here for all of you is quite a strange one, as you all may say or rather agree: "Can attendance status of an employee be a criterion for grading his/her performance appraisal system?"

Yes, it is a strange case of a boss (owner of the company) trying to incorporate the same in this system, fooling the employees that it is part of the ISO Systems to do so... Well, in my span of 11 years of working in the private sector, I have never come across such a system where it is included.

Your responses to this story are invited in an objective manner.

Best Wishes & Regards to seniors,

Debashis

Hello...

Hmmm, I don't think attendance is part of the performance appraisal system. In the work field, getting work done in the right time and in a proper manner is important, not just attendance. If an employee is present 100% of the time but not working effectively, how can one consider the employee's performance to be good? The performance system should be based on the efficiency and creativity of the employee, not just attendance.

Yes, if it is in the IT or ITeS segment, wherein login time/hours and going the extra mile are key factors in SLA achievement. This may not be applicable in Sales/Marketing or any other segment that requires physical employee movement. In BPO, adherence to schedule and logging in hours play a major role.

Thanks...

Hello,

I don't know if it's fooling or not, but attendance can be a part of the appraisal system. My first company (IT/ITES) had this as a part of the appraisal, with 5 points allocated to the same. For instance, above 95% attendance would earn 5 points, above 80% would earn 4 points, and so on.

There is nothing abnormal about it. It does not mean that employees are only gauged through attendance; it is one of the criteria. Of course, that also shows your commitment. In one way, some companies use this as a parameter to encourage people not to take leave, which can ultimately be beneficial for employers, especially in the case of BPO/IT/ITES.

Again, please note that "Attendance" is not the only parameter. It is one of the parameters, and performance is also given due importance that it must receive.

Dear Friends,

Thank you for your inputs. I am expecting more from you.

What would you say about an employee who overachieves in terms of targets but doesn't have 100% attendance? Consider a scenario where the boss mentions that full attendance is part of the ISO (QMS) mandatory standards. How many of you agree with this?

For example, let's compare two employees. One achieves 80% of targets with full attendance, while the other achieves the same with 80% attendance. Who do you consider a better performer? How would you rate their performance?

Is this a tactic to discourage employees from taking privilege leaves, LTA, etc., which are part of the employment benefits? In any case, the employer has to pay for balance leaves, or the employee loses out when taking leaves.

Looking forward to your valuable comments.

Regards,
Debashis

Hi Debashis,

I also agree with Ash in this regard; there is nothing wrong in introducing attendance as one of the parameters.

But every attribute has its own weightage. In that case, performance will always be a criterion with higher weightage than others. So, evaluating both of them with the same importance would be wrong on our part.

To bring punctuality, commitment, and a sense of responsibility among employees, if a company is introducing this parameter, there is nothing wrong in that.

Regards,
Pankhuri

Hi Debashis,

Importance of supporting, encouraging, and recognizing regular attendance by employees. The Attendance at Work Policy supports this effort and provides opportunities for improvement. Employees, managers, and employers work together to make the work environment as pleasant as possible, and to ensure continuity and quality service to clients. The Attendance at Work Policy is supported by other government initiatives, including Employee (Family) Assistance Programs and a corporate appreciation and recognition approach.

Regular attendance is everyone's responsibility: employees, managers, and the employer.

Being at work means you contribute to the effectiveness of your organization by ensuring continuity in service delivery. The tasks you do are very important to clients and the employer.

Regular attendance helps develop personal satisfaction, a sense of belonging, and a feeling of accomplishment; and strengthens your relationship with co-workers.

Thank you,

Nagajyothi

Attendance cannot be, or rather should not be, 100%. The reason being that the person who achieves more and the cost of work-life balance may not continue giving as much in the years to come. As stated by Asha Mathew, attendance is one of the criteria for judging performance.

Regards,
Hrishikesh🌟

Dear all,

Time in the office plays a very important role in the organization because it helps to achieve the organizational goals. If an employee is punctual, then they give 100% output to the company. The attendance system helps in the performance review system.

From,
Neeraj
PH. 9873667761

Hey all!

I don't find fault with attendance being one of the criteria for the appraisal of the employee. But yes, I agree that it is not the only criterion either. Never forget that the absence of an employee for a day can put things on hold or slow down decision-making, leading to effective communication breakdowns. This is possible not just at the managerial level but at the ground level too.

Regards,
Sneha

Hi friends,

Attendance simply does not show how much the employee has come to the office, what time he comes and leaves the office, etc., but it emphasizes more on how disciplined the employee is. Including attendance in PA becomes more important when the presence or absence of an employee matters to his/her colleagues; i.e., his colleagues are depending on him in some way or another. It could be like working on similar projects or depending on him for getting some reports, etc.

Attendance becomes more vital in the education industry where the absence or late coming of a faculty could affect the schedule of a number of students in a day. Moreover, if an employee won't be interested or happy with the present employment, he may be more keen to take leaves from the office. This again affects his own working as well as that of the company/organization.

So, be it any industry, attendance is a vital factor to be kept in P.A., but of course, its weightage could differ from one industry to another.

Regards,
Mayank Kukreja,
Operations Manager,
Blue Planet

Dear Debashisroy,

Please see the answers to a few of your questions:

"What would you have to say for an employee who overachieves in terms of his/her targets but doesn't have a 100% attendance?"

He is definitely a performer.

The standards that the company sets are in general. That is assuming that a majority of people take leave from the day's work due to the following reasons:

a) Personal reasons (attending to family needs, functions, etc.)
b) Leave due to ill health
c) Leave due to a lack of commitment to work

Well, the above are just a few reasons I have quoted. Now, the appraisal system that is created newly with attendance being incorporated - it makes the employee think: "Is my purpose of taking a day off from work so important that I have to take a break from my work? Is this something I can avoid?"

If he can avoid - well and fine, it's good for the employer. Else, there is a real reason behind him taking the leave.

I guess it's for helping them curb their practice of being absent for no particular reason. (to a certain extent)

"An employee achieves 80% of his targets with a 100% attendance, whereas another employee achieves 80% of the targets with 80% attendance. Who do you rate as a better performer? How would you rate their performance?"

Performance is at the same level. Considering that everything else other than the attendance part has been gauged, I guess when it comes to the final part of appraising and in giving them the points, the person with higher attendance ranks first because he has been able to be there full-time and also complete his target. He is a more reliable source.

Whereas the other person had personal reasons and could not attend work for a few days but still managed to achieve his target. He is a performer, but how far he is reliable compared to the other person may be the question they would raise.

And it's definitely not a ploy, but I would say a strategy they would use as a method to seek commitment from employees.

Thanks,

Asha Mathew

Well, yes. Not really abrupt for attendance to be a parameter. It is appropriate that it should hold a small percentage in the performance measuring parameter, something like, say, a 10% value.

Performance is not attendance.

See the definition of performance and isolate attendance from this evaluation process. Attendance can be a criterion for assessing overall loyalty, punctuality, and discipline-related criteria. If you say attendance is a criterion, then the question arises: what does company policy state regarding absenteeism and low attendance? Are they excused? If not, then why are employees punished twice for one offense?

Partho

Dear friends,

As we are all contemplating the issue of attendance as a part of the appraisal system, I am taking the liberty to ask one question. Can attendance or office policies be a part of KRA for the department or an individual? I am in the process of formulating KRAs, and adherence to office policies is one of the main issues in my company.

Please suggest.

Dear Swati,

Don't confuse yourself with KRA and the appraisal system. KRA is not appraisal but provides information to the appraisal system. Likewise, attendance is another tool that provides information to the appraisal system. Adherence to office policies can be reflected in the annual appraisal.

Thank you.

Dear Asha,

Thank you for your reply. I know KRA is for the appraisal system. However, you may be aware that a few days back, I asked all site members to provide their inputs on KRA. I have developed KRAs for the organization, so I would like to know if "adherence to the office policies" could be a KRA.

Please reply.

Thank you.

Dear Swati,

I am going back to my point again. Above, I have mentioned that attendance cannot talk about performance. Performance cannot be the only one gauged to consider the yearly hikes/appraisal. The office policies, rules, and regulations are things that everyone must abide by, and it denotes that the company expects a certain work decorum. Attendance or adherence to company policies cannot be a key responsible area. The "KEY" responsible area is purely related to the output expected from that role. Whereas, the policies and attendance part is expected from everyone. Don't mix everything in KRA. KRA is a tool that provides information about individual employee performance.

On a second note, if you are talking about "KRA" for the department, then yes, in a generalized term, you can mention "Department adherence to policies."

Dear Deba,

In any industry, discipline is very important; it is another aspect that can improve the performance of individual employees. Employee attendance is a very significant criterion for performance appraisal. In my previous industry and current one, we include this attendance criterion as part of the appraisal process.

Thanks,
Vedha.

Yes, attendance must be a part of performance appraisal to assess the punctuality of the employee.

Think of an employee who has achieved an 80% target with 80% attendance; they can achieve more if motivated correctly by incorporating attendance into the appraisal system.

It is not harmful to include attendance as 5% out of 100% in the Appraisal System.

This may also have some exceptions, such as:
1) Leave due to critical illness or ESI Leave
2) Emergency Leave
3) Family Functions/Occasions

Regards,

Pankaj Chandan

Obviously, attendance is a part of performance. In a normal scenario, it is a team effort to perform and achieve the targets. If one person is not punctual, their part may be delayed, leading to the team being unable to complete the task. Moreover, attendance reflects discipline, attitude, and time management-related issues. Typically, when recruiting, the primary focus for any HR organization is more on the behavioral aspects rather than the technical skills, which can be enhanced through training.

When considering attendance, it is essential to take into account leaves with proper intimation. Late arrivals and absenteeism cannot be tolerated as they make it challenging to maintain control. It is crucial to assess an employee's performance holistically. For instance, an employee completing tasks at 100% efficiency with only 80% attendance indicates underutilization of their capabilities, resulting in significant losses for the organization.

To motivate and encourage employees, introducing leave encashment and promoting the utilization of a minimum of 10 days of leave per year can help them work with renewed vigor.

Regards,
Kameswarao

Dear Swati,

I totally agree with Asha on her point. Why not take a very relevant example concerning the software industry?

Have a look at this: Today, almost everyone has a laptop. Now, if we consider a case of a person who might go on leave for 15 days, but his laptop has all software and programs installed to allow him to work from home. He might want to develop a product innovatively and be comfortable working at home, whether in the garden, a pub, or anywhere else.

The company appreciates his product's innovativeness and plans to launch it in the market. When the product is launched and becomes a big hit, who will remember how many leaves he took or what he did? What ultimately matters is the performance he has delivered, how effective it is, and how much it helps the organization achieve its objectives.

So, attendance has no hard relationship with performance appraisal. Also, "adherence to company policies" cannot lead to KRAs. It is the knowledge, performance, and ability to perform a particular task that matter when considering KRAs. KPAs are directly responsible for KRAs.

I hope this clears up any confusion.

Regards,
Zalak Dave
Human Resources
Phone Number: +91-9725933139
Email: zalakdave@yahoo.com

Yes, attendance status is included in the appraisal system. Based on this, we can bring discipline and punctuality in a structured manner to the organization.

Hi Debasish,

In my view, linking PMS to employee attendance might provide a catalyst to jobs where adherence to 'time' schedules is seen as a critical factor for accomplishment.

If you rate a few jobs (e.g. KPO's, BPO's, etc.) wherein the time devoted is directly proportional to the leads generated and hence target accomplishments. In such cases, we cannot deny the PMS linked to attendance. Think about a key consulting position, where a key account person is attached to a client's place to provide regular & uninterrupted service to its customer. How can we figure out the effectiveness of such jobs without physical presence?

For an effect, all those tangible and intangible factors contributing to performance should be clearly listed out, and the weightage should be proportionately allocated. Regarding the weightage, as some of our CHR friends have quoted, the attendance/punctuality will generally vary between 0 to 10 on a scale depending upon the job criticality. Other tangible factors (e.g., targets achieved, quality of deliverables, etc.) should be given more weightage. This will provide a favorable assessment & net worth of the employee concerned.

Further, if you are keen on implementing the attendance-linked PMS structure, it is important to define the word 'attendance' and care to be taken that it should not be vaguely expressed. In my view, only Loss of Pays (LOP/LP) and habitual late comings should be taken into account rather than blindly adding up all leaves taken, since I believe when a company provides a leave as a benefit to its employees, the company should never question it on the same ground unless there is some gross violation.

But again, there are some companies that promote 'work from home' culture, particularly to married women executives, where, on the contrary, have shown excellent results in performance. If the company is internally evolved and the work culture promotes such practices where success is seen not only as job achievement but a balance in work-life aspects as well, then I will not mind giving up the 'compulsory attendance' practice.

With regards,

Jayesh Yohannan
HR – Maytas Infra Limited

Hi Debashish,

In the example you have given, it would be unfair to judge the employee who has 80% attendance with 80% productivity (higher efficiency) at the same level as one who has 100% attendance with the same 80% productivity; only if weightage for attendance and other performance parameters is the same. If, for example, the weightage for target achievement is 50% and attendance is 5%, then obviously efficiency has been given due consideration.

Where revenue is based on an employee's hourly or daily contribution, factoring it into their performance is but natural for the benefit of the company as well as the employee.

Regards,

Kavitha

Dear All,

It is a common practice to consider Attendance Records as part of the Appraisal System. There is no abnormality in our company during the Performance Appraisal System; we are considering this fact in mind, and we have incorporated Attendance Records as part of the Appraisal System.

From my personal experience, even though employees perform well, there are many cases where they are very irregular in their attendance. They come late, leave early, and take frequent leaves.

I fully agree that as the Performance Appraisal system is evaluated jointly and falls within the scope of the P&A department, we should always take the Attendance System into account when evaluating the performance of any employee.

Regards,
Abhijeet Sawant

Hi Debashis,

I am of the opinion that attendance and punctuality should hold a notable status in the appraisal cycle. It should be one of the requisites in the appraisal system. No matter how efficient or overperforming an employee is, he/she has to maintain discipline, which includes proper logging in and regularity. If we start considering the efficiency of an employee and overlook his/her irregularity, this practice will spread very fast among other employees and may result in total indiscipline.

To avoid this, attendance has to be given weightage in the appraisal system so that employees take it seriously and work accordingly.

Regards,
Richa Singh.